Sustainability
Report 2022

Issued on June 30, 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�������������������������������� 43

Sustainability Policy��������������������������������������������������������4

Human Resource Development�������������������������������������� 46

Sustainability Committee�������������������������������������������������5

Promotion of Diversity ＆ Inclusion��������������������������������� 49

Stakeholder Engagement������������������������������������������������8

Employee Health and Well-being ～Creating Productive and
Employee-friendly Workplace～�������������������������������������� 51

Materiality
Materiality���������������������������������������������������������������������9

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～����� 55
Human Rights�������������������������������������������������������������� 57

Governance Initiatives (G)Governance Initiatives�������������������������������������������������� 59
Corporate Governance�������������������������������������������������� 61
Compliance����������������������������������������������������������������� 63
Risk Management��������������������������������������������������������� 66

Environmental initiatives (E)Environmental Performance������������������������������������������� 20
Climate Change Initiatives��������������������������������������������� 23
Water Resources and Waste Reduction, etc��������������������� 29
Contributions to the Environment through Our Portfolio���� 30
Environmental Collaboration Efforts
with Tenant・Stakeholders���������������������������������������������� 32

ESG Disclosure Policy and Reporting Framework
ESG Disclosure Policy and Reporting Framework�������������� 67
GRI Standards������������������������������������������������������������� 68
SASB Standards����������������������������������������������������������� 81

Green Finance�������������������������������������������������������������� 33

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

Mitsubishi Estate Logistics REIT
Investment Corporation
Executive Director Ken Takanashi
Sustainability（Sustainability of Society) 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 abenchmark for evaluating medium-to long-term risk management and opportunities to generate new revenues.
The Investment Corporation believes that working to improve social sustainability, including consideration for theenvironment, 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 the Asset Management Company and promote ourefforts together.
In April 2019, the Asset Management Company established the Sustainability Policy, as a basic policy. Based on thispolicy, 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), the Investment Corporation has identified materiality, risks, and opportunities and analyzed andevaluated them, and set KPIs for the Corporation.
The Sustainability Committee was positioned as the core of management in January 2022, based on the belief that
it is useful to further clarify and implement management s commitment to sustainability. It was also upgraded it toformal committee in order to enhance and clarify the sustainability promotion system. In the same year, theSustainability Management Office was newly established within the Corporate Management Department of theAsset Management Company to further enhancing its commitment to sustainability. Additionally, the AssetManagement Company appointed a sustainability officer to strengthen the structure further.
In addition, the Mitsubishi Estate Group, to which the Asset Management Company belongs, established the
Mitsubishi Estate Group s Sustainability Vision 2050 with an eye to sustainability management in 2050 in order topromote business aimed at realizing a sustainable society. To realize this vision, the Mitsubishi Estate Group s
Sustainable Development Goals 2030 set forth in the Long-Term Management Plan 2030 is positioned as amilestone to establish specific themes and actions to achieve this vision. The Asset Management Company also
shares this.
The Investment Corporation will continue to strive to fulfill its mission of maximizing unitholder value over the
medium to long term by building relationships of trust with its unitholders and other stakeholders by further
enhancing ESG in real estate investment management and appropriately disclosing its achievement.
1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Positioning of the Investment Corporation Materiality

For more details, please refer to: Materiality

3

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.
4

Sustainability Committee
MEL believes that our efforts to improve sustainability is essential to maximizing unitholder value. The
Sustainability Committee deliberates on and reports on the implementation of the Asset Management Company'sand MEL's sustainability goals and measures, as well as evaluates, analyzes, and shares the latest sustainabilityrelated knowledge.

Sustainability Promotion Structure5

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.

Establishment of Sustainability Management OfficeIn April 2022, the Sustainability Management Office was newly established within the Corporate Management
Department of the Asset Management Company to further enhancing its commitment to sustainability.
Additionally, the Asset Management Company appointed a sustainability officer to strengthen the structure further.

Sustainability Promotion Based on PDCA Cycle

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.

6＜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
Application of sustainable procurement to all suppliers.
Requirement to have in place policies and systems related tocorporate ethics, including anti-fraud and anti-corruption.

Implementation of Sustainability Training
MJIA regularly holds training sessions for all executives focused on sustainability in order to acquire knowledge andraise 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.

7

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.

8

Materiality
Identified Materiality
Environment (E)Responding to Climate Change/Enhancing Portfolio Resilience
KPIs and targets

CO2 emissions intensity

Target: 30% reduction by FY 2030 (based on FY 2017)

Energy consumption intensity

Target: 15% reduction by FY 2030 (based on FY 2017)

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 (based on 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 the reduction andrecycling 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

Target: Increase to 100% by FY 2030

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

Page

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

9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, and expanding tenant support services.
(environmental and energy-saving measures, health, safety, comfort improvement, etc.)Page

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

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) and contributing as a disaster prevention center forour portfolio.

Page

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

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 an environment and systemthat maintains a good work-life balance.

Page

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

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 a company, andconduct various types of training to improve a wide range of expertise and skills, as the growth of
employees is essential to our growth as a company.

Page

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

Target: twice a year

Internal audit

PolicyWe aim to thoroughly comply with laws and regulations by fostering each employee's awareness ofcompliance and risk management and enhancing his/her knowledge.
We will conduct appropriate internal audits to ensure effective internal controls.
We will prevent unfair and impartial transactions with stakeholders based on internal regulations anddeliberations by the Compliance and Risk Management Committee.

Page

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

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 and diversity of the Directors of
MEL.

Page

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

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 a timely, appropriate, andproactive manner, including sustainability information, and regularly holding engagement withstakeholders (investors) through business activities that utilize IR and other means.

Page

https://mel-reit.co.jp/en/esg/external/environmental.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 tosustainability of the Investment Corporation, issues were identi ed over a wide area based on the expectations of stakeholders and the status ofother 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 the Investment Corporation.

STEP 3 Meetings, Validation and Approval by Management
The materiality (draft) is discussed external specialized institution and management, including President ＆ Chief Exective officer of MIJA, andapproved 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.

17Green Building Certifications《Target（KPI）》

Green Building Certificated portfolio up to 100% by FY2030.

Total of Green Building Certification
Buildings with Green Building Certification (Note 1)

Number of Properties

Total Floor Area (㎡)Ratio (％)

FY2022 (As of May 31, 2022)

14

1,118,002

87.6（Note 1）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

Assessment Results
Property Name

CASBEE

BELS

Logicross Fukuoka Hisayama

S Rank for Real Estate

Logicross Atsugi

S Rank for Real Estate★★★★★

Logicross Kobe Sanda

A Rank for Real Estate★★★★

Logicross Osaka

S Rank for Real Estate★★★★★

Logicross Nagoya Kasadera

S Rank for Real Estate★★★★★

Logicross Narashino

S Rank for Real Estate★★★★★

Logicross AtsugiⅡS Rank for Real Estate★★★★★
（ZEB Ready）

LOGIPORT Sagamihara

S Rank for Real Estate★★★★

LOGIPORT Hashimoto

S Rank for Real Estate★★

LOGIPORT Osaka Taisho

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

LOGIPORT Kawasaki Bay

A Rank for New Construction

MJ Logipark Kasugai 1

S Rank for Real Estate

MJ Logipark Kazo 1★★★★★
S Rank for Real Estate★★★★★
（ZEB Ready）＜Number of properties＞

13

11＜Total Floor Area (㎡)＞

1,110,400

733,783＜Ratio（％）＞

87.0

57.5

MJ Logipark Fukuoka 1

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 FY2030 (FY2017 standard)
Energy Consumption

Total energy
consumption(kWh)

FY2017(Base Year)

BreakdownDatacoverage(GFA basis)(Note 1)

Energyconsumption
intensity(kWh/m2)(Note 2)

Percentage
Change(intensity)

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

FY202039,146,016

2,504,096

36,641,919

100%

45.30

FY2021

42,172,122

2,612,848

39,559,273

100%

38.49

▲23.3%

FY2030(Target Year)

-

-

-

-

-

▲15.0%

20

30% reduction by FY2030 (FY2017 standard)
Breakdown
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%FY2021

20,6190.4

9,891.5

10,726.9

100%

0.016

▲34.7%

FY2030(Target Year)

-

-

-

-

-

-

▲30.0%

CO2 emissions

CO2
emissions(t-CO2)(Note 3)

FY2017(Base Year)CO2 emission
intensity(t-CO2/m2)(Note 2)

Percentage
Change(intensity)

Do not increase by FY2030 (FY2017 standard)
Water supply usage(m3)Data coverage(GFA basis)(Note 1)

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

FY2017(Base Year)

63,255

100%

0.114

-

FY201870,833

100%

0.127

11.9%

FY201973,839

100%

0.103

▲9.8%

FY202080,550

100%

0.092

▲18.9%FY2021

84,855

100%

0.082

▲27.6%

FY2030(Target Year)

-

-

-

0.0%

Water Consumption

21

Percentage
Change70% or more by FY2030
Waste Management

Data coverage(Floor area basis) (Note 1)

Waste discharge weight(t)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%

FY2021

3,939

90.6%

62.3%

FY2030(Target Year)

-

-

70.0%

(Note 1) Numerator: Total floor area (m2) of properties for which data for the current year are identified. Denominator: Total portfolio floor area for thecurrent fiscal year
(Note 2) The basic unit is a value calculated by considering the utilization rate, with the numerator for each consumption, etc., and the total portfolio floorarea 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)

FY2021

14,311,834(Note 4)(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.
(Note 4) The amount of power generated by Logicross Narashino and LOGIPORT Kawasaki Bay is not included.
LOGIPORT Sagamihara and LOGIPORT Osaka Taisho, only the period from January 2021 to December 2021 is included. Regarding to Logicross
Atsugi Ⅱ, only for March 2022 is included.

Some data that is the basis of the above table Environment-related data is subject to limited guarantee by a third-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)

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.

23

(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

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.
24

【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.

25

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

Policies and
Laws

Technology

RelationsMarkets

1.5℃

4℃

Medium
term

Long
term

Medium
term

Long
term

Risk

Increased tax burden
on portfolio GHG
emissions

Large

Large

Small

Small

Enhance energy-saving
standards in real estate

Risk

Increased burden of
portfolio renovation
costs

Large

Large

Small

Small

Strict obligation toreport emissions

Risk

Increased business
expenses to reporting

Small

Small

Small

Small

Evolution anddissemination of reenergy and energysaving technologies

Risk

Increased cost of
introducing newtechnology

Large

Large

Small

Small

Cost reduction throughenergy conservation
and renewable energy

Opportunity

Reduction of utility
costs sourced
externally

Small

Small

Small

Small

Risk

Increase in funding
costs, di culty innancing and decrease
in investment unit price

Large

Large

Small

Small

Risk

Decrease in rent
income due to di culty
in developing new
tenants and reduced
retention

Large

Large

Small

Small

Opportunity

Income increase andoccupancy rate
improvement by
developing tenants

Large

Large

Small

Small

Opportunity

Utilization of green
bonds. Increasing
volume and lowering
funding costs by
responding to ESGfocused investors

Large

Large

Small

Small

Risk

Decrease in rent
premiums due to brandstrength
Rising cost of funds

Large

Large

Small

Small

Increasing demand ofgreen buildings fromtenants
Develop new tenants
by expanding theprovision of green
building
Develop andenlightenment of new
investors

Reputation

Financial impacts

Enhance Taxation
through theIntroduction of aCarbon Taxes

Deterioration of
procurement
conditions for market
participants not
responding to climatechangeTransition
risk

Type

Devaluing a brand due
to underdeveloped
green building26

Scope of Financial Impact Amount
Category

Relations

Increased typhoons,
torrential rains and
oods

Type

Financial impacts

Physicalrisk

Chronic

Inundation ofproperties with low
altitude due to sea
level rise
Increased demand for
air conditioning due toextreme weather
conditions

4℃

Medium
term

Long
term

Medium
term

Long
term

Risk

Increase in repair costs
and insurance
premiums
Decline in portfolio
occupancy

Small

Small

Large

Large

Opportunity

Reduction of repair
costs and insurance
premiums
Improve portfolio
utilization rate

Small

Large

Large

Large

Risk

Decreased utilization of
portfolios that
requiring majorrenovations

Small

Small

Small

Large

Risk

New installation of air
conditioning
equipment andincrease in operatingtime and repair costs

Small

Small

Large

Large

Acute
Building a portfoliowith high resilience
performance

1.5℃(Note) Medium term: As of 2030, Long term: As of 2050.

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.
27

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 Certification 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.

28

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.

29

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

Energy Saving Initiatives

Insulated sandwich panels for exterior wall

Installment of motion detected sensor

30

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.

31

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 exclusive area 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 andwhen 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.
32

Green Finance
Sustainability-Linked Loan
MEL procured 2 billion yen from the Norinchukin Bank dated March 1, 2022 through a Sustainability-Linked Loan("SLL") as a new initiative to procure funds using ESG evaluation. Based on the SLL agreement, MEL will be
evaluated in every assessment period based on KPI and following SPTs (Sustainability Performance Targets)
including the targets below that MEL stipulates toward FY 2030, and also will be granted lower loan spread as anincentive according to the achievement status.
①CO2 emissions: (FY2030 target: 30% reduction compared with FY2017, on carbon intensity basis)②Energy consumption: (FY2030 target: 15% reduction compared with FY2017, on energy consumption intensity basis)③Green Property ratio: (FY 2030 target: 100%)④GRESB Real Estate Assessment (target: 4 Stars or more until FY 2030 continuously)
For more details, please refer to: Environmental Performance Data
Environmental Assessment and Certifications
In concluding the SLL agreement, MEL obtained the second-party opinion from Japan Credit Rating Agency, Ltd.
(JCR), which views that the SLL is compliant with SLL Principles, and the SPTs set for the SLL are meaningful andambitious.

Sustainability-Linked Loan (executed on February 25, 2022)
LenderNorinchukin Bank

Borrowing amount2 billion yen

Borrowing date

March 1, 2022

Repayment Date

March 1, 2032

Second-Party
Opinion■Second-Party Opinion from Japan Credit Rating Agency, Ltd. (JCR)(available only in Japanese)

For details, please refer to: Conclusion of Sustainability Linked Loan Agreement
Notice Concerning Debt Financing (including “Green Loan” and “SustainabilityLinked Loan”)

33Green 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.

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
34

Amount of Procured Funds and Allocation（Note）The Upper Limit of Green Finance =Total Acquisition Price of Green Eligible Assets × The Total Asset LTV

No. of Properties

AmountTotal Properties

24

216,242 million yen

Eligible Criteria (Note)

14

171,086 million yen

CASBEE

13

169,814 million yen

BELS

11

115,646 million yen（Note）When one property has obtained multiple environmental certifications and evaluations, it is counted as one property.

35

FundsGreen Loan
(Sumitomo
Mitsui Banking
Corporation)

1,350
millionyen

Green Loan
(Mizuho Bank)

720
millionyen

Procurement
Date

Mar. 9, 2021

Sept. 14,2021

Repayment
Date/
Redemption
Date
Mar. 9, 2025

Sept. 14,2028

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

Green Bond

2,000
millionyen

Apr. 14, 2021

Apr. 14,2036

allocated

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

Green Loan
(Mizuho Bank)

1,000
millionyen

Mar. 1, 2022

Mar. 1, 2031

allocated

Green Loan
(Shinkin Central
Bank)

2,000
millionyen

Acquisition of Logicross Atsugi Ⅱ,
LOGIPORT Kawasaki Bay (45%trust bene ciary co-ownereshipinterest)

Mar. 1, 2022

Mar. 1, 2032

allocated

Green Loan
(Shinsei Bank )1,000
millionyen

Mar. 1, 2022

Mar. 1, 2032

allocated

Green Loan
(The Yamaguchi
Bank )

1,000
millionyen

Mar. 1, 2022

Mar. 1, 2032

allocated

Total Green Finace

9,070
millionyen

The Upper Limit ofGreen Finance

61,573
millionyen

36

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

Green Equity Framework
Use of Proceeds of Green Equity
Net proceeds from Green Equity Offering will be used to fund the acquisition of specified assets that will meet theeligibility criteria in below (Green Eligible Assets) or refinance borrowings required for acquiring the Green Eligible
Assets.

Eligibility Criteria
Eligible Criteria are assets or projects that satisfy one of the following requirements.
a.Properties that obtained or renewed, or to be acquired in the future with one of the certifications from a thirdparty certifier listed in (1) to (3) below.
(1) DBJ Green Building Certi cation: 5, 4 or 3 stars(2) CASBEE Certi cation: S, A or B+(3) BELS Evaluation: 5, 4 or 3 stars
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
Net proceeds from the Green Equity Offering will be used to the acquisition of new or existing properties or torefinance immediately after the execution of that. The proceeds from the Green Equity Offering are managed in
cash or cash equivalents until the fully allocated to the eligible green projects.

37

Reporting
MEL will disclose the allocation plans with respect to the appropriation of proceeds from the Green Equity Offering,
if any, that is not yet allocated at the time of issuance of the investment units. In addition, regarding the status ofallocation of proceeds and the following impact reporting, the amount to be appropriated and the detail ofsubjected property to be appropriated shall be disclosed promptly. Disclosure of the allocation status shall becompleted upon the allocation of the proceeds are completed.
＜Status of Green Building＞
Number, Type, and Rank of environmental certifications of the assets
For detailed information : Green Building Certifications＜Environmental Benefit＞*Disclose on a portfolio basis considering confidential information of MEL.
Water usage
Total energy consumption (electricity consumption and gas/fuel consumption)
CO2 emissions
Waste discharge weight
Solar power electricity generation
Details of equipment and facilities installed to reduce environmental impacts and energy efficiency(saving)
benefits.
For detailed information : Environmental Performance Data

Amount of Procured Funds and Allocation

5th Follow-on
O ering

Funds

Payment
Date

22,042
millionyen

Mar. 1,
2022

Date of
Allocation
Mar. 1, 2022

Allocation

Use of Initial Funds

allocated

Acquisition of Logicross Atsugi Ⅱ,
LOGIPORT Kawasaki Bay (45% trust bene ciaryco-ownereship interest)

Evaluation by Third-Party Entities
MEL formulated Green Equity Framework with reference to the four elements indicated by the Green Bond
Principles stipulated by the International Capital Market Association (ICMA) and the Green Bond Guidelines by the
Ministry of the Environment. MEL has obtained a second-party opinion for the eligibility of the “Green Equity
Framework” from DNV GL, a third-party ESG evaluation agency.
For detailed information : DNV SECOND-PARTY OPINION＜Disclaimer＞
Our Green Equity Framework and DNV’s second opinion related thereto are available here, consistent with our past
disclosure practice with respect to our financings. These documents do not constitute an offer or sale of our
securities in Japan, the United States or any other jurisdiction. Neither we nor Mitsubishi Jisho Investment
Advisors, Inc., our asset manager, are experts in green equity assessment, nor do we have the ability to assess or
independently verify the assessment provided to us by DNV. The information contained in the Green Equity
Framework or DNV’s second opinion should not be relied upon in making an investment decision with respect toany of our securities.
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

Street lights (LED)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.
39

(Example)
In 2019, prior to the renovation of the lounge at MJ Logipark Fukuoka 1, hearings were held with tenant employees.
Based on the results, we installed free Wi-Fi, rechargeable outlets, large TVs, microwave ovens, and adopted
layouts that facilitate 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.

40

Furthermore, digital signage (for advertising) and AI cameras (a system to check smoking room usage) were
installed in five smoking rooms in 2022.

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

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)
41

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

42

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
the Asset Management Company.

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

43

Installed charity vending machine(Logipark Fukuoka 1)

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

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)

44

Provided as a designated emergency evacuation site in the case of a tsunami disaster or flood(LOGIPORT Osaka Taisho)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.

45

Human Resource Development
Human Resource Development
The Asset Management Company believes that the growth of its employees, including full-time, contract,
temporary, and part-time employees, is necessary for sustainable growth. Therefore, the Asset Management
Company actively hires not only personnel with a certain level of experience and skills, but also those in their 20s
to early 30s who are relatively inexperienced, and trains them to have a wide range of expertise and skills.
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).
Training Program by Job Level
The Asset Management Company has a training program for all full-time employees, which can be selected by job
level, to develop human resources.
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.

Classification
LevelspecificTraining

ComplianceTraining

Implementation
Methods

Training Name

Remarks

New manager training

MItsubishi
Estate Group－

Financial Instruments and Exchange Act Seminar

Invite externalteacher

Nishimura & Asahi

Level-specific Training

In-house－

Insider trading regulation training

Invite externalteacherTokyo Stock
Exchange, Inc.

Anti-Social Forces Policy‧Crime Proceeds Transfer
Prevention Act Training

In-house－

Training on complaints and accidents

In-house－

Mitsubishi Estate Group Code of Conduct‧Management
Philosophy and Conduct Risk Management Training

In-house－46

Classification

Risk
Management
Training

EnglishTraining

Others

Implementation
Methods

Training Name

Remarks

Information Asset Management Training

In-house－

Internal Control System Training for Financial Instruments
Dealers

Invite externalteacher

Deloitte Touche
Tohmatsu LLC

Fraud and scandal prevention training

In-house－

Market and risk training (real estate investment, rental
market, economic environment analysis)

online－OnlineBizmates

Held externally

BerlizSustainability Training
1) Training on ESG in general‧Materiality‧TCFD
2) FB training on GRESB evaluation results

Invite externalteacher

CSR Design Green
Investment Advisory
Co.,Ltd.

Business skill training

OnlineLearning Agency

DAIWA REAL ESTATE ACADEMY

Held externally

Daiwa real estateappraisal

PC skills training

OnlineOTSUKA
CORPORATIONBusiness English training

Training cost per employee: 93,397 yen
Training hours per employee: 34.8 hours※The training on Daily Action Guidelines for Implementing MJIA Values" mentions Respect for Diversity" in it.

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 2021
・Attorney (2 person)
・Real estate appraisers (1 person)
・MEC Human Resources, Inc. (1 person)
・MEC Business System Solutions Co., Ltd. (1 person)
・Mitsubishi Estate Co., Ltd. (13 person)

47

Employee Development & Training
Support Career Enrichment, Qualifications and Licenses
We subsidize, for all full-time employees, the costs required to obtain and maintain professional qualifications thatassist employees in improving their real estate 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
Certificate Name

Number of
Employee

Certificate Name

Number of
Employee

Real Estate Appraiser

9Real Estate Transaction Specialist

43

First-Class Qualified
Architect2

Certified Building Administrator

13

Lawyer2

Licensed Tax Accountant

2

Certified Public
Accountant

0

Securities Analyst

5

Master of Business
Administration

1

Association for Real Estate Securitization (ARES)
Certified Master67

Certified Real EstateConsultant※As of April 1, 2022
※Including seconded employees

248

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：13.6％※As of April 1, 2022

Employee turnover ratio：7.2％※FY2021

Personnel data
Employee Data
Full-time employee
Generalist
Management

Staff

Part-time
employee

Seconded

Temporary employee
Management

Male

59

59

11

0

2

14

8

0

Female

28

16

2

12

8

3

1

10

Total

87

75

13

12

10

17

9

10

※As of April 1, 202249

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

FY2021

16

7

7.22%

FY2020

12

5

6.02%

FY2019

9

5

6.80%

FY2018

7

4

5.80%

※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.
In addition to the goals set through interviews, the personnel evaluation also considers whether employees arerespecting the diversity in other employees and promoting a lively workplace, with the aim of creating a vital andenergetic workplace.

50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

51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.

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.

52

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, the Asset Management Company conducts a compliance survey of all employees regarding its
corporate culture, communication status, and employee satisfaction. The results of the survey are fed back to the
President & CEO of the Asset Management Company and are reflected in improvement activities.

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.

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 FY2021

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 are promoting
the use of IT through the introduction of web conferences and electronic approval systems to create a system forsmooth 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.

53

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.

54

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.
We aim for employees taking paid leave rate of at least 90% (calculated based on employees enrolled on April 1 ofeach fiscal year).

Employees taking paid leave rate：67％※FY2021

Employees return to work rate after taking childcare leave：100％※total up to April 1, 2022

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

FY2021

17.0

11.4

67%

FY2020

16.1

8.8

54%

FY2019

16.9

11.7

69%

※The average number is shown for full-time, contract, and part-time employees

55

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.

FY2021
FY2020FY2019Child/Family careleave usage employee

Short time work
usage employee

Male

2

0

Female

4

7

Male

2

0

Female

4

7

Male

1

0

Female3

7Enhancement 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 for full-time employees
Employee Stock Ownership for Mitsubishi Estate
Defined Contribution Pension
Asset Formation Savings
Cumulative investment for Employees
56

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.
57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）

Whistleblowing
The Asset Management Company has established a consultation service for violations of laws and regulations,
violations of internal rules, harassment, and other matters that are contrary to broad ethical and social standardsof decency for employees (including directors, full-time employees, contract employees, part-time employees,
temporary employees, and retired employees (Hereinafter referred to as "employees, etc." in this section) and all
persons engaged in the business of the Asset Management Company and all of employees, etc. can declare or
submit anonymously.
The President &CEO has the ultimate responsibility for the operation of the whistle-blowing system, and regularly
disseminate the significance and importance of the system to employees, etc., and thoroughly inform them of the
purpose.
The privacy of whistleblowers and consultants is strictly protected, and appropriate action is taken after confirming
and investigating the facts of the matter. If necessary, the Mitsubishi Estate Group Helpline may also be used.
If the results of the investigation reveal any misconduct, etc., the General Manager of the Compliance Department
shall immediately report it to the President & CEO, who, in the name of the President & CEO, shall immediatelyorder the department or employee, etc. that is committing the misconduct to cease the misconduct and promptly
take corrective and recurrence-prevention measures.
In addition, whistleblowers are legally protected by the Whistleblower Protection Act, which prohibits any
disadvantageous treatment or harassment of whistleblowers on the basis of their reporting, and we takeappropriate measures to prevent the deterioration of the working environment for whistleblowers and others,
thereby striving to protect whistleblowers and create an environment for the proper functioning of the internalreporting system.

58

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.

59

Internal Audit System
The Asset Management Company has established the Internal Audit Department as independent department basedon the "Internal Audit Regulations" with the General Manager as the person in charge.
Every year, with the support of outsourced to a specialized external organization (cosourcing) such as on site
inspections, internal audit plans are formulated and audits are conducted on a wide range of matters, including
compliance and risk management execution status and corporate ethics, covering all departmental operations, andwhen issues are identified, the departments in charge are given recommendations for improvement andinstructions and the audit results are reported to the the President & CEO and the Board of Directors of the AssetManagement Company.

60

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.

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.
61

Asset management fee Ⅰ(AUM-linked)

Total assets as of the end of previous period x 0.2% (upper limit)

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 fiscal
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 Mar. 23, 2022 : 18,350 units (4.1%)

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

Main Duty

Board of Directors

Establish and modify the Asset Manager's compliance program and compliance manual.

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 & Chief
Executive Officer

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)

The General Manager of the Compliance Department is responsible for planning,drafting, coordinating and promotion of the Asset Management Company's
compliance and risk management initiatives.
If it is determined that problem has occurred or is deemed likely to occur from theviewpoint of compliance, the Company shall promptly report it to the President & CEO,who shall obtain approval for a policy for dealing with compliance violations and measures
to prevent recurrence, and report the matter to the Compliance and Risk Management
Committee.
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, the ComplianceDepartment coordinates the planning, planning, coordination, and promotion ofcompliance activities, and verifies the compliance status of each department.
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 and Risk
Management Committee.

63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.
Total no. of compliance and risk management training sessions
compliance and risk training sessions

FY2018FY2019FY2020

FY2021

9

11

7

9

※FY2018: April 2018- March 2019
FY2019: April 2019- March 2020
FY2020: April 2020- March 2021
FY2021: April 2021- March 2022
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, real estate dealers,etc.), as well as in providing outside training to acquire a wide range of knowledge. Our relevant information andthe number of qualified personnel are available on our website.
http://www.mecinvest.com/sustainability/employee.html

Whistleblowing
The Asset Management Company has established a consultation service for violations of laws and regulations,
violations of internal rules, harassment, and other matters that are contrary to broad ethical and social standardsof decency for employees (including directors, full-time employees, contract employees, part-time employees,
temporary employees, and retired employees (Hereinafter referred to as "employees, etc." in this section) and all
persons engaged in the business of the Asset Management Company and all of employees, etc. can declare or
submit anonymously.
The President &CEO has the ultimate responsibility for the operation of the whistle-blowing system, and regularly
disseminate the significance and importance of the system to employees, etc., and thoroughly inform them of the
purpose.
The privacy of whistleblowers and consultants is strictly protected, and appropriate action is taken after confirming
and investigating the facts of the matter. If necessary, the Mitsubishi Estate Group Helpline may also be used.
If the results of the investigation reveal any misconduct, etc., the General Manager of the Compliance Department
shall immediately report it to the President & CEO, who, in the name of the President & CEO, shall immediatelyorder the department or employee, etc. that is committing the misconduct to cease the misconduct and promptly
take corrective and recurrence-prevention measures.
In addition, whistleblowers are legally protected by the Whistleblower Protection Act, which prohibits any
disadvantageous treatment or harassment of whistleblowers on the basis of their reporting, and we takeappropriate measures to prevent the deterioration of the working environment for whistleblowers and others,
thereby striving to protect whistleblowers and create an environment for the proper functioning of the internalreporting system.

64

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 Compliance Department provides consultation to employees on a daily basis, and the Compliance Risk
Management Committee monitors the status of the anti-bribery system annually, in addition to preventing
misconduct through the establishment and operation of an internal whistle-blowing system. The Compliance andRisk Management Committee also reports the status of monitoring to the Board of Directors.
In addition, the Internal Audit Department confirms during on-site inspections that these monitoring andsupervision systems are being properly operated in accordance with company rules and regulations.
In 2017, an assessment of the overall anti-bribery system of the Mitsubishi Estate Group was conducted by an
external organization. By addressing the issues identified in this assessment, we are working to further enhance ouranti-bribery system.

65

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 manager of
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.

66

ESG Disclosure Policy and Reporting Framework
Sustainability Report (including GRI and SASB Standards)
MEL publishes an annual Sustainability Report to introduce its ESG activities. The latest and back issues of the
Sustainability Report can be downloaded from belows.
Sustainability Report 2022 PDF
Sustainability Report 2021 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: Update period: FY2021 (April 1, 2021 to March 31, 2022) is the reporting period, but some contents outside ofthis 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

9:30 a.m. to 6:00 p.m. (excluding Saturdays, Sundays, national holidays, and New Year holidays)

67

GRI STANDARDS Content Index
Location or reason for omission

URL

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

Overview

https://mel-reit.co.jp/en/about/profile.htmlbrands, products,102-2 Activities,
and services
description of thea Aorganization's
activities.

Messagehttps://mel-reit.co.jp/en/about/index.
html
https://mel-reit.co.jp/en/features/inde
x.htmlPrimary brands, products, andservices, including an
b explanation of any products orservices that are banned incertain markets.

Strengths of MEL
Portfolio List

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

Overview

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

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

https://mel-reit.co.jp/en/about/profile.htmli.geographic locations where
products and services areoffered;Overview

https://mel-reit.co.jp/en/about/profile.htmlii. sectors served;

Strengths of MELiii. types of customers andbeneficiaries.

Capitalization
Major Unitholders

102-3 Location of headquartersof the organization'sa Location
headquarters.
102-4 Location of operations
Number of countries where theorganization operates, and theof countries where it has
a namessignificant operations and/orthat are relevant to the topics
covered in the report.
102-5 Ownership and legal formof ownership and legala Natureform.
102-6 Markets serveda Markets served, including:

Overview Portfolio Map

102-7 Scale of the organizationof the organization,a Scaleincluding:68

https://mel-reit.co.jp/en/portfolio/ma
p.htmlhttps://mel-reit.co.jp/en/features/inde
x.htmlhttps://mel-reit.co.jp/en/finance/investment.html

Location or reason for omission
i. total number of employees;

Secure Diverse Human Resources

ii. total number of operations;iii. net sales (for private sector
organizations) or net revenues(for public sector
organizations);
iv. total capitalization (forprivate sector organizations)broken down in terms of debt
and equity;
v. quantity of products orservices provided.

－on employees and102-8 Information
other workers
Total number of employees by
employment contracta (permanentand temporary), by
gender.
b
c

d

e
102-9
a

102-10Total number of employees by
employment contract(permanent and temporary), byregion.
Total number of employees by
employment type (full-time andpart-time), by gender.
Whether a significant portion of
the organization's activities are
performed by workers who are
not employees. If applicable, adescription of the nature andscale of work performed byworkers who are not
employees.
Any significant variations in thenumbers reported inDisclosures 102-8-a, 102-8-b,
and 102-8-c (such as seasonalvariations in the tourism oragricultural industries).
Supply chain
A description of theorganization's supply chain,including its main elements asthey relate to the organization's
activities, primary brands,
products, and services.
Significant changes to theorganization and its supply
chain

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

Financial Highlights

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

Portfolio Data

https://mel-reit.co.jp/en/portfolio/dat
a.htmlPersonnel data
MEL has no employees and outsources all
asset management operations to the asset
management company(MJIA), so we disclose
theemployees of the asset managementcompany here

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

There is no regional difference as the asset
management company(MJIA) of MELhas only
one office－

Secure Diverse Human Resources

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

MEL does not have any employees inaccordance with the prohibition on having
employees under the Act on Investment Trusts －and Investment Corporations. The major partof organization's activities of MJIA is
performed by employees

No significant variations in the numbers
reported－

Strengths of MEL

https://mel-reit.co.jp/en/features/inde
x.html69

Location or reason for omission
i. Changes in the location of, orchanges in, operations,
including facility openings,
closings, and expansions;iii. Changes in the location of
suppliers, the structure of the
supply chain, or relationships
with suppliers, including
selection and termination.
Principle or102-11 Precautionary
approach
Whether and how theapplies thea organization
Precautionary Principle orapproach.
102-12 External initiatives
A list of externally-developed
economic, environmental andsocialcharters, principles, ora other initiatives
to which theorganization subscribes, or
which it endorses.

No significant changes－

No significant changes－

Risk Management Structure

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

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

International Initiatives and Participation

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

Environmental Assessment and Certifications

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

Green Building Certifications

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

102-13 Membership of associations
A list of the main memberships
of industry or other
Company Overview (MJIA HP)
associations, and national orinternational advocacy
organizations.
2. Strategy
from senior decision102-14 Statementmaker
A statement from the mostsenior decision- maker of theorganization (such as CEO,Top Message
chair,orequivalentseniora position) about the relevance ofsustainability to theorganization and its strategy foraddressing sustainability.
impacts, risks, and102-15 Key
opportunities
description of key impacts,
a Arisks,and opportunities.
3. Ethics and Integrity
principles, standards,
102-16 Values,
and norms of behavior
A description of theorganization's values,a principles,standards, andnorms of behavior.

URL

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

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

Materiality

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

Climate Change Initiatives

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

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

70Location or reason for omission
for advice and102-17 Mechanisms
concerns about ethics
description of internal anda Aexternalmechanisms for:i. seeking advice about ethicaland lawful behavior, andorganizational integrity;
ii. reporting concerns about
unethical or unlawful behavior,and organizational integrity.
4. Governance
Governance structure of the
includinga organization,committees of the highest
governance body.
b102-19a102-20aCommittees responsible fordecision- making on economic,
environmental, and social
topics.
Delegating authority
Process for delegating authority
for economic, environmental,
and social topics from thehighest governance body tosenior executives and other
employees.
Executive-level responsibility
for economic, environmental,
and social topics
Whether the organization has
appointed an executive-level
position or positions withresponsibility for economic,
environmental, and social
topics.

Whether post holders reportb directly to the highest
governance body.
Consulting stakeholders on
102-21 economic, environmental, andsocial topics
Processes for consultation
between stakeholders and thea highest governance body on
economic, environmental, andsocial topics.

URL

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

Whistleblower

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

Governance Initiatives

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

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

Sustainability Committee

https://mel-reit.co.jp/en/esg/sustaina
bility/committee.html

Initiatives for Sustainability

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

Sustainability Committee

https://mel-reit.co.jp/en/esg/sustaina
bility/committee.html

Initiatives for Sustainability
Sustainability Committee

Initiatives for Sustainability

https://mel-reit.co.jp/en/esg/sustaina
bility/basic.html
https://mel-reit.co.jp/en/esg/sustaina
bility/committee.html
https://mel-reit.co.jp/en/esg/sustaina
bility/basic.html

Sustainability Committee

https://mel-reit.co.jp/en/esg/sustaina
bility/committee.html

Stakeholder Engagement

https://mel-reit.co.jp/en/esg/sustaina
bility/stakeholder.html

71Location or reason for omissionb102-22a102-23a102-24ab
102-25ab
102-26a102-27a

If consultation is delegated,
describe to whom it isdelegated and how the resulting
feedback is provided to thehighest governance body.
Composition of the highest
governance body and its
committees
Composition of the highest
governance body and its
committees by:
Chair of the highest governancebody
Whether the chair of the highest
governance body is also an
executive officer in theorganization.
Nominating and selecting thehighest governance body
Nomination and selection
processes for the highest
governance body and its
committees.
Criteria used for nominating
and selecting highest
governance body members,
including whether and how:
Conflicts of interest
Processes for the highest
governance body to ensure
conflicts of interest are avoided
and managed.
Whether conflicts of interest are
disclosed to stakeholders,
including, as a minimum:
Role of highest governancebody in setting purpose, values,
and strategy
Highest governance body's andsenior executives' roles in thedevelopment, approval, andupdating of the organization' s
purpose, value or mission
statements, strategies, policies,and goals related to economic,
environmental, and social
topics.
Collective knowledge of highest
governance body
Measures taken to develop andenhance the highest
governance body's collective
knowledge of economic,
environmental, and social
topics.

Stakeholder Engagement

URL
https://mel-reit.co.jp/en/esg/sustaina
bility/stakeholder.html

－

－

－

－

Management Structure

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

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

Initiatives for Sustainability

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

Sustainability Policy

https://mel-reit.co.jp/en/esg/sustaina
bility/policy.html

Sustainability Committee

https://mel-reit.co.jp/en/esg/sustaina
bility/committee.html

Sustainability Committee

https://mel-reit.co.jp/en/esg/sustaina
bility/committee.html

72Location or reason for omission
the highest
102-28 Evaluating
governance body's performance
Processes for evaluating thehighest governance body's
with respect toa performance
governance of economic,
environmental, and social
topics.
such evaluation is ac Whetherself- assessment.
Identifying and managing
102-29 economic, environmental, andsocial impacts
Highest governance body's rolein identifying and managing
economic, environmental, andtopics and their impacts,
a social
risks, and opportunities –including its role in theimplementation of due
diligence processes.
Whether stakeholder
consultation is used to support
the highest governance body's
and managementb identificationof economic, environmental,
and social topics and theirimpacts, risks, andopportunities.
of risk
102-30 Effectivenessmanagement processes
Highest governance body's role
in reviewing the effectiveness oforganization's riska themanagement processes for
economic, environmental, andsocial topics.
Review of economic,
102-31 environmental, and social
topicsFrequency of the highest
governance body' s review ofa economic, environmental, andsocial topics and their impacts,
risks, and opportunities.
governance body's role102-32 Highest
in sustainability reporting
The highest committee orposition that formally reviews
approves the organization'sa andsustainability report andensures that all material topics
are covered.
critical102-33 Communicating
concerns

URL

Risk Management

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

Risk Management

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

Materiality

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

Materiality

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

Risk Management

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

Sustainability Committee

https://mel-reit.co.jp/en/esg/sustaina
bility/committee.html

Sustainability Committee

https://mel-reit.co.jp/en/esg/sustaina
bility/committee.html

Sustainability Committee

https://mel-reit.co.jp/en/esg/sustaina
bility/committee.html

73Location or reason for omission
Process for communicatinga critical concerns to the highest
governance body.
and total number of102-34 Nature
critical concerns
102-35 Remuneration policies
Remuneration policies for thehighest governance body anda senior executives for thefollowing types of
remuneration:
for determining
102-36 Process
remuneration
for determining
a Processremuneration.
5. Stakeholder Engagement102-40 List of stakeholder groups
A list of stakeholder groups
a engaged
by the organization.
to stakeholder
102-43 Approachengagement
The organization's approach to
stakeholder engagement,
including frequency ofengagement by type and by
a stakeholder group, and an
indication of whether any of theengagement was undertaken
specifically as part of the report
preparation process.
102-44 Key topics and concerns raised
6. Reporting Practicereport content and102-46 Defining
topic Boundaries
102-47 List of material topics
A list of the material topics
a identified in the process fordefining report content.
102-50 Reporting period
period for thea Reporting
information provided.

URL

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

No critical concerns reported during thereporting period－

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

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

Stakeholder Engagement

https://mel-reit.co.jp/en/esg/sustaina
bility/stakeholder.html

Stakeholder Engagement

https://mel-reit.co.jp/en/esg/sustaina
bility/stakeholder.html

No critical concerns reported during thereporting period－

Materiality

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

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

102-51 Date of most recent report

January 21,2022

102-52 Reporting cyclea Reporting cycle
point for questions
102-53 Contact
regarding the report

ESG Disclosure Policy and Reporting
Frameworkhttps://mel-reit.co.jp/en/esg/assets/im
g/disclosure/doc_sustainability_20220
1.pdf
https://mel-reit.co.jp/en/esg/disclosure/index.html

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

74Location or reason for omission
The contact point for questionsa regarding the report or its
contents.
102-55 GRI content index
102-56 External assuranceManagement Approachof the material
103-1 Explanation
topic and its Boundary
explanation of why the topica An
is material.
The Boundary for the material
b topic, which includes a
description of:management approach and103-2 Theits components
explanation of how thea Anorganization manages the topic.
A statement of the purpose ofb themanagement approach.

Refer this table
Environmental Performance－https://mel-reit.co.jp/en/esg/environm
ent/index.html

Environmental performance data is given
assurance by a third partyー

Materiality

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

Materiality

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

Sustainability Committee

https://mel-reit.co.jp/en/esg/sustaina
bility/committee.html
https://mel-reit.co.jp/en/esg/sustaina
bility/basic.html
https://mel-reit.co.jp/en/esg/sustaina
bility/committee.html

Sustainability Committee

A description of the following, if Sustainability Committeec the management approach
Complianceincludes that component:of the management103-3 Evaluation
approach
An explanation of how theorganization evaluates thea management
approach,including:
Topic-specific Standards
GRI 200：Economic
201：Economic Performance 2016
economic value
201-1 Direct
generated and distributed
Financial implications and201-2 other risks and opportunities
due to climate change
Risks and opportunities posedby climate change that have theto generate
a potential
substantive changes inoperations, revenue, or
expenditure, including:203：Indirect Economic Impacts 2016indirect economic
203-2 Significant
impacts

URL

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

Sustainability Committee

https://mel-reit.co.jp/en/esg/sustaina
bility/committee.html

Financial Summary

https://mel-reit.co.jp/en/finance/inde
x.htmlClimate Change Initiatives

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

The logistics properties of MEL creates local
employment－

75

Location or reason for omission
205：Anti-corruption 2016
Communication and training
205-2 about anti- corruption policies
and procedures
incidents of
205-3 Confirmed
corruption and actions taken
206：Anti-competitive Behavior 2016
Legal actions for anti206-1 competitive behavior, antitrust, and monopoly practices
Number of legal actions
pending or completed during
the reporting period regardinganti-competitive
behavior anda violations of anti-trustandmonopoly legislation in which
the organization has been
identified as a participant.
GRI 300：Environmental
302：Energy 2016
consumption within the302-1 Energyorganization
consumption outside of302-2 Energy
the organization
302-3 Energy intensity
Energy intensity ratio for thea organization.
Organization-specific metricb (the denominator) chosen to
calculate the ratio.
Types of energy included in theintensitywhether fuel,c electricity,ratio;
heating, cooling,steam, or all.
Whether the ratio uses energy
within thed consumption
organization, outside of it, orboth.
of energy
302-4 Reduction
consumption
Reductions in energy
302-5 requirements of products andservices
303：Water and Effluents 2018
303-5 Water consumption
water consumption froma Totalall areas in megaliters.
305：Emissions 2016305-1 Direct (Scope 1) GHG emissions
Gross direct (Scope 1) GHG
a emissions in metric tons of CO2
equivalent.

URL

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

No critical incidents of corruption during thereporting period－

No serious cases of corruption during thereporting period

Environment Performancehttps://mel-reit.co.jp/en/esg/environm
ent/index.html
https://mel-reit.co.jp/en/esg/environm
ent/index.html

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

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

Environment Performance

Includes all types of energy (electricity, fuel or
district heating and cooling) used in the－logistics properties of MEL
Environment Performancehttps://mel-reit.co.jp/en/esg/environm
ent/index.html

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

Contributions to the Environment through Our https://mel-reit.co.jp/en/esg/environm
Portfolio
ent/contributions.html

Environment Performance (in cubic meter)https://mel-reit.co.jp/en/esg/environm
ent/index.html

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

76Location or reason for omission
b
d
305-2
a

c
d
305-3
a
b
e
305-4
a
b

c

d

Gases included in thecalculation; whether CO2, CH4,
N2O, HFCs, PFCs, SF6, NF3, orall.
Base year for the calculation, if
applicable, including:
Energy indirect (Scope 2) GHG
emissions
Gross location-based energy
indirect (Scope 2) GHG
emissions in metric tons of CO2
equivalent.
If available, the gases includedin the calculation; whether CO2,
CH4, N2O, HFCs, PFCs, SF6, NF3,
or all.
Base year for the calculation, if
applicable, including:
Other indirect (Scope 3) GHG
emissions
Gross other indirect (Scope 3)
GHG emissions in metric tons of
CO2 equivalent.
If available, the gases includedin the calculation; whether CO2,
CH4, N2O, HFCs, PFCs, SF6, NF3,
or all.
Base year for the calculation, if
applicable, including:
GHG emissions intensity
GHG emissions intensity ratio
for the organization.
Organization-specific metric(the denominator) chosen to
calculate the ratio.
Types of GHG emissions
included in the intensity ratio;
whether direct (Scope 1),energy indirect (Scope 2),
and/or other indirect (Scope 3)
Gases included in thecalculation; whether CO2, CH4,
N2O, HFCs, PFCs, SF6, NF3, orall.

305-5 Reduction of GHG emissions
306：Waste 2020of significant
306-2 Management
waste- related impacts

URL

The calculations include CO2 only－

Climate Change Initiatives

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

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

The calculations include CO2 only－

Climate Change Initiatives

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

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

The calculations include only CO2－

Climate Change Initiatives

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

Environment Initiatives

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

Environment Initiatives

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

Environment Initiatives

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

The calculations include only CO2－

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

Water Resources and Waste Reduction, etc

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

Contributions to the Environment through Our
Portfolio
https://mel-reit.co.jp/en/esg/environm
ent/contributions.html
77Location or reason for omission

a

306-3
a

b

Actions, including circularity
measures, taken to prevent
waste generation in theorganization's own activities
and upstream and downstream
in its value chain, and to
manage significant impacts
from waste generated.
Waste generated
Total weight of waste generated
in metric tons, and a breakdown Environmental Performanceof this total by composition of
the waste.
Contextual informationnecessary to understand thedata and how the data has been Environmental Performancecompiled.

306-5 Waste directed to disposal
307：Environmental Compliance 2016
Non-compliance with
307-1 environmental laws andregulations
GRI 400：Social
401：Employment 2016
employee hires and401-1 New
employee turnover
Total number and rate of newhires during thea employee
reporting period, by age group,
gender and region.
Total number and rate of
employee turnover during theb reporting
period, by age group,
gender and region.
401-3 Parental leave

URL

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

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

No incidents reported during the reporting
period－Promotion of Diversity & Inclusion

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

Promotion of Diversity & Inclusion

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

Work-life Balance- Create a comfortable workplace where
Total
numberofemployees
that
employeewill want to work for a long periodb took parental leave, by gender.
of time 403：Occupational Health and Safety 2018403-6 Promotion of worker healthAn explanation of how theorganization facilitates workers' Employee Health and Well-being
to non- occupationala access- Creating Productive and Employee- friendly
medical and healthcare
Workplace services, and the scope ofaccess provided.

78

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

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

Location or reason for omission
A description of any voluntary
health promotion services andprograms offered to workers toaddress major non-workHealth and Well-being
health risks, including Employeeb related
Creating
Productiveand Employee- friendly
the specific health risks
Workplaceaddressed, and how theorganization facilitates workers'
access to these services andprograms.
No incidents reported during the reporting
403-9 Work-related injuries
periodNo incidents reported during the reporting
403-10 Work-related ill healthperiod404：Training and Education 2016
Programs for upgrading
404-2 employee skills and transition
assistance programs
Human resource development
Type and scope of programs
implemented
andassistancea provided to upgrade employee
skills.
Percentage of employees
regular performance404-3 receiving
and career development
reviews
Promotion of Diversity & Inclusion
Percentage of total employees Conduct Management by Objectives (MBO)by gender and by employee
who received a regular system for all employees
a category
performance and careerdevelopment review during thereporting period.
405：Diversity and Equal Opportunity 2016of governance bodies
405-1 Diversity
and employees
Percentage of individuals within
theorganization's governancea bodies
in each of the following
diversity categories:
i. Gender;

URL

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

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

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

Promotion of Diversity & Inclusion

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

Promotion of Diversity & Inclusion

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

There is no gender difference－

No incidents reported during the reporting
period－Percentage of employees per
employee category in each ofb thefollowing diversity
categories:
i. Gender;of basic salary and405-2 Ratio
remuneration of women to men
406：Non-Discrimination 2016of discrimination and406-1 Incidents
corrective actions taken
411：Rights of Indigenous Peoples 201679

Location or reason for omissionof violations involving
411-1 Incidents
rights of indigenous peoples
412：Human Rights Assessment 2016
training on human412-2 Employee
rights policies or procedures
413：Local Community 2016
Operations with local
engagement,
413-1 community
impact assessments, anddevelopment programs
414：Supplier Social Assessment 2016suppliers that were414-1 New
screened using social criteriasocial impacts in the414-2 Negative
supply chain and actions taken
415：Public Policy 2016415-1 Political contributions

URL

No incidents reported during the reporting
period－Human rights

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

Contributions to Local Communities

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

Establishment of the Sustainability Promotion
ManualNo incidents reported during the reporting
periodhttps://mel-reit.co.jp/en/esg/sustaina
bility/committee.html

No incidents reported during the reporting
period－Environmental Assessment and Certifications

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

Green Building Certifications

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

No incidents reported during the reporting
period－No incidents reported during the reporting
period－Environmental Assessment and Certifications

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

Green Building Certifications

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

417：Marketing and Labeling 2016
Requirements for product and417-1 service information andlabeling
418：Customer Privacy 2016
Substantiated complaints
breaches of
418-1 concerning
customer privacy and losses ofcustomer data
419：Socioeconomic Compliance 2016
Non-compliance with laws and419-1 regulations in the social andeconomic area
GRI G4：Construction and Real Estate Sector
Disclosures
Type and number ofsustainability certification,and labeling schemes for
CRE8 rating
new construction,
management, occupation andredevelopment

80

SASB Standards
SASB Framework
Activity Metrics
SASB Disclosure CodeDisclosure MetricFiscal 2020

Fiscal 2021

Unit

IF-RE-000.A

Number of assets

19

21

assets

IF-RE-000.B

Leasable oor area

666,551.45

818,895.21㎡

IF-RE-000.C

Percentage of indirectly managed assets

21.9

19.1

%

IF-RE-000.D

Average occupancy rate

99.8

99.8

%

Disclosure MetricFiscal 2020

Fiscal 2021

Unit

IF-RE-130a.1

Energy consumption data coverage

100.0

100.0

Percentage (%)
by oor area

IF-RE-130a.2

Total energy consumed by portfolio area with data
coverage

39,146.02

42,172.12

MWhPercentage grid electricity

93.6

93.8

%

Percentage renewable electricity

0.0

0.0

%

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

-0.3

0.45

%

Percentage of area with data coverage

66.3

59.7

Percentage (%)
by oor area

Percentage of eligible portfolio that is certi ed to ENERGY
STAR

0.0

0.0

Percentage (%)
by oor area

Disclosure Topic: Energy Management
SASB Disclosure CodeIF-RE-130a.3

IF-RE-130a.4

Note:Not applicable as the ENERGY STAR Program does not cover real estate in Japan

IF-RE-130a.5(Option)

Percentage of eligible portfolio that has an energy rating

69.2

80.2

Percentage (%)
by oor area

(Option)

Percentage of eligible portfolio that has an green building
certi cation

72.2

84.2

Percentage (%)
by oor area

Description of how building energy management considerations are integrated into property investment analysis andoperational 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 theadvanced initiatives to contribute to achieving a sustainable society through the protection of environment bycomplying with environmental laws and regulations, giving consideration to the environment and reducing the burden
on the environment.
Mitsubishi Estate Logistics REIT Investment Corporation (MEL) will aim to invest in energy-e cient facilities, and willcontinue to work on environmental and energy-saving measures for our properties and improve the e ciency ofenergy use.
Moreover, Mitsubishi Estate Co., Ltd. , the sponsor of MEL, has been working to contribute to achieving a sustainable
society through the formuration of the Mitsubishi Estate Group s Sustainable Development Goals 2030 with regarding
ESG as a signi cant management issue.
81Disclosure Topic: Water Management
SASB Disclosure CodeIF-RE-140a.1

Disclosure MetricFiscal 2020

Fiscal 2021

Unit

Water withdrawal data coverage as a percentage of total
oor area

100.0

100.0

Percentage (%)
by oor area

Water withdrawal data coverage as a percentage of oor
area in regions with high or extremely high baseline water
stress0.0

0.0

Percentage (%)
by oor area

Note:At this time, there are no properties located in regions with high or extremely high baseline water stress.
Total water withdrawn by portfolio area with data
coverage

IF-RE-140a.2

Of which, water withrawn percentage by portfolio areawith high or extremely high baseline water stress80,550.00

84,854.50

㎥

0.0

0.0

%

Note:At this time, there are no properties located in regions with high or extremely high baseline water stress.
IF-RE-140a.3

Like-for-life percentage change in water withdrawn for
portfolio area with data coverage

-4.5

-2.34

%

Percentage of area with data coverage

66.3

59.7

Percentage (%)
by oor area

Description of water management risks and discussion of strategies and practices to mitigate thoserisks

IF-RE-140a.4

Disclosure Topic: Management of Tenant Sustainability Impact
SASB Disclosure CodeIF-RE-410a.1(Option)

IF-RE-410a.2

IF-RE-410a.3

Disclosure MetricFiscal 2020

Fiscal 2021

Unit

Percentage of new leases that contain a cost recovery
clause for resource e ciency-related capital
improvements(To be disclosed)(To be disclosed)

Percentage (%)
by oor area

Associated leased oor area

(To be disclosed)(To be disclosed)㎡

Percentage of total leasable oor area for buildings leased
under a green lease agreement

100.0

100.0

Percentage (%)
by oor area

Of which, oor area percentage for buildings leased undera green lease agreement that contains a cost recovery
clause

100.0

100.0

Percentage (%)
by oor area

Percentage of tenants that are separately metered

74.8

65.1

Percentage (%)
by oor area

Percentage of tenants that are separately metered orsubmetered for water withdrawals

66.1

72.4

Percentage (%)
by oor area

Discussion of approach to measuring, incentivizing, and improving sustainability impacts of tenants
MEL and MJIA, the asset management company of MEL, are working to contribute to achieving a sustainable
environment by improving the environmental performance of our portfolio. 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 awareness- raising activities for tenants,
the introduction of green lease contract which enables both building owners and tenants to share the bene ts andsustainability-related initiatives with our tenants.
In order to have tenants cooperation in energy-saving activities smoothly, the environmental consideration clausessuch as waste separation, recycling recommendations, air-conditioning operation standards and idling stop are set in
the property usage rules. We also have educational activities on tenants such as putting posters on the common areasof each oor.
MEL conducted LED lighting installation works for a part of a tenant exclusive area at the expense of MEL based onthegreen lease contract. A certain ratio of the highly reduced amount of electricity bills and maintenance costs (costs forexchanging uorescent bulbs) has been paid from the tenants in return as Green Lease fee.
82Disclosure Topic: Climate Change Adaptation
SASB Disclosure CodeIF-RE-450a.1

Disclosure Metric
Area of properties located in 100-year ood zones

Fiscal 2020

Fiscal 2021

Unit

15,027.28

15,027.28㎡

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 an annual exceedance probability of 1
in 1,000 for ood 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)

83