STATEMENT ON PRINCIPAL ADVERSE IMPACTS OF INVESTMENT DECISIONS ON
SUSTAINABILITY FACTORS
Product name: Mitsubishi Estate Logistics REIT Investment Corporation
Legal entity identifier: 353800YYSGZU31ICQK38
The following is the adverse sustainability impact statement of Mitsubishi Estate Logistics REIT Investment
Corporation (“MEL”) pursuant to Regulation (EU) 2019/2088 (“SFDR”). MEL has no employees inaccordance with the prohibition on having employees under the Act on Investment Trusts and Investment
Corporations of Japan, and entrusts the management and operation of the properties in its portfolio to
Mitsubishi Jisho Investment Advisors, Inc. (the “Asset Management Company”). MEL and the AssetManagement Company are hereinafter referred to collectively as “we”, “us” or “our” unless noted otherwise.
In addition, any “fiscal year” or “FY” hereinafter refers to the fiscal year began or beginning April 1 of theyear, specified in line with the fiscal year of the Asset Management Company, unless noted otherwise.
Please note that SFDR requirements, including the scope of their application to issuers outside the European
Economic Area, continue to evolve. We are therefore taking a principles-based approach to compliance with the
SFDR disclosure standards, which are subject to change.
1. Summary
Pursuant to Article 4 of the Delegated Regulation C(2022)1931 supplementing SFDR (the “SFDR DelegatedRegulation”), MEL is required to publish on its website the information referred to therein covering the periodof one calendar year. MEL is a Japanese real estate investment trust, commonly known as J-REIT, and has noemployees, relying on the Asset Management Company for the management and operation of its properties. The
Asset Management Company does not operate based on a calendar year, but operates based on fiscal year
ending in March of every year. A recalculation and translation of the data into the reference period of one
calendar year would most likely lead to inaccuracies and would therefore provide a potentially less accurate
overview of the required information than using the approved and validated data for the period from April 1,
2023 to March 31, 2024. This reference period is sufficiently compatible with, and shows results that do notmaterially differ from, those that would be produced using the calendar year-based reference period noted in
the SFDR Delegated Regulation.
We consider principal adverse impacts of our investment decisions on sustainability factors. The present
statement is our consolidated statement on the principal adverse impacts on sustainability factors (“PAI”). This
statement on PAI covers the reference period from April 1, 2023 to March 31, 2024. The statement will be
reviewed at least once during every twelve-month period ending on March 31 of each year.
The Mitsubishi Estate Group (the “Group”), to which the Asset Management Company belongs, conducts
sustainable corporate activities with goals of protecting the environment, contributing to society, and maintaining
corporate ethics and governance, as a good corporate citizen. We aim to minimize the impact of the Group’sbusiness activities on the environment and to maximize the benefit of all stakeholders.
We use the definition of PAI as described in Recital 20 of SFDR being “those impacts of investment decisions
and advice that result in negative effects on sustainability factors”, with sustainability factors referring toenvironmental, social and employee matters, respect for human rights, anti‐corruption and anti‐bribery matters
as defined in Article 2 (24) of SFDR.
We believe that investment decisions that negatively affect climate or other environment-related resources, or
have negative implications for society, can have a significant impact on risks and value creation for MEL’s
unitholders. To this end, we consider PAI of our investment decisions throughout all major steps of theinvestment decision and property management process throughout the lifecycle of the properties in MEL’s
portfolio.

2. Description of principal adverse sustainability impacts
Nearly all types of economic activity have the potential to impact various PAI indicators both positively andadversely. We aim to manage the risks connected to PAI from our investment decisions in several ways,
including general screening criteria, due diligence and our ESG initiatives. Some of the PAI indicators listed
below are currently already being monitored and reported. As the availability of data improves in the future, we
intend to add more indicators.

Table 1
Description of the principal adverse impacts on sustainability factors
MEL does not invest in investee companies, but invests in real estate. As adverse sustainability indicators 1-16 as contained in Table 1 of Annex 1 of the
SFDR Delegated Regulation pertain to investee companies, these are not included in this PAI statement, which pertains to real estate investments.
Adversesustainability
indicator

Fossilfuels

17.
Exposure
to fossil
fuels
through
real estate
assetsEnergyefficiency

18.
Exposure
to energyinefficient
real estate
assetsMetricShare ofinvestments
in real estate
assetsinvolved intheextraction,
storage,transport or
manufactureof fossil fuels
Share ofinvestments
in energyinefficient
real estate
assets

Impact in
2023

Impact in
2022

Impact in
2021

Explanation

Indicators applicable to investments in real estate assets
N/A
N/A
N/A
MEL does not invest in realestate assets involved in theextraction, storage,transportation or manufacture offossil fuels.

As ofDecember 31,
2023, 8.5% of
MEL’s
properties
were not“GreenBuildings” (asdefined to theright) basedon gross floor
area.

As of
December31, 2022,
15.3% of
MEL’sproperties
were not“GreenBuildings”(as definedto the right)
based on

As of
December 31,
2021, 20.9% of
MEL’s
properties werenot “Green
Buildings” (asdefined to theright) based ongross floorarea.

To track the environmental
performance of MEL’s
properties, we rely on
environmental certifications
issued by third-party
organizations such as theComprehensive Assessment
System for Built Environment
Efficiency (“CASBEE”)
certification, Building Energyefficiency Labeling System(“BELS”) certification, theDevelopment Bank of Japan’s

Actions taken, andactions planned andtargets set for the
next reference
periodN/A

We have set a key
performanceindicator (“KPI”)
target of increasing
the proportion ofGreen Buildings in
MEL’s portfolio to100% by FY2030.

gross floor
area.

(“DBJ”) Green Building
certification and other equivalentcertifications. We consider aproperty to be a “Green
Building” if it has received anyof such environmental
certifications, and consider aproperty to be an “energyinefficient
real estate asset” if it has notreceived any such environmental
certification.

Table 2
Additional climate and other environment-related indicators.
MEL does not invest in investee companies, but invests in real estate. As additional climate and otherenvironment-related indicators 1-17 as contained in Table 2 of Annex 1 of the SFDR Delegated Regulation
pertain to investee companies, these are not included in this PAI statement, which pertains to real estate
investments.
CLIMATE AND OTHER ENVIRONMENT-RELATED INDICATORS
AdverseAdverse impact on sustainability factors
Metricsustainability(qualitative or quantitative)
impactIndicators applicable to investments in real estate assets
Greenhouse gas
18. GHG emissions
Scope 1 GHG emissions
generated by real estate
emissions
Scope 1 GHG emissions generated by real estate assets assets
in MEL’s portfolio were 0.4 t-CO2 (in FY2021), 0.3 tCO2 (in FY2022) and 0.6 t-CO2 (in FY2023).
Scope 2 GHG emissions
generated by real estate
Scope 2 GHG emissions generated by real estate assets assets
in MEL’s portfolio were 7,011.0 t-CO2 (in FY2021),
2,849.0 t-CO2 (in FY2022) and 2,811.9 t-CO2 (inScope 3 GHG emissions
FY2023).
generated by real estate
assetsScope 3 GHG emissions generated by real estate assets
in MEL’s portfolio were 10,586.9 t-CO2 (in FY2021), Total GHG emissions
19,369.5 t-CO2 (in FY2022) and 19,701.9 t-CO2 (ingenerated by real estate
FY2023).
assetsTotal GHG emissions generated by real estate assets in
MEL’s portfolio were 17,598 t-CO2 (in FY2021),
22,219 t-CO2 (in FY2022) and 22,514 t-CO2 (inFY2023).

We have set KPI targets of (i) reducing the combined
Scope 1 and Scope 2 GHG emissions by 42% by
FY2030 from the base level in FY2021.
Energyconsumption

19. Energy consumption intensity
The energy consumption intensity from real estate
assets in MEL’s portfolio were 38.49 kWh/m2 in
FY2021, 37.95kWh/m2 in FY2022 and 37.81 kWh/m2
in FY2023, each based on gross floor area.

Energy consumption in kWhof owned real estate assets
per square meter.

We have set a KPI target of reducing energy
consumption intensity by 15% by FY2030 from thebase level in FY2017 (50.20 kWh/m2).
Waste

20. Waste production in operations

Share of real estate assets not
equipped with facilities for

The recycling rate of MEL’s portfolio was 62.3% in
FY2021, 70.2% in FY2022 and 64.8% in FY2023.

waste sorting and notcovered by a waste recovery
or recycling contract

In addition to tracking the recycling rate, we also track
the amount of waste discharged by weight from
MEL’s portfolio. The total weight of waste discharged
was 3,939 tons in FY2021, 4,802 tons in FY2022 and
4,849 tons in FY2023.
We have set a KPI target of increasing the recycling
rate to 70% or higher by FY2030.

Table 3
Additional indicators for social and employee, respect for human rights, anti-corruption and anti-bribery
matters
MEL has no employees in accordance with the prohibition on having employees under the Act on Investment
Trusts and Investment Corporations of Japan, and relies on the Asset Management Company to manage andoperate the properties in MEL’s portfolio. Accordingly, additional indicators for social and employee, respectfor human rights, anti-corruption and anti-bribery matters in this PAI statement pertain to the AssetManagement Company, to the extent available.
INDICATORS FOR SOCIAL AND EMPLOYEE, RESPECT FOR HUMAN RIGHTS, ANTICORRUPTION AND ANTI-BRIBERY MATTERS
AdverseAdverse impact on sustainability factors
Metricsustainability(qualitative or quantitative)
impactIndicators applicable to the Asset Management Company
Social and employee 6. Insufficient whistleblower protection
Share of investments inmatters
entities without policies on
All persons engaged in our business, including
the protection ofretirees and temporary employees, are provided
whistleblowers
whistleblower protection.
We have established a consultation desk for legal
violations, violations of internal rules, harassment,
and other matters that are contrary to ethical andsocial standards. All persons engaged in ourbusiness, including retirees and temporary
employees, can report to and consult with us. Thissystem complies with the Whistleblower Protection
Act.
7. Incidents of discrimination
No material or serious incident of discrimination(including any leading to sanctions) has beenreported among the employees of the AssetManagement Company in FY2023, FY2022 andFY2021.

1. Number of incidents of
discrimination reported ininvestee companies
expressed as a weighted
averageHuman Rights

Based on the Group’s human rights policy, the AssetManagement Company is committed to respect thehuman rights of all parties involved, including those
we encounter through our businesses. Furthermore,
the Group’s code of conduct explicitly rejects
discrimination and harassment in any form. In orderto gain a better understanding of discrimination andto foster a greater awareness of human rights, we
conduct training on human rights, focusing on theprevention of harassment.

2. Number of incidents of
discrimination leading tosanctions in investee
companies expressed as aweighted average

9. Lack of a human rights policy

Share of investments inentities without a humanrights policy

The Mitsubishi Estate Group, including the AssetManagement Company, has a human rights policy.
Under the Group’s human rights policy, we uphold
and respect international standards related to humanrights, such as the International Bill of Human
Rights and the International Labour Organization’s
Declaration on Fundamental Principles and Rights at
Work.
Anti-corruption andanti-bribery

15. Lack of anti-corruption and anti-bribery policies
The Asset Management Company has compliancepolicies addressing anti-corruption and anti-briberythat apply to all of its officers and employees.
The Group has declared its corporate activities to be
fair, transparent and trustworthy. The Group’s
Action Guidelines prohibit not only suspected
political and administrative cohesion and illegal
activities but also entertainment and gifts thatdeviate from social norms.
When support is provided for the activities of apolitical organization, appropriate measures aretaken in light of the Political Funds Regulation Law,
the Public Offices Election Law, and other relevantlaws and regulations, as well as internal rules such as
the Mitsubishi Estate Group Action Guidelines.
We have also established a system to prevent
bribery. In 2013, the Mitsubishi Estate Group Basic
Rules on Anti-Bribery were established, and in
2018, the Mitsubishi Estate Group Anti-Bribery
Guidelines were introduced.
To prevent bribery, we provide training for Groupmanagers and employees, and acquire pledges fromGroup managers and employees to the Anti-Bribery

Share of investments inentities without policies on
anti-corruption and antibribery consistent with theUnited Nations Convention
against Corruption

Guidelines. In addition, bribery prevention lectures
are held annually, and the Risk Compliance
Committee monitors the operation of the anti-bribery
system annually, and the status of the monitoring by
the Risk Compliance Committee is also reported to
the Board of Directors.

For descriptions of actions which MEL takes and will take with respect to PAI indicators, please refer to our
ESG website: https://mel-reit.co.jp/en/esg/index.html
3. Description of policies to identify and prioritize principal adverse sustainability impacts
Subject to data availability, we monitor the selected PAI indicators for the existing properties in MEL’s portfolio.
Prior to our investment in a property, we conduct due diligence review of the property, including ESG due
diligence, which includes selected PAI indicators. The due diligence findings related to selected PAI indicators
are reported and reviewed prior to the investment decision.
In order to realize sustainability in our asset management while maximizing MEL’s portfolio value, we consider
ESG factors in our investment and asset management processes. In particular, MEL has established a green
finance framework for debt financing (the “Green Finance Framework”) and a green equity framework for equity
financing (the “Green Equity Framework,” together with the Green Finance Framework, the “Frameworks”).
When determining whether to acquire or invest in properties under the green finance framework, we rely on the
CASBEE, BELS and DBJ Green Building certifications. We can use green financing to acquire properties thathave received at least one of the following third-party certifications: (i) B+ Rank or higher out of the CASBEE
ranking system, (ii) three stars or higher out of BELS’s previous five-star ranking system or level 4 or higher
out of the BELS’s new six-level ranking system, subject to certain allowances for properties that use the previous
five-star ranking system and (iii) three stars or higher out of DBJ Green Building’s five-star ranking system, or
to refinance borrowings required for acquiring such assets.
For further information, please refer to our ESG website: https://mel-reit.co.jp/en/esg/index.html
4. Engagement policies
Due Diligence and Screening
When investing in properties using proceeds raised through the Frameworks, MEL does not invest in properties
that fail to meet the green eligible criteria under the Frameworks. In addition, we prioritize properties designed
and constructed in an environmentally thoughtful way and assessed to have low environmental burdens. We also
investigate the presence of harmful substances, the history of past land usages and the existence of soil
contamination when investing in properties.
We monitor ESG-related data and disclose such ESG-related data at least once a year at our website: https://melreit.co.jp/en/esg/environment/
Engagement
We strive to operate in accordance with the items stipulated in the Group’s green procurement guidelines, which
promotes the procurement of materials and equipment with a low environmental impact. Furthermore, we require
our business partners to adhere to the Mitsubishi Estate Group Code of Corporate Conduct, which requires
adherence to fair employment practices including, for example, establishing work environments free fromdiscrimination and harassment. The Mitsubishi Estate Group Code of Corporate Conduct also explicitly prohibits
the use of unlawful child labor for our own operations and by our suppliers.

5. Reference to international standards
In March 2020, the Asset Management Company became a signatory to the Principles for Responsible
Investment (“PRI”), which consists of an international network of investors that works to realize the Six
Principles established for the finance industry in 2006. PRI is promoted through the United Nations Environment
Program and the United Nations Global Compact, and encourages investors to incorporate ESG issues into
investment decision-making processes.
In December 2021, the Asset Management Company also signed on as an official supporter of the Task Forceon Climate-related Financial Disclosures (“TCFD”) as a guiding framework for companies to show how they
are responding to climate change and provides disclosures of our alignment with TCFD’s four core elements:
governance, strategy, risks & opportunities and targets & metrics. The Asset Management Company also joined
the TCFD consortium, an organization bringing together TCFD supporters in Japan. In March 2023, MEL has
formulated the roadmap for reducing GHG emissions based on the TCFD recommendations, and disclosed thedisclosure items based on the four core elements of the TCFD recommendations on our website. Also, MEL
conduct quantitative analysis. For the detail of the analysis, please refer to our ESG website : https://melreit.co.jp/en/esg/environment/climate.html.

6. Historical comparison
See Table 1, Table 2 and Table 3 above.