Transparency of the promotion of environmental or social characteristics and ofsustainable investments on websites
Industrial & Infrastructure Fund Investment Corporation
We are making the following disclosures in accordance with Article 10 of Regulation (EU)2019/2088 on sustainability related disclosures in the financial services sector (the “SFDR”).
(a) Summary (Japanese follows English)
This document provides the transparency disclosure under Article 10 of the SFDR in
respect of Industrial & Infrastructure Fund Investment Corporation (“IIF”).
The disclosure requirements are subject to Regulatory Technical Standards on the content,
methodologies and presentation of disclosure under the SFDR (the “RTS”).
IIF promotes environmental and social characteristics, but does not have as its objective
sustainable investment. IIF is managed by its asset manager, KJR Management (the “assetmanager”), an asset management company that specializes in Japanese real estate
investment. The asset manager takes various environmental factors into considerationsuch as property inspections and land history investigations. In addition, the asset
manager investigates legal compliance, credit checks, and environmental risks, such as
asbestos and polychlorinated biphenyls (PCBs), and an ESG checklist used during the due
diligence process.
IIF strives to ensure the quality of the buildings under its management and to improvebuilding comfort. IIF works actively on energy conservation measures that relate to asset
management, with the aim of creating a sustainable society through the reduction ofenvironmental impact. Indicators, such as GHG emissions and energy consumption, areused to measure the attainment of these environmental characteristics.
As far as its investment strategy is concerned, IIF mainly invests in real estate assets andreal estate-related assets. IIF has the following indicators:
・Acquiring certifications for 60% or more of the total portfolio (Target year: 2030);
・Acquiring certifications for 70% or more of Logistics facilities (Target year: 2025);
・GHG emissions (absolute): Reduce by 42% in 2030 compared to 2021; and・Electricity consumption (per unit): Reduce by 30% in 2030 compared to 2015.
IIF monitors the environmental indicators mentioned in its Article 8 disclosure, GHG
emissions and energy consumption, through the Sustainability Committee which meetsonce a quarter in principle.
IIF’s methodologies for the GHG emissions and energy consumption are as follows:
GHG emissions(t-CO2eq) = Energy use × CO2 emission factor
Energy consumption = Energy use × Calorie conversion factor × Electric energy
conversion factor
For key sustainability indicators, such as GHG emissions and energy consumption, data
is gathered and collected by a third-party property management company and stored ina system provided by another third party.

IIF does not have strictly prescribed methodologies for data collection, but collects a wide
range of data points mainly by outsourcing this work to external contractors. This enables IIF
to gather accurate and transparent data, which it considers limits the possible unreliability or
inaccuracy of its data. IIF considers that any limitations would be sufficiently minor as to notaffect how the environmental or social characteristics promoted by IIF are met.
Due diligence is implemented in relation to hazardous substances related to soil
contamination and buildings.
In accordance with market best practices, IIF does not designate a reference benchmark
for financial instruments.

IIF(b) No sustainable investment objective
IIF promotes environmental and social characteristics, but does not have as its objective
sustainable investment.
(c)Environmental or social characteristics of the financial product
IIF focuses on industrial and infrastructure properties and promotes environmental andsocial characteristics as follows:-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 awareness about
ESG among tenant employees.
-working together with its tenants and local community members to address the issuesof efficient water use and waste disposal.
By strengthening the resilience of buildings through disaster prevention measures andthe provision 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 green communities.
Indicators used to measure the attainment of these environmental characteristics
include:• Environmental indicators: GHG emissions and energy consumption
IIF works actively on energy conservation measures that relate to asset management,with the aim of creating a sustainable society through the reduction of environmental
impact. As part of carbon risk measures, IIF collectively manages its energy consumption
and GHG emissions by outsourcing this work to external contractors. This has enabled it
to gather highly accurate and transparent data. IIF then analyzes this data as part of its
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 energy-saving measures andmaking efforts toward more efficient energy use in its properties to give greater
consideration to the environment and lessen its environmental impact. Also, to reduce
GHG emissions, which are one of the risk factors for climate change, it has establishedsystems for understanding and managing GHG emissions in the portfolio as a whole. IIF
collectively manages electrical power, fuel, and water consumption and analyzes theaccumulated data, which is both accurate and highly transparent to actively manage
reduction of energy use.
IIF strives for sustainable resource use and is making active efforts to utilize water
resources effectively.
IIF is engaged in efforts to minimize the amount of waste produced by its properties, andto monitor and appropriately manages the amount of waste generated.
IIF offers up some of its spaces for the local community events. IIF also provides a part ofits sites to a local government for use as a park.
(d) Investment strategy
IIF invests mainly in real estate. KJR Management is the asset manager for IIF. In thecourse of making decisions regarding the acquisition, disposal, or operation andmanagement of assets, approval is obtained from the Investment Committee and theSenior Advisory Board/Board of Directors. The asset manager takes various
environmental factors into consideration such as property inspections, and land historyinvestigations. In addition, the asset manager investigates legal compliance, credit
checks, and environmental risks such as asbestos and PCBs based on an ESG checklist
used during the due diligence process.

(e) Proportion of investments
IIF’s asset allocation is mainly in real estate assets. IIF has the following indicators:
・Acquiring certifications for 60% or more of the total portfolio (Target year: 2030);
・Acquiring certifications for 70% or more of Logistics facilities (Target year: 2025);
・GHG emissions (absolute): Reduce by 42% in 2030 compared to 2021;
・Electricity consumption (per unit): Reduce by 30% in 2030 compared to 2015.
These four indicators are considered to determine whether investments are aligned withenvironmental or social characteristics.
Even if investing in assets which are not aligned with the environmental or social
characteristics, sustainability risks continue to be considered by fund managers throughthe lifecycle of an Investment. IIF’s fund managers are required to consider potential
sustainability risks as part of its mandatory pre-acquisition due diligence review andoperation process, based on the RPI policy established as a policy to integrate
environmental and social characteristics. At the time of investment decisions, theInvestment Committee reviews the specifics of potential investments, and at the time ofoperation, the activities are monitored by the Sustainability Committee. IIF therefore
integrates RPI strategies, but not at the expense of long-term client financial performance.
IIF uses derivatives for hedging market risks (mainly interest rate swaps) purpose only.
(f) Monitoring of environmental or social characteristics
IIF monitors environmental indicators, GHG emissions and energy consumption throughthe Sustainability Committee. The Committee has approved IIF's reduction targets.
Thereafter, IIF report on its progress in reducing GHG emissions and energy consumption
and its initiatives at the Committee meetings held once a quarter in principle.
(g) Methodologies for environmental or social characteristics
IIF’s methodologies for GHG emissions and energy consumption are as follows:
GHG emissions(t-CO2eq) = Energy use × CO2 emission factor
Energy consumption = Energy use × Calorie conversion factor × Electric energy
conversion factor
For further details, refer to the following links. It contains the figures guaranteed bythird parties for energy consumption, GHG emissions and water consumption, etc., aswell as details of the formulas.
https://iif-reit_sustainability.disclosure.site/data/themes_79/web_information_en_2022.pdf(h) Data sources and processing
For key sustainability indicators such as GHG emissions or energy consumption, data isgathered and is collected by a third-party property management company, which collects
data visually from meters or from invoices, and stored in a system provided by anotherthird party. Calculation results are reviewed by other third parties. Third party assurance
reports for the fund available on IIF’s website at the following link:
https://iif-reit_sustainability.disclosure.site/data/themes_79/independent_assurance_report_en_2022.pdf

(i) Limitations to methodologies and data
IIF does not have strictly prescribed methodologies for data collection but collects a wide
range of data points mainly by outsourcing this work to external contractors. This has
enabled IIF to gather accurate and transparent data, which limits the possible unreliability or
inaccuracy of its data. IIF considers that any limitations would be sufficiently minor so as to
not affect how the environmental and social characteristics promoted by it are met.
(j) Due diligence
IIF recognizes that hazardous substances related to soil contamination and buildings(PCB, asbestos, etc.) are one of the risk factors in real estate transactions. Adequate andreasonable measures are taken according to market practice, trustee obligations, legal
regulations, complaints, and other risk management strategies are implemented inrelation to hazardous substance contamination of soil and buildings.
The following are some points to keep in mind for risk management during theprocedure:
1 Accurately calculate the risk for the judgment materials for the acquisition of realestate2 Minimize risk in acquiring real estate
3 Compliance with laws and regulations regarding soil contamination, etc. after
acquisition of real estate (soil contamination countermeasures laws).
(k) Engagement policies
IIF invests mainly in real estate. KJR Management is the asset manager for IIF. In thecourse of making decisions regarding the acquisition, disposal, or operation andmanagement of assets, approval is obtained from the Investment Committee and theSenior Advisory Board/Board of Directors. The asset manager takes various
environmental factors into consideration such as property inspections, and land history
investigations. In addition, the asset manager investigates legal compliance, credit
checks, and environmental risks such as asbestos and PCBs based on an ESG checklist
used during the due diligence process.
(l) Designated reference benchmark
IIF does not designate a reference benchmark.