Sustainability
ReportIssued on January 21, 2022

Maximize unitholder value by
improving sustainability
MEL is committed to endeavoring to enhance consideration towards the environment, social contributions
and corporate governance to improve the sustainability of society. We recognize that this is an importantsocial responsibility for a listed enterprise to assume, and also believe that it is essential for maximizing
our unitholder value.
To put our commitment into practice, MEL together with its asset management company, MJIA, shares
the sustainability objectives, and continues to embed sustainability into our business.

CONTENTS
Sustainability

Efforts for Society and Employees (S)Top Message������������������������������������������������������������������1

Initiatives to Tenant������������������������������������������������������ 39

Initiatives for Sustainability����������������������������������������������2

Contributions to Local Communities�������������������������������� 42

Sustainability Policy��������������������������������������������������������3

Human Resource Development�������������������������������������� 45

Sustainability Committee�������������������������������������������������4

Promotion of Diversity ＆ Inclusion��������������������������������� 48

Stakeholder Engagement������������������������������������������������7

Employee Health and Well-being ～Creating Productive and
Employee-friendly Workplace～�������������������������������������� 50

Materiality
Materiality���������������������������������������������������������������������8

External Evaluation and Certifications
International Initiatives and Participation������������������������� 13
Environmental Assessment and Certifications������������������� 15
Green Building Certifications������������������������������������������ 18

Work-life Balance ～Create a comfortable workplace where
employee will want to work for a long period of time～����� 54
Human Rights�������������������������������������������������������������� 56

Governance Initiatives (G)Governance Initiatives�������������������������������������������������� 58
Corporate Governance�������������������������������������������������� 59
Compliance����������������������������������������������������������������� 61
Risk Management��������������������������������������������������������� 63

Environmental initiatives (E)Environmental Performance������������������������������������������� 20
Climate Change Initiatives��������������������������������������������� 23
Water Resources and Waste Reduction, etc��������������������� 32

ESG Disclosure Policy and Reporting Framework
ESG Disclosure Policy and Reporting Framework�������������� 64

Contributions to the Environment through Our Portfolio���� 33
Environmental Collaboration Efforts
with Tenant・Stakeholders���������������������������������������������� 35
Green Finance�������������������������������������������������������������� 36

Sustainability Report
We have published this report for the purpose of publicizing our approach to ESG
and our initiatives to a wide range of stakeholders, including investors.

Top Message
Sustainability has attracted public attention in recent years and has
been widely covered in the Japanese media. The corporate stance of
responding to climate change and other environmental issues,
contributing to local communities, and enhancing internal controls is
now caught by investors as a benchmark for evaluating medium-to
long-term risk management and opportunities to generate newrevenues.
In line with these developments in the world, the Investment
Corporation issued our first Sustainability Report in January 2022 inorder to make the efforts to date related to ESG known in an easy-tounderstand manner to investors and other stakeholders.
The Investment Corporation believes that working to improve social
sustainability, including consideration for the environment, social
contribution, and strengthening governance, is a social responsibility
expected of a publicly traded investment corporation, and is also
indispensable for maximizing unitholder value. In order to put theseideas into practice, we share our approach to sustainability with theAsset Management Company and promote our efforts together.
In April 2019, the Asset Management Company established theSustainability Policy, as a basic policy. Based on this policy, we are
implementing ESG initiatives in our day-to-day operations.
In December 2021, by the support for the recommendations of the
Climate-Related Financial Information Task Force (TCFD), theInvestent Corporation has identified materiality, risks, andopportunities and analyzed and evaluated them, and set KPIs for the
Corporation. We will continue to expand information disclosure andrespond to climate change based on scenario analysis.
In addition, the Mitsubishi Estate Group, to which the AssetManagement Company belongs, established the Mitsubishi EstateGroup's Sustainability Vision 2050 with an eye to sustainability
management in 2050 in order to promote business aimed at realizing asustainable society. To realize this vision, the Mitsubishi EstateGroup's Sustainable Development Goals 2030 set forth in the LongTerm Management Plan 2030 is positioned as a milestone to establish
specific themes and actions to achieve this vision. The AssetManagement Company also shares this.
The Investment Corporation will continue to strive to fulfill its missionof maximizing unitholder value over the medium to long term bybuilding relationships of trust with its unitholders and otherstakeholders by further enhancing ESG in real estate investment
management and appropriately disclosing its achievement.
1

Mitsubishi Estate Logistics REIT
Investent Corportion
Executive Director Ken Takanashi

Initiatives for Sustainability
Basic stance
MEL is committed to endeavoring to enhance consideration towards the environment, social contributions andcorporate governance to improve the sustainability of society. We recognize that this is an important social
responsibility for a listed enterprise to assume, and also believe that it is essential for maximizing our unitholder
value.
To put our commitment into practice, MEL together with its asset management company, Mitsubishi Jisho
Investment Advisors, Inc. ("MJIA"), shares the sustainability objectives, and continues to embed sustainability into
our business.

Mitsubishi Estate Group's efforts and policies on ESG issues

2Sustainability Policy
1.Pursue Energy Efficiency and Low Carbon
We proactively pursue energy efficiency and takes steps to reduce greenhouse gas emissions in our portfolio by
installing and switching to energy-saving products and utilizing renewable energy.

2.Improve Water Resource Management and Waste Management
We strive to improve the efficiency of water use and to implement 3R waste programs (reduce, reuse, recycle) inorder to make effective use of limited resources in our portfolio.

3.Enhance of Tenant Safety, Security and Satisfaction
We implement disaster preparedness and damage prevention measures in our portfolio and strive to increasetenant safety and security. We promote improvement of operation methods based on our tenants’ needs,
installment of equipment, and improve tenant satisfaction.

4.Empower Our People
We provide various training and skills/career development programs into our development of employees’capabilities to raise environmental awareness. We are also committed to creating a work environment that is
comfortable for all members of our diverse pool of talent, thereby making it possible for everyone to reach theirfull potential.

5.Collaborate with External Stakeholders
We strive to build relationships of goodwill with external stakeholders including tenants, property managers and allothers along the supply chain, as well as with local communities and local governing bodies. We focus oncollaborating with these parties as we put this policy into practice.

6.Disclose ESG Information and Obtain Environmental Certifications
We endeavor to disclose ESG related information to our investors and various other stakeholders. In addition, we
work to obtain environmental certifications as needed in order to strengthen our sustainability efforts.

7.Ensure Compliance and Risk Management
In addition to complying laws and regulations, we adhere to social norms including fair transactions, appropriate
information management practices, prevention of corruption, prevention of conflicts of interest and respect forhuman rights and diversity. Over the medium- to long-term, we consider the environmental and social risks related
to our portfolio, incorporate these considerations into the real estate management process to minimize risk.

3

Sustainability Committee
MJIA convenes its Sustainability Committee with a view to implementing the Sustainability Policy in order toimprove sustainability and maximize its unitholder value.

Sustainability Promotion Structure4

Reporting details, meeting frequency and examination process
As a general rule, the Committee meets once a quarter to deliberate the establishment of sustainability-related
goals and measures and to share the progress on these goals and measures. The Committee also evaluates andanalyzes these matters while also exchanging the latest knowledge pertaining to sustainability.
The deliberations of the Committee are submitted for discussion to the Executive Committee whenever necessary
in light of their importance. The content of the Committee meetings is also reported to and supervised by the MJIA
Board of Directors, while also being reported at the Board of Directors meetings that are held periodically at theinvestment corporations.

Sustainability Promotion Based on PDCA Cycle

5

Establishment of the Sustainability Promotion Manual
MJIA formulated sustainability promotion manuals to provide basic policies with regard to and clarify proceduresfor its sustainability promotion initiatives, including those aimed at constantly monitoring and reducing thevolume of energy and water consumption and greenhouse gas and waste emissions as well as those aimed atpromoting green procurement through external collaboration. Through the distribution of these manuals, MJIA is
striving to enhance the effectiveness of its sustainability initiatives.
＜Overview of the Sustainability Promotion Manual＞
ManualContents

Environmental management system
operation manual

Operational Rules for Sustainability Policies and Handling
Detailed Regulations for Sustainability Policies
Establishment, management, and maintenance of EMSs based on
PDCA cycle

Greenhouse gas emission reduction
promotion implementation manual
Energy Conservation Promotion
Implementation Manual
Water use efficiency manual
Waste management manual

Basic policy for continuously identifying and reducing theamounts used and discharged
Management and analysis of amounts used or discharged

Sustainable procurement implementation
manualProvisions for consideration of sustainability in the procurementof goods and services related to the asset management businessof the Investment Company and specific measures to promotesustainability in cooperation with suppliers including PM
Corporation

Implementation of Sustainability Training
MJIA regularly holds training sessions for all executives focused on sustainability in order to acquire knowledge
and raise awareness of sustainability considerations that are more practical, such as market and regulatory trends
related to ESG investment and environmental real estate, and information related to green building certification.

6

Stakeholder Engagement
Basic Policy
The Investment Corporation's business activities are conducted with the support of its many stakeholders. For thisreason, we recognize that fulfilling the social responsibilities required of the Investment Corporation is also
important in our own sustainable business activities.
The Investment Corporation's main stakeholders are investors, tenants, business partners, communities, andemployees. The Investment Corporation will deepen its relationships of trust through constructive dialogue withthese stakeholders, and take their expectations and requests seriously and apply them in the business activities of
the Investment Corporation and ESG initiatives.

7

Materiality
Identified Materiality
Environment (E)Responding to Climate Change/Enhancing Portfolio ResilienceCO2 emissions intensity

Target: 30% reduction by FY 2030 (basedon FY 2017)

Energy consumption intensity

Target: 15% reduction by FY 2030 (basedon FY 2017)

KPIs and targets

PolicyWe aim to reduce greenhouse gas emissions by introducing equipment that
contributes to energy efficiency and energy conservation in our portfolio.

Page

https://mel-reit.co.jp/en/esg/environment/

Resource savings
Water consumption intensity

Target: Not increased by FY 2030 (basedon FY 2017)

Waste recycling

Target rate: 70% or more by FY 2030

KPIs and targets

PolicyWe will promote the efficient use of resources (including water) and promote thereduction and recycling of waste.
When disposing of waste, we comply with laws and regulations and properly
dispose of such waste (including hazardous substances).

Page

https://mel-reit.co.jp/en/esg/environment/

Promotion of Green Portfolio/Active Receipt of Green Building Certification
KPIs and targets

Green building certification

PolicyObtain various green building certifications and visualize the objectivity andperformance of GHG emissions reductions.

Page

https://mel-reit.co.jp/en/esg/external/greenbuilding.html
8Target: Increase to 100% by FY 2030

Society (S)Improvement of Health, Safety and Comfort/Improvement of Tenant Satisfaction
KPIs and targets

Regular implementation of Tenant Satisfaction Surveys

PolicyWe aim to improve tenant satisfaction by conducting regular tenant satisfaction
surveys, conducting renovation work in response to diversifying social needs, andexpanding tenant support services. (environmental and energy-saving measures,
health, safety, comfort improvement, etc.)Page

https://mel-reit.co.jp/en/esg/environment/

Contribution to local communities and implementation of community contribution programs
KPIs and targets

Regular implementation of community contribution programs

PolicyWe will strive to contribute to society by regularly implementing community
contribution programs (including participation in local cleaning activities) andcontributing as a disaster prevention center for our portfolio.

Page

https://mel-reit.co.jp/en/esg/environment/

Creating a safe and comfortable work environment for everyone and improving employee satisfaction
Implementation of an employee satisfaction survey
KPIs and targets

Acquisition rate of paid holidays

Target: 90% or more (calculated by
employees on April 1 of each fiscal year)

Female management ratio
PolicyWe will respect the basic rights and diversity of our employees and create anenvironment and system that maintains a good work-life balance.

Page

https://mel-reit.co.jp/en/esg/environment/

9

Human Resource Development by Enhancing Continuous Training
KPIs and targets

Training hours per employee
Number of qualified employees

PolicyWe regard employees as important management resources "human assets" for acompany, and conduct various types of training to improve a wide range ofexpertise and skills, as the growth of employees is essential to our growth as acompany.

Page

https://mel-reit.co.jp/en/esg/environment/

10

Governance (G)Thorough Compliance and Risk Management

KPIs and targets

Meetings of the Compliance Risk
Management Committee

Target: Held as needed

Frequency of compliance and risk
management training sessions

Target: 4 times par year

Compliance and Risk Management
Training Participation Rate

Target: 100%

Safety con rmation training

Target: twice a year

Internal audit

PolicyWe aim to thoroughly comply with laws and regulations by fostering each
employee s awareness of compliance and risk management and enhancing
his/her knowledge.
We will conduct appropriate internal audits to ensure e ective internal controls.
We will prevent unfair and impartial transactions with stakeholders based oninternal regulations and deliberations by the Compliance and Risk Management
Committee.

Page

https://mel-reit.co.jp/en/esg/environment/

Enhancing Governance
KPIs and targets

Frequency of the Board of Directors of MEL
Attendance rate for the Board of Directors of MEL

PolicyWe aim to build a governance system by ensuring the third-party nature anddiversity of the Directors of MEL.

Page

https://mel-reit.co.jp/en/esg/environment/

Enhance Clear Information Disclosure and Engagement with Stakeholders (Investors)
KPIs and targets

GRESB、MSCI、PRI
Number of IR meeting

PolicyWe aim to build an strong relationship of trust by disclosing information in atimely, appropriate, and proactive manner, including sustainability information,and regularly holding engagement with stakeholders (investors) through businessactivities that utilize IR and other means.

Page

https://mel-reit.co.jp/en/esg/external/greenbuilding.html
11Materiality Identification Process
Step 1 Identi cation of Issue Items
With reference to the evaluation items of the main evaluation organizations (GRESB, etc.) and disclosure frameworks (GRIs,etc.) related to sustainability of the Investment Corporation, issues were identi ed over a wide area based on the
expectations of stakeholders and the status of other companies in the same industry.

Step 2 Focusing and Prioritizing
Formulate materiality (draft) by organizing and integrating issues as appropriate and prioritizing them in light of social trends
and expectations demanded by internal and external stakeholders and the impact on the business and performance of theInvestment Corporation.

STEP 3 Meetings, Validation and Approval by Management
The materiality (draft) is discussed external specialized institution and management, including President ＆ Chief Exectiveo cer of MIJA, and approved by Management Committee of MIJA identify materiality.

12International Initiatives and Participation
Signing of PRI
The Principles for Responsible Investment ("PRI") comprises an international network of investor signatories thatworks to realize the Six Principles established for the finance industry in 2006 under the leadership of the thenUnited Nations Secretary-General, Kofi Annan. This network is promoted through the United Nations Environment
Programme ("UNEP") and the United Nations Global Compact ("UNGC").
PRI encourages the incorporation of Environment, Social and Governance issues into investment decision-making
processes, with the aim to help companies enhance long-term investment performance and better fulfill theirfiduciary duty. As of March 2019, approximately 2,300 institutions, representing more than US$86 trillion in assets
under management, have signed on to PRI.
MJIA agreed with the basic approach of PRI and became a signatory in March 2020.
＜The Six Principles＞
Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
Principle 6: We will each report on our activities and progress towards implementing the Principles.

Supporting the TCFD Recommendations
TCFD (Task Force on Climate-Related Financial Disclosures) was established by the Financial Stability Board (FSB)
to consider how to disclose climate-related information and respond to financial institutions.
In its final report in June 2017, TCFD published recommendations to identify and recommend public disclosuresabout the financial consequences of climate change for companies and other entities.
In December 2021, MJIA announced its suppose for the recommendation of the TCFD and joined TCFD Consortium,a group of domestic companies that support TCFD recommendation.
The Investment Corporation also recognizes that the risks and opportunities related to climate change have an
impact on its business, and will respond to these risks and further promote the disclosure of information.

Please refer to”Climate Change Initiatives ” for details.
13Participation in UNGC
UNGC is a voluntary, global initiative supporting a global framework for sustainable growth through thedemonstration of creative, responsible leadership by the respective corporations and organizations as principledmembers of society.
First proposed in 1999 by the then United Nations Secretary-General Kofi Annan, participants currently number
more than 13,000 organizations and companies based in 160 countries (as of July 2018). It engages in activities
based on ten universally-accepted principles in the four areas of human rights, labor, environment, and anticorruption.
Mitsubishi Estate Co., Ltd. became a signatory of the UNGC and Mitsubishi Estate Group was registered as
participants in April 2018. Along with this, Asset Management Company has participated in this initiative as amember of Mitsubishi Estate Group.

14

Environmental Assessment and Certifications
GRESB Real Estate Assessment
GRESB assesses the sustainability performance of real assets across the globe. The assessment was established in2009 primarily by major European pension funds which took the lead in Principles for Responsible Investment(PRI). The GRESB Real Estate Assessment is distinguished by its comprehensive evaluation of initiatives forsustainability of property companies, REITs and real estate funds. MEL has been awarded the prestigious “5 Stars”
for the second consecutive year and “Green Star” for the third consecutive year by the 2021 GRESB.
October 15, 2021 Notice concerning GRESB Real Estate Assessment Results

GRESB Public Disclosure
MEL also received the highest “A Level” for the GRESB Public Disclosure for the second consecutive year, whichassess the width of our ESG disclosure.

15

MSCI ESG Ratings (BBB)
MEL has received BBB in its MSCI ESG rating.

Disclaimer

The use by MEL of any MSCI ESG Research LLC or its affiliates ("MSCI") data, and the use of MSCI logos, trademarks,
service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or
promotion of MEL by MSCI. MSCI services and data are the property of MSCI or its information providers and areprovided "as-is" and without warranty. MSCI names and logos are trademarks or service marks of MSCI.

MUFG ESG Rating Certificate for J-REIT supported by JCR
Mitsubishi UFJ Research and Consulting Co., Ltd. promotes strategic efforts on ESG (Environment, Society,
Governance) to improve corporate value in response to the growing demand from external stakeholders regarding
active disclosure of ESG related information. Under the support of Japan Credit Rating Agency, one of Japan's
leading rating companies and expert in credit risk analysis, the certificate was produced and is dedicated to J-REIT
that evaluates efforts against ESG. MEL undertook the “ESG Loan for J-REIT” from MUFG Bank, Ltd.
MEL received the ESG rating as the first J-REIT company in November 2018, and the highest rank of "S " from
reacquisition following the renewal of the rating in September 2021.

For detailed information, please refer to Mitsubishi UFJ Research and Consulting
Co., Ltd.:(Japanese only)
https://www.murc.jp/sp/1810/j-reit/index.html

16Funding to Promote SDGs from Sumitomo Mitsui Banking Corporation
The Funding to Promote SDGs to be procured from Sumitomo Mitsui Banking Corporation, which is the first J-REIT
deal, will be executed on the basis of an evaluation of a company s current efforts in relation to the SDGs based on
the proprietary evaluation criteria developed by Sumitomo Mitsui Banking Corporation and The Japan ResearchInstitute, Limited.
We have recieved a report containing analytical advice from The Japan Research Institute, Limited., and will utilize
for future SDGs initiatives. MEL was highly evaluated (as of September 2020) regarding contributions to local
communities through promoting energy conservation and the use of renewable energy at owned properties, andimprove quality in logistic facities and maintain logistics networks through collaboration with tenants andstakeholders.

只OMO"llpN
LOAN

17

Green Building Certifications
Total of green building certification
Buildings with green building certification (Note)

Number of properties

Total Floor Area (㎡)Ratio (％)

FY2021

11753,236

79.1（NOTE）When one property has obtained multiple environmental certifications and evaluations, it is counted as one property.

CASBEECASBEE(Comprehensive Assessment System for Built Environmental Efficiency) is a method for evaluating andrating the environmental performance of buildings and the built environment. This system comprehensively
assesses the environmental performance of buildings, including consideration for landscapes, in addition to theenvironmental impact reduction aspects of energy and resource conservation and recyclability. Evaluation results
are displayed in five levels (rank S to rank C).

For more information about CASBEE
http://www.ibec.or.jp/CASBEE/certification/certification.html

BELS
The Ministry of Land, Infrastructure, Transport and Tourism has established the Evaluation Guidelines for Indicating
Energy Conservation Performance of Non-Housing Buildings (2013) in order to further improve the energy
conservation performance of non-residential buildings and to contribute to the provision of appropriate
information in the real estate market, etc. Based on these guidelines, BELS evaluates and labels the energy
conservation performance of non-residential buildings and uses an evaluation method that conforms to the revised
Energy Conservation Standards (fully enforced on April 1, 2014).
Independent of new and existing buildings, third-party organizations evaluate energy conservation performance on
the basis of various measures, and the assessment is displayed in five stars (★★★★★ to ★).
For more information about BELS
https://www.hyoukakyoukai.or.jp/bels/info.html

18

DBJ Green Building certification
DBJ Green Building certification is a certification system established by the Development Bank of Japan, Ltd. (DBJ)in April 2011 to support building with environmental and social awareness. In addition to the environmental
performance of the subject building, this system evaluates and certifies the building required for society and theeconomy based on comprehensive evaluation including disaster prevention and consideration for the community.
It is displayed by the number of stars (★★★★★ to ★).
For more information about DBJ Green Building certification
http://igb.jp/

Assessment Results
Property Name

CASBEEDBJ Green Building

BELS

Logicross Narashino

S Rank for Real Estate★★★★★

Logicross Osaka

S Rank for Real Estate★★★★★

Logicross Nagoya Kasadera

S Rank for Real Estate★★★★★

LOGIPORT Osaka Taisho

S Rank for Real Estate★★★★★
（ZEB Ready）

LOGIPORT Sagamihara

S Rank for Real Estate★★★★

LOGIPORT Hashimoto

S Rank for Real Estate★★

Logicross Atsugi

S Rank for Real Estate★★★★★

Logicross Kobe Sanda

A Rank for Real Estate★★★★

MJ Logipark Kasugai 1

A Rank for New Construction Aichi

MJ Logipark Kazo 1★★★★★

Logicross Fukuoka Hisayama★★★★

＜Number of properties＞

9

1

9

＜Total Floor Area (㎡)＞

709,552

38,082658,917＜Ratio（％）＞

74.5

3.8

69.2

19

Environmental Performance
Basic Policy
The Mitsubishi Estate Group has established an environmental management system and strives to protect theenvironment by promoting environmental initiatives and reducing environmental impact, while also complying
with environmental laws and regulations. The Mitsubishi Estate Group also proposes cutting-edge environmental
initiatives to ensure that its business activities play a leading role in the development of sustainable communities.
MEL strives to invest in environmentally friendly logistics facilities, and will continue to focus on maximizing theenergy efficiency of our properties and is committed to minimizing environmental impact through various
sustainable features and initiatives.
In addition, our sponsor, Mitsubishi Estate Inc., announced “Sustainable Development Goals 2030” in January 2020.
We will continue to take on initiatives to realize a sustainable society as a Mitsubishi Estate group.

Environmental Performance Data
15% reduction by 2030 (2017 standard)
Breakdown

Energyconsumption
intensity(kWh/m2)(Note 2)

Percentage
Change(intensity)

Gas/fuel
consumption(kWh)Electricity
consumption
（kWh）

Data
coverage(GFA
basis)(Note 1)

27,919,537

1,625,269

26,294,267

100%

50.20

-

FY201830,600,702

1,629,100

28,971,600

100%

54.95

9.5%

FY201933,314,341

1,793,013

31,521,327

100%

46.78

-6.8%

FY202039,146,016

2,504,096

36,641,919

100%

45.30

-9.7%

FY2030(Target Year)

-

-

-

-

-

-15.0%

Energy Consumption

Total energy
consumption(kWh)

FY2017(Base Year)20

30% reduction by 2030 (2017 standard)
Breakdown

CO2
emission
intensity(tCO2/m2)(Note 2)

Percentage
Change(intensity)

Scope1emisssions(t-CO2)

Scope2emisssions(t-CO2)

Scope2emisssions(t-CO2)Data
coverage(GFA
basis)(Note 1)

13,7540.0

9,319.7

4,434.3

100%

0.025

-

FY2018

14,6620.0

9,608.0

5,053.8

100%

0.026

6.5%

FY201914,8850.1

5,763.3

9,121.3

100%

0.021

-15.3%FY202016,755

0.3

6,811.4

9,943.6

100%

0.019

-21.3%

FY2030(Target Year)

-

-

-

-

-

-

-30.0%

CO2 emissions

CO2
emissions(t-CO2)(Note 3)

FY2017(Base Year)

Do not increase by 2030 (2017 standard)
Water Consumption

Water supply
usage(m3)

Data coverage(GFA basis)(Note1)

Water consumption
intensity(m3/m2)(Note 2)

Percentage
ChangeFY2017(Base Year)

63,255

100%

0.114

-

FY201870,833

100%

0.127

11.9%

FY201973,839

100%

0.103

-0.8%

FY202080,550

100%

0.092

-18.9%

FY2030(Target Year)

-

-

-

0.0%

70% or more by 2030
Waste discharge weight(t)Data coverage(Floor area basis) (Note 1)

Data coverage(GFA basis)(Note 1)

FY2017(Base Year)

1,202

82.5%

54.9%

FY2018

1,624

87.9%

73.3%

FY2019

1,700

93.6%

66.6%

FY2020

1,867

86.7%

63.4%

FY2030(Target Year)

-

-

70.0%

Waste Management

21

(Note 1) Numerator: Floor area (m2) of properties for which data for the current fiscal year is available. Denominator: Total portfolio
floor area for the current fiscal year
(Note 2) The basic unit is a value calculated by considering the utilization rate, with the numerator for each consumption, etc., andthe total portfolio floor area for each fiscal year as the denominator.
(Note 3) Emissions from the tenant-management portion are accounted for in Scope3 based on the owners/tenants' control
authority.
In addition, Scope of the same property may differ from year to year depending on the status of acquiring the data.

Solar Power Generation

Annual power generation(Kwh)(Note 1)FY20187,017,147

FY20196,710,582(Note 2)

FY202011,432,928(Note 3)(Note 1) All of the renewable energy generated by the portfolio properties is sold externally. The figures for quasi-joint projects are
based on 100%.
(Note 2) Logiport Osaka Taisho's power generation is not recorded, and Logiport Sagamihara and Logiport Hashimoto are recorded
only for the period from April 2019 to December 2019, so annual power generation compared to 2018 is decreasing.
(Note 3) The amount of power generated by Logicross Narashino, Logicross Nagoya Kasadera, and Logicross Osaka is not included.
Logiport Osaka Taisho, only the period from January 2020 to December 2020 is included.

Some data that is the basis of the above table "Environment-related data" is subject to limited guarantee by athird-party organization (Japan Environmental Certification Organization). Please refer to the following third party
warranty report for details.
※Greenhouse gas emission third-party verification report※Environmental data third-party verification report22

Climate Change Initiatives
Policy on Climate Change
MJIA recognizes that climate change is an important (material) issue that brings about drastic changes to naturalenvironment and social structure and has a significant impact on our operations as well as business overall. In
order to respond to this issues, in October 2021, MJIA established“the Policy on Climate Change Initiatives”as apolicy for addressing risks and opportunities related to climate change and initiatives related to business andstrategy resilience (resilience and resilience) to climate-related issues.

Awareness of Climate Change
The Paris Agreement, adopted in 2015, is an international treaty aimed at keeping global average temperatures
below 2℃ (or 1.5℃) before the Industrial Revolution and reducing greenhouse gas emissions (hereinafter referred
to as "GHG emissions") to zero by the latter half of the 21st century. There are 197 member countries worldwide.
Efforts and regulations to reduce GHG emissions are already being strengthened in many countries, regions andindustries to achieve this target, and the possibility of further tightening GHG emission regulations is being
discussed.
Also, according to IPCC Report (Note), climate change (global warming) has actually progressed since the latter halfof the 20th century, and this has already begun to lead to frequent heat waves and increased natural disasters suchas extreme heavy rains. MEL recognizes that addressing climate change is the most important issue in materiality,
and regards it as a material issue that closely affects its business.
（Note）IPCC 1.5 Special Report…Report published in 2018 by the United Nations Intergovernmental Panel on Climate Change(IPCC)

23

Support for TCFD Recommendations
TCFD (Task Force on Climate-Related Financial Disclosures) was established by the Financial Stability Board (FSB)
to consider how to disclose climate-related information and respond to financial institutions.
In its final report in June 2017, TCFD published recommendations to identify and recommend public disclosuresabout the financial consequences of climate change for companies and other entities.
In December 2021, MJIA announced its suppose for the recommendation of the TCFD and joined TCFD Consortium,a group of domestic companies that support TCFD recommendation.
MEL also recognizes that the risks and opportunities related to climate change have an impact on its business, andwill respond to these risks and further promote the disclosure of information.
The TCFD published its final report in June 2017, and recommend that companies and others disclose the following
items related to climate change-related risks and opportunities.
(Disclosure Items Recommended by TCFD)
Disclosure Item

Disclosure Details

Governance

Organizational governance relating to climate-related risks and opportunities

Strategy

Actual and potential impacts from climate-related risks and opportunities on the organization's
businesses, strategies, and financial planning

Risk management

The organization's climate-related risk identification, assessment, and management processes

Metrics and Targets

Metrics and targets used to assess and manage climate-related risks and opportunities

24Governance
Please refer to the ”Organization Chart for Promoting Sustainability” page for the system for promoting
sustainability (including responses to climate change; the same hereafter) at MJIA.

Strategy
1.Scenario analysis
MEL conducted multiple scenario analyses to identify the risks and opportunities posed by climate change risks to
MEL and to examine their impact on its business.
＜Assumptions for Scenario Analysis＞
MEL conducted scenario analysis using future climate projections published by international organizations as themain source of information. The table below shows the main sources of information referred to by MEL. Climatechange risks can also be broadly categorized into transition risk and physical risk, and the relationshipbetween them is considered to be not completely independent but interdependent or trade-off.
Climate Change Risks

Main Information Sources Referenced

Transition risk

Risks arising from new regulations, tax systems,
technologies, etc. to realize a decarbonized society

IEA (International Energy Agency) World
Energy Outlook 2020

Physical risk

Risks rising by climate change itself, such as changes
in weather

IPCC (Intergovernmental Panel on Climate
Change) Fifth Assessment Report (AR5)【4℃ Scenario】
The 4℃ Scenario assumes that natural disasters will become severe and physical risks will be extremely high due tothe lack of progress in global decarbonization efforts, although the risk of transition will be relatively small due tothe lack of progress in strengthening legal regulations.

25

【1.5℃ Scenario】
1.5℃ Scenario is based on the assumption that emissions of greenhouse gases will tend to be reduced by
implementing strict regulations and taxation systems to realize a decarbonizing society. Physical risks are low, andtransition risks are high.

26

2.Identification of Climate Change Risks and Opportunities and Verification of Financial
Impacts
Scope of Financial Impact Amount
Category

Transition
risk

Relations

Enhance
Taxationthrough theIntroduction of aCarbon Taxes
Policiesand Laws

Enhance energysaving
standards in realestateStrict obligation
to report
emissionsTechnology

Markets

Evolution anddissemination ofre-energy andenergy-saving
technologies
Cost reduction
through energy
conservation
and renewableenergyDeterioration of
procurement
conditions formarketparticipants not
responding toclimate change
Increasing
demand ofgreen buildings
from tenants

Type

Financial
impacts

1.5℃

4℃

Medium
term

Long
term

Medium
term

Long
term

Risk

Increased tax
burden on
portfolio
GHGemissions

Large

Large

Small

Small

Risk

Increasedburden of
portfoliorenovation
costs

Large

Large

Small

Small

Risk

Increasedbusiness
expenses toreporting

Small

Small

Small

Small

Risk

Increased
cost ofintroducing
newtechnology

Large

Large

Small

Small

Opportunity

Reduction ofutility costs
sourcedexternally

Small

Small

Small

Small

Risk

Increase infunding
costs,
difficulty infinancing anddecrease ininvestment
unit price

Large

Large

Small

Small

Risk

Decrease inrent income
due todifficulty indeveloping
new tenants
and reduced
retention

Large

Large

Small

Small

27

Scope of Financial Impact Amount
Category

Relations

Develop new
tenants by
expanding theprovision ofgreen building

Develop andenlightenmentof new investors

Transition
risk

Reputation

Devaluing abrand due tounderdeveloped
green building

Type

Financial
impacts

1.5℃

4℃

Medium
term

Long
term

Medium
term

Long
term

Opportunity

Incomeincrease andoccupancy
rate
improvement
bydeveloping
tenants

Large

Large

Small

Small

Opportunity

Utilization ofgreen bonds.
Increasing
volume andlowering
funding costsbyresponding
to ESGfocusedinvestors

Large

Large

Small

Small

Risk

Decrease inrent
premiums
due to brandstrength
Rising cost of
funds

Large

Large

Small

Small

28

Scope of Financial Impact Amount
Category

Relations

Type

4℃
Long
term

Medium
term

Long
term

Risk

Increase inrepair costs
andinsurance
premiums
Decline in
portfolio
occupancy

Small

Small

Large

Large

Opportunity

Reduction of
repair costs
andinsurance
premiums
Improve
portfolio
utilization
rate

Small

Large

Large

Large

Risk

Decreased
utilization of
portfolios
thatrequiringmajorrenovations

Small

Small

Small

Large

Risk

New
installationof airconditioning
equipment
and increasein operatingtime andrepair costs

Small

Small

Large

Large

Acute

Physicalrisk
Inundation ofproperties withlow altitude due
to sea level rise
Chronic

1.5℃
Mediumterm

Increased
typhoons,
torrential rains
and oods

Building aportfolio withhigh resilience
performance

Financial
impacts

Increased
demand for air
conditioning
due to extreme
weather
conditions(Note) Medium term: As of 2030, Long term: As of 2050.

29

Investment Corporation s Measures to Climate Change Risks
MEL is promoting a variety of measures and specific actions to address the transition risks and physical risks ofclimate change, including green projects to reduce GHG emissions and improve energy efficiency, and theacquisition of green building certification.
Specific initiatives are as follows.
＜Contribution to the environment in the real estate under management＞
https://mel-reit.co.jp/en/esg/environment/contributions.html＜Collaboration with tenants and stakeholders on the environmental front＞
https://mel-reit.co.jp/en/esg/environment/collaboration.html

Risk Management
The risk management system for sustainability at MJIA is as follows.
At the time of investment decision: When making a new investment in assets under management, the management
meeting makes an investment decision based on various surveys on climate change risk in the due diligenceprocess. Specifically, regarding the possibility of flooding and flooding of the target property, we are investigating
and confirming the inundation level, inundation history, and implementation history of hydraulic engineering
work, etc. using various hazard maps. We also check the existence of environmental and energy-saving equipment,
including the acquisition of environmental certification, and the status of BCP compliance.
During operation: The Sustainability Committee manages and monitors overall sustainability-related risks,
including climate change risks. Specifically, we monitor the environmental performance of our properties andmanage the progress of various targets (see Indicators and Targets below for details), and consider necessary
measures based on these.

30

Metrics and Targets
MEL recognizes that resolving environmental issues such as climate change is an important management issue in
MEL s sustainable business and its business strategy for realizing it. Based on this understanding, MEL is building a
low-environmental impact portfolio by investing in low-environmental impact properties and making energy use
more efficient and reducing GHG emissions through the implementation of environmental and energy-saving
measures in owened properties.
Promotion of Green Property in possession
Target (KPI)
Raise the ratio of property aquired Green Building Certi cation to 100％ by 2030.
Improvement of environmental performance
Target (KPI)
Reduce CO2 emissions intersity by 30% by FY 2030.（baced on FY 2017）
Reduce the energy consumption intensity by 15% by 2030.（based on FY 2017)
Environmentally Performance Data
https://mel-reit.co.jp/en/esg/environment/
In setting targets for CO2 emissions intensity, CRREM(Carbon Risk Real Estate Monitor, a tool for analyzing
transitional risks, was used.
The Carbon Risk Real Estate Monitor (CRREM), with the support of the European Union (EU), targets commercial realestate and is a pathway for GHG emissions up to 2050 that meets the 2 ° C and 1.5 ° C targets of the Paris
Agreement. Decarbonization route) is calculated and published. MEL sets CO2 reduction targets by measuring theCO2 emission intensity of the portfolio using the CRREM 1.5 ° C decarbonization route as a benchmark.

31

Water Resources and Waste Reduction, etc
Preserving Water Resources
We are working on reducing water consumption by installing water meters that support automatic meter readings,
water-saving toilets and Flushing sound simulators, and by installing smart irrigation facilities.

Rain sensor irrigation device

Water-saving toilet

Promoting Waste Reduction
We are continuously monitoring the amount of waste discharged and working with our tenants to reduce wastewith the aim of ensuring proper separation of waste and improvement of the recycling rate. Reuse of OA floor
panels used in office buildings in the Marunouchi area was also implemented.

Recycling enlightenment poster

Reuse the OA floor panelsof the Marunouchi officebuildings

Prevention of Pollution
At the time of property acquisition, we conduct on-site inspections of the subject land and surveys on theenvironment, including engineering reports by third parties, and make decisions based on consideration ofenvironmental factors such as soil contamination and hazardous substances.

32

Contributions to the Environment through Our Portfolio
Renewable Energy Use
Mitsubishi Estate Group is committed to develop environmental friendly facilities which are key components of its
ESG initiatives. As part of its renewable energy program, Mitsubishi Estate plans to install solar panels systems on
the rooftops of facilities. In addition, MEL is currathy considering to install solar panels for the properties that has
no yet been installed.

Logicross Fukuoka Hisayama

LOGIPORT Sagamihara

Logicross Atsugi

MJ Logipark Tsuchiura 1

33

Energy Saving Initiatives

Insulated sandwich panels for exterior wall

Installment of motion detected sensor

Installment of LED lightings

Installation of advanced LED with tabletcontrolled
and time-controlled dimming systems

Update air-conditioning system

Reducing the Use of Paper Resources in Packaging
In order to eliminate the double packaging of asset management reports, which has been requested in thequestionnaire for some time, we have discussed with related parties and simplified packaging by changing the sizeof asset management reports.
At the same time, we changed the envelope film to recycled material.
We will continue to disclose more environmentally conscious and efficient information in the future.

34

Environmental Collaboration Efforts with Tenant・
Stakeholders
MEL and MJIA, the asset management company, endeavors to contribute to a sustainable environment byimproving the environmental performance of the properties under management. However, we believe that theunderstanding and cooperation of tenants are also important. We aim to collaborate for a sustainable
environmental society in order to promote awareness-raising activities for tenants. MEL has introduced green lease
contract that allows both building owners and tenants to share merits, and promote sustainability-related
initiatives in cooperation with tenants.

Awareness-Raising Activities for Tenants
In order to take the lead in energy-saving activities, we have prepared building regulation manuals describing theenvironmental cooperation clause such as waste sorting, recycling recommendations, air conditioning operation
standards, idling stopping. In addition, we are implementing awareness-raising activities by distributing posters tocommon areas on each floor.

Green Lease
MEL conducted LED lighting installation works for a part of a tenant office space at the expense of MEL based on
the green lease contract. A certain ratio of the highly reduced amount of electricity bills and maintenance costs(costs for exchanging fluorescent bulbs) has been paid from the tenants in return as Green Lease fee.

Cooperation with Property Management Company and Selection Criteria・
Evaluation Measures
MEL has established a criteria for the selection of property management companies to which property
management is entrusted, and in principle, evaluates all property management companies once a year.
MEL and MJIA are engaging with property management companies to share our vision, policies of sustainability
and when making contract with a new tenant, property managers explain these ideas to tenants to achieve theircooperation.

Education to Employees on Green Building
MJIA provides sustainability training annually by external specialist to improve awareness and knowledge on green
building for its employees.

Sustainability guides for our Tenants
MJIA prepared and distributed the Tenant Sustainability Guide in 2021 with the aim of promoting sustainabilityrelated initiatives together with tenants.

Addition of Environmentally Conscious Clause to Lease Contract
From the viewpoint of energy conservation and environmental and social considerations, the MEL has introduced
environmental provisions for lease agreements with tenants.
The introduction of environmentally conscious provisions is an initiative for MEL to work together with tenants tooperate environmentally conscious properties, with the aim of promoting further ESG.
35

Green FinanceGreen Finance Framework
Use of Proceeds of Green FinanceNet proceeds from the green bonds or green loans will be used to fund the acquisition of specified assets that willmeet the eligibility criteria in below (Green Eligible Assets) or refinance borrowings required for acquiring theGreen Eligible Assets.

Eligible Criteria
Eligible Criteria are assets or projects that satisfy either of the following requirements.
a.The assets for which MEL has obtained or plans to obtain the following third-party certification① 5-star, 4-star or 3-star DBJ Green Building Certification② S rank, A rank or B+ rank in Certification for CASBEE for Real Estate③ 5-star, 4-star or 3-star BELS Evaluation
b.Renewable energy generation facilities associated with buildings (limited to solar power generation facilities
on the premises)c.Equipment designed to reduce environmental impacts (limited to equipment that achieves 30% or higher
energy efficiency before introduction)

Management of Proceeds
If there are unappropriated funds at the time of issuing green bonds or green loans, MEL will disclose anappropriation plan on its website. In addition, if the property for which the proceeds will be used will no longer be
a subject of the use of proceeds due to its sale, MEL will disclose this in its press release and its website.
Upper limit of green finance procurement is calculated by total acquisition price of Eligible Green Projects multiple
by total asset LTV.

36

Reporting
MEL will publish the allocation status of the proceeds from green financing on its website once every year. If there
are unappropriated funds at the time of issuing green bonds or green loans, MEL will disclose an appropriation planon its website. In addition, if the property for which the proceeds will be used will no longer be a subject of the useof proceeds due to its sale, MEL will disclose that the unused funds that arise temporarily will be managed by the
portfolio management, the balance in its green financing and the maximum amount of green eligible liabilities in
its press release.
Further, as long as there remains any outstanding balance in its green financing, MEL will disclose the following
benchmarks on its website once every year.
Status of Green Building
For detailed information : Green Building Certifications
Impact Reporting
Water supply usage
Total energy consumption (Electricity consumption and Gas fuel consumption)
CO2 emissions
Waste management
Annual power generation of solar panels
Details of equipment introduced as equipment aimed at reducing environmental load and energy saving effect
For detailed information : Environmental Performance Data

Amount of Procured Funds and Allocation（Note）The Upper Limit of Green Finance = Total Acquisition Price of Green Eligible Assets × The Total Asset LTV.
The Total Asset LTV is calculated as of Aug. 31, 2021.

37

No. of Properties

AmountTotal Properties

22

170,404 million yen

Total Green Eligible Assets

11

119,118 million yen

DBJ Green Building

1

5,770 million yen

CASBEE

9112,076 million yen

BELS

9

99,678 million yen

Funds
Green Loan
(Sumitomo
Mitsui Banking
Corporation)

1,350
millionyen

Green Loan
(Mizuho Bank)

720
millionyen

Green Bond

2,000
millionyen

Total Green Finace

4,070
millionyen

The Upper Limit ofGreen Finance

38,964
millionyen

Procurement
Date

Mar. 9, 2021

Sept. 14,2021

Apr. 14, 2021

Repayment
Date/
Redemption
Date
Mar. 9, 2025

Sept. 14,2028

Apr. 14,2036

Allocation

Use of Initial Funds

allocated

Acquisition of Logicross
Osaka(additional acquisition of40%)
and Logicross Naogya
Kasadera(additional acquisitionof 40%)

allocated

Aquisition of Logicross Fukuoka
Hisayama, LOGIPORT
Sagamihara, LOGIPORT
Hashimoto and MJ Logipark Kazo
1

allocated

Acquisition of Logicross
Osaka(additional acquisition of40%)
and Logicross Naogya
Kasadera(additional acquisitionof 40%)

Evaluation by Third-Party Entities
MEL has obtained a Green 1(F) (highest for JCR Green Bond Evaluation) rating in preliminary evaluation for thecompetence of its Green Finance Framework from Japan Credit Rating Agency, Ltd. (JCR). Please refer to JCR’s
website.
For detailed information : JCR Green Finance Framework Assessment
38

Initiatives to Tenant
Improve Tenant Satisfaction
MEL and MJIA have identified “improve tenant satisfaction” as a material topic. We have implemented various
measures to improve tenant satisfaction.

Restaurants and Lounge

Convenience store

Shower room

Shuttle bus

Multipurpose restroom

39

Tenant Satisfaction Survey
To improve tenant satisfaction, we conduct satisfaction survey regularly towards the tenants by either face-to-facecommunication or questionnaire format . The consecutive survey enable us to capture the tenant needs andquickly respond by renewal of facilities or implement refurbishment to further improve tenant satisfaction.
(Example)
Prior to the renovation of the lounge at MJ Logipark Fukuoka 1, hearings were held with tenant employees. Basedon the results, we installed free Wi-Fi, rechargeable outlets, large TVs, microwave ovens, and adopted layouts thatfacilitate individual use. In addition, we held competition for the wall design in cooperation with local universities
and technical colleges, and decided on a design proposal.

Before Renovation
After Renovation(Example)
In 2019, MJ Logipark Kasugai 1 conducted a satisfaction survey (face-to-face interview) targeting tenant companies.
Based on the results, we implemented the installation of handdriers in toilets.

(Example)
We reviewed our electricity suppliers for multiple properties, reduced electricity cost for tenants, and improved
tenant satisfaction.
(Example)
In 2021, based on the results of the survey, Logicross Nagoya Kasadera installed a thermo-camera and AED.

(Example)
MJ Logipark Sendai 1 conducted bird damage countermeasures in 2021 based on the results of the survey.

40

Initiatives for the Safety of Tenants
MEL has been proactively implementing measures for the safety of tenants.

Conduct fire drills

24-hour security

Installation of a disaster-relief vending machine

Automated external defibrillators (AEDs)

防災キャビネットの設置

Secure reserves in case of emergency (Food &portable toilet)

BCP Initiatives

Installment of private power generators

Seismic isolators

41

Contributions to Local Communities
Social Responsibility

The Mitsubishi Estate Group has adopted as its fundamental mission the goal of creating a truly meaningful society
by building attractive, environmentally sound communities where people can live, work and relax with
contentment. By putting this mission into practice, MEL will actively play a role in the CSR initiatives conducted by
MJIA.

Relationships with Local Communities

MEL has been participating in a range of activities to contribute to local communities and local society. We also
foster mutual communication with various stakeholders, including local authorities, local residents, and visitors of
our facilities, through such activities.

Cleanup volunteer activity after
Atsugi Ayu Firework Festival
near MJ Logipark Atsugi 1

Lawn-mowing at greeneryareas in MJ LogiparkAtsugi 1

Public green space (MJ Logipark Atsugi 1)

Free beverage service for tenants at LOGIPORT
Sagamihara

Installed charity vending machine(Logipark Fukuoka 1)

Free salt candy service for tenants(for all properties held as of 2021)
42

Cleaning activities on the Chiyoda Ward General
Cleanup Day(Marunouchi, Chiyoda-ku)

Cooperation with Local Disaster Prevention
Register for Disaster Cooperation Building(LOGIPORT Sagamihara, LOGIPORT Hashimoto)

Designation as a Tsunami Evacuation Facility(Logicross Nagoya Kasadera)

43

Participated in the Eco-friendly Cap Recycling Program
We participated in the activity to collect PET bottle caps in the office and sorted collection. Through recycling PET
bottle caps it protects the global environment, and also, deliver immunity to children around the world through theprofit from recycling.

Relief Supplies to the Developing Countries
As a substitute for notebooks, we donated unused calendars to elementary schools in developing countries throughsupport organizations to support children in the future.
Furthermore, we donated disaster prevention supplies that are no longer needed to volunteer firefighters andrescue teams in developing countries through support organizations to provide disaster relief.

Donate Masks to Chiyoda Ward Health Center
Under the current circumstances of the shortage of masks at medical institutions, we donated the 1,900 unused
surge masks we have stored to the Chiyoda Ward Health Center.

44

Human Resource Development
Human Resource Development
Securing outstanding human resources and offering them ongoing opportunities for development are essential
elements in achieving superior real estate fund management. At MJIA, we develop human resources with extensive
expertise and know-how by incorporating various training and skills・career development programs into ourdevelopment of employees’ (including full-time employees, contract employees, temporary employees and parttime employees) capabilities.
Training Programs by Theme
We conduct multiple compliance and risk management training sessions throughout the year for all executives(excluding part-time executives) and employees (note).
Manager Training
Mitsubishi Estate Group implements management training for not only managers but also future managerial
candidates to help them acquire the management skills they need in the future.
(Note) There are some training that are not applicable to temporary employees. For details, please refer to the below chart.

Implementation
Methods

Classification

Training Name

LevelspecificTraining

New recruit training

In-house

All executives and employees

New manager
training

MItsubishi
Estate GroupManagers

Mitsubishi Groupaction guideline
training

In-house

All executives, full-time employees,
contract employees

Mitsubishi Groupanti-bribery andcorruption training

In-house

All executives, full-time employees,
contract employees

Insider trading
regulation training

In-house

All executives and employees

Information
management
training

In-house

All executives and employees

Anti social forces
training

In-house

All executives and employees

ComplianceTraining

Applicable Employee

45

Remarks

Implementation
Methods

Classification

Training Name

Human
RightsTraining

Harassment training

In-house

All executives and employees

Business Law
Training

Civil Code revision

Invite externalteacher

All executives, full-time employees

Information security
awareness training

In-house

All executives and employees

Internal
management
training

Invite externalteacher

All executives and employees

Market risk training

Invite externalteacher

All executives and employees

Cyber security
training

In-house

All full-time executives andemployees

Complaints・
accidents training

In-house

All full-time executives andemployees

Business English
training

Online/Heldexternally

All executives, full-time employees,
contract employees (applicant
those who are interested)

Bizmates/Berliz

Global humanresource
developmenttraining

Held externally

All executives, full-time employees,
contract employees (applicant
those who are interested)

BizmatesX

Sustainability
training

Invite externalteacher

All executives, full-time employees,
contract employees

CSR Design Green
Investment
Advisory, Co.,Ltd.

Business skill
training

Held externally(including
online)All full-time employees

Learning Agency

Business school

Held externally

Full-time employees (applicant
those who are interested)

GLOBISCORPORATIONDAIWA REAL ESTATEACADEMY

Held externally

Full-time employees (applicant
those who are interested)

Daiwa real estateappraisal

RiskManagement
Training

Business
EnglishTraining

OthersApplicable Employee

46

Remarks

Acceptance of External Human Resources (Utilizing Specialist Skills)
MJIA accepts outstanding human resources with experience and expertise in real estate investment and real estate
management from the Group companies. We also accept attorneys and real estate appraisers with high expertise invarious legal systems and real estate valuation. We aim to maximize our operational performance by fully utilizing
such external human resources.
Acceptance of External Human Resources for FY 2020・Attorney (1 person)
・Real estate appraisers (1 person)
・MEC Human Resources, Inc. (1 person)
・Tokyo Ryutsu Center Inc. (1 person)
・MEC Business System Solutions Co., Ltd. (1 person)
・Mitsubishi Estate Co., Ltd. (12 person)

Employee Development & Training
Support Career Enrichment, Qualifications and Licenses
We encourage all employees to boost their professional knowledge and skills. Based on this policy, we subsidize
the costs required to obtain and maintain professional qualifications that assist employees in improving their realestate asset management practices. Examples of such qualifications include the Association for Real Estate
Securitization (ARES) Certified Master, Certified Building Administrator, Real Estate Transaction Specialist, Certified
Real Estate Consultant and Real Estate Appraiser.
Number of Employees with Qualifications
Number of
Employee

Certificate Name

Number of
Employee

Certificate Name

Real Estate Appraiser

9Real Estate Transaction
Specialist

44

First-Class Qualified Architect

3

Certified Building
Administrator

17

Lawyer1

Licensed Tax Accountant

2

Securities Analyst

5

Master of Business
Administration

1

Association for Real Estate Securitization (ARES)
Certified Master※As of April 1, 2021
※Including seconded employees

63

Certified Real EstateConsultant

347

Promotion of Diversity ＆ Inclusion
Secure Diverse Human Resources
Mitsubishi Estate Group believes that human resources are a very important management asset and recognizes that
employee growth is essential to the Group's continued growth. We believe that securing talented personnel is an
essential element in achieving high-level management of real estate funds, and we are recruiting a wide range oftalented personnel by employing skills as well as potential. In addition, in order to maximize the capabilities ofeach employee, we have created opportunities to communicate with each employee regarding job satisfaction andconfirm career plans so that they can be appropriately assigned.

Female management ratio：14.3％※As of April 1, 2021

Employee turnover ratio：6.0％※Fiscal 2020

Personnel data
Employee Data
Full-time employee
Generalist
Management

Staff

Part-time
employee

Seconded

Temporary employee
Management

Male

53

53

9

0

1

14

9

0

Female

28

16

2

12

2

4

1

13

Total

81

69

11

12

3

18

10

13

※As of April 1, 2021

48

Employee Who Newly Joined and Left the Company‧Employee Turnover Ratio
Employee who newly
joined the company

Employee who left
the company

Employee turnover ratio

FY2020

12

5

6.0%

FY201995

6.8%

FY201874

5.8%

FY2017

6

8

11.2%

※Exclude transfers of seconded employees

Appropriate Evaluation
MJIA has introduced a ”Management by Objective (MBO)” for all employees in order to encourage individuals
skills・career development. In the beginning of the year, employees set a specific goal through interviews with thepersonnel evaluator. Interviews are then conducted to provide employees’ their feedbacks on progress andevaluation during the period, and at the end of the period.

49

Employee Health and Well-being～Creating Productive and Employee-friendly Workplace～
Improve Work Environment for Productivity
Introduction of Activity-based Working
We have established diverse offices in places where we work, such as group addresses, co-workspace, centralizedbooths and high desks. We are working to improve productivity by freely choosing the environment based on thework of each time.

An open space that secures ceiling height

Utilization of natural light (sunlight)

High chairs and desks for employees' health-being

Co-workspace

Co-workspace

Centralized booths

50Ensure security with entrance management
systemProvide information to employees
through electronic bulletin board

Utilization of ICT

We are working to make paperless and operational efficiency by actively using ICTs, such as mobile PCs, rental of
iPhone, and enhancement of WiFi environment.

51

Initiatives to Promote Internal Communication
Improvement of Community Space in the Office
A coffee shop where barista offers specialized coffee, is set up to induce informal communication with other
employees in the same office.

Hold Social Gatherings to Promote Internal Exchanges and Subsidize costs
We subsidize part of the cost of holding social gatherings and other events at the department level to support thedevelopment within the team. In addition, in order to promote inter-departmental exchanges, we are implementing
a variety of initiatives, including social gathering (an in-house community space holding a social gathering where
people can comfortably come by after work) and an internal event support system.

Initiatives to Promote Communication between Employee and theCompanyWith the aim of understanding employees thoughts on their career plans and their level of satisfaction with thecompany, MJIA works hard to encourage active communication between employees and their managers or the
Personnel Department, through various forms, on both a regular and ad hoc basis.

Employee Condition Pulse Survey
Once a month, all employees ascertained of the conditions related to work, human relationships, health andconduct timely interviews and reflect them in personnel measures.

Employee Satisfaction Survey
Once a year, a compliance questionnaire is conducted for all employees, covering the MJIA's corporate culture, thestate of communication, and the degree of employee satisfaction.

Human Resources Department Interviews with Employees
Once a year, the Human Resources Department holds an interview with all employees regarding their career plans
and motivation towards work.

52

Initiatives for Employee Health-being
To enable employees to work physically and mentally, we are taking the following measures, in addition to healthexaminations, stress checks, and appointment of industrial physicians based on laws and regulations, based on theidea that by giving consideration to the health of employees, we can expect greater results in management.

Absentee rate：0.09％
Injury rate：0.00％
Lost days rate：0.00％※Fiscal 2020

Initiatives for Employees
We strive to prevent infection by encouraging staggered working hours using telecommuting and flextime
schedules, and by implementing operations that are conscious of a work-life balance. In addition, we arepromoting the use of IT through the introduction of web conferences and electronic approval systems to create asystem for smooth operation in telecommuting.
In the office, we have installed acrylic panels, disinfectants, and masks to prevent infection.

Annual Health Checkup

All employees are to receive annual physical health checkup by doctor on company cost.

Conduct Stress Check
Once a year, we conduct stress checks to encourage awareness of individual stress and prevent the occurrence ofmental problems.

Appointment of Industrial Physicians
MJIA have appointed an industrial physician to receive guidance and advice on employee health-being.

Consultation Desk
As a necessary measure for mental health, we have set up a desk outside the company, and employees can consult
widely about various concerns, and not only their business concerns.

Installation of Massage Chairs
We have installed 3 massage chairs in the company and employees can use them for refreshment at any time.

Join the Mitsubishi Estate Health Insurance Association
MJIA has joined the Mitsubishi Estate Health Insurance Association which will cover the subsidy for comprehensive
medical examination fee and vaccination costs such as Influenza.

Infection prevention control for COVID-19
MJIA is engaged in a variety of activities aimed at protecting the health of employees and providing a safe working
environment. We will continue to monitor social trends and respond flexibly to requests from the government.
53

Work-life Balance～Create a comfortable workplace where employee will want
to work for a long period of time〜
Initiatives for Diverse Work Styles
We endeavor to provide comfortable work environment by offering various systems to respond to changes in each
employees' lifestyles and life stages and create an employee-friendly environment and maximize their productivity

Employees taking paid leave rate：54％※Fiscal 2020

Employees return to work rate after taking childcare leave：100％※total up to April 1, 2021

Flextime Working System
MJIA has adopted flexible attendance hours. Employees are allowed to choose the time they start working from6:00 to 11:00 and end by 15:00 to 20:00 to work according to their convenience. As a general rule, various internal
meetings are held at core time from 11:00 to 15:00.
Annual Paid Leave
We grant 10 to 20 days of annual paid leave according to the number of years of service. In addition, we haveestablished a half-day paid holiday system and an hourly paid holiday system to enable employees to take paid
holidays as necessary, and we are working to increase the ratio of employees taking these holidays.
Number of paid days off

Number of days

Paid leave rate

FY2020

16.1

8.8

54%

FY2019

16.9

11.7

69%

FY2018

17.1

12.2

71%

FY2017

17.1

13.8

81%

※The average number is shown for full-time employees

54

Various Leave Systems
We have implemented maturity leave, childcare leave and short-time work, nursing care leave of absence forchildren and nursing care leave of absence of family and short-time work to support the balance between life andwork for employees.

FY2020FY2019FY2019FY2019Child/Family careleave usage employee

Short time work
usage employee

Male

2

0

Female

4

7

Male

1

0

Female

3

7

Male

0

0

Female

3

8

Male

0

0

Female4

6Enhancement of Leisure

MJIA has introduced various range of programs designed to foster an environment where employees can work withmore security and fulfillment as their lifestyles and life stages evolve.
Granting Paid Leave
All employees are given two days of free vacation as a summer vacation.
Introduced Special Incentive Leave
We provide long paid leave according to the years of service for opportunity for refreshment and self-development.
Benefit Programs
MJIA have introduced a cafeteria plan where employees can choose from a variety of benefit programs.

Support Employees' Asset Formation

We have introduced the following system to support employees' asset formation and to improve its motivation in
the medium-to-long-term.
Retirement Plan
Employee Stock Ownership for Mitsubishi Estate
Defined Contribution Pension
Asset Formation Savings
Cumulative investment for Employees
55

Human Rights
Human Rights Initiatives
As a member of society, the Mitsubishi Estate Group is keenly aware of the importance of respect for human rights.
To fulfill our responsibility to respect the basic human rights of all stakeholders, not only those involved in Groupbusinesses, we set up the Mitsubishi Estate Group Human Rights Policy on April 1, 2018. Respect for human rights ispart of the Mitsubishi Estate Group Guidelines for Conduct, which all employees are expected to follow on a daily
basis. These Guidelines stress the importance of respect for human rights and diversity, which means that
employees show concern for human rights and the environment in the course of their business activities. The
Human Rights Policy is intended to ensure that we, as a good corporation, understand that internationallymandated human rights are a bare minimum that we must go beyond, that we reaffirm the importance of
supporting, protecting and respecting human rights and that we work to respect the fundamental human rights ofevery single person involved in the Group's businesses.

Mitsubishi Estate Group Code of Corporate Conduct (excerpt)
Respecting Human Rights and Employee Diversity
We respect human rights and believe that diversity maximizes value.
1. We respect human rights at all times.
2. We reject discrimination and harassment in any form.
3. We strive to establish a creative and competitive organization that safeguards and respects the beliefs of the individual
as re ected in the diverse communities in which we work and live.
4. We foster an open corporate culture in which all employees are encouraged to speak freely.

Mitsubishi Estate Group Human Rights Policy (excerpt)
We uphold and respect international standards related to human rights. These include the International Bill of
Human Rights, which sets out the fundamental human rights possessed by all the people of the world, and theInternational Labour Organization's Declaration on Fundamental Principles and Rights at Work, which contains
requirements concerning fundamental rights in the workplace.
We help ensure that respect for human rights is actively practiced in all business activities, and that suchactivities do not infringe on the human rights of other people. If such activities nevertheless result in a
violation of the human rights of others, efforts shall be made to minimize the negative impact.
We carry out human rights due diligence in order to minimize any negative impact caused by human rights
violations occurring as a result of the Group's business activities. We maintain a framework for human rights
due diligence and make improvements to the framework on an ongoing basis or if problems arise in order toimprove its efficacy.
Furthermore, in the event that the activities of a business partner or any other individual or organization
affiliated with the Mitsubishi Estate Group directly have a negative impact on the human rights of others, evenif we were not directly involved in fostering such a negative impact, we shall endeavor to make improvements
together with stakeholders to ensure respect for human rights and eliminate all violations.
56Based on our human rights policy, MJIA understands and respects human rights that are internationally proclaimed
based on our human rights policies as a minimum, and supports and respects their protection, are committed torespecting the human rights of all parties involved, including those derived from our businesses. In order tobecome aware of discrimination and to foster awareness of human rights, we conduct training on human rights,
focusing on the prevention of harassment, which is also a human rights issue in the workplace.

Human Rights Training
MJIA carries out harassment training program once a year.
Send employees to Human rights enlightenment training courses （External training program：Tokyo Human Right
Awareness Liaison Group）

Employee Hotlines (Whistleblower Protection)
We have established a consultation desk for legal violations, violations of internal rules, harassment, and othermatters that are widely contrary to ethical and social standards, and all persons engaged in our business, including
retirees and temporary employees, can report and consult with us. We strictly observe privacy in whistleblowing
and consulting, confirm and investigate the facts, and take appropriate action. The Mitsubishi Estate Group Help
Line and the Mitsubishi Estate Group Whistleblower System may also be used as necessary. This system complies
with the Whistleblower Protection Act.

57

Governance Initiatives
Governance Initiatives

MEL is composed of a board of directors consisting of one corporate officer and two supervisory directors and an
accounting auditor, in addition to the general meeting of investors composed of investors. MEL is prohibited from
employing employees in accordance with the provisions of the Investment Trust Law. Therefore, there are no
employees, and asset management is entrusted to MJIA. Under the following management structure, MJIA engages
in asset management operations, such as the acquisition or transfer of real estate and the leasing of real estate.

58

Corporate GovernanceManagement StructureManagement Structure with Emphasis on Maximizing Unitholder ValueMEL will seek to ensure to align interest between MEL's unitholders and Mitsubishi Estate Group, and maximize
unitholder value as well as to establish and enhance a highly transparent management system.
In the event of transaction which falls under the category of transactions with interested parties, MJIA executes
such transactions through a transparent decision-making process. In addition, transactions which exceeds a certain
standard with interested parties must be deliberated and approved by the Compliance and Risk Management
Committee. However, for transaction below a certain level, the approval of the General Manager of the ComplianceDepartment is required. Through such deliberations, we will be able to carefully examine from many points of viewand comprehensively judge whether or not to make a transaction. The Compliance and Risk Management
Committee, which is composed of outside attorney, enhances the checks and balances against conflicts of interest
transactions from the standpoint of experts. In deliberations on the acquisition and sale of properties by MEL, theManagement Committee is composed of real estate appraisers who do not have a special interest in the Mitsubishi
Estate Group, and is expected to participate in the deliberations and resolutions of MJIA from a wide range ofperspectives based on expertise and experience as experts in real estate appraisal, and to exert a check-andbalance function against the decisions of MJIA.

Decision-Making Flow in the Case of Asset Acquisition or Sale Falling Under Related-Party
Transactions
Acquisition or sale of assets at MEL undergoes a transparent decision-making process.

（Note）An example of the decision-making flow in cases that fall under the category of transactions with interested persons, etc.
requiring approval of the board of directors of the investment corporation pursuant to Article 201-2 of the Act on
Investment Trusts and Investment Corporations.

59

Asset Management Structure

Asset management fee structure aligned with the unitholders interests

To strengthen the alignment between Asset Management Company and unitholder interest, MEL introduced an
asset management fee reflecting the relative performance between MEL s investment unit price and the TSE REIT
Index.
Asset management fee Ⅰ
Total assets as of the end of previous period x 0.2% (upper limit)(AUM-linked)
Asset management fee Ⅱ(Real estate pro t-linked)

Adjusted NOI × 5.0% (upper limit)

Asset management fee Ⅲ(Unitholder interest-linked)

Adjusted net income before tax × net income before tax per unit × 0.001% (upper
limit)

Asset management fee Ⅲ(Unitholder interest-linked)

Performance against TSE REIT Index ((a) – (b)) × market capitalization (for scal
period of each term) × 0.1% (upper limit)（a）： Fluctuations in MEL s investment unit price (incl. dividends)（b）： Fluctuations in the TSE REIT Index (incl. dividends)

Acquisition fee

Acquisition price × 1.0% (upper limit)

Disposition fee

Disposition price × 1.0% (upper limit)

Merger fee

Appraisal value of assets to be succeeded × 1.0% (upper limit)

First J-REIT to Introduce Asset Management Fee Fully Linked to Investment Unit
PerformanceSame-boat Investment by Mitsubishi Estate

Mitsubishi Estate, our sponsor holds our investment units with the aim of aligning the interests between
unitholders and the sponsor. Numbers of units (ratio) held by the sponsor as of Apr. 6, 2021 : 15,950 units (4.1%)

Cumulative Investment System

In March 2021, MEC and MJIA introduced an investment unit cumulative investment plan for officers andemployees.
60Compliance
Promotion System for Compliance
MJIA have achieved compliance through the following system.
Body

Main Duty

Board of DIrectors

As an organ that determines our basic policy regarding business execution and importantbusiness execution, we formulate and modify compliance programs and compliancemanuals.

Compliance and Risk
Management Committee

Promote Compliance and Risk Management, and discuss and approve these monitoring
issues. As a general rule, this committee should be held once a month, but It should beheld as necessary.

President & CEO

President & CEO is responsible for establishing and implementing a compliance system as theultimate responsibility for compliance. President ＆CEO is responsible for working sincerely
and taking the lead in promoting compliance awareness among officers and employees.

General Manager ofComplianceDepartment(Compliance
Officer)

General Manager of Compliance Department is responsible for planning, drafting,coordinating and promoting our compliance efforts.
If it is determined that a problem has occurred or may occur from the viewpoint ofcompliance, the President & CEO or the Compliance and Risk Management Committee
shall promptly obtain approval of the policy for responding to the compliance violationand the preventive measures.
As an independent organ of separate from other internal organs of MJIA, General Manager
of Compliance Department independently verifies the details of transactions or decisions
related to the Asset Management Business of Investment Corporation.

Compliance Department

Under the supervision of the General Manager of Compliance Department, theCompliance Department coordinates the planning, planning, coordination, andpromotion of compliance activities, and verifies the compliance status of eachdepartment.
The Compliance Department checks the progress of the compliance program to theCompliance Manager of each department on a quarterly basis, and reports the results to
the Board of Managers after deliberation through the approval by the Compliance andRisk Management Committee.

61

Initiatives for ComplianceAppropriate motivational framework for employees
To promote individual abilities and career development, we have introduced Management by Objective System(MBO) for all employees. Compliance is included in the evaluation items in this evaluation.
We regularly conduct compliance and risk management training to raise awareness of compliance among officers
and employees.
FY2018FY2019FY2020Total no. of compliance and risk management training sessions

9

11

7

Of which, no. of compliance training sessions

5

6

4

Of which, no. of risk management training sessions

4

5

3

In order to improve the specialized skills of officers and employees, we support officers and employees in
obtaining and maintaining various qualifications (real estate securitization association certified masters, realestate dealers, etc.), as well as in providing outside training to acquire a wide range of knowledge. Our relevant
information and the number of qualified personnel are available on our website.
http://www.mecinvest.com/sustainability/employee.html

Employee Hotlines (Whistleblower Protection)

We have established a consultation desk for legal violations, violations of internal rules, harassment, and othermatters that are widely contrary to ethical and social standards, and all persons engaged in our business, including
retirees and temporary employees, can report and consult with us. We strictly observe privacy in whistleblowing
and consulting, confirm and investigate the facts, and take appropriate action. The Mitsubishi Estate Group Help
Line and the Mitsubishi Estate Group Whistleblower System may also be used as necessary. This system complies
with the Whistleblower Protection Act.

Bribery and Anti-Corruption Policy

The Mitsubishi Estate Group has declared its corporate activities to be fair, transparent and trustworthy. The
Group's Action Guidelines prohibit not only suspected political and administrative cohesion and illegal activities
but also entertainment and gifts that deviate from social norms.
When support is provided for the activities of political organizations, appropriate measures are taken in light of the
Political Funds Regulation Law, the Public Offices Election Law, and other relevant laws and regulations, as well asinternal rules such as the Mitsubishi Estate Group Action Guidelines.
We have also established a system to systematically prevent bribery. In 2013, we established the Mitsubishi EstateGroup Basic Rules on Anti-Bribery, and in 2018, we established and announced the Mitsubishi Estate Group AntiBribery Guidelines. The Anti-Bribery Guidelines clearly state the requests we make to our business partners, andwith the cooperation of our business partners, we will strive to ensure thorough compliance throughout the supply
chain.
To prevent bribery, we provide training for group managers and employees, and acquire pledges from groupmanagers and employees to the Anti-Bribery Guidelines. In addition, bribery prevention lectures are held annually,
particularly for departments and Group companies related to overseas operations. The Risk Compliance Committeemonitors the operation of the anti-bribery system annually, and the status of monitoring by the Risk Compliance
Committee is also reported to the Board of Directors.
In 2017, external organizations conducted an assessment of the Mitsubishi Estate Group's overall anti-bribery
system. By responding to the issues identified by this, we are working to further strengthen our anti-bribery
system.
62

Risk Management
Risk Management Structure
MJIA has established "Risk Management Regulations" in order to ensure the soundness of management by
establishing basic matters concerning risk management and appropriately managing and operating risks. The
Board of Directors oversees the development of risk management systems. The general manager of the ComplianceDepartment supervises the risk management of the entire asset management company, and the general managerof each department takes charge of risk management in each department. MEL conducts an internal audit of MJIA
once a year to verify and evaluate the appropriateness and effectiveness of the risk management system, andreports the results to MEL's Board of Directors.

63

ESG Disclosure Policy and Reporting Framework
Sustainability Report
MEL publishes a Sustainability Report once a year to introduce its ESG activities.
Sustainability ReportPDF

GRI Standards
For information on sustainability at this site, see GRI102 General Disclosures Item 2016.
GRI Comparison Table

PDF

SASB Standards
MEL has organized the Sustainability Disclosure Topics and Accounting Indicators as follows.
SASB Reference Tables

PDF

Information Disclosure Policy
This web site has been created to help stakeholders understand the status of initiatives of MEL and MJIA of theInvestment Corporation, regarding sustainability. We strive to fulfill stakeholder expectations with information
disclosure based on international ESG frameworks as well as requests from investors and external rating agencies
organizations.

Reporting Coverage, Period and Updating Timing
Reporting Coverage : The entire portfolio of the Investment Corporation shall be the coverage of the report and shall bereported annually in principle.
Reporting period : Updated: Fiscal 2020 (April 1, 2020 to March 31, 2021) is the reporting period, but some details other thanthose for the relevant fiscal year are also included.
Update timing : Every June in principle

ESG inquiries
For inquiries about ESG, please contact the following:
Mitsubishi Estate Investment Advisers Co., Ltd. (Asset Management Company)
Telephone

03-3218-0030

Entry Hours

9:00 a.m. to 5:30 p.m. (excluding Saturdays, Sundays, national holidays, and New Year holidays)
64

＜GRI STANDARDS Content Index＞
Major items

Small items

Location or reason for omission

URL

GRI 100: Universal Standards
GRI 102: General Disclosures 2016
1. Organizational Profile
Name of the organization

102-1

a Name of the organization

Overview

https://mel-reit.co.jp/en/about/profile.html

Messagehttps://mel-reit.co.jp/en/about/index.html

Activities, brands, products, andservices

102-2
a

A description of the organization’s
activities.

Primary brands, products, and services,Strengths of MEL
including an explanation of any products orbservices that are banned in certain
Portfolio List
markets.

a

Location of the organization’s
headquarters.

Overview

https://mel-reit.co.jp/en/about/profile.html

Overview

https://mel-reit.co.jp/en/about/profile.html

Overview

https://mel-reit.co.jp/en/about/profile.html

Overview

https://mel-reit.co.jp/en/about/profile.html

Portfolio Map

https://mel-reit.co.jp/en/portfolio/map.html

ii. sectors served;

Strengths of MEL

https://mel-reit.co.jp/en/features/index.html

iii. types of customers and beneficiaries.

Capitalization
Major Unitholders

https://mel-reit.co.jp/en/finance/investment.html

i. total number of employees;

Secure Diverse Human Resources

https://mel-reit.co.jp/en/esg/employee.html

ii. total number of operations;―iii. net sales (for private sector
organizations) or net revenues (for public
sector organizations);

Financial Highlights

iv. total capitalization (for private sector
organizations) broken down in terms ofdebt and equity;―

v. quantity of products or services
provided.

Portfolio Data

Location of operations
Number of countries where theorganization operates, and the names ofa countries where it has significant
operations and/or that are relevant to the
topics covered in the report.

102-5

Ownership and legal forma Nature of ownership and legal form.

102-6

https://mel-reit.co.jp/en/portfolio/index.html

Location of headquarters

102-3

102-4

https://mel-reit.co.jp/en/features/index.html

Markets serveda Markets served, including:i. geographic locations where products andservices are offered;

102-7

Scale of the organizationa Scale of the organization, including:102-8

https://mel-reit.co.jp/en/ir/highlight.html

https://mel-reit.co.jp/en/portfolio/data.html

Information on employees and otherworkers
Personnel data
MEL has no employees andTotal number of employees by employment outsources all asset management
operations to the asset
a contract (permanent and temporary), by
gender.
management company(MJIA),
so we disclose theemployees of
the asset management company
here

https://mel-reit.co.jp/en/esg/social/diversity.html

Major items

Small items

Location or reason for omission
There is no regional difference as
Total number of employees by employment
the asset managementb contract (permanent and temporary), bycompany(MJIA) of MELhas only
region.
one officecTotal number of employees by employment
Secure Diverse Human Resources
type (full-time and part-time), by gender.

URL―

https://mel-reit.co.jp/en/esg/employee.html

Whether a significant portion of theorganization’s activities are performed byworkers who are not employees. Ifdapplicable, a description of the nature andscale of work performed by workers who
are not employees.

MEL does not have any employees
in accordance with the prohibitionon having employees under the
Act on Investment Trusts and―Investment Corporations. The
major part of organization's
activities of MJIA is performed by
employees

Any significant variations in the numbers
reported in Disclosures 102-8-a, 102-8-b,e
and 102-8-c (such as seasonal variationsin the tourism or agricultural industries).

No significant variations in thenumbers reported―

Strengths of MEL

https://mel-reit.co.jp/en/features/index.html

Supply chain

102-9

A description of the organization’s supply
chain, including its main elements as theyarelate to the organization’s activities,
primary brands, products, and services.
Significant changes to the organizationand its supply chain

102-10i. Changes in the location of, or changes in,operations, including facility openings,
No significant changes
closings, and expansions;―iii. Changes in the location of suppliers, thestructure of the supply chain, orNo significant changes
relationships with suppliers, including
selection and termination.

―

Precautionary Principle or approach102-11

Whether and how the organization appliesathe Precautionary Principle or approach.

Risk Management Structure
Promotion System for Compliancehttps://mel-reit.co.jp/en/esg/governance/risk.html
https://mel-reit.co.jp/en/esg/governance/compliance.html

External initiatives

102-12A list of externally-developed economic,
environmental and social charters,a principles, or other initiatives to which theorganization subscribes, or which itendorses.

International Initiatives andParticipation
Environmental Assessment andCertifications

https://mel-reit.co.jp/en/esg/external/initiatives.html
https://mel-reit.co.jp/en/esg/external/environmental.html
https://mel-reit.co.jp/en/esg/external/greenbuilding.html

Green Building Certifications
Membership of associations

102-13A list of the main memberships of industry
or other associations, and national orCompany Overview (MJIA HP)
international advocacy organizations.

http://www.mecinvest.com/en/company/outline.html

2. Strategy
Statement from senior decision-maker102-14

A statement from the most senior decisionmaker of the organization (such as CEO,chair, or equivalent senior position) about
Top Messageathe relevance of sustainability to theorganization and its strategy for addressing
sustainability.
Key impacts, risks, and opportunities

102-15a

3. Ethics and Integrity

https://mel-reit.co.jp/en/esg/sustainability/index.html

A description of key impacts, risks, andopportunities.

Materiality
Climate Change Initiatives

https://mel-reit.co.jp/en/esg/material/index.html
https://mel-reit.co.jp/en/esg/environment/climate.html

Major items

Small items

Location or reason for omission

URL

Values, principles, standards, andnorms of behavior

102-16

A description of the organization’s values,a principles, standards, and norms of
behavior.

Corporate Governancehttps://mel-reit.co.jp/en/esg/governance/corporate.html

i. seeking advice about ethical and lawful
behavior, and organizational integrity;

Compliancehttps://mel-reit.co.jp/en/esg/governance/compliance.html

ii. reporting concerns about unethical or
unlawful behavior, and organizational
integrity.

Employee Hotlines (Whistleblower
Protection)

https://mel-reit.co.jp/en/esg/governance/compliance.html

Governance Initiatives

https://mel-reit.co.jp/en/esg/governance/index.html

Mechanisms for advice and concerns
about ethics

102-17aA description of internal and externalmechanisms for:4. Governance

Governance structure of the organization,a including committees of the highest
governance body.

Committees responsible for decisionb making on economic, environmental, andsocial topics.

Corporate Governance

Sustainability Committee

https://melreit.co.jp/en/esg/sustainability/committee.html

Delegating authority

102-19Initiatives for Sustainability
Process for delegating authority foreconomic, environmental, and social topics
afrom the highest governance body to senior
Sustainability Committee
executives and other employees.

https://mel-reit.co.jp/en/esg/sustainability/basic.html
https://melreit.co.jp/en/esg/sustainability/committee.html

Executive-level responsibility foreconomic, environmental, and social
topics102-20Whether the organization has appointed an
Initiatives for Sustainability
executive-level position or positions witha
responsibility for economic, environmental,
Sustainability Committee
and social topics.

https://mel-reit.co.jp/en/esg/sustainability/basic.html

Initiatives for Sustainability

https://mel-reit.co.jp/en/esg/sustainability/basic.html

Sustainability Committee

https://melreit.co.jp/en/esg/sustainability/committee.htmlbWhether post holders report directly to thehighest governance body.

https://melreit.co.jp/en/esg/sustainability/committee.html

Consulting stakeholders on economic,
environmental, and social topics

102-21

Processes for consultation between
stakeholders and the highest governanceabody on economic, environmental, andsocial topics.

Stakeholder Engagement

https://melreit.co.jp/en/esg/sustainability/stakeholder.html

If consultation is delegated, describe towhom it is delegated and how the resultingb
Stakeholder Engagement
feedback is provided to the highest
governance body.

https://melreit.co.jp/en/esg/sustainability/stakeholder.html

Composition of the highest governancebody and its committees

102-22a102-23https://mel-reit.co.jp/en/esg/governance/corporate.html

Composition of the highest governancebody and its committees by:
Chair of the highest governance body―

Major items

Small items

Location or reason for omission
Whether the chair of the highest
a governance body is also an executive
officer in the organization.

URL―

Nominating and selecting the highest
governance body102-24

Nomination and selection processes for thea highest governance body and its―
committees.
Criteria used for nominating and selecting
b highest governance body members,
including whether and how:―

Conflicts of interest

102-25

Processes for the highest governance bodya to ensure conflicts of interest are avoided Management Structure
and managed.

https://mel-reit.co.jp/en/esg/governance/corporate.html

Whether conflicts of interest are disclosed
Corporate Governanceto stakeholders, including, as a minimum:https://mel-reit.co.jp/en/esg/governance/corporate.html

bRole of highest governance body insetting purpose, values, and strategy

102-26Highest governance body’s and senior
Initiatives for Sustainability
executives’ roles in the development,
approval, and updating of the organization’a s purpose, value or mission statements,
Sustainability Policy
strategies, policies, and goals related toeconomic, environmental, and social
Sustainability Committee
topics.

Measures taken to develop and enhance
the highest governance body’s collectiveaknowledge of economic, environmental,
and social topics.

https://melreit.co.jp/en/esg/sustainability/committee.html

Sustainability Committee

https://melreit.co.jp/en/esg/sustainability/committee.html

Processes for evaluating the highest
governance body’s performance witharespect to governance of economic,
environmental, and social topics.

Risk Management

https://mel-reit.co.jp/en/esg/governance/risk.html

Whether such evaluation is a selfassessment.

Risk Management

https://mel-reit.co.jp/en/esg/governance/risk.html

Materiality

https://mel-reit.co.jp/en/esg/material/index.html

Whether stakeholder consultation is used
to support the highest governance body’sb identification and management ofMateriality
economic, environmental, and social topics
and their impacts, risks, and opportunities.

https://mel-reit.co.jp/en/esg/material/index.html

Evaluating the highest governancebody’s performance102-28c

Identifying and managing economic,
environmental, and social impacts
Highest governance body’s role inidentifying and managing economic,
environmental, and social topics and theiraimpacts, risks, and opportunities –including its role in the implementation ofdue diligence processes.

102-30https://mel-reit.co.jp/en/esg/sustainability/policy.html

Collective knowledge of highest
governance body102-27102-29https://mel-reit.co.jp/en/esg/sustainability/basic.html

Effectiveness of risk management
processes

Major items

Small items

Location or reason for omission
Highest governance body’s role inreviewing the effectiveness of thea organization’s risk management processes Risk Management
for economic, environmental, and social
topics.

URL

https://mel-reit.co.jp/en/esg/governance/risk.html

Review of economic, environmental,
and social topics

102-31Frequency of the highest governance body’s review of economic, environmental, anda
Sustainability Committeesocial topics and their impacts, risks, andopportunities.

https://melreit.co.jp/en/esg/sustainability/committee.html

Highest governance body’s role insustainability reporting

102-32The highest committee or position thatformally reviews and approves thea organization’s sustainability report andensures that all material topics arecovered.

Sustainability Committee

https://melreit.co.jp/en/esg/sustainability/committee.html

Communicating critical concerns

102-33

Sustainability CommitteeaProcess for communicating criticalconcerns to the highest governance body.

102-34Nature and total number of criticalconcerns102-35

Remuneration policies

Corporate GovernanceNo critical concerns reported
during the reporting period

Remuneration policies for the highest
a governance body and senior executives for Corporate Governancethe following types of remuneration:

https://melreit.co.jp/en/esg/sustainability/committee.html
https://mel-reit.co.jp/en/esg/governance/compliance.html―

https://mel-reit.co.jp/en/esg/governance/compliance.html

Process for determining remuneration

102-36a Process for determining remuneration.

Corporate Governancehttps://mel-reit.co.jp/en/esg/governance/compliance.html

5. Stakeholder Engagement
List of stakeholder groups

102-40a
102-43A list of stakeholder groups engaged by the
Stakeholder Engagement
organization.

https://melreit.co.jp/en/esg/sustainability/stakeholder.html

Approach to stakeholder engagement
The organization’s approach to stakeholder
engagement, including frequency ofengagement by type and by stakeholder
a group, and an indication of whether any of Stakeholder Engagement
the engagement was undertaken
specifically as part of the report preparation
process.

https://melreit.co.jp/en/esg/sustainability/stakeholder.html

Major items

Small items

Location or reason for omission
Key topics and concerns raised

102-44

No critical concerns reported
during the reporting period

URL―

6. Reporting Practice102-46

Defining report content and topic
Boundaries

102-47

List of material topicsaA list of the material topics identified in the
Materiality
process for defining report content.

https://mel-reit.co.jp/en/esg/material/index.html

Reporting period

102-50

Reporting period for the information
provided.

ESG Disclosure Policy and Reporting
https://mel-reit.co.jp/en/esg/disclosure/index.html
Framework

102-51

Date of most recent report

This reporting period is the firstyear of GRI report102-52

Reporting cycleaa Reporting cycle―

ESG Disclosure Policy and Reporting
https://mel-reit.co.jp/en/esg/disclosure/index.html
Framework

Contact point for questions regarding
the report102-53a102-55The contact point for questions regarding
the report or its contents.

ESG Disclosure Policy and Reporting
https://mel-reit.co.jp/en/esg/disclosure/index.html
Framework

GRI content index

Refer this table
Environmental Performance

External assurance

102-56

Environmental performance data isgiven assurance by a third party―
https://mel-reit.co.jp/en/esg/environment/index.html
ーManagement Approach
Explanation of the material topic and its
Boundary

103-1

a An explanation of why the topic is material. Materiality

https://mel-reit.co.jp/en/esg/material/index.html

The Boundary for the material topic, which
Materiality
includes a description of:

https://mel-reit.co.jp/en/esg/material/index.htmlb

The management approach and its
components

103-2

a

An explanation of how the organization
manages the topic.

Sustainability Committee

https://melreit.co.jp/en/esg/sustainability/committee.htmlb

A statement of the purpose of the
management approach.

Sustainability Committee

https://mel-reit.co.jp/en/esg/sustainability/basic.html

Sustainability Committee

https://melreit.co.jp/en/esg/sustainability/committee.html

Compliancehttps://mel-reit.co.jp/en/esg/governance/compliance.html

Sustainability Committee

https://melreit.co.jp/en/esg/sustainability/committee.html

A description of the following, if thec management approach includes thatcomponent:

103-3

Evaluation of the management
approach
An explanation of how the organizationa evaluates the management approach,including:

Topic-specific Standards
GRI 200: Economic
201: Economic Performance 2016

Major items

Small items

Location or reason for omission

201-1

Direct economic value generated anddistributed

201-2

Financial implications and other risks
and opportunities due to climatechangeFinancial Summary

Risks and opportunities posed by climatechange that have the potential to generateaClimate Change Initiatives
substantive changes in operations,revenue, or expenditure, including:

URL
https://mel-reit.co.jp/en/finance/index.html

https://mel-reit.co.jp/en/esg/environment/climate.html

203: Indirect Economic Impacts 2016
Significant indirect economic impacts

203-2

The logistics properties of MEL
creates local employment―

205: Anti-corruption 2016

205-2

Communication and training about antiCompliancecorruption policies and procedures

205-3

Confirmed incidents of corruption andactions taken

https://mel-reit.co.jp/en/esg/governance/compliance.html

No critical incidents of corruption
during the reporting period―

206: Anti-competitive Behavior 2016
Legal actions for anti-competitive
behavior, anti-trust, and monopoly
practices206-1

Number of legal actions pending orcompleted during the reporting period
regarding anti-competitive behavior andaviolations of anti-trust and monopoly
legislation in which the organization has
been identified as a participant.
b

Main outcomes of completed legal actions,
including any decisions or judgments.

GRI 300: Environmental
302: Energy 2016
302-1

Energy consumption within theorganization

Environment Performancehttps://mel-reit.co.jp/en/esg/environment/index.html

302-2

Energy consumption outside of theorganization

Environment Performancehttps://mel-reit.co.jp/en/esg/environment/index.html

302-3

Energy intensity
Environment Performancehttps://mel-reit.co.jp/en/esg/environment/index.html

Organization-specific metric (theEnvironment Performance
denominator) chosen to calculate the ratio.

https://mel-reit.co.jp/en/esg/environment/index.html

a Energy intensity ratio for the organization.
b

Types of energy included in the intensity
c ratio; whether fuel, electricity, heating,cooling, steam, or all.

Includes all types of energy(electricity, fuel or district heating
and cooling) used in the logistics
properties of MEL―

Whether the ratio uses energy
d consumption within the organization,
outside of it, or both.

Environment Performancehttps://mel-reit.co.jp/en/esg/environment/index.html

302-4

Reduction of energy consumption

Environment Performancehttps://mel-reit.co.jp/en/esg/environment/index.html

302-5

Reductions in energy requirements ofproducts and services

Contributions to the Environment
through Our Portfolio

https://melreit.co.jp/en/esg/environment/contributions.html

303: Water and Effluents 2018
303-5

Water consumption

Major items

Small items

Location or reason for omissionaTotal water consumption from all areas inmegaliters.

URL

Environment Performance (in cubic
meter)

https://mel-reit.co.jp/en/esg/environment/index.html

Environment Performancehttps://mel-reit.co.jp/en/esg/environment/index.html

305: Emissions 2016
Direct (Scope 1) GHG emissions

305-1

a

Gross direct (Scope 1) GHG emissions inmetric tons of CO2 equivalent.

Gases included in the calculation; whetherb CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, The calculations include CO2 only ―or all.
dBase year for the calculation, if applicable,
Climate Change Initiatives
including:https://mel-reit.co.jp/en/esg/environment/climate.html

Energy indirect (Scope 2) GHG
emissions305-2

Gross location-based energy indirecta (Scope 2) GHG emissions in metric tons of Environment Performance
CO2 equivalent.
If available, the gases included in thec calculation; whether CO2, CH4, N2O,
HFCs, PFCs, SF6, NF3, or all.
dhttps://mel-reit.co.jp/en/esg/environment/index.html

The calculations include CO2 only ―Base year for the calculation, if applicable,
Climate Change Initiatives
including:https://mel-reit.co.jp/en/esg/environment/climate.html

Other indirect (Scope 3) GHG emissions

305-3

Gross other indirect (Scope 3) GHG
a emissions in metric tons of CO2
equivalent.

Environment Performance

If available, the gases included in theb calculation; whether CO2, CH4, N2O,
HFCs, PFCs, SF6, NF3, or all.

The calculations include only CO2 ―e

Base year for the calculation, if applicable,
Climate Change Initiatives
including:https://mel-reit.co.jp/en/esg/environment/index.html

https://mel-reit.co.jp/en/esg/environment/climate.html

GHG emissions intensity

305-4
a

GHG emissions intensity ratio for theorganization.

bOrganization-specific metric (thedenominator) chosen to calculate the ratio. Environment Initiatives

Types of GHG emissions included in theintensity ratio; whether direct (Scope 1),cenergy indirect (Scope 2), and/or otherindirect (Scope 3)

Environment Initiatives

Environment Initiatives

https://mel-reit.co.jp/en/esg/environment/index.html
https://mel-reit.co.jp/en/esg/environment/index.html

https://mel-reit.co.jp/en/esg/environment/index.html

Gases included in the calculation; whetherd CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, The calculations include only CO2 ―or all.
305-5

Reduction of GHG emissions

Environment Performancehttps://mel-reit.co.jp/en/esg/environment/index.html

Water Resources and Waste
Reduction, etc

https://mel-reit.co.jp/en/esg/environment/water.html

306 : Waste 2020
306-2

Management of significant wasterelated impacts
Actions, including circularity measures,
taken to prevent waste generation in theorganization’s own activities and upstreama.
and downstream in its value chain, and to
manage significant impacts from waste
generated.

306-3

Waste generated

Contributions to the Environment
through Our Portfolio

https://melreit.co.jp/en/esg/environment/contributions.html

Major items

Small items

Location or reason for omission
Total weight of waste generated in metrica. tons, and a breakdown of this total bycomposition of the waste.

306-5

URL

Environmental Performancehttps://mel-reit.co.jp/en/esg/environment/index.html

Contextual information necessary tob. understand the data and how the data has Environmental Performance
been compiled.

https://mel-reit.co.jp/en/esg/environment/index.html

Waste directed to disposal

Environment Performancehttps://mel-reit.co.jp/en/esg/environment/index.html

No incidents reported during thereporting period―

307: Environmental Compliance 2016
307-1

Non-compliance with environmental
laws and regulations

Major items

Small items

Location or reason for omission

URL

GRI 400: Social
401: Employment 2016
New employee hires and employee
turnover401-1

Total number and rate of new employee
a hires during the reporting period, by age
group, gender and region.

Promotion of Diversity & Inclusion

https://mel-reit.co.jp/en/esg/social/diversity.html

Total number and rate of employee
b turnover during the reporting period, by age Promotion of Diversity & Inclusiongroup, gender and region.

https://mel-reit.co.jp/en/esg/social/diversity.html

Parental leave

401-3

b

Total number of employees that tookparental leave, by gender.

403: Occupational Health and Safety 2018403-6

Promotion of worker healthWork-life Balance- Create a comfortable workplace
https://mel-reit.co.jp/en/esg/social/balance.html
where employee will want to work fora long period of time -Major items

Small items

Location or reason for omission

URL

An explanation of how the organization
facilitates workers’ access to nona occupational medical and healthcare
services, and the scope of accessprovided.

Employee Health and Well-being- Creating Productive and Employee- https://mel-reit.co.jp/en/esg/social/employee.html
friendly Workplace -A description of any voluntary healthpromotion services and programs offered
to workers to address major non-workb related health risks, including the specifichealth risks addressed, and how theorganization facilitates workers’ access tothese services and programs.

Employee Health and Well-being- Creating Productive and Employee- https://mel-reit.co.jp/en/esg/social/employee.html
friendly Workplace -403-9

Work-related injuries

No incidents reported during thereporting period―403-10Work-related ill health

No incidents reported during thereporting period―

404: Training and Education 2016

Programs for upgrading employee skills
and transition assistance programs

404-2

Type and scope of programs implemented
a and assistance provided to upgrade
Human resource development
employee skills.

https://mel-reit.co.jp/en/esg/social/developing.html

Percentage of employees receiving
regular performance and careerdevelopment reviews

404-3

Percentage of total employees by genderand by employee category who received aa regular performance and careerdevelopment review during the reporting
period.

Promotion of Diversity & Inclusion
Conduct Management by
Objectives (MBO) system for all
employees

https://mel-reit.co.jp/en/esg/social/diversity.html-

405: Diversity and Equal Opportunity 2016
Diversity of governance bodies andemployees

405-1

Percentage of individuals within thea organization’s governance bodies in eachof the following diversity categories:

i. Gender;

Promotion of Diversity & Inclusion

https://mel-reit.co.jp/en/esg/social/diversity.html

i. Gender;

Promotion of Diversity & Inclusion

https://mel-reit.co.jp/en/esg/social/diversity.html

Ratio of basic salary and remunerationof women to men

There is no gender difference―

Incidents of discrimination andcorrective actions taken

No incidents reported during thereporting period―

No incidents reported during thereporting period―

Human rights

https://mel-reit.co.jp/en/esg/social/humanrights.html

Percentage of employees per employee
b category in each of the following diversity
categories:

405-2

406: Non-Discrimination 2016406-1

411: Rights of Indigenous Peoples 2016
411-1

Incidents of violations involving rights
of indigenous peoples

412: Human Rights Assessment 2016
412-2

Employee training on human rights
policies or procedures

Major items

Small items

Location or reason for omission

URL

413: Local Community 2016413-1

Operations with local community
engagement, impact assessments, and Contributions to Local Communities
development programs

https://mel-reit.co.jp/en/esg/social/communities.html

414: Supplier Social Assessment 2016

https://melreit.co.jp/en/esg/sustainability/committee.html

414-1

New suppliers that were screened using Establishment of the Sustainability
Promotion Manualsocial criteria

414-2

Negative social impacts in the supply
chain and actions taken

No incidents reported during thereporting period―

Political contributions

No incidents reported during thereporting period―

415: Public Policy 2016415-1

417: Marketing and Labeling 2016

417-1

Requirements for product and service
information and labeling

Environmental Assessment andCertifications
Green Building Certifications

https://mel-reit.co.jp/en/esg/external/environmental.html
https://mel-reit.co.jp/en/esg/external/greenbuilding.html

418: Customer Privacy 2016

418-1

Substantiated complaints concerning
breaches of customer privacy andlosses of customer data

No incidents reported during thereporting period―

No incidents reported during thereporting period―

419: Socioeconomic Compliance 2016

419-1

Non-compliance with laws andregulations in the social and economic
area

GRI G4: Construction and Real Estate Sector Disclosures

CRE8

Type and number of sustainability
certification, rating and labelingschemes for new construction,
management, occupation andredevelopment

Environmental Assessment andCertifications
Green Building Certifications

https://mel-reit.co.jp/en/esg/external/environmental.html
https://mel-reit.co.jp/en/esg/external/greenbuilding.html

Activity Metrics
SASB Disclosure CodeIF-RE-000.A
IF-RE-000.B
IF-RE-000.C
IF-RE-000.D

SASB Framework
Disclosure Metric
Number of assets
Leasable floor area
Percentage of indirectly managed assets
Average occupancy rate

Disclosure Topic: Energy Management
SASB Disclosure CodeIF-RE-130a.1

Disclosure Metric

Energy consumption data coverage
Total energy consumed by portfolio areawith data coverage
Percentage grid electricity

IF-RE-130a.2

IF-RE-130a.3

IF-RE-130a.4

Fiscal 2020
19
666,551.45
21.9
99.8

Unit
assetsm2%%

Fiscal 2020

Unit
Percentage (%)
by floor area

100.0
39,146.02

MWh

93.6

%

Percentage renewable electricity

0.0%

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

-0.3

%

Percentage of area with data coverage

66.3

Percentage of eligible portfolio that is certified to
ENERGY STAR

0.0

Percentage (%)
by floor area
Percentage (%)
by floor area

Note：Not applicable as the ENERGY STAR Program does not cover real estate inJapan
Percentage of eligible portfolio that has
an energy rating
Percentage of eligible portfolio that has(Option)an green building certification(Option)

IF-RE-130a.5

69.2
72.2

Percentage (%)
by floor area
Percentage (%)
by floor area

Description of how building energy management considerations are integrated into
property investment analysis and operational strategy(Please refer to the “Environmental Initiatives(E)” section of this report for more
information)
The Mitsubishi Estate Group aim to construct the management system for environment
as well as promote the advanced initiatives to contribute to achieving a sustainable
society through the protection of environment by complying with environmental laws andregulations, giving consideration to the environment and reducing the burden on theenvironment.
Mitsubishi Estate Logistics REIT Investment Corporation (MEL) will aim to invest inenergy-efficient facilities, and will continue to work on environmental and energy-saving
measures for our properties and improve the efficiency of energy use.
Moreover, Mitsubishi Estate Co., Ltd. , the sponsor of MEL, has been working tocontribute to achieving a sustainable society through the formuration of the Mitsubishi
Estate Group's Sustainable Development Goals 2030 with regarding ESG as asignificant management issue.

Disclosure Topic: Water Management
SASB Disclosure CodeDisclosure Metric
Water withdrawal data coverage as a
IF-RE-140a.1
percentage of total floor area
Water withdrawal data coverage as apercentage of floor area in regions with high orextremely high baseline water stressFiscal 2020
100.0
0.0

Unit
Percentage (%)
by floor area
Percentage (%)
by floor area

Note：At this time, there are no properties located in regions with high or extremely highbaseline water stress.
IF-RE-140a.2

IF-RE-140a.3

IF-RE-140a.4

Total water withdrawn by portfolio area
80,550.00
m3
with data coverage
Of which, water withrawn percentage by portfolio
0.0%
area with high or extremely high baseline water
stressNote：At this time, there are no properties located in regions with high or extremely highbaseline water stress.
Like-for-life percentage change in water
withdrawn for portfolio area with data coverage

-4.5

%

Percentage of area with data coverage

66.3

Percentage (%)
by floor area

Description of water management risks and discussion of strategies and practices tomitigate those risks

Disclosure Topic: Management of Tenant Sustainability Impact
SASB Disclosure CodeDisclosure MetricFiscal 2020
Percentage of new leases that contain a cost
IF-RE-410a.1(To be disclosed
recovery clause for resource efficiency-related
capital improvements(To be disclosed
Associated leased floor area
Percentage of total leasable floor area for(Option)100.0
buildings leased under a green lease agreement
Of which, floor area percentage for buildings
100.0
leased under a green lease agreement that
contains a cost recovery clause
Percentage of tenants that are separately
74.8
IF-RE-410a.2
metered
Percentage of tenants that are separately
66.1
metered or submetered for water withdrawals
IF-RE-410a.3

Unit
Percentage (%)
by floor aream2
Percentage (%)
by floor area
Percentage (%)
by floor area
Percentage (%)
by floor area
Percentage (%)
by floor area

Discussion of approach to measuring, incentivizing, and improving sustainability impactsof tenants
MEL and MJIA, the asset management company of MEL, are working to contribute toachieving a sustainable environment by improving the environmental performance of ourportfolio. Additionally, we recognize that it is also important to have the understanding
and cooperation of tenants who use our properties on a daily basis. MEL and MJIA aim
to collaborate for a sustainable environmental society in order to promote awarenessraising activities for tenants, the introduction of green lease contract which enables bothbuilding owners and tenants to share the benefits and sustainabi​lity-relat​ed​ initiatives
with our tenants.
In order to have tenants' cooperation in energy-saving activities smoothly, theenvironmental consideration clauses such as waste separation, recycling
recommendations, air-conditioning operation standards and idling stop are set in theproperty usage rules. We also have educational activities on tenants such as putting
posters on the common areas of each floor.

The green lease agreement was concluded with a part of our tenants. Pursant to theagreement, MEL received a certain percentage of the reduced amount of electricity
usage fees and maintenance costs as green lease fees insted of the installation of LED
lighting for the leased area of the tenant at the expense of MEL.

Disclosure Topic: Climate Change Adaptation
SASB Disclosure CodeDisclosure Metric
IF-RE-450a.1

Area of properties located in 100-year
flood zones

Fiscal 2020
15,027.28

Unitm2

Note: Amount recorded refers to the total leasable area of properties located in areas
where inundation of more than 0 m in depth is expected based on hazard maps
(primarily the maximum expected scale) issued by local governments.
Japanese hazard maps (maximum estimated scale) are developed for areas with anannual exceedance probability of 1 in 1,000 for flood damage.

IF-RE-450a.2

Description of climate change risk exposure analysis, degree of systematic portfolio
exposure, and strategies
for mitigating risks(Please refer to the “Climate Change Initiatives” section of this report for more
information)