Corporate Philosophy, Group Profile, Contents, Editorial Policy

Management

Special Feature

Environment

SocialGovernance

Data

Third-Party Assurance

Environment
Corporate Philosophy, Group Profile, Contents, Editorial Policy
Management

Sustainability Finance

Message from the President and CEO
ESG Management
Materiality of the Tokyo Tatemono Group

Policy and Concept

Special Feature
Environment
Environmental Management
Sustainability Finance
External Evaluation and Certification for Green Building
Responding to Climate Change
Pollution Control and Resource Recycling
Water Resources
Biodiversity
Responding to Natural Disasters

SocialDiversity & Inclusion
Work-Life Balance

Sustainability finance refers to bonds and loans to raise funds
specifically for the purpose of promoting sustainability byaddressing environmental issues such as climate change orsocial issues such as poverty, health, and economic disparity.
The Tokyo Tatemono Group promotes urban developmentthat contributes to solving social issues. We strive to improve theattractiveness of the areas in which we develop and to increase
the value of our entire portfolio of owned office buildings. We
aim to channel these efforts toward our sustainable growth
as a company.
In this era of dramatic change and increasing uncertainty,we will accelerate the cycle of allocating the funds we raise tosustainable projects. We will help build a low carbon,
sustainable society by balancing, at a high level across ouroperations, the need to address social issues with the need forbusiness growth.

Human Resource Investment and Development
Health Management / Occupational Safety and HealthRespect for Human Rights
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities

GovernanceCorporate GovernanceRisk Management
Compliance
Supply Chain Management

Use of Proceeds

Proceeds will be allocated to projects that meet eligibility
criteria such as the acquisition or construction of green
buildings, social projects addressing social problems, or will be
used for refinancing such projects.
Process for Project Evaluation and Selection

The Finance and Corporate Communications Departments selectprojects that meet the eligibility criteria. The final decision is madeby the president or a director in charge of the Finance Department.

Reporting

We report the allocation status of proceeds on our website
once a year until all proceeds classified for allocation
reporting are fully allocated.
We report the allocation status of proceeds on our website
once a year until all proceeds classified for allocation
reporting are fully allocated.

Management of Proceeds

The status of the allocation of proceeds is tracked andmanaged by the Finance Department using an internal control
system. The results are confirmed by the director in charge of
the Finance Department or the head of the Finance Department
on a quarterly basis. The proceeds are managed as cash orcash equivalents until they are allocated. For unallocatedproceeds, should they arise, projects will be selected fromamong projects that meet the eligibility criteria. The unallocatedSustainability Finance Framework
Eligibility Criteria
Tokyo Tatemono has established the Sustainability Finance
Framework, which applies the four requirements defined in theGreen Bond Principles and Social Bond Principles referred to in
the International Capital Markets Association’s (ICMA)
Sustainability Bond Guidelines: Use of Proceeds; Process for
Project Evaluation and Selection; Management of Proceeds;and Reporting.

proceeds will be managed in cash or cash equivalents until
their reallocation is decided.

Green Project

Eligible properties are those that have already acquiredor are scheduled to be certified/recertified as one of
the top two ranks in any of the third-party certification
bodies, listed in (1) to (3) below.
(1) 4
 or 5 stars in the DBJ Green Building Certification(2) A or S rank in the CASBEE building assessment (newbuildings)(3) 4
 or 5 stars in the BELS Evaluation Certification

Social project

Projects that contribute to any of the following (1) to (3)(1) B asic infrastructure development and access toessential services(2) S ocioeconomic improvement and empowerment(3)Food safety

Environmental Improvement Impact
During construction
periodAfter completion

Progress of certification acquisition procedures
List of effective environmental certifications, energy
consumption*, CO2 emission levels*,
water consumption** Actual levels for all Tokyo Tatemono facilities whose data is covered by the Act on theRational Use of Energy, including green buildings that meet the eligibility criteria.
Indicates data that has received third-party certification by Lloyd’s Register Quality
Assurance Limited (LRQA) to ensure its integrity.

Social Benefits (Outcomes)

Project
maintenancestatus

Project maintenance status (progress for projects
under development)
Project Description
Space for receiving stranded commutersDisaster prevention stockpiling for stranded commuters
Cogeneration system (CGS)
Barrier-free pedestrian network
Comprehensive initial medical treatment facilities andchildcare support facilities for foreign nationals

Project Usage

Number of events held
Number of companies using the facility

Data
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Corporate Philosophy, Group Profile, Contents, Editorial Policy

Management

Special Feature

Environment

SocialGovernance

Data

Third-Party Assurance

Environment
Corporate Philosophy, Group Profile, Contents, Editorial Policy
Management

Sustainability Finance

Message from the President and CEO
ESG ManagementMateriality of the Tokyo Tatemono Group

Environment
Environmental Management
Sustainability Finance
External Evaluation and Certification for Green Building
Responding to Climate Change
Pollution Control and Resource Recycling

Overview of Green Bonds

ImpactSpecial Feature
Urbandevelopment
that
contributes tosolving social
issuesRespecting local history and culture while
contributing to addressing issues in a wider area andissues that will affect future generations
Contributing to the realization of a sustainable society
by reducing environmental impact and strengthening
countermeasures against natural disasters
Creating new value through collaboration with diverse
partners and through the use of advanced technology
Providing barrier-free and universal design for ease ofuse by a variety of customers

Water Resources
Biodiversity
Responding to Natural Disasters

SocialDiversity & Inclusion
Work-Life Balance
Human Resource Investment and Development
Health Management / Occupational Safety and HealthRespect for Human Rights
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities

GovernanceCorporate GovernanceRisk Management
Compliance
Supply Chain Management

Data

Achievements in Sustainability Finance2nd Series Subordinated Bonds (Green Bond)

Name
Pricing date

March 8, 2019

Issue date

March 15, 2019

Redemption date

March 15, 2059

Issue amount

50 billion yen

Use of proceeds

Funding for acquisition, construction and refinancingof Hareza Ikebukuro
Refinancing of the acquisition and construction ofNakano Central Park South

External evaluation

Green 1 (JCR)

Issuance of Green Hybrid Bonds

In March 2019, we issued Japan’s first (and the world’s first for
the real estate sector) green hybrid bond with an issue size of50 billion yen. As the largest green bond issue in Japan andwith a record number of investment commitments, it also won
the Silver Prize (Minister of the Environment’s Prize) in the bondcategory of the first ESG Finance Awards Japan for its
environmental improvement effects and high level oftransparency in the use of funds.

Green Bond Reporting
Funding
Allocation
StatusEnvironmental
Improvement
ImpactHareza Ikebukuro: 20,000 million yen (fully allocated)
Nakano Central Park South: 29,516 million yen (fullyallocated)* as of December 31, 2020

Hareza Tower (Hareza Ikebukuro)
DBJ Green Building Certification: 5 stars
CASBEE-Buildings (New Construction): Class S
BELS certification: 5 stars (ZEB Ready)Nakano Central Park South:
DBJ Green Building Certification: 5 stars
Energy consumption/CO2 emissions:
Responding to Climate Change P.24
Water consumption:
Water Resources P.31

TOPICS

Received the Gold Award (Minister of theEnvironment Award), the highest award in
the ESG Finance Awards JapanThe ESG Finance Awards Japan recognizes and commends theefforts of investors and financial institutions that have made anoutstanding impact on the environment and society throughproactive efforts in ESG finance and green projects. The Awards
also recognize and commend companies that have enhancedtheir corporate value and worked to have a positive impact on theenvironment by incorporating environment-related opportunities
and risks into theirmanagement strategies. TheAwards were established by
Japan’s Ministry of theEnvironment with the aim ofcelebrating these achievements
and sharing them with society
as a whole.
Our sustainability financing
has been recognized in thefundraiser category of theawards, with the Green Hybrid
Bond (issued in 2019) winning
the Silver Award (Minister of theEnvironment Award) in the firstround, and the Sustainability
Bond (issued in 2020) winning
the Gold Award (Minister of theEnvironment Award), thehighest award in the secondround. In the second round,the Sustainability Bond (issuedin 2020) received the highest
award, the Gold Award (Ministerof the Environment Award).
Award Ceremony for the inauguralTokyo Tatemono Group is the
only company in the fundraiser ESG Finance Awards Japan
category to have received thisHitoshi Nomura, Representative Director,
award in consecutive years.
President and CEO (left)
Shinjiro Koizumi, Minister of theEnvironment (right)
Note: At the second award ceremony, photography was cancelled due tosocial distancing measures during the coronavirus pandemic.

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TOKYO TATEMONO GROUPSUSTAINABILITY REPORT 2021

21Corporate Philosophy, Group Profile, Contents, Editorial Policy

Management

Special Feature

Environment

SocialGovernance

Data

Third-Party Assurance

Environment
Corporate Philosophy, Group Profile, Contents, Editorial Policy
Management

Sustainability Finance

Message from the President and CEO
ESG Management
Materiality of the Tokyo Tatemono GroupSpecial Feature
Environment
Environmental Management
Sustainability Finance
External Evaluation and Certification for Green Building

In July 2020, in a first for a real estate sector company inJapan, Tokyo Tatemono issued a sustainability bond worth a
total of 40 billion yen. The sustainability bond issued this time is
not limited to a single building, but instead involves a packageof funds to cover the overall urban development of the YaesuNihonbashi-Kyobashi area of central Tokyo. In an initiative thatis groundbreaking even by global standards, the proceeds willbe allocated to developing this area as a seeding ground forcomprehensive solutions to social issues, from combatingclimate change, strengthening disaster prevention andmitigation, and medical cooperation, to addressing food issues
and building an innovation ecosystem.
Despite a historically high supply of bonds at the time of theOverview of Sustainability Bonds

Sustainability Bonds Reporting

Issuance of Sustainability Bonds

issuance, demand for the bond was strong. Many investors
were impressed by the significance of the issuance, theissuance scheme, and the expected impact. The bonds havethe largest-ever issue amount and gained the largest number ofinvestors as sustainability bonds issued by a Japanesecompany not operating in finance.

Responding to Climate Change
Pollution Control and Resource Recycling
Water Resources
Biodiversity
Responding to Natural Disasters

SocialName

31st and 32nd Unsecured Corporate Bonds(Sustainability Bonds)

Pricing dateJuly 10, 2020

Issue dateJuly 16, 2020

Redemption dateWork-Life BalanceIssue amount

20 billion yen (31st issue), 20 billion yen (32nd issue)

Use of proceeds(framework)

Urban development of the Yaesu/Nihonbashi/Kyobashi
area next to Tokyo station, as a contribution to solvingsocial issues(1) Yaesu 1-chome East District Urban Redevelopment
Project in front of Tokyo Station (Yaesu Project)(2) Yaesu 1-chome North District UrbanRedevelopment Project (Gofukubashi Project)(3) Tokyo Square Garden(4) Tokyo Tatemono Nihonbashi Building(5) City Lab TOKYO(6) TOKYO FOOD LAB(7) xBridge-Tokyo / xBridge-Tokyo Next
(8) Kitchen Studio SUIBA(9) TOKYO IDEA EXCHANGE

Health Management / Occupational Safety and HealthRespect for Human Rights
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities

GovernanceCorporate GovernanceRisk Management
Compliance
Supply Chain Management

Externalevaluation

Certifications in progress

July 16, 2025 (31st), July 16, 2030 (32nd)

Diversity & Inclusion

Human Resource Investment and Development

Status of allocation of proceeds(as of December 31, 2020)

SU1 (F) (JCR)

Environmental
Improvement Impact

Yaesu Project: 15,000 million yen (fully allocated)Tokyo Square Garden: 14,000 million yen (fully allocated)Tokyo Tatemono Nihonbashi Building: 3,912 million yen
Social projects (5) to 9): 798 million yen (fully allocated)
NoneCertified

Tokyo Square Garden
DBJ Green Building Certification: 5 stars
Tokyo Tatemono Nihonbashi Building
DBJ Green Building Certification: 4 stars
Energy consumption/CO2 emissions:
Responding to Climate Change P.24
Water consumption:
Water Resources P.31

Status of project development(as of December 31, 2020)

Yaesu Project / Demolition in progress
Tokyo Square Garden / Development of space for receiving stranded commuters, disasterprevention stockpiling for stranded commuters, comprehensive initial medical treatment
facilities and childcare support facilities for foreign nationals
Tokyo Tatemono Nihonbashi Building / Development of space for receiving stranded
commuters, disaster prevention stockpiling for stranded commuters, and barrier-freepedestrian network

Social benefit

Project Usage(January – December 2020)

Number of events held: 165
Number of companies using the facility: 173* Project usage: The sum of usage at City Lab TOKYO, TOKYO FOOD LAB, xBridge-Tokyo, xBridge-Tokyo Next, Kitchen Studio SUIBA, and TOKYO IDEA EXCHANGE.

Data
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