Periodic disclosure for the financial products referred to in Article 8, paragraphs 1, 2 and 2a, of
Sustainable
Regulation (EU) 2019/2088 and Article 6, first paragraph, of Regulation (EU) 2020/852
investment
Product name: Industrial & Infrastructure Fund Investment Corporation (IIF)
means aninvestment in an Legal entity identifier: 353800WCHFY04YKYCI19
economic activity
that contributes
to anenvironmental orsocial objective,
Did this financial product have a sustainable investment objective? [tick and fill in as relevant,provided that thethe percentage figure represents sustainable investments]
investment does
YesNo
not significantly
harm any
It made sustainable
It promoted Environmental/Social (E/S)
environmental orcharacteristics andsocial objective
investments with anand that thewhile
it did not have as its objective aenvironmental objective: ___%
investeesustainable investment, it had a proportion ofcompanies follow
in economic activities that___% of sustainable investments
good governancequalify as environmentallypractices.
TheEU Taxonomy
with an environmental objective in economic
sustainable under the EU
is a classification
activities that qualify as environmentally
Taxonomysystem laid downsustainable under the EU Taxonomy
in Regulation (EU)in economic activities that do
2020/852,with an environmental objective in
not qualify as environmentally
establishing a list
economic activities that do not qualify assustainable under the EUof
environmentally sustainable under the EU
Taxonomyenvironmentally
Taxonomysustainableeconomic
with a social objective
activities. That
Regulation does
It made sustainable investments
It promoted E/S characteristics, but did not
not include a list of
make any sustainable investmentswith a social objective: ___%
socially sustainableeconomic
activities.
Sustainable
investments withan environmental
objective might bealigned with theTaxonomy or not.

Environmental and/or social characteristics

To what extent were the environmental and/or social characteristics promotedby this financial product met?
IIF has integrated the concept of responsible property investment (RPI) into ourinvestment management process. The RPI strategy is integrated into the asset
management of IIF and is implemented by all operational functions of the company during
the entire ownership cycle, from its acquisition to the ongoing asset management,marketing, renovation, and maintenance through a sale. In addition, ESG-related items
are checked when properties are considered for acquisition. As an integration of ESG at
the time of management, the KPIs used to evaluate environmental and social
performance are set and monitored.
IIF specifically promotes environmental and social characteristics as follows:

Sustainability
indicators measure
how theenvironmental orsocial characteristics
promoted by thefinancial product areattained.

•Ensuring the quality of the buildings under its management through certifications andother means and addresses issues related to climate change and energy efficiency.

•Striving to improve building comfort and convenience and to raise the awarenessabout ESG among tenant employees.

•Working together with its tenants and local community members to address theissues of efficient water use and waste disposal. By strengthening the resilience ofbuildings through disaster prevention measures and the provision of community
spaces, as well as social contribution activities, IIF is committed to strengthening
and improving connections with local people. By doing so, it will work to establishpartnerships and build green communities.

•IIF does not designate a reference benchmark to measure the achievement of theenvironmental or social characteristics.
For specific examples of how IIF has met some of these environmental and social
characteristics, please refer to the later question.

How did the sustainability indicators perform?
Indicators used to measure the attainment of these environmental and social
characteristics include:Environmental indicators: GHG emissions; Scope1, Scope2 andScope3 (PAI 18, Table 2)

Energy consumption; Fuels, District Heating & Cooling and Electricity(PAI 19, Table 2)Acquiring certifications

IIF monitors environmental indicators, GHG emissions and energy
consumption through its Sustainability Committee which meets once aquarter. Although IIF does not set reference benchmarks, it manages its
progress and the results are disclosed on IIF’s website at the following links:

Environmental Performance:
https://iif-reit_sustainability.disclosure.site/en/themes/94/
Acquiring certifications:
https://iif-reit_sustainability.disclosure.site/en/themes/79/

IIF works actively on energy conservation measures that relate to asset
management, with the aim of creating a sustainable society through thereduction of environmental impact. As part of its carbon risk measures, IIF
collectively manages its energy consumption and GHG emissions byoutsourcing this work to external contractors; this has enabled IIF to gather
accurate and transparent data. IIF then analyzes this data as part of continuing
efforts at managing reductions in energy consumption.
IIF is responding to the problem of climate change, which is becoming more
serious year by year, by implementing environmental-friendly and energysaving measures and making efforts toward more efficient energy use in its
properties to give greater consideration to the environment and lessenits
environmental impact. Also, to reduce GHG emissions, which are one of therisk factors for climate change, IIF has established systems for understanding
and managing GHG emissions in its portfolio as a whole. IIF collectively
manages electrical power, fuel, and water consumption and analyzes theaccumulated data, which is both accurate and transparent to actively
manage reduction of energy use.
Principal adverse
impacts are themost significant
negative impacts ofinvestment
decisions onsustainability factors
relating toenvironmental,social and employee
matters, respect forhuman rights, anti‐
corruption and anti‐
bribery matters.

…and compared to previous periods?
Not applicable.
What were the objectives of the sustainable investments that the financial
product partially made and how did the sustainable investment contribute to suchobjectives?
Not applicable. IIF promotes environmental and social characteristics but does nothave a sustainable investment objective and does not make sustainable
investments.
How did the sustainable investments that the financial product partially made notcause significant harm to any environmental or social sustainable investment
objective?
Not applicable. IIF promotes environmental and social characteristics but does nothave a sustainable investment objective and does not make sustainable
investments.
How were the indicators for adverse impacts on sustainability factors taken
into account?
Not applicable. IIF promotes environmental and social characteristics but does nothave a sustainable investment objective and does not make sustainable
investments.

Were sustainable investments aligned with the OECD Guidelines forThe EU Taxonomy sets out a “do not significant harm” principle by which Taxonomy-aligned investments
should not significantly harm EU Taxonomy objectives and is accompanied by specific Union criteria.
The “do no significant harm” principle applies only to those investments underlying the financial
product that take into account the Union criteria for environmentally sustainable economic activities.
The investments underlying the remaining portion of this financial product do not take into account theUnion criteria for environmentally sustainable economic activities.
Any other sustainable investments must also not significantly harm any environmental or socialobjectives.
Multinational Enterprises and the UN Guiding Principles on Business andHuman Rights? Details:
Not applicable. IIF promotes environmental and social characteristics but does nothave a sustainable investment objective and does not make sustainable
investments.

How did this financial product consider principal adverse impacts onsustainability factors?
IIF’s investments may have a principal adverse impact (PAI) on sustainability
factors as defined in Regulation (EU) 2019/2088. The PAI throughout theinvestment cycles is measured and evaluated with the help of defined indicators
based on the asset manager's own research.
IIF and its asset manager, KJR Management, recognize the importance of the PAIs on
sustainability factors which are taken into account throughout investment cycles.
PAIs describe the negative effects of the company’s business activities and countries inwhich IIF invests regarding environmental, social and employee concerns, respect forhuman rights anti-corruption and bribery. Therefore, the aim of IIF’s PAI strategy is tolimit the negative influences on sustainability factors associated with its investment
decisions. To this end, systematic procedures for measuring and evaluating, as well as
measures for dealing with PAI in investment processes are applied as explained below.
The PAI throughout investment cycles is measured and evaluated with the help of
defined indicators based on the asset manager's own research.
The following indicators are used that measure the PAI of IIF;
1. GHG emissions; Scope1, Scope2 and Scope3
2. Energy consumption; Fuels, District Heating & Cooling and Electricity
GHG emissions and Energy consumption data are provided by each energy supply
vendor used to bill for electricity and other services. This data is collected by a thirdparty property management company and stored in a system provided by another thirdparty. The collected data and the progress in reducing GHG emissions and Energy

consumption is reported on by IIF at the sustainability committee meetings, which aims
to meet once a quarter.
As an engagement to reduce GHG emissions and energy consumption which are PAI, IIF
provides explanations to its tenants about its environmentally friendly initiatives andfacility renewal. When it renew facilities, IIF installs energy-efficient equipment throughgreen leases through engagement with tenants. In this process, it holds dialogues withproperty management companies (third parties) and tenants regarding GHG emissions
and energy consumption of owned properties, including investigation of the causes inpurpose of assessing, monitoring and mitigating PAI.
In order to limit the negative sustainability impacts associated with the investments, IIF
has taken steps to install solar power generation and renewable energy, purchase green
power and implement energy-saving modification such as conversion to LEDs andupdating air conditioning units which reduce GHG emissions and Energy consumption.
Further information on PAIs can be found on the Environmental Performance section ofIIF’s website.

What were the top investments of this financial product?

Largest investments

The list includes theinvestments
constituting thegreatest proportionof investments ofthe financial productduring the reference
period which is:
Februly 1 to July 31,2023.

Sector% Assets

Country

IIF Haneda Airport Maintenance Center

Real Estate

11%Japan

IIF Shonan Health Innovation Park

Real Estate

10%

Japan

IIF Kobe District Heating and Cooling Center

Real Estate

5%

Japan

IIF Ichihara Manufacturing Center

Real Estate

4%

Japan

IIF Shinonome Logistics Center

Real Estate

4%

Japan

IIF Atsugi Manufacturing

Real Estate

3%

Japan

IIF Osaka Suminoe Logistics Center I

Real Estate

3%

Japan

IIF Fukuoka Hakozaki Logistics Center II

Real Estate

3%

Japan

IIF Yokkaichi Logistics Center

Real Estate

2%

Japan

IIF Osaka Konohana Logistics Center

Real Estate

2%

Japan

IIF Mitaka Card Center

Real Estate

2%

Japan

IIF Akishima Logistics Center

Real Estate

2%

Japan

IIF Shonan Logistics Center

Real Estate2%

Japan

IIF Kamata R&D Center

Real Estate2%

Japan

IIF Noda Logistics Center

Real Estate2%Japan

What was the proportion of sustainability-related investments?
Not applicable.
What was the asset allocation?
IIF’s asset allocation is mainly in real estate assets. IIF has the followingindicators;•Aquiring certifications•

GHG emissions (absolute): 42% reduction by 2030 compared to 2021
(Scope1+2) (Set on Feb 1, 2023)•Energy consumption (per unit): Reduce by 30% in 2030 compared to2015

The above three indicators are considered to determine whether investmentsare aligned with E/S characteristics. An asset is considered to be consistent withE/S characteristics when it meets one of the above three criteria.
As of July 31, 2023, 31.0% of the properties in the portfolio met one of the above
criteria and were deemed aligned with E/S characteristics, and 69.0% were notaligned with E/S characteristics based on gross floor area.

Investments#1 Aligned with E/SCharacteristics
31. 0%#1B Other E/S
Characteristics
31.0 %#2 Other Real Estate(Not aligned with E/Scharacteristics)
69.0%#1 Aligned with E/S characteristics includes the investments of the financial product used toattain the environmental or social characteristics promoted by the financial product.
#2Other includes the remaining investments of the financial product which are neither alignedwith the environmental or social characteristics, nor are qualified as sustainable investments.

In which economic sectors were the investments made?
IIF invests in real estate in Japan.

To what extent were the sustainable investments with an environmental
objective aligned with the EU Taxonomy?

To comply withthe EU
Taxonomy, thecriteria for fossil
gas includelimitations onemissions andswitching to fully
renewable power
or low-carbon
fuels by the endof 2035. For
nuclear energy,
the criteria
includecomprehensive
safety and waste
management
rules.

IIF does not have sustainable investments aligned with the EU taxonomy, so there is
no alignment with the taxonomy for each item (0%)

Did the financial product invest in fossil gas and/or nuclear energy related
activities complying with the EU Taxonomy1?
Yes:
In fossil gas

In nuclear energy

No

Enabling
activities
directly enable
other activities
to make asubstantial
contribution toan
environmental
objective.

The graphs below show in green the percentage of investments that were aligned with the EU Taxonomy.
As there is no appropriate methodology to determine the taxonomy-alignment of sovereign bonds*, thefirst graph shows the Taxonomy alignment in relation to all the investments of the financial productincluding sovereign bonds, while the second graph shows the Taxonomy alignment only in relation to theinvestments of the financial product other than sovereign bonds.
1. Taxonomy-alignment of investments
including sovereign bonds*

Transitional
activities areactivities forwhich lowcarbon
alternatives are
not yet available
and amongothers havegreenhouse gas
emission levels
corresponding tothe best
performance.

2. Taxonomy-alignment of investments
excluding sovereign bonds*

Turnover100%

Turnover

100%

CapEx

100%

CapEx

100%

OpEx

100%

OpEx

100%

0%

50%

Taxonomy-aligned: Fossil gas
Taxonomy-aligned: Nuclear
Taxonomy-aligned (no gas and nuclear)
Non Taxonomy-aligned

100%

0%

50%

100%

Taxonomy-aligned: Fossil gas
Taxonomy-aligned: Nuclear
Taxonomy-aligned (no gas and nuclear)
Non Taxonomy-aligned

This graph represents x% of the total investments.

* For the purpose of these graphs, ‘sovereign bonds’ consist of all sovereign exposures.

What was the share of investments made in transitional and enabling activities?

1

Fossil gas and/or nuclear related activities will only comply with the EU Taxonomy where they contribute tolimiting climate change (“climate change mitigation”) and do not significantly harm any EU Taxonomy objective see explanatory note in the left hand margin. The full criteria for fossil gas and nuclear energy economic activities
that comply with the EU Taxonomy are laid down in Commission Delegated Regulation (EU) 2022/1214.

N/A. IIF does not invest in transitional or enabling activities.
How did the percentage of investments that were aligned with the EU Taxonomy
compare with previous reference periods?
N/A. IIF does not have sustainable investments which align with the EU Taxonomy.

What was the share of sustainable investments with an environmental
objective not aligned with the EU Taxonomy?
IIF does not have sustainable investments with an environmental objective so 100% of
IIF’s investments were not aligned with the EU Taxonomy.

What was the share of socially sustainable investments?
N/A. IIF does not have sustainable investments which align with the EU Taxonomy.

What investments were included under “other”, what was their purpose andwere there any minimum environmental or social safeguards?
Investments included under “#2 Other” equal to 69.0% because the fund does notinclude sustainable investments. “#2 Other” includes properties without green building
certifications. Even if certification is not obtained, IIF will continue to implement
operations for properties that meet environmental and social characteristics.

What actions have been taken to meet the environmental and/or social
characteristics during the reference period?
•IIF established new GHG emission reduction targets.

•Acquisition of environmental certification.

Ensuring the quality of the buildings under its management throughcertifications and other means and addressing issues related to climatechange and energy efficiency.
Building Certified Ratio : 31.0% (Area ratio, as of July 31, 2023)•Acquired ResReal certification (Flood damage assessment category). The ResReal is acertification system that quantifies and visualizes the resilience of real estate against
natural disasters.

•

Replaced with energy-efficient equipment when facilities were upgraded.

•IIF's environmental initiatives and management processes were certified andregistered under Eco Action 21, an environmental management system establishedby the Ministry of the Environment.

•

Striving to improve building comfort and convenience and to raiseawareness about ESG among tenant employees.

•Working together with its tenants and local community members to address
the issues of efficient water use and waste disposal. By strengthening theresilience of buildings through disaster prevention measures and theprovision of community spaces, as well as social contribution activities, IIF iscommitted to strengthening and improving connections with local people.
By doing so, it will work to establish partnerships and build greencommunities.

How did this financial product perform compared to the reference benchmark?
N/A. IIF does not designate a reference benchmark.
How does the reference benchmark differ from a broad market index?
N/A. IIF does not designate a reference benchmark.
How did this financial product perform with regard to the sustainability indicators
to determine the alignment of the reference benchmark with the environmental
or social characteristics promoted?
N/A. IIF does not designate a reference benchmark.
How did this financial product perform compared with the reference benchmark?
N/A. IIF does not designate a reference benchmark.
How did this financial product perform compared with the broad market index?
N/A. IIF does not designate a reference benchmark.