COMFORIA RESIDENTIAL REIT

Sustainability
Report 2023

About this Report
COMFORIA RESIDENTIAL REIT
Comforia Residential REIT, Inc (“CRR”) and TLC REIT Management Inc.
(“TRM”) to which CRR entrusts its asset management, are making the best
effort to disclose information related to the sustainability initiatives to theinvestors and other stakeholders. Within this scope, this report is issued toillustrate the ESG (E: Environment, S: Society, G: Governance) initiatives at
CRR and TRM which are essential to contribute to a sustainable society.

Sustainability
Report 2023
Coverage on this report

PeriodFrom August 2022 to July 2023 (excl. some data)

Entities

CRR and TRM

Issued dateNovember 10, 2023

Contact
Dept.

Comforia Management Division, TLC REIT Management Inc.

Address

Shibuya Solasta 18th floor, 21-1 Dogenzaka 1-chome,
Shibuya-ku, Tokyo, Japan

E-mailinfo_comforia@tokyu-trm.co.jp

We communicate also using the Global Reporting Initiative (GRI) Sustainability
Reporting Standards, an international sustainability framework for ESG-related
reporting. About the GRI Standards, please refer to page 80.

Disclaimer
CRR and TRM do not guarantee or warrant the accuracy and safety of theinformation provided in this document and shall not be liable for updating
the information provided.
Please be advised that forward-looking statements provided herein may besubject to change or deletion without prior notice.

Contents
Introduction
Top Messages

4

About CRR

5

Sustainability Policy / Structure for Promotion
Sustainability Policy

11

Promotion System

12

Materiality

14

SDGs with close relevance to the Materiality

15

CRR’s initiatives towards to each Materiality

16

Relevance of the Materiality of CRR and TRM to that of TFHD Group19

Topics20

External Certifications / International Initiatives

22

Environment
Environmental Performance25

Approach to Climate Change
Environmental Considerations

26
35

Considerations for recycling-oriented society

37

Establishment the Environment Management System(EMS)

40

Urban Site Investment Criteria

41

Overview of Environmental Certification

42

Environmental Certification Ratio

43

Green Bonds

44

Stakeholder Engagement

48

Employee Engagement

49

Initiatives to Local Communities

60

Initiatives to Tenants

61

Initiatives to Suppliers

63

Investor Relations

66

Society

Governance
CRRʼs Corporate Governance70

TRMʼs Corporate Governance73

Initiatives for Governance Emphasizing Unitholders’ Value78

GRI Content Index

80

Independent Assurance Statement

89Introduction
Top Messages
From Executive Director of CRR

Since our establishment, under the basic policies of “investments in residential
properties with stable earnings and high growth potential” and “utilization of the Tokyu
Fudosan Holdings (“TFHD”) Group”, CRR has achieved internal and external growth byfocusing our investment in assets located in the 23 wards of Tokyo where has a strong
demand for rental residences.
In the meantime, we have witnessed changes in social structure and lifestyle in Japan,such as decrease in population caused by declining birthrate and aging population;
migration of younger generations to metropolitan areas; change in residential preference
from ownership to renting; and the government-led workstyle reform.
In recent years, demand for corporations to respond to such social issues has increased,considering that these issues and changes may become a risk factor for corporate
business continuity. Triggered by the adoption of Sustainable Development Goals(SDGs) by the United Nations, the recognition that management focus on ESG(Environment, Society and Governance) will contribute to the enhancement of thecorporate value, has been widespread.
In light of this trend, our asset management company TRM established their
Sustainability Policy in April 2019 as their basic approach towards contributing to thedevelopment of sustainable society. We have created and issued this report for the
purpose of providing a comprehensive tool that may be used to gain more in-depth
knowledge of CRR and TRM’s aforementioned Sustainability Policy and ESG-related
initiatives. We hope that it will help our unitholders and other stakeholders understandour efforts.
CRR and TRM will continue fulfilling our social responsibilities by improving oursustainability initiatives, which we hope will strengthen the relationship of mutual trustthat we have built with our stakeholders.
Kentaro Yoshikawa
Executive Director
Comforia Residential REIT, Inc

4

About CRR
Overview
Based on the Investment Trust and Investment Corporation Act (Act no. 198 of 1951 and subsequent revisions; hereinafter referred to as the “Investment Trust Act”),
CRR was established on June 8, 2010, as an investment corporation that mainly invests in real estate provided for residential use. We completed registration by theprime minister of Japan under Article 187 of the Investment Trust Act on June 30, 2010 (registration number: Director of Kanto Finance Bureau no. 71) and started
operation in August 2010. Subsequently, CRR issued new investment units based on a public offering on February 6, 2013, and was listed on the Tokyo Stock
Exchange’s Real Estate Investment Trust Securities Market (security code: 3282). When we began operation, CRR’s assets under management were 11 properties
with a total acquisition price of 15.5 billion yen; since then, as a result of steadily acquiring and selling properties based on the basic policy concerning assets undermanagement stipulated in our articles of incorporation (i.e., to manage assets with the aim of securing stable income and achieving steady growth of assets undermanagement in the medium to long term in order to maximize unitholder value), the number of assets we owned had reached 157 properties by the end of July 2023,
with a total acquisition price of 299.9 billion yen.
Name

Comforia Residential REIT, Inc (TSE Code:3282)

Address

21-1 Dogenzaka 1-chome, Shibuya-ku, Tokyo

Representative

Executive Director, Kentaro Yoshikawa

Fiscal Period

Six-month period from Feb.1 to Jul.31, and Aug.1 to Jan.31

Structure
Sponsor

CRR

2

TOKYU LAND CORPORATION
Comforia Residential REIT, Inc

Mitsubishi UFJ Trust and Banking Corporation

6

Asset Management Company

1

Unitholders’ Meeting

Asset Custodian
General Administration(operation of the administrative instruments)
Transfer Agent

3

General Administration (accounting, etc.)

TLC REIT Management Inc.

Board of Directors

Reiwa Accounting Holdings CO.,Ltd

7
Executive Director: Kentaro Yoshikawa

Supporting Companies

Supervisory Director: Koji Yamamoto

4

Supervisory Director: Masamichi Ohshima
TOKYU LIVABLE, INC.
TOKYU COMMUNITY CORP.
Tokyu Housing Lease Corporation
National Students Information Center Co., Ltd.
TOKYU E-LIFE DESIGN Inc.
EWEL, Inc.
TOKYU SPORTS OASIS, Inc.

Reiwakaikeisha(“RWK”)Tax Corporation

Auditor5
Ernst & Young ShinNihon LLC

General Administration(tax)General Administration(Corporation Bonds)

Sumitomo Mitsui Trust Bank,Limited
MUFG Bank, Ltd.

❶Asset Management Agreement ❷Asset Custody Agreement / Administrative Service Agreement / Transfer Agency Agreement ❸Accounting Service Agreement❹Tax Administrative Agreement ❺Fiscal, Issuing and Payment Agency Agreement ❻Sponsor Support Agreement ❼Support Agreement

5About CRR
Basic Policies
We invest intensively in rental residences for singles and small families, mainly in the Tokyo metropolitan area, based on our basic policies of “investments in residential
properties with stable earnings and high growth potential” and “utilization of TFHD Group,” with the aim of ensuring stable earnings over the medium- to long-term andmaximizing our unitholders’ value.

COMFORIA Series
We will invest in and manage rental residences, fully utilizing the concept and expertise of the rental residence COMFORIA series, which are produced by Tokyu Land
Corporation.

Concept of the "Comforia" Series

Three promises Comforia Residential makes

6About CRR
Value Chain of TFHD GroupWe have concluded sponsor support agreements, support agreements and property management agreements for managed assets with TRM and TFHD Group
companies to fully utilize the value chain and expertise of TFHD Group. With the support of TFHD Group companies through such agreements, we aim to expand ourasset size (external growth), and maintain and increase asset value (internal growth).

7

About CRR
Portfolio Management Policy
Investment Target◼ Primary target: Maintain over 80% investment ratio of “Rental Residence” generating stable earnings.
◼ Sub-target: Operational Rental Residence with services of increasing demands (i.e., senior residences, serviced apartments and student apartments.)

Asset Type

Investment Target

Investment ratio(acquisition price base)

As of
Jul.31,2023

Rental residence

80%～100%

90.8%

Operational rental residence

0%～20%

9.2%

Residential property

Rental residenceOver 80%(Note) Investment ratio is based on acquisition price. In terms of land, the asset type is based on the property built on it.

Investment Area
◼ Maintain investment ratio over 80% for assets in “Central Tokyo”, “Sub-central Tokyo” and “Tokyo Metropolitan areas with strong potential demands forrental residences.
Category

Investment Area

Central Tokyo

5 major wards

Chiyoda-ku, Chuo-ku, Minato-ku,
Shinjuku-ku, and Shibuya-ku

Sub-central
Tokyo

Dense residential districts
outside of the 5 major wards

Other Tokyo wards (excluding
above)

Tokyo
Metropolitan
area

Dense residential districts in allother Tokyo Metropolitan areas

All other areas within Tokyo
Metropolitan boundaries expecting
strong demand

Other major
citiesDense residential districts in ordinance-designated cities(Note) Investment ratio is based on acquisition price. In terms of land, the asset type is based on the property built on it.

Investment ratio(acquisition price
base)

As of
Jul.31,2023

80%～100%

94.3%

0%～20%

5.7%

Tokyo area
Over 80%8About CRR
Features and Strengths
Portfolio focusing on “Tokyo 23 Wards” and “Near Stations”
When investing in properties, CRR selects them carefully, based especially on our location strategy for rental residences, with a focus on Tokyo’s 23 wards where
there are strong rental needs. Moreover, we have strategically built up our portfolio by continuing to emphasize properties located near stations, with the closest station
just a few minutes away on foot. As a result, 90.4% of the rental residences in our portfolio were located in Tokyo’s 23 wards as of the end of July 2023, and theaverage time on foot from rental residences to the nearest station was 5.5 minutes.

Tokyo 23 Wards
Investment area (Rental Residence)
Tokyo Metropolitan Area
4.8%

Sub-central Tokyo
54.4%

Other major Cities
4.8%

Tokyo 23 Wards

Central Tokyo
36.0%

90.4%

×

Near Stations
Average walking distance from the nearest stations(Rental Residence)
Over 10min
5.4%

5-10min
41.0%

Avg. Minutes
on Foot

Under 5min
53.7%

5.5minUtilizing Support from TFHD GroupCRR aims to steadily increase our asset size and maintain and improve our asset value by using the support of the TFHD Group. The proportion of our properties
acquired from the TFHD Group as of the end of July 2023 was 71.8% (based on the acquisition price). In addition, the average occupancy rate since our listing is
96.0% (as of the end of July 2023).

Ratio of acquisition from the sponsor group（as of the end of Jul. 2023）

71.8％

Average occupancy rate since listing（as of the end of Jul. 2023）

96.0％
9

About CRR
Continuous expansion in asset size and sustainability initiatives
CRR aims to steadily increase our asset size and maintain and improve
our asset value by using the support of the TFHD Group. Furthermore,
we have positioned sustainability initiatives as one of our priority
strategies and are pursuing various environmental and social initiatives.

Until Dec 2023
COMFORIA TAKASHIMADAIRA
Acquired¥307.3 Billion

2023¥300 Billion
FP ended Jan 2021
¥252.1 Billion

exceeded

2021¥250 Billion
exceeded
FP ended July 2018¥202.1 Billion
2018¥200 Billion
exceeded
AUM¥71.2 Billion
2013

Listing

CRR
Jan 2023 First BELS Certification
Apr 2023 Materiality Expansion

CRR

Jul 2023 TCFD Disclosure Expansion

Oct 2021 First Sustainability Report Issued
Dec 2021 First CASBEE REAL ESTATE Certification
TRM
Sep 2022 Information Disclosure based on TCFD
Recommendations Started

CRR

TRM

Sep 2018 First GRESB REAL ESTATE Assessment

Apr 2021 Sustainability Promotion System Regulations
EstablishedFeb 2023 Signing of Principles for Financial Action
for the 21st Century
Apr 2023 Climate Action Standards Revised

Apr 2019 Materiality Identification
Apr 2021 Sustainability Department EstablishedJul 2020 First Green Bond Issued
CRR

Dec 2021 Signing of PRI
Aug 2020 Asset Management Fee Structure Change
Jan 2022 Support for TCFD Recommendations

Jul 2016 First DBJ Green Building Certification
TRM
Feb 2019 GRESB Membership Participation
Apr 2019 Sustainability Policy Establishment
Apr 2019 Materiality Identification10

Sustainability Policy / Structure for Promotion
Sustainability Policy
TRM recognizes the issues of environmental and social considerations, and that of strong governance, and as a member of TFHD Group, shares TFHD Group’s
Sustainability Vision. TRM believes that tackling these issues is a social responsibility, realizes our management philosophy, and contributes to the development of asustainable society. The Sustainability Policies are established hereunder to implement the beliefs of TRM.
Sustainability Policies
Established April 1, 2019

1．Environmental Considerations
TRM will consider energy efficiency, decarbonization, water efficiency, and waste reduction as four major items in the operation of each investment corporation, andpromote our initiatives by applying these items to each environmental policy.
2．Efforts for Employees（1） TRM will improve employees’ sustainability knowledge, promote enlightenment activities for that purpose, implement capacity building to allow personnel to act
professionally and become more productive, provide training for human resource development, and support the acquisition of qualifications.
（2） TRM will promote efforts to improve the way employees work in light of the policies and practices of the entire Group and by closely sharing information in TRM.
3．Collaboration with External Stakeholders（1） As a member of the local community, TRM will enhance relationships with customers, such as tenants and facility users, and the local community throughimprovements in disaster prevention and BCP measures, contributing to safety and security.
（2） TRM will promote programs and procurement with environmental and social considerations through engagement with tenants and suppliers, including property
management companies.
（3） By means of the effective use of the expertise in real estate and other fields owned by TFHD Group's affiliates, TRM will be committed to improving customer
satisfaction while continuing to create value through each investment corporation.
4．Legal Compliance and Risk Management
TRM will comply with environmental, social, and governance laws and regulations as well as pay close attention to and appropriately respond to legislative changes.
For risk assessment upon real estate acquisition, TRM will work on risk management in an appropriate manner, taking into account environmental and social impacts.
5．Information Disclosure
TRM will strive to disclose information on our sustainability efforts to investors and other stakeholders.

11Sustainability Policy / Structure for Promotion
Promotion System
To enhance TRM’s efforts towards the issues related to environmental or societal consideration, etc. based on its Sustainability Policy, the rules on the Sustainability
Promotion System require that the President & CEO to be the Chief Sustainability Officer and each department appoint one responsible person from the department.
The Sustainability Promotion Council is to be held with the President & CEO as chairperson.
Sustainability Department was established as of April 1, 2021 to expand the functionality of the Sustainability Promotion System. The Sustainability Department
succeeds the ESG-related missions from the Environmental Engineering Department, and we will further promote our sustainability program.

12

Sustainability Policy / Structure for Promotion
Sustainability Promotion Council
The Sustainability Promotion Council meets regularly with President & CEO as the Chief Sustainability Officer who assumes the ultimate responsibility, and othermembers from across the organization of company and among members, we share relevant information and examine and promote the efforts. External experts areinvited to the Council to consult opinions when needed.
Important Agenda discussed at the Sustainability Promotion Council are regularly reported to the Asset Management Company's Board of Directors and as needed,
to CRR's Board of Directors as well.

Members of the Sustainability
Promotion Council

Chairperson

President & CEO

Regularmembers

Director, Chief Division Officers of the Comforia Management Division, Activia Management Division, andBroadia Management Division, Corporate Management Division, General Managers of Environmental
Engineering Department, Compliance Officer, and Sustainability Department

Organizer

Sustainability Department

Meeting frequency

Every quarter in principle

Main issues to be discussed

・Amendment and abolishment of the Sustainability Policy
・Amendment and abolishment of the Materiality
・Matters related to, and common to TRM and CRR・Annual activities planning, report on status

13

Sustainability Policy / Structure for Promotion
Materiality
As a member of TFHD Group, TRM recognizes the key issues (the “Materiality”) identified by TFHD Group and has identified its own materiality by extracting significant
medium- to long-term societal issues based on the tasks which CRR has been working on such as environmental issues. The Materiality has been shared with CRR.

Identification process
Materiality was identified by select cross-divisional members of TRM.

Step1

Awareness and organizationof societal issues

In preparing discussions for Materiality, societal
issues related to CRR and TRM were extracted byreferencing TFHD Group Integrated Report;materiality; GRI Standards; relevant SDGs; ESG
assessments for the real estate sector; and issues
recognized by the industry association.

Integration andconsolidation of issues

Step2

With respect to the above stated societal issues, amateriality short list was created after summarizing
the tasks which CRR and TRM has been working on,
and discussing topics that should be given higher
significance, with additional consideration to risks
and opportunities regarding each issue.

Step3

Reflection of opinions fromofficers and employees

All officers and employees were asked to offer
opinions as stakeholders of TRM, and preliminaryinterview was conducted with executive officer andsupervisory directors of CRR.

High

Step4

Identification of materiality
Materiality

Based on the interview results, significance ofeach issue to be addressed by CRR and TRM
was reviewed for appropriateness.
Materiality was identified by the Sustainability
Promotion Council and reported to the board of
directors of TRM and CRR.

（Significant societal issues）

Significance of
impact on economy,society, environmentHigh
Significance to Stakeholders, CRR and TRM

14

Sustainability Policy / Structure for Promotion
SDGs with close relevance to the Materiality
The Materiality, which is shared between CRR and TRM, is identified by considering the impact from a view of risks and opportunities, and the significance for us to address.
Our aim is to contribute to the SDGs (Sustainable Development Goals) through our commitment to the Materiality.

Materiality

Reducing environmental
impactHuman capital development
as a group of professionals

Risks（Impact of not addressing materiality）

Increased physical risk from escalation of climate change (humandamage, property damage, economic damage), risks associated witha transition to a decarbonized society

Failure to implement a human resources strategy that is based on
respect for human rights and that takes into account the perspectivesof diversity, equity, and inclusion, or lack of sufficient skilled resources
may hinder business operation, leading to stagnant or lower unitholder
value• Breakdown of communication with local community at times of
emergency such as disaster may cause reputational risk
Contribution to the region• Risk of loss of liveliness due to the image of the invested region
becoming obsolete or due to population decrease

Opportunities（Business opportunities expected byaddressing materiality）

Relevant SDGs

• Share clear commitment to ESG investment with officers andemployees, providing opportunity for implementation and incorporationin our business strategy• Increased demand for leasing properties focused on environmental
performance
Each employee’s effort to further realize their abilities and maintainmental health and stable living while fulfilling the fiduciary duty
required of asset management business and working towards our goalof maximizing unitholder value and enhancing our presence , as we
implement human capital management, will create a positive cycle andimprove our performance.

Show presence by contributing to the safety and security of the region
and vitalization of local economy as a member of a corporate group
committed to urban development

Health and well-being of
tenants

Contract renewal and repeated selection for relocation by tenants canFacilities with inferior ESG considerations may risk losing support frombe expected by creating safe, comfortable and pleasant space fortenants
tenants

Supplier engagement

Impact on management operation and deteriorated credit in casesignificant violation against sustainable procurement such as
discrimination, exploitation, destruction of nature, contamination andviolation of laws by suppliers are recognizedManagement framework
corresponding tomultifaceted social demand
towards sustainable society

Enhanced commitment from the perspective of respecting humanrights to environmental issues including climate change and social
Inappropriate response to multifaceted social demands may risk fall inissues such as human capital management and supply chain
trust concerning sound and effective management business and affectmanagement will further promote establishment of medium- to longmarket development
term business platform, and improvement in financial value can be
expected

Collaborate with suppliers to make transactions that take into
consideration human rights and satisfy fiduciary duty required of asset
management business and contribute to becoming the REIT of choiceby the investors

15

Sustainability Policy / Structure for Promotion
CRR’s initiatives towards to each Materiality
Environment (E)Materiality

Reducing environmental impact

PolicyStatus/Initiatives• Implementation of energy efficiency retrofits• Acquisition of environmental certifications/assessments, etc.
1.Energy use: Medium- to long-term target of 1% average annual reduction in • Efforts to improve waste management
energy use intensity.
• Introduction of green leases
2.Energy-related CO2 emissions: by 2030, 40% reduction in greenhouse gas • Monitoring by Sustainability Promotion Council
emissions intensity (vs.2020).
• Promotion of environment-friendly procurement through “Green Procurement
3.Disclosure of information pertaining to climate change response and initiatives Standards”• Supporting initiatives that are in line with TCFD recommendations through climate
action standards

7.3

By 2030, double the global rate of improvement in energy efficiency

12.5

By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.

12.8

By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony
with nature.

Relevant SDG Targets

16

Sustainability Policy / Structure for Promotion
CRR’s initiatives towards to each Materiality
Society(S)Materiality

PolicyStatus/Initiatives

Human capital development as agroup of professionals• Implement human capital management that is based on respect for humanrights and that takes into account the perspectives of diversity, equity, andinclusion• Promote human resource strategy that indicates the requirements of desirable
resources and facilitate development• Improve literacy pertaining to sustainability and ESG investment• Commitment to health and well-being of each employee• Deployment of measures based on Group KPIs (work-style reform, promotion ofdiversity)• Disclosure of key employee data to present our human resources strategy andstatus of efforts on employee health and well-being (ratio of female employees,
number of female directors and managers, turnover ratio, stress check participation
ratio, etc.)• Support acquisition of business knowledge, skills, qualifications, and implement
various trainings• Promote career development through periodic performance evaluation/feedback• Periodic Health Committee• Promotion of the New Work Style Project• Introduction of various support systems leveraging on Tokyu Group membership, etc.

Contribution to the region

1. Further improvement in disaster prevention functions
2. Prompt recovery of assets under management
3. Educational activities on fire and disaster prevention and disaster response
4. Enhanced cooperation with local community• Capital expenditure from disaster prevention perspective• Public disclosure of evacuation sites/emergency reserves, etc.
• Relationship with local community （Corporation with local events, local disasterprevention, disaster response and infectious disease prevention etc.）

Health and well-being of tenants• Improve tenant satisfaction• Check satisfaction via tenant survey and respond to comments by tenants• Distribute guide map on managed facilities• Deploy tenant service leveraging on group resources• Hold tenant participation events

Supplier engagement• Aim for smooth property management by utilizing expert know-how of Tokyu
Housing Lease, Tokyu Community, and other support agreement counterparties
in TFHD Group. Share information and actively work on environmentally friendly
procurement with PM/BM• Build and promote collaborative structure through periodic monitoring• Promote collaboration with all stakeholders through “Green Procurement Standards”

11.3

By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planningand management in all countries

12.8

By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony
with nature

Relevant SDG Targets

17

Sustainability Policy / Structure for Promotion
CRR’s initiatives towards to each Materiality
Governance(G)Materiality

Management framework
corresponding to multifacetedsocial demand towards
sustainable society

PolicyStatus/Initiatives

1. Express statement on governance of the investment corporation
2. Express statement on investment decision making body and the risk
management system for investment
3. Establish framework for promoting implementation of the Sustainability Policy
4. Implement human capital management and maintain a resilient management
framework• Governance of the investment corporation• Investment decision making body and the risk management system for investment• Establishment of Sustainability Promotion Council for TRM• Promotion based on various rules, etc. as well as training which attempt to respondto multifaceted issues including respect for human rights• Establishment of a framework for management of the overall supply chain

12.8

By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony
with nature

16.7

Ensure responsive, inclusive, participatory and representative decision-making at all levels

Relevant SDG Targets

18

Sustainability Policy / Structure for Promotion
Relevance of the Materiality of CRR and TRM to that of TFHD GroupCRR・TRM

TFHD Group
Step1 Determination and organization of social issues
Generated a list of 470 items with reference to TFHD Group’s
management plans, the GRI Guidelines, ISO26000, the SDGs
Step2 Integration and consolidation of issues

Step1 Awareness and organization of societal issues

Extractionof items
Step2 Integration and consolidation of issues

Selected 31 material issues with consideration of relevancy to TFHD
Group’s activities
Step3 Interview of management staff and experts

Step3 Reflection of opinions from officers and employees

Gather opinions from management staff and experts in specialized fields
Step4 Identification of Materiality
Verified the appropriateness of the importance of each issue andcategorized into seven

Materiality

Relevant SDGs

Step4

Identification of materiality

Information
sharing
Materiality

Economic, political, and regulatory changes

Reducing environmental impact

Diversification and globalization of lifestyles

Human capital development
as a group of professionals

Safety and security in local communities andurban areas

Contribution to the region

Progression of a low birth rate and aging society

Health and well-being of tenants

IOT / Innovation
Changes in the natural environmentMore stringent social demands

Relevant SDGs

Supplier engagement
Management framework corresponding tomultifaceted social demand towards sustainable
society(Note)TFHD Group’s Materiality is those at the time of identification of Materiality for CRR and TRM

TFHD Groupʼs Code of Conduct, etc. that TRM shares as a member of TFHD GroupAs a member of TFHD Group, TRM does not only leverage TFHD Groupʼs comprehensive value-chain and expertise, but also shares the Code of Conduct and otherpolicies of TFHD Group.
19

Sustainability Policy / Promotion Framework
TopicsSignatory of Principles for Financial Action for the 21st Century
The Principles for Financial Action towards a Sustainable Society (Principles
for Financial Action for the 21st Century) were established in October 2011,
on formulating principles for financial institutions that are willing to takeresponsibility and play a necessary role in building a sustainable society. TRM
has become a signatory of the Principles for Financial Action for the 21stCentury (PFA21) in February 2023.

First BELS Certification of CRR
GRANCREER TACHIKAWA obtained BELS labelling in January 2023. It’s the first environmental certification for operational rental residence, and also the first BELS
labelling of CRR. In addition, COMFORIA KITAZAWA also obtained the BELS labelling in July 2023.

GRANCREER TACHIKAWACOMFORIA KITAZAWA

20

Sustainability Policy / Promotion Framework

Hybrid Work Style Promotion
Based on the suggestions from New Work Style Project,regarding how the office should be for after Covid-19, TRM
changed the office layout and introduced a group address
system (free working space for each department) with the aim ofcreating “an office that makes employees want to come to work”
while continuing work-from-home, so that the experience isenriched by seeing each other’s faces to exchange words andcommunicating with each other in the office. (Refer to P. 54）

ESG Assessment in Real Estate Acquisition Due Diligence
Starting in fiscal year 2023, TRM will begin conducting due diligence on real estate acquisitions, using its own checklist to examine the status of ESG initiatives, including
the acquisition of environmental certifications, the introduction of equipment and facilities that reduce environmental impact such as energy conservation, the managementof environmental values, and contributions to the local community. The survey was initiated using an original check sheet.

Additional ownership acquisition by the Sponsor
In the public offering conducted in August 2023, the Sponsor acquired an additional 2,086 units of the new investment units issued by CRR.
Going forward, we expect to receive strong Sponsor support through the further aligning of our interests.
Before issuing units

Issuing units

After issuing units

Number of units issued andoutstanding

736,982

20,860757,842

Number of units held bySponsor

66,774

2,086

68,860

9.1%

10.0%

9.1%

Percentage of units held bySponsor21

Sustainability Policy / Promotion Framework
External Certifications / International Initiatives
Signatory to PRI(Principles for Responsible Investment)
PRI(Principles for Responsible Investment) started in 2006, advocated by former United Nations Secretary-General to join a process to develop the following 6
Principles for Responsible Investment for financial industry, and has been developed as an international investor network by UNEP (FIUN Environment Programme
Finance Initiative) and UNGC (UN Global Impact) to put these principles into practice. PRI works to understand the investment implications of environmental, socialand governance (ESG) factors, and to support its international network of investor signatories in incorporating these factors into their investment and ownershipdecisions. The asset management company announced support for these principles and joined signatory in December 2021.
＜Six Principles for Responsible Investment＞
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.

Participate in GRESB Membership
The asset management company has well recognized the importance of environmental, social and governance (ESG)
factors in investment and asset management, joined GRESB membership(GRESB Real Estate/ Company & Fund Manager
Member) in February 2019.
As an International Initiative member, the asset management company has been conducting sustainability initiatives
through network with pioneer company, related information collection and GRESB Real Estate rating, etc.

GRESB Real Estate Assessment
CRR has been participated in the GRESB Real Estate Assessment since 2018.
We will continue to promote sustainability initiatives through the participation and aim to further improve its rating in
the assessment.

22

Sustainability Policy / Promotion Framework
Signatory to UNGC(UN Global Impact)
UNGC(UN Global Impact) is a voluntary global corporate sustainability initiative joined by corporate and bodies taking
responsible and innovative leadership to seek sustainable growth.
UNGC advocates corporate participant to align strategies and operations with 10 universal principles on human rights, labor,
environment and anti-corruption and take actions that advance societal goals through active engagement.
TFHD has been a signatory to the United Nations Global Compact since December 2016 and TRM
supports the UNGCʼs 10 principles as a member of TFHD Group.（For the UNGC 10 principles, please refer to page 75.)
TRM shares the Human Rights Policy of TFHD Group announced in January 2020 (Cf. page 56) and conducts business in belief
that the respect for the human rights of all its stakeholders is essential.
We also believe that all the companies should hold such respect.

Support for TCFD (Task Force on Climate-related Financial Disclosures)
TCFD refers to the Task Force on Climate-related Financial Disclosures, established by the
Financial Stability Board (FSB) at the request of G20, to examine how climate-related information
should be disclosed, and how should financial institutions respond.
Asset Management Company has announced support for the recommendations of TCFD in January
2021, and joined the TCFD Consortium, an organization established by domestic companies
supporting TCFD.

Signatory of Principles for Financial Action for the 21st Century
The Principles for Financial Action towards a Sustainable Society (Principles for Financial Action forthe 21st Century) were established in October 2011, on formulating principles for financial institutions
that are willing to take responsibility and play a necessary role in building a sustainable society. TRM
has become a signatory of the Principles for Financial Action for the 21st Century (PFA21) inFebruary 2023.

23

Environment

Our View on Environment
We are implementing sustainable property management
through various initiatives, including reducing energy
usage and acquiring environmental certifications.

Environment
7.3 By 2030, double the global rate of improvement in energy efficiency

Relevant SDG Targets
12.5

By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.

12.8

By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony with nature

Environmental Performance
Reduction targets

Actual Figures（Note1）

Among the various problems relating to the environment, CRR views climatechange as main risk, and we have specified the reduction of our environmental
footprint as a target in our materiality.
We are aiming to reduce our energy consumption by 1% per year on an intensity
basis over the medium to long term, and also reduce CO2 emissions by 40%
relative to FY2020 on an intensity basis until 2030. Recognizing that reducing ourenvironmental footprint and contributing to the mitigation of medium-to long-termclimate change risks, such as extreme weather and sea level rise, will support the
maximization of medium-to long-term unitholder value, which is CRR’s priority
issue, we are striving for sustainable growth through initiatives targeting theenvironment and the realization of a recycling-oriented society.
Item

Reduction targets

Total Amount
Energy consumption（Mwh）（Note 3）

Intensity(Mwh/m²)

Scope 1（t-CO2）

Scope 2（t-CO2）CO2 emissions（Note 4）（Intensity basis）

Scope 3（t-CO2）(Note 5)

Total Amount（t-CO2）

Energy consumption per year

Intensity

Medium-to long-term target of 1%
average annual reduction（t-CO2/m²）
Total AmountCO2 emissions per year

40% reduction by 2030 (vs.2020)

Water consumption（m³）

Intensity（m³/m²）

2018

2019

2020

2021

2022

9,024

9,693

8,420

8,917

9,148

0.102

0.113

0.091

0.092

0.093

297

304

260

270

311

3,505

3,720

3,121

3,233

3,256

-

-

-

-

-

3,802

4,024

3,381

3,503

3,573

0.043

0.047

0.036

0.036

0.036

38,23239,08940,122

29,16029,471

0.413

0.426

0.406

0.283

0.300

Note1:As a rule, the actual figures for common areas of rental residences in the portfolio are indicated. Intensity is
calculated with the following formula: total consumption for a given year ÷ floor area of common areas.
Note2:The actual figures from FY2020 were assured by a third-party organization, and the water consumption amounts
indicated in the assurance report include the consumption amounts for parts of operational rental residences,
the figures differ from the actual results above until FY2021.
Note3:The actual figures for fuel (gas, kerosene) and electricity consumption in common areas are indicated, but theelectricity consumption for 2018 and 2019 includes the amounts used by some retail tenants.
Note4:CO2 emissions were calculated using the Ministry of the Environment’s “Calculation Method and Emission
Coefficient List for the Calculation, Reporting, and Disclosure System” and “Emission Coefficient List by Electricity
Provider.”Note5:The emission amount of Scope 3 is not measured currently.

25

Environment
Approach to Climate Change
How We Look at and Approach Climate Change① Our Perception of and Basic Approach to Climate Change
We are well aware that climate change is a critical issue that has a great impact on our business activities.
The Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC), published in 2021, firmly concludes that humans have warmed theatmosphere, ocean, and land. The report attributes increases in greenhouse gas (GHG) concentrations including carbon dioxide since around 1750 to humanactivities such as heavy consumption of fossil fuels. At the 26th United Nations Climate Change conference (COP26) also held in 2021, participating countries
formally agreed that they will pursue efforts to limit temperature increase to 1.5℃. This agreement came amid growing awareness that limiting the increase in the
global temperature to 2℃ above levels in the Industrial Revolution--the maximum allowable level under the Paris Agreement of 2015--will not preclude tremendous
negative impacts. Given the global temperature has already risen by more than 1℃, however, we believe that achieving this target requires bold actions, including
social and structural changes.
Given such circumstances, we recognize the importance of efforts to achieve the Japanese government’s goal of attaining net zero GHG emissions by 2050. (“Netzero” refers to a balance between anthropogenic emissions and their removals. The same applies hereinafter.)
We need to adapt to emerging waves of change generated by these increasing impacts of climate change, more solid global frameworks for climate change, andtransition to a decarbonized society. We also need to secure both stable earnings and steady growth in assets under management over a medium to long term. To
these ends, it is important for us to predict risks and opportunities that climate change may present to our business, to work with our unitholders and otherstakeholders, and to reflect such risks and opportunities in our investment strategies and property management.
TRM, the asset management company to which CRR entrusts the management of its assets, is mindful of the need for environmental and social considerations
and strong governance. And, as a member of the Tokyu Fudosan Holdings Group, the asset management company shares the Group’s Sustainability Vision. The
Group has a goal of net zero carbon dioxide emissions by 2050 (hereinafter referred to as “net zero policy”) for itself and its supply chains as one of its climate
targets.
The asset management company believes that addressing these needs constitutes part of its social responsibilities and is also an avenue to practice its
management philosophy. It also believes that doing so will contribute to development of a sustainable society. To put this belief into practice, the asset
management company has identified materiality under its Sustainability Policy and shares them with CRR. For more information on the Sustainability Policy andthe materiality, please refer to the asset management company’s Sustainability Initiatives.
The escalation of climate change has a huge impact on our efforts toward “reducing environmental impact,” one of our materiality. For this reason, we demonstrate
to our suppliers our commitment to environmentally preferable purchasing with our Green Procurement Standards, established in September 2020. We join handswith our suppliers in taking action based on mutual understanding.
To redouble its efforts to address these issues, the asset management company has signed on to the Principles for Responsible Investment (PRI), joined GRESB
as a member, and embraced the UN Global Compact (UNGC) in conducting business activities.
② Support for the TCFD Recommendation
Asset Management Company has announced support for the recommendations of TCFD in January 2021, and joined the TCFD Consortium, established bydomestic companies supporting TCFD.

26

Environment

Organizational Governance for Addressing Climate Change① Promotion System
For information on the implementation setup at The asset management company (including responses to climate change; hereinafter the same), please refer to“Promotion System” (Page 12).
② Sustainability Promotion Council
As part of its efforts to address sustainability issues, the asset management company convenes the Sustainability Promotion Council regularly to sharesustainability-related information (including responses to climate change) and discuss measures to take on these challenges and implement them. The Council also
monitors progress in our sustainability efforts regularly and continuously. For more information about the Council, please refer to “Sustainability Promotion Council”(Page 13).
③ Environment Management System
The Asset Management Company established a unique environment management system (EMS) which applies PDCA cycle to continuously approach toenvironmental challenges. We are working to continuously reduce environmental impacts in the management operation for CRR, through the cycle of four steps;
set targets (Plan), assess performance (Do), analyze budget vs. actual (Check), and implement countermeasures for a better performance (Act).
The Asset Management Department of Comforia Management Division reviews actual performances regularly, reports review findings to the management at least
once a year and receives both feedbacks for the fiscal year under review and directions for further improvement for the next fiscal year from the management.
④ Climate Action Standards
For matters related to addressing climate change, the Asset Management Company has in place a set of climate action standards, under which it has built its
structure to promote sustainability and established an action policy that builds on the TCFD framework. To reduce the impact of GHG emissions on climatechange, the asset management company, as a member of the Group, sets climate indicators and targets under the net zero policy. For information on the
management of risks and opportunities related to climate change, see “Managing Risks and Opportunities Related to Climate Change” (Page 34).
⑤ Reporting on Performance
For information on the Asset Management Company’s structure for reporting and monitoring related to sustainability, please refer to “Promotion System ”(Page12).
Meeting entity

Convening entity

Meeting frequency

ESG meeting at Comforia Management Division

TRM

Three times or more a year

Sustainability Promotion Council

TRM

Four times a year

TRM’s Board of Directors meeting

TRM

Once a year (reporting)

CRR’s Board of Directors meeting

CRR

As needed (reporting)27

Environment
Strategy That Factors in Risks and Opportunities Related to Climate Change
In developing a strategy that factors in risks and opportunities related to climate change, CRR has conducted the following scenario analyses under the net zero policy, which builds on the climate action standards.

①

Scenario Analysis Assumptions

Climate change risks can be largely divided into transition risks and physical risks. CRR has analyzed three scenarios--1.5℃, below 2℃, and 4℃ scenarios--using future climate predictions announced by twointernational organizations*. These scenario analyses have used two timeframes during which we will continue to be affected: mid-term (2030) and long-term (2050).
*International Energy Agency (IEA), World Energy Outlook 2022
UN Intergovernmental Panel on Climate Change (IPCC), The Sixth Assessment Report (AR6)Global outlook
under 4℃ scenario

GHG emissions remain high due to a lack of progress in decarbonization action, resulting in more frequent natural disasters. Actions need to be taken to address physical risks
rather transition risks, which are outweighed by the former.

28

Environment
Global outlook
under the below
2℃ and 1.5℃
scenarios

In these scenarios, GHG emissions are curbed thanks to various environmental regulations, and there are more ZEBs. Actions need to be taken to address transition risks
rather than physical risks.

29

Environment②

Analytical Procedure

The analysis of the 4℃ scenario, which assumes a world in which physical risks need to be addressed more than transition risks, has involved identifying and analyzing long-term (2050) risks, which
outweigh mid-term (2030) risks. The analysis of the below 2℃ and 1.5℃ scenarios, which assumes a world in which transition risks need to be addressed more than physical risks, has involved identifying
and analyzing both mid-term (2030) and long-term (2050) risks and opportunities for each scenario. In both analyses, financial impacts have been analyzed and assessed both quantitatively andqualitatively.
The analyses, both qualitative and quantitative in nature, have been conducted in light of the status of CRR's asset holdings, with reference made to currently available scenarios as published by the IEA
and the IPCC and to objective projections published by other third-party specialized institutions. The impact assessments thus made assume some risk factors and their uncertainties; therefore, they do notguarantee their accuracy or safety that they may suggest.
Financial Impact
Risk
Category

Type

Item

Description of risks and opportunities

Category

4℃
2050

2050

2030

2050

Risk

Minor

Minor

Minor

Minor

Opportunity

Minor

Minor

Minor

Minor

Increased construction costs arising from compliance with ZEBrelated and other environmental regulations

Risk

Minor

Major

Minor

Major

Increased verification costs arising from compliance with ZEB-related
and other environmental regulations

Risk

Minor

Minor

Minor

Minor

Opportunity

Minor

Minor

Minor

Minor

Risk

Minor

Major

Minor

Major

Opportunity

Minor

Minor

Minor

Minor

Higher vacancy of properties with lower environmental performance

Risk

Minor

Minor

Minor

Minor

Lower demand due to little shift to properties with higher fireresistance

Risk

Minor

Minor

Minor

Minor

Shift to high-efficiency properties

Securing competitive edge by shifting to properties with higher
environmental performance

Opportunity

Major

Major

Major

Major

Increased stakeholder concern
or negative stakeholder
feedback

Divestment or poor access to capital markets

Risk

Minor

Minor

Minor

Minor

Changing customer behavior

Lower demand due to little shift to properties with higher fireresistance

Risk

Minor

Minor

Minor

Minor

Cost arising from carbon tax levy

Policies,
Laws &
Regulations

Mandates on and regulation ofexisting products and services

Higher efficiency due to shift to properties with higher eco
performance

Higher efficiency due to shift to properties with higher eco
performance

Technology

Substitution of existing products
and services with lower
emissions options

Changing customer behavior
MarketReputation

1.5℃

2030

Increased pricing of GHG
emissions

Transition
Risks

Below 2℃

Increased costs arising from introduction of new technologies
Higher efficiency due to shift to properties with higher eco
performance

Note: Risks are represented in orange and opportunities in blue. The scale of the financial impact (minor, moderate, major) is expressed by the depth of color: the deeper the color is, the larger the impact is.

30

Environment

Financial Impact
Risk
Category

Type

Acute

Item

Description of risks and opportunities

Category

4℃

Below 2℃

2050

2030

Costs incurred from the need to address torrential rain disasters, etc.

Risk

Moderate

Loss of sales opportunities due to torrential rain disasters, etc.

Risk

Minor

Increased costs of air conditioning due to rising temperatures

Risk

Minor

Inundation due to sea level rise

Risk

Minor

2050

1.5℃

2030

2050

Increased severity of extreme weather
eventsPhysical
Risks

Chronic

Rising mean temperatures and sea
levelsNote: Risks are represented in orange and opportunities in blue. The scale of the financial impact (minor, moderate, major) is expressed by the depth of color: the deeper the color is, the larger the impact is.

③

Analysis Findings

Both the below 2℃ and 1.5℃ scenarios entail substantial transition risks. In these two scenarios, the introduction of a high carbon tax designed to curb CO2 emissions in Japan is likely to mean
higher operational costs stemming from, for example, a heavier tax burden on CO2 emissions from proprietary properties. Stricter environmental regulations with regard to ZEBs, energy saving
standards, and the like are likely to translate into additional costs of refurbishments needed to comply with them.
Tighter regulations will have a tremendous impact on tenants’ choice of properties. It is expected that in comparing properties of different real estate agencies, demand for properties with lower energy
efficiency will decline.
With an eye on a transition to a decarbonized society under the scenarios of below 2℃, CRR is committed to addressing these risks and maintaining its competitive edge. To these ends, CRR will take anumber of actions. These include introducing renewable energy to common area in a planned way; implementing energy efficiency retrofits, a typical example of which is a systematic switch-over to LED
lighting in the communal areas; increasing the proportion of environmentally certified properties; and incorporating green-lease provisions in contracts with new tenants.
Under the 4℃ scenario in which little progress will be made in decarbonization, CRR expects damage to its proprietary properties due to increased severity of extreme weather events and resultant
increases in repair expenses. With regard to chronic changes such as rising mean temperatures, CRR is committed to reducing CO2 emissions by, for example, considering and replacing existing key
equipment such as electric and air conditioning equipment with more energy-efficient equipment wherever possible when it reaches its end of life.
It is worth noting that these analyses (slated for publication in September 2023) did not find any marked changes from the previous analyses (published in September 2022) or any matters of significant
concern. It is unlikely that there will be major changes to the trends concerning the above scenarios. Accordingly, CRR will continue with what it has been doing.

31

Environment
Addressing Physical Risk
Japan is prone to natural disasters. Its geographical factors expose it to inundation and other damage due to typhoons and torrential rains. Earthquakes are
frequent as well. CRR has in place a structure that minimizes such damage and enhance resiliency to intensifying disasters to reduce the risk that disasters will
erode portfolio profitability. TRM has a business continuity management (BCM) policy on crisis response and business continuity planning (BCP) under its basic
policy on risk management.
Progress in global climate change may make natural disasters more frequent and destructive. CRR regards an increasing financial impact of such disasters as amajor physical risk of climate change. Please refer to the following part of “Supply of emergency kits and evacuation map” for our preparedness for disasters.

Supply of emergency kits and evacuation map＜防災グッズ＞＜防災マップ＞

After the Great East Japan Earthquake, toenhance the safety and the sense of security of
our residents, we provide emergency kits(emergency food and goods) in the elevators of
every property. We also provide waterstops andflood barrier panels at some properties toprepare for inundation, depending on theirlocations. Additionally, we post evacuation
maps in common space of all properties toinform residents of area for evacuation in
preparation for an earthquake or other disaster.

32

Environment
Predicting flood risks
CRR keeps abreast of possible flood damage to its portfolio with the help of hazard maps prepared by the Ministry of Land, Infrastructure,
Transport and Tourism and local governments. (CRR uses information on flood and inundation hazard areas as well as storm surge andinundation hazard areas.)
To minimize economic losses, CRR makes necessary Preparation for Disasters for its properties and has a fire insurance that covers flood
losses in place for each of them.
Please check earthquake PML in Financial Statements.

Note:The table above shows the numbers of properties we owned as of the end of January 2023 (excluding those that had been sold by the end of August 2023).

33

Environment
Managing Risks and Opportunities Related to Climate Change
Matters related to materialities regarding climate-related risks and opportunities and adaptation and resilience to climate change are regarded by the AssetManagement Company as matters related to climate action in accordance with its climate action standards. They also constitute specific sustainability initiatives
and are therefore part of the matters related to promoting sustainability.
In January 2022, we announced our support for the TCFD Recommendations, which prompted us to conduct scenario analyses described above. The analyses
were aimed at identifying risks and opportunities arising from the impact climate change may have on CRR, assessing the impacts of these risks and opportunities
on our business, and making changes to our future strategies as needed. Risks of particular importance were singled out in light of how likely they emerge, when
they emerge if ever, and how they may impact our finances.
Based on the analysis findings, we will review and further improve our initiatives. To this end, we will execute function management with the help the EMS andmonitor CRR's actions and their progress through the Sustainability Promotion Council.

Setting Metrics and Targets Related to Climate Change① Metrics and Targets
CRR has identified its metrics and targets related to climate change under the category of "reducing environmental impact," one of the materialities it shares with
the Asset Management Company. For the purposes of identification, CRR assessed risks and opportunities presented by the impacts of climate change as well as
the importance of specific actions aimed at addressing these impacts. CRR has also set out a policy for reducing environmental impact. The policy covers four key
areas: energy use, energy-related CO2 emissions, water conservation, and waste generation. Additionally, CRR has set the following targets in line with the netzero policy based on the Asset Management Company’s climate action standards to improve energy efficiency. Specific actions to this end include implementing
energy efficiency retrofits and incorporating green-lease provisions in tenant contracts.

① Energy use: Medium- to long-term target of 1% average annual reduction in energy use intensity② Energy-related CO2 emissions: by 2030, 40% reduction in greenhouse gas emissions intensity (vs.2020).
③ Proportion of our portfolio properties with environmental certifications: 40% by 2030

② Progress toward Targets as Well as Practices
CRR regularly discloses information on environmental performance with regard to energy consumption, CO2 emissions, and water consumption, as well as
Environmental Certification and environmental impact reducing works. It also provides relevant information on the annual Sustainability Report and financial
statements as part of ESG-related information.

34

Environment
Environmental Considerations
Switching to LED lights in common areas

Replacing air conditioners in private areas

For environmental conservation, CRR has been switching to LED lights in the common
areas of properties. This will help reduce power consumption and environmental impact.

For environmental conservation, CRR has been replacing air
conditioners that have reached a certain number of years since
installation in the private areas of properties. This will help reduce
power consumption and environmental impact.

Installation of electric power measuring system

Green-lease provisions

In order to increase the actual electric power
consumption coverage rate at owned
properties, electric power measuring systems
have been installed at 4 properties as of theend of July 2023. The installation makes it
possible to measure power consumption at
exclusive areas. Furthermore, activities toraise awareness for energy saving among
tenants are being carried out.

From the perspective of environmental friendliness, to reduce environmentalload in collaboration with residents, we insert green-lease provisions in leaseagreements, which are related to energy use and appropriate disposal of waste.

Green Procurement Standards
CRR will promote the reduction of the environmental load in cooperation with
suppliers, etc. by establishing the Green Procurement Standards which are
related to the procurement of environment-friendly materials, etc. (Cf. page 55)

35

Environment
Environmental Considerations
Implementation of restoration work targeted for improving environmental performance
From the perspective of environmental-friendly considerations, CRR use environmentally-friendly products in exclusive units’ restoration work after tenants
moved out, to reduce the environmental impact.

Functional Wallpaper

Recyclable Wallpaper

Environment-friendly Floor

Water-saving Faucet

Since the wallpaper’s light reflection
effect could brighten the room,energy-saving
effects
canbeexpectedsuchaselectricity
consumption reduction, by turning off
lights during the day.

To reuse the resources thatwould be generally discarded as
wallpaper material, we arecontributing to the reduction ofenvironmental impact.

To utilize the environmentalfriendly materials produced fromrenewable forests, we arecontributing to the reduction ofenvironmental impact.

To introduce the water-saving
faucet into the properties, weare promoting water-saving andeffective use of water resource.

36

Environment
Considerations for recycling-oriented society
Separate management of waste

Use of Renewable Energy
CRR utilizes renewable energy fromsolar power

CRR reduces environmental impact at
properties through separate disposal ofwaste in cooperation with the managementcompany. It is also making effort to improveresident satisfaction by taking measures toreduce odor at garbage collection points.

Annual power generation of the solar power
facilities in COMFORIA NAKAOCHIAI

4,100.5kwh（Feb.2022～Jan.2023）

Providing garbage disposal guides
For environmental conservation,
COMFORIA SHINJUKU EASTSIDETOWER offers guidance on separate
disposal of garbage in the user guides forresidents to raise environmental
awareness.

Sponsor’s Renewable Energy Business
Our Sponsor Tokyu Land Corporation started environment-friendly renewableenergy business in 2014 by utilizing long-amassed expertise in community
planning and partner co-creation as a comprehensive developer. Participating inRE100(note) as the first real estate company in 2019, TLC have reset 2022 as thetarget year for achieving RE100, or use of electricity from 100% renewableenergy for corporate activities, accelerating the speed from expected FY2025.
Actually, this goal has been achieved by December 2022.
Note: RE100 is the global corporate renewable energy initiative bringing together hundreds of large and ambitious
businesses committed to 100% renewable electricity.

Electricity Saving Actions in Common Space & Facilities
In order to save common area’s electricity
power, we have cooperated with property
management company to conduct airconditioner temperature change andturned down the common area’s lights insome of the properties.
We have been making efforts to advocateenergy efficiency to the tenants .

ReENE Matsumae Wind Power Plant

ReENE Namegata Solar Power Plant

37

Environment
Considerations for recycling-oriented society
Recyclable Materials Widely used

Increasing Greenery and Biodiversity
With a site area of more than 1,000
square meters, COMFORIA SHINJUKUEASTSIDE TOWER has developed agreening plan in accordance with theOrdinance for the Conservation and
Restoration of Nature in Tokyo, based on
which it offers a lush space filled withnatural features.

Environment-friendly/Energy-efficiency
construction materials/facilities Lists
have been made and used in bid
specifications for Large-scale repair
work. For example, recyclable tile
carpet has been adopted in common
area to reduce industrial waste andincrease resource usage efficiency.

Reuse Event
Asset management Company puts the3R(Reduce, Reuse, Recycle) principles
based on Green Procurement
Standards into practice such as thereuse event, in which the employee
voluntarily share the unused or low
usage frequency goods with each other.
A chance to advocate environmentalfriendly actions and internal
communications between employees.

Compost Trial

At COMFORIA KINSHICHO DEUX, wehave alleviated the heat island effect andimplemented energy-saving measures byplanting vegetation on the rooftop.

Efficient use of water

In Campus Village Urayasu, thekitchen waste and food scraps inthe cafeteria are collected and put
into the soil bag as compost.
Interior gardening trial has started

We comprehend owned properties’equipment using water and their function
and consider introducing water-saving
equipment at properties that have yet toemploy said equipment where possible.
We promote efficient use of water
resources by changing to products thatsave hot/cold water.
38

Environment
Considerations for recycling-oriented society
Environmental impact reduction by Renovation Property Acquisition (COMFORIA TAKASHIMADAIRA, to be acquired in Dec 2023)

1

Environmental impact reduction Effect【CO2 emission Reduction】

In contrast to rebuilding, renovation is expectedto largely reduce environmental burdens such as
cut down CO2 emission by up to 76% & wastes
generation by up to 96%.

Reduction

Rebuilding2

All units are pet-friendly, and dog-run area isalso provided. Units specialized for pets havedeodorizing wall tiles, pet-friendly flooringmaterials that resist stains and scratching, andcatwalks on the living room walls that allow
cats to roam freely, all to make life more
comfortable for dogs and cats.

4

3

Renovation

Reduction

Rebuilding

Renovation

Co-living with Pets

1

2

【Wastes Reduction】

Dog-Run Area

Cat
Room

Dog
Room

Utilizing Thinned Timber

3

Working Space

Playing Room

Garden Sharing

Compost Bag

TFHD Group’s “Connecting with Green” Projectprotects forests by utilizing the thinned timer from
Nishiawakura Village in Okayama Prefecture.

4

Garden Sharing

Compost bags will be given to the tenants whowant to have a try, compost their kitchen waste
for use in the shared vegetable garden.

Note: based on “Impact of Renovation on Reducing CO2 Emissions and Waste Generation.” released by Renoveru,Inc.

39

Environment
Establishment the Environment Management System(EMS)TRM established a unique environment management system (EMS) which applies PDCA cycle to continuously approach to environmental challenges. We areworking to continuously reduce environmental impacts in the management operation for CRR, through the cycle of four steps; set targets (Plan), assess
performance (Do), analyze budget vs. actual (Check), and implement countermeasures for a better performance (Act). The Asset Management Department of
Comforia Management Division reviews actual performances in its monthly meeting and reports the results to the management at least once a year, then receives
feedbacks and instructions for further improvement for the following year, from the management.

40

Environment
Urban Site Investment Criteria
Undeveloped Sites Commitment

Investments Towards Urban Revitalization
and Redevelopment Properties

CRR aims to secure stable income and achieve steady growth of our assets
under management from a medium-to long-term perspective. When acquiring
assets developed on undeveloped sites, we give ample, rigorous consideration
to the impact that development activities have on the natural environment andecosystems, as well as considering compliance with environmental laws, theacquisition of environmental certifications, etc. before investing in them.

As a rule, CRR does not invest in unoccupied properties that have not been
completed yet, such as new development projects, but we actively invest inproperties developed based on redevelopment projects. Through theacquisition of such properties, we contribute to the revitalization ofcommunities by improving convenience for local residents.

COMFORIA SHINJUKU EASTSIDE TOWER

Investments in Flexible / Mixed Use Properties
CRR owns a number of mixed-use properties. By investing in mixed-use
properties that house facilities such as convenience stories and clinics, we
contribute to improving the convenience of daily living for tenants and nearby
residents, reducing the environmental footprint by reducing the travel distance
between various facilities, and the revitalization of communities.

Investments Towards
Existing Urban Brownfield Redevelopment
COMFORIA SHIBUYA WEST

COMFORIA SETAGAYAKAMIUMACOMFORIA HIGASHISHINJUKUSTATION FRONT

Environment Risk Assessment for New Acquisition
CRR makes investment decisions based on its investment strategies and theresults of due diligence, including onsite investigation, property materials
scrutinization, valuation appraisal report, engineering report, land contamination
investigation report, etc.

Through investing in existing development areas, especially in Tokyo’s 23 wards,
CRR invests in properties that utilize existing infrastructure, such as roads, waterand sewer lines, schools, and hospitals.
By making use of existing infrastructure, we are engaged in investment thatprevents urban sprawl and leads to a decrease in energy consumption
associated with shipping/traffic and the loss of green areas, which causes theheat island effect.
41

Environment
Overview of Environmental Certification

DBJ Green Building Certification
DBJ Green Building Certification Program was launched by Development Bank of Japan Inc. (DBJ) for the purpose of supporting the properties which give propercare to environment and society (Green Building).
The program evaluates, certifies and supports properties which are required by society and economy. It makes comprehensive assessment of properties, while
evaluating various factors which range from properties' environmental features to their communication with stakeholders, such as disaster prevention and proper carefor surrounding communities.
Furthermore, there are 5 levels, "five stars", "four stars", "three stars", "two stars", "one star" as the certification ranks.

CASBEE Certification for Real Estate
CASBEE is an evaluation system for rating the environmental performance of buildings, developed under the auspices of the Ministry of Land, Infrastructure,
Transport and Tourism. The system rates the overall environmental performance of buildings from the following perspectives: the evaluation of the environmental
quality and performance of buildings themselves and the external environmental load of buildings.
Certification for CASBEE for Real Estate is rated in four scales: rank S, rank A, rank B+ and rank B for buildings with 1 or more years old after completion.

BELS
BELS assessment is provided under a public evaluation system, which evaluates the energy conservation performance of houses and buildings, established by the
Ministry of Land, Infrastructure, Transport and Tourism. Third parties evaluate the performance of buildings based on the primary energy consumption defined inenergy saving act(Note), regardless of whether a building is new or not, and the evaluation result is represented by a number of stars (from one "★" to five stars"★★★★★").
(Note) Act on the Rational Use of Energy

42Environment
Environmental Certification Ratio
Believing that establishing a portfolio with a small environmental footprint will result in improved unitholder value in the medium-to long-term , CRR has targeted theacquisition 40% of environmental certifications by 2030.

40%（Gross floor area based)）

25.2%

23.2%
19.7%

19.2%

2020
2021
2022
(Feb. 2020~Jan. 2021) (Feb. 2021~Jan. 2022) (Feb. 2022~Jan. 2023)

COMFORIA SHINJUKU EASTSIDE TOWERCOMFORIA SHIBUYA WEST

2023
(Feb. 2023~)

2030(Target)COMFORIA KAMATACOMFORIA TOYOCHODBJ Green Building
Certification

COMFORIA SHINJUKU EASTSIDE TOWER

rank SCOMFORIA OMIYA

rank SCOMFORIA MINAMISUNAMACHICOMFORIA HIGASHISHINJUKU STATION FRONT COMFORIA HIGASHIIKEBUKURO WEST

rank Srank Srank ACASBEE Certification
for Real Estate

COMFORIA KITAZAWACOMFORIA TAKASHIMADAIRAGRANCREER TACHIKAWA

BELS

43

Environment
Green Bonds
As part of its efforts to contribute to the development of sustainable society, CRR has issued the Green Bonds. CRR aims to further promote its sustainability initiatives through issuance of the green
bonds, and invite new investors to its investment corporation bonds by stimulating their demand who have interest in ESG investment.

Green bond Framework
1．Use of Proceeds
The proceeds of the green bond will be allocated to acquire the existing or new buildings that meetthe following Eligibility Criteria A (‘Eligible Green Projects’), or refurbishments that meet the following
Eligibility Criteria B or to refinance the existing loan/investment corporation bonds which have been
allocated to Eligible Green Projects or refurbishments.

3．Management of Proceeds
CRR extracts the Eligible Green Projects out of CRR’s portfolio and uses the calculable total bookvalue of the Eligible Green Projects as of the end of the latest fiscal period prior to the date of eachbond issuance (note 1) as the Debts of Eligible Green Projects. As long as the Green Bond isoutstanding, we will monitor once a year, to ensure that the total amount of outstanding green bonds
does not exceed the sum of Debts of Eligible Green Projects and green bond proceeds allocated torefurbishments.

2．Eligibility Criteria
CRR shall apply one or more of the following criteria to allocate the proceeds into Eligible Projects:
As of July 31, 2023

A. Eligible Green Projects
Buildings that have achieved the following top three levels of third-party green building
certification/recertification within 36 months prior to the payment date of green bonds or willachieve:① B+, A or S Rank under CASBEE② 3, 4 or 5 Stars under DBJ Green Building Certification Program③ 3, 4 or 5 Stars under BELS

B. Refurbishments
Refurbishments with a primary purpose of achieving one of the following criteria and arecompleted within 36 months prior to the payment date of green bond or will be completed:① Refurbishments with more than 20% reduction in energy consumption and water consumption② Newly achieve the top three levels of green building certifications listed above Eligibility
Criteria A or more than one level of star/rank improvement in the green building certification(Note1) “Eligible Green Projects as of the end of the latest fiscal period to the date of each bond issuance” refers to the buildings that haveachieved the top three levels of one or more of the third-party green building certifications/recertifications within 36 months prior to the endof the financial period immediately preceding each date of bond issuance.
(Note2)The amount of Eligible Green Projects is calculated based on the book value as of July 31, 2023.
(Note3)Outstanding amount of the green bonds is calculated as of July 31, 2023.

44

Environment
4．Reporting
CRR will disclose on its website the amount of Eligible Green Projects and/or refurbishments financed/refinanced, allocation status, including the amount of unallocated proceeds, schedule of allocation andmanaging method, of the net proceeds of green bonds as of end of every January until the proceeds are fully allocated. In the event of major change in situation, such as the accrual of unallocated funds as aresult of the sale of relevant assets, such facts will be disclosed in a timely manner. CRR will also disclose that the total amount of outstanding green bonds does not exceed the sum of Debts of Eligible Green
Projects and green bond proceeds allocated to refurbishments. Furthermore, after issuance, for as long as the green bonds are outstanding, it will annually report on the book value of all the Eligible Green
Projects and the total amount of outstanding amount of the green bonds as of the last day of January in each year.

5．Impact Reporting
As long as there is an unredeemed balance of the relevant green bonds, CRR will annually disclose on its website summary and the progress and levels of certifications of Eligible Green Projects. Additionally,
CRR will annually disclose the following indicators of Eligible Green Projects where CRR has energy control authority:① Energy consumption② Water consumption
As for the refurbishments that have been funded by the green bonds, the environmental benefits brought by each project will be disclosed. CRR will indicate an estimated rate of reduction (%) of energy
consumption and water usage before and after the refurbishment.

Green Bond Summary
Total issue amount(￥million)

Interest rate

Offering date

Redemption date

Description

The 8th unsecured investment corporation bonds(green bonds)

1,500

0.550%

July 30, 2020

July 30, 2030

Unsecured
non-guaranteed

The 10th unsecured investment corporation bonds(green bonds)

3,000

0.460%

July 8, 2021

July 8, 2031

Unsecured
non-guaranteed

Total

4,500

－

－

－

－

Impact Reporting
Energy consumption per year
（kWh/㎡）

Water consumption per year（㎥/㎡）

FY2019134.790.810

FY2020130.240.737

FY2021132.400.744

FY2022123.21

0.707(Note1) Results in the above table are actual figures for the common areas in the Eligible Green Projects of CRR.
(Note2) The reporting period is from February 1 to January 31 of the next year.

45

Environment
List of CRR's Green Eligible Projects
Received ranks

Property no.

Property name
DBJ Green
Building
Certification

Certification for
CASBEE for Real
Estate

BELS
Certification

Book value atthe end of
the period(¥ million)

41

COMFORIA HIGASHIIKEBUKURO WEST－

Rank A
★★★★

－

3,550

88

COMFORIA MINAMISUNAMACHI－

Rank S
★★★★★

－

4,514

98

COMFORIA SHINJUKU EASTSIDE TOWER★★★★★

Rank S
★★★★★

－

11,482

107

COMFORIA KAMATA

★★★

－

－

5,632

125

COMFORIA SHIBUYA WEST

★★★★

－

－

5,411

135

COMFORIA HIGASHISHINJUKU STATION FRONT－

Rank S
★★★★★

－

5,607

145

COMFORIA TOYOCHO

★★★★

－

－

3,729

150

COMFORIA OMIYA－

Rank S
★★★★★

－

4,623

157

COMFORIA KITAZAWA

－

－

★★★★★

4,082

Total Eligible Green Projects

48,633（Note1）Listed are the buildings that have achieved the top three levels of one or more of the third-party green building certifications/recertifications within 36 months prior to July 31, 2023.
（Note2）“Book value at the end of the period” is calculated based on the book value as of July 31, 2023. The book value of COMFORIA SHINJUKU EASTSIDE TOWER is calculated based on the Green-qualified portion of the total assets.

46

Society

Our View on Society
We are continuously maximizing unitholder value andfulfilling our social responsibilities through efforts tobuild favorable relationships between CRR and its
stakeholders.

47Society11.3 By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planningand management in all countries

Relevant SDG Targets
12.8 By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles inharmony with nature

Stakeholder Engagement
In the pursuit of CRR’s and TRM’s business, our relationships with investors and various other stakeholders, including employees, local communities, tenants, andsuppliers, are absolutely vital. We also recognize that building favorable relations with these stakeholders in the medium-to long-term is an essential factor in our aim
of maximizing unitholder value, which is CRR’s priority. We will continue to pursue our business as a member of society and work to further strengthen our
relationships of trust with all stakeholders involved with CRR’s and TRM’s activities.

Investors◆Financial result briefing・Unitholders’ meeting◆Meetings with domestic andforeign institutional investors◆Seminar for Individual Investors◆Presentation Video

Suppliers◆Joint seminars◆Local staff awards

TFHD Group’s Consultative meeting
Since July 2023, TRM has also been participatingin the Sustainability Council organized by TFHD tobuild a system to resolve issues throughcollaboration with TFHD group companies.
This council meets regularly and is attended by
CRR's sponsor, TLC, as well as PM and BM.

◆各種研修制度◆人事制度
Employees◆働き方改革◆福利厚生◆ダイバーシティ◆Various
Training programs◆Work-Life Balance◆Diversity

CRR
TRM

Local Communities◆Disaster prevention
measures◆Participation incommunity activities◆Security maintenance

Tenants◆Tenant satisfaction survey◆Cooperation with tenants◆テナント満足度調査◆Effort to advance health/wellness◆テナントとの協同促進◆Disaster prevention measures◆健康・快適性向上への取組み
◆防災対策

48

Society
Employee Engagement
CRR, as a J-REIT, cannot have employees as stipulated under the Act on Investment Trusts and Investment Corporation of Japan. Therefore, the figures anddescriptions provided herein refer to those of TRM, the asset manager. As a group of experts in real estate management, TRM provides high-quality asset
management services with objective to maximize the value of its shareholders, and to that ends, we promote our own human-capital strategy in view of theimportance of human capital development. TRM is making continuous effort to have various systems to form a working environment and organization enabling torealize and promote the health and comfort of employees.

Our policy on human capital management“Human capital management” in the TFHD Group refers to the act ofworking towards the sustained improvement of value by formulatingand executing human capital strategies linked to management
strategies. The Group aims to “become a corporate group that
continues to create value” and “realize a future where everyone canbe themselves and shine vigorously” by making aggressive
investments based on the perception that the knowledge, skills andambition of its approximately 30,000 employees spread over 100
companies constitute “human capital.”
With view towards realizing our ideal vision, the Group has espoused“aiming to achieve sustainable social development and growth with allof its employees possessing a challenge-oriented DNA and sense of
purpose in engaging society” as its human capital philosophy. Basedon that, the Group is pursuing the following three human capital
strategies: “developing human resources who create value,”“developing organizations with diversity and a sense of unity” and“enhancing motivation to work and ease of working.” The first ofthese strategies, “developing human capitals who create value,”
constitutes the Group’s policy on human capital development basedon the Group philosophy and its management strategies. While
sharing the sponsor group's basic policy on human resources, TRM
as a professional group in real estate management, recognizes theimportance of developing and nurturing human resources in order toprovide high quality real estate investment management services andmaximize unitholder value. Based on such recognition, we will
promote human capital management with the goal of becoming the“Company of Choice No.1”.

49

Society

Strategy of Human capital development & retention◼ Employee skill development（Utilization of external training institutions）
As a professional group involved in real estate management, TRM aims to maintain the quality of its services and further develop its operations. We promote and support theacquisition of specialized qualifications by our employees, and throughout the year, on a voluntary and planned basis, We hold training and seminars to share practical knowledge andindustry trends or adapt to laws and regulations and implements a range of position-based training programs and personal development activities.
≫ Training program examples（Representative efforts）

Position-based
trainings≫ Support for acquiring business related qualifications

Examples include orientation training for mid-career hires on wide
range of knowledge on asset management business andunderstanding of regulatory compliance; management training forsenior management and medium level employees; business skills
training and anti-harassment seminar for all employees withutilizing of external training institutions.
As part of awareness program on ESG investment, we invite
external experts to provide employees with periodic training fortheir deeper understanding of ESG and introduction to new
trends.

ESG training

Courses to improve computer skill, English conversation and other lessons are also provided.

≫ Training attendance record

Item

We support acquisition of necessary qualifications by employees in various measures
including financial aid for examination fees and class fees. We also hand in monetary
reward once employees pass specified examinations.

Status of employee qualification（As of June 30, 2023）
Number of
employees

Use of Qualification
Support System

Real Estate Broker

87

7

ARES Certified Master68

14

Certified Building Administrator

16

1

Certified Property Manager

93Chartered Member of the Securities
Analysts Association of Japan

2-

Real Estate Consulting Master4-

Qualification(FY2022）

FY2020

FY2021

FY2022Training hours per employee

27.3hours

26.5hours

27.3hours

Real Estate Appraiser

8-

Training expenses per employee¥44,906¥89,736¥82,183

First-Class Architect

6

-

50

Society◼ Training programs of Sponsor
The Sponsor offers HR training programs that enable each employee to exercise and develop their skills.

Desired human resources image

Position-based trainings
・Training of New employee introduction
・Joint training of TFHD Group New employees

New employee

・Training of Accounting
・Follow-up training for new employees
・Training of Hypothesis Thinking

Staff Level( 1~9 years of newhires)

・Self-management
・Enhancement of organizational strength・Expansion of self-capacity

Second year
employee

・Training of Communication
・Training of Finance・Training of Negotiation

Third year
employee

・Training of Facilitation
・Training of Strategy/Marketing

Fourth year
employee

・Training of Legal/Compliance・Strategy・Marketing（Advanced）・Assessment

Leader Level

・Training of New Group-leader

Management Level

・Leadership skill
・Management skill
・Expansion of self-capacity

・New Group-Leader Line Staff Care・Employment Training for staff with Disabilities
・Training of Executive Manager
・Digital Transformation（Note）Employees temporarily assigned to TRM from the Sponsor are included in the above training.

◼ Personnel system
TRM has regular communication opportunities with employees including one-on-one session with the direct supervisor and review staffʼs performance based on the objective ofcareer development set by each. We encourage each staff to have their own career plan and to acquire skills that are competent inside and outside of the company. ESG-related
efforts and relevant items are included in the annual target to set. Based upon the fact that the number of employees of TRM had increased to a certain size, partly because of themerger happened in 2017, we decided to conduct shuffling of employees among different divisions in order to raise career development of our employees. Meanwhile when
conducting such occupational relocation, we pay close attention to the information firewall between the different business divisions.

51

Society◼ Personnel System
The asset management company conduct regular communication with employees by one-on-one meeting between employees and their direct supervisors andperformance review based on individual career development objective setting and realization conditions. Each personnel is encouraged to have their own careerplan and to acquire skills that are competitive both inside and outside of the company. ESG-related target are also required to be set in the annual targets.
◼ Human Resource Exchange
The asset company takes staff seconded from the sponsor group companies and dispatcher its employees to the sponsor group to provide the employees withvarious professional experiences. As the number of employees increased to a certain size, partly due to the merger in 2017, employees shuffling among different
divisions are also allowed for the purpose of career development. And when such position relocation happened, we pay close attention to the information firewall
between different business divisions.
◼ Recruitment website
In December 2021, asset management company launched a career page to attract potential candidates by comprehensively presenting the company’s business,characteristics, and cultures, etc. The website contents include interviews with current employees, round-table talk, career path possibly realized in the company.
(Recruitment page: https://www.tokyu-trm.co.jp/recruitinformation/）52

Society
For work-life balance & health of employees◼ Working-style reform
Recently, under the working-style reform trend including rectifying the practice of working long hours, TRM actively takes approaches to introduce more flexible working style ofemployees with objective to improve their work-life balance.
Paid-leave usage encouragement

Every year, employees are required to set up so-called “commitment holidays”, a seven-day paid leave (five days in a row + two days
immediately before or after that week) and to share such committed calendar within the teams they belong to. TRM is also creating
business environment for the employees to digest their allocated paid leaves, by proactively setting up recommended days to use paid
leaves.

Flex-time work system

We have introduced a flex time working system for all employees. Core time is set between 11:00 and 15:00, and employees are free toset start and finish of their work hours around the core time to support more flexible working style considering the wide variety of living
environment of each individual.

Work-from-home system

The Covid-19 outbreak pulled the need for introduction of work-from-home, and we are working to improve productivity with reducing
commuting time to workplace. Use of serviced office space is also allowed under preset rules.

Effort to reduce overtime

In order to prevent excessive long working hours, TRM is taking necessary measures. The employees are required to set an upper limitof overtime working hours at the beginning of the fiscal year, and such objectives are regularly monitored and reminded. In certain
cases, we intentionally raise them as a meeting agenda if the working hours are excessively long.

◼ Welfare programs
TRM values its employees, their well-beings, and healthy performance in work, and provides all staff with various welfare programs to improve their satisfaction as below.
（Excludes contract/dispatched employees for some Welfare programs）
Cafeteria plan

To support self-support and independence of permanent employees, we provide them with financial aid for medical fees, subsidies for use of
sports facilities, studying, volunteer activities, employee shareholding program, and use of the facilities Tokyu group companies operate.
Various systems are in place to provide support for employees at each stage of life, such as maternity leaves, childcare leaves, child medical
leave, nursing-care leave.
We support asset formation by permanent employees, by inviting external financial planners to offer introductory sessions on topics including
defined contribution pension matching program which TRM offers and the insurance system by the Tokyu group.
Through our employee stock ownership plan and cumulative REIT investment program, we provide financial incentives for purchasing fixedamounts of TFHDs stock, Comforia Residential REIT investment units, and Activia Properties investment units.

Welfare programs

We increased the number of available facilities to enable more employees to use the popular exclusive resort membership “Tokyu Harvest Club.”53

Society◼ Internal communication
TRM periodically organizes employee satisfaction surveys and explanatory sessions on the corporate annual objective and medium- to long-term vision, for a more profoundunderstanding between the company and employees, expecting to develop the productivity of our organization where employees can deliver their best performance.
Younger employees have led voluntary organization of cross-divisional study groups to share
Employee study groups
information on businesses unique to each division, and on necessary knowledge/skills.
Support for company circle
activities

Financial support is provided to employees for company club activities.

Luncheon

To enhance communication among employees, regular luncheons by groups of a small number ofstaff have been organized.

◼ Employee health & comfort
TRM is making effort to maintain the workplace healthy and comfortable, encouraging employees to show the best performance.

Working environment

Workplace of TRM is in Shibuya, an exciting and innovative city where the areas people live and play are closely connected. Employees can takebeverages for free and use individual spaces, and a space for refreshment is created with green on the terrace of the building where TRM is
located, Shibuya SOLASTA. In the spring of 2023, the working place of TRM was renovated in response to one of the proposals from New work
style Project by the in-house volunteers. The office was designed to be a place where employees can see each other's faces and exchange words,
and where communication is more active, with a group address system (free working space for each department) being introduced while still
utilizing remote work. The renovated office also installs coffee machines supervised by a famous chain and provides bread supply in the lounge
area. In a posterior survey, 83% of the respondents answered that they were “very satisfied" or "somewhat satisfied" with the new layout, and 99%of the employees answered that they were satisfied with the new free beverage facilities. On the other hand, based on the results of thequestionnaire and free opinions about individual measures, there is room for improvement, and we will continue to work to realize a more
comfortable working environment.The building earned the CASBEE Wellness Office, a recognition of the buildingʼs ability to promote health andcomfort of people work in the building.

Healthcare

Employees are obliged to take annual medical checkups. There is also a mental health consultation desk.

Health Committee

Health Committee is established to improve employeesʼ occupational health. The Committee examines labor-related problems occurred in thecompany, reports the results of investigation on comfort and safety in the workspace, and takes measures to increase awareness for mental andphysical health by poster, etc. Lectures by industrial physicians on related themes are held.

Once a year, employees have one-on-one session with HR department, where they can discuss and share their career development plan and
One-on-one session with HR explain their troubles and expectations related to the relationship with supervisors and colleagues. The confidentiality of employee information is
guaranteed.

Whistleblower system

TRM established the Compliance Helpline Counter as a contact point to report and consult on compliance matters including when harassment andbullying is experienced or observed, enabling all officers and employees to directly report to the Compliance Officer of TRM, General Manager ofLegal Affairs Department of TLC, General Manager of Group Legal Affairs Department of TFHD, or external attorneys. Moreover, we pledge tomaintain the confidentiality of personal information or investigation-related information about the individual who reported or consulted on the matterand the subject of the report or consultation, which shall not be disclosed internally or externally without good reason.

54

Society◼ Employee satisfaction survey（Survey with a third-party）
Every year, TRM conducts an employee satisfaction survey with a third-party partner. Based upon the results of the survey, we are taking variety of means to improve employee
satisfaction level.
Item

FY2019FY2020

FY2021

FY2022

FY2023

Employee engagement level

62.6

60.8(Note)

62.8

58.4

67.4

Nb. of responses / Nb. of eligible
employees

95 / 95

96 / 98

100/100

99 / 100

97/ 97

Participation rate

100%

98%

100%

99％

100％

(Note) The objective is to quantify the attachment and trust between a company with its employees. The figures are in high level among Japanese companies, and the engagement status is overall good.

◼ New Work Style Project
A voluntary team set up by asset management company employees launched a new project in October 2021, aiming to design and propose new work styles. Mainly
concentrated on 3 Topics as “office and digital environment’’ “internal Communication ” and “Company System”,
the team targeted on individual performance improvement and challenging spiritual company building and made renovative suggestions to the management.
Suggestions such as setting up the online proposal box for all employees and office group address system (refer to the former page), etc. have been adopted .

55

Society
SocietySociety
Diversity
TFHD Group accepts the difference in a variety of attributes such as gender, age, nationality and handicap and brings about innovation by showing individual ability to the maximum
and continues to create value through its business activities. TRM is working to make a workplace without any discriminatory treatment and compensation due to different attributes,
where all employees can rely on.

◼ Human Right Policy
TRM shares the Human Right Policy published in January 2020 by TFHD Group and carries out
its business in belief that respect the human rights of stakeholders of the group including
employees is essential and it is what all companies are expected to do.

TFHD Group Human Rights Policy

56

Society
Respecting basic labor rights and aiming at coexistence and co-prosperity with employees, TFHD Group supports and respects the OECD Guidelines for Multinational Enterprises,
international labor standards and Guiding Principles on Business and Human Rights. In December 2016, the Group stated its support for the UN Global Compact. In accordance withthe ten principles of the UN Global Compact in the areas of human rights, labor, environment and anti-corruption, we promote responsible management and contribute to a sustainable
society. TFHD Groupʼs support for UN Global Compact shall apply to all group companies including TRM

The 10 Principles of the UN Global Compact

Fundamental rights in hiring and employment of TFHD GroupTFHD Group will respect the following matters as a set of fundamental rights in hiring andemployment in order to achieve co-existence and co-prosperity with employees
1.Prohibition of discrimination: We will eliminate all discriminatory actions based on nationality,
race, religion, beliefs, gender, age, sexual orientation and/or disability and will strive to maintainequal opportunity and treatment in hiring and employment.
2.Prohibition of harassment: We will never engage in sexual harassment, power harassment, or
any other form of harassment toward people in the workplace. We will also never tolerate
language or actions related to harassment.
3.Prevention of forced labor: We will strive to eliminate and prevent all forms of forced labor.
4.Curtailment of overwork and reduction of overtime: We will establish a fundamental policy on
work management to curtail overwork and reduce overtime work giving consideration toemployees’ work-life balance and their health maintenance/improvement. In Japan, we willcomply with the “Article 36 Agreement.”
5.Prevention of child labor: We will support and practice the effective abolishment of child labor.
6.Respect for freedom of association and the right to collective bargaining: In recognizing thatthe freedom of association and the right to collective bargaining are fundamental human rightsthat must be respected by a company, in countries and regions where the formation of labor
unions is allowed we fully recognize employees’ right to organize, right to collective bargaining
and right to strike in labor agreements. In addition, even in countries and regions that do notallow the formation of labor unions due to laws or practice, we will effectively promote conflict
resolution through dialogue involving management and labor with the purpose of securing thefreedom of association and the right to collective bargaining.
7.Payment of wages above and beyond the minimum wage: We will comply with labor laws andregulations and adopt a fundamental policy on labor management in which we will pay wages to
employees above and beyond the minimum wage for acceptable living conditions.

Human rights

Principle 1: Businesses should support and respect the protection ofinternationally proclaimed human rights; andPrinciple 2: make sure that they are not complicit in human rights abusesLabourPrinciple 3: Businesses should uphold the freedom of association andthe effective recognition of the right to collective bargaining
Principle 4: the elimination of all forms of forced and compulsory labour:
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment andoccupation

Environment

Principle 7: Businesses should support a precautionary approach toenvironmental challenges;
Principle 8: undertake initiatives to promote greater environmental
responsibility; andPrinciple 9: encourage the development and diffusion of environmentallyfriendly technologies

Anticorruption

Principle 10: Businesses should work against all forms of corruption,
including extortion and bribery

57

Society
Key Employee Data
Item
Number of Employees（Note1）
FemaleMale
Of which full-timeFemaleMale
Of which contract employees
FemaleMale
Of which contract employees fromconvert temporary employees
Of which seconded（Note3）
FemaleMale
Ratio of female employees(Reference)Temporary employees
FemaleMale
New Hire（Note4）
FemaleMale
Of which full-time employees fromcontract employees（Note5）
Number of Directors（Note6）
Of which female directors
Ratio of female directors
Number of senior management（Senior Manager or above）
Of which female senior management
Ratio of female senior management
Turnover ratio（Note7）

The end of April The end of April The end of April The end of April The end of April KPI target for
2019
2020
2021
2022
2023
FY2030

TFHD GroupFY2030 KPI（Note8）

97
42
55
47
22
25
12
11
1

106
47
59
53
23
30
14
13
1

103
43
60
56
24
32
13
12
1

105
44
61
68
30
38
9
8
1

－
－
－
－
－
－
－
－
－

－
－
－
－
－
－
－
－
－

2

1

1

2

－

－

40
8
32
40.9%
3
3
0
10
7
3

38
9
29
43.3%
7
6
1
8
3
5

39
11
28
44.3%
8
6
2
6
1
5

34
7
27
42.0％
9
6
3
6
1
5

28
6
22
41.9%
7
3
4
13
5
8

－
－
－
50.0%
－
－
－
－
－
－

－
－
－
over50%
－
－
－
－
－
－

2

1

0

1

4

－

－

4
1
25.0%

4
1
25.0%

4
0
16.6%（Note9）

4
2
50.0％

4
2
50%

－
－
50.0%

－
－
－

27

29

31

32

33

－

－

4
14.8%
0.0%

3
10.3%
1.0%

5
16.1%
0.0%

5
15.6％
4.7％

5
15.2%
4.9%

－
40.0%
1.0%

－
over20％
－

93
38
55
41
20
21
12
10
2
6
(Note2)（Note1）Full-time, contract and seconded employees（Note2） Number of Persons as of end of April 2019 is the total number from FY2017（Note3） Tokyu Land Corp. and Tokyu Community Corp.
（Note4）Full-time employee（Note5） Implemented from FY2018（Note6）Including part-time staff（Note7）Full-time（Note8） Shared Group-wide criteria for TFHD Group FY2030 KPI （Note9） Only this item shows the figures as of June 2021.

58

Society
Status of Work-Style Reform and Diversity Promotion
Item

FY2017FY2018FY2019FY2020

FY2021

FY2022KPI target for2030

TFHD GroupFY2030 KPI（Note3）

Health check participation

97.7%

100%

96%

94.7%

100％

100%

100.0%

100%

Stress check participation

94.3%

97.8%

100.0%

98.9%

100％

99%

100.0%－

Annual paid leave per person

11.5days

10.8days

11.5days9.9days

11.1

12.8

－

－

Ratio of disabled employees

0.0%

0.0%

1.2%

1.0%

1.0％

1.7%

2.3%

－

Number of employees aged 60 or
above

1

1

1

3

2

3

－

－

Foreign employees

0

0

0

1

1

1

－

－

22.5hours

29.4hours

21.2hours

19.4hours

24.0hours

24.4hours

－

－

0

0

0

0

0

0

－

－

Absentee rate

0.5%

0.3%

0.5%

0.4%

0.3％

0%

－

－

Ratio of employees on leave

0.0%

0.0%

0.0%

0.0%

1.0％

1.1%

－

－

Childcare leave users

0

0

0

3

6

10

－

Ratio of malechildcare leave
100％Childcare short working
hour/childcare off-peak commuting
users（Note1）

1

2

1

0

5

5

－

－

Nursing-care leave users

0

0

0

0

0

0

－

－

Home Office utilization rate

―

―

100%

100%

100％

100%

－

－

Monthly average overtime
Number of workers’ injuries/death
incident（Note2）（Note4）（Note1） A system that allows flexible work hours corresponding to lifestyle (example: 8:00-16:30 work) （Note2）Utilization rate of work-from-home between March and April 2020
（Note3） Shared Group-wide criteria for TFHD Group FY2030 KPI （Note4） Only this item shows the figures as of June 2021.

59

Society
Initiatives to Local Communities
CRR and TRM believe that contribution to local communities lead to the improvement in value of the CRRʼs owned properties and ultimately by the unitholder value.
We make a variety of efforts in the owned properties to enhance communication with the local communities with an expectation that our business operation is to serve
an important role for the society.

Security of the local community
There is a police box on thepremises of COMFORIASHINJUKU EASTSIDE TOWER,
contributing to the security of thelocal community.

Contribution to the region
TRM periodically participate in“town cleaning” sponsored bygreen bird (specified non-profit
corporation).

Bicycle/Scooter Sharing services
Until October 1, 2023, we haveintroduced bicycle sharing space at 11
properties to provide convenient andhealthy transportation vehicles toresidents living in and nearby, making theconnection to local station orneighborhood faster and closer, andcontribute to the smart city planning ofTokyo.

Installation of donation-type vending machines
To improve the safety and sense of security of residents
and the local community, we have installed disaster
response vending machines at some of the properties
owned by CRR. These machines can provide drinks asrelief supplies to victims of strong earthquakes,
typhoons, and other natural disasters.

Corporate version Hometown Tax Payment
Through the regional revitalization support tax system,
TRM has been making donation to a fundraisingprogram to support medical staff in Hokkaido pref. where
CRR owns several properties since 2020. In addition,
CRR also donated to the Project Carbon Neutrality of
Kyoto Pref. where CRR also owns several properties.
These donations are part of efforts to “contribution to
local communities”, one of the Materiality that CRR
shares with TRM.

Disaster provision warehouse and manhole toilets
At COMFORIA SHINJUKU EASTSIDE TOWER, we haveestablished a disaster provision warehouse designated by
the Shinjuku ward and manhole toilets for neighboring
residents and workers in preparation for a disaster. We
have also entered into an emergency mutual assistanceagreement with three neighboring town councils tostrengthen partnerships.
60Society
Initiatives to Tenants
CRR believes that its owned properties should always meet tenant preferences to enhance the medium- to long-term value of our unitholders, and therefore tenantsatisfaction serves an essential role for that. To that end, we consistently communicate with them to understand their needs and reflect them for our asset management
operation.

Conduct Tenant satisfaction survey
Every year we carry out a questionnaire survey of the residents of the Comforia series, which are operated by CRR, on the Comforia brand as well as residents’ satisfaction
and requests regarding management and operation. Based on the opinions and requests of residents, we take actions with the aim of providing better services. An exampleof how we have improved tenant satisfaction is the increase in the number of delivery lockers in response to the opinion that there were not enough lockers due to therecent rise of e-commerce.
SurveyBuilding Cleaning(Common Areas)

Building
Management &Service

2017

2018

2019

2020

2021

2022

Satisfied

73％

68％

72%

73%

74％

74％

Neutral

14％

18％

15%

13%

12％

13％

Unsatisfied

13％

14％

13%

14%

14％

13％

Satisfied

68％

67％

69%

68%

69％

72％

Neutral

26％

22％

24%

24%

21％

20％

Unsatisfied

6％

11％

7%

8％

10％

8％

COMFORIA WELBOX

Premium Renovation for Unit Exclusive Area
COMFORIA WELBOX provides a wide range ofservices to the residents of the Comforia series,
which are operated by CRR. In addition tovarious discounts using the Group’s resources,
we offer preferential rates for moving to anotherproperty in the Comforia series and we carry out
resident satisfaction surveys using the
COMFORIA WELBOX platform in an effort toimprove resident satisfaction with the aim ofencouraging longer periods of residence.

COMFORIA DAIKANYAMAAOBADAI’s premium renovation work has been
conducted to meet the needs of tenants and realized value-added effects.
BeforeAfter

61

Society
Supply of emergency kits and evacuation map
After the Great East Japan Earthquake, to enhance the safety and the senseof security of our residents, we provide emergency kits (emergency food andgoods) in the elevators of every property. We also provide waterstops andflood barrier panels at some properties to prepare for inundation, dependingon their locations. Additionally, we post evacuation maps in common space ofall properties to inform residents of area for evacuation in preparation for anearthquake or other disaster.

Cooperation with tenants
As part of our initiatives in collaboration with tenants, we created and distributed a
Sustainability Guide. This guide promotes reduction of households’ environmental
footprint, primarily through energy saving and the 3 Rs, and tenants are pursuing
various efforts aimed at the realization of a sustainable society.

Predicting flood risks
CRR keeps abreast of possible flood damage to its portfolio with the help of
hazard maps prepared by the Ministry of Land, Infrastructure, Transport andTourism and local governments. (CRR uses information on flood and inundation
hazard areas as well as storm surge and inundation hazard areas.) To minimize
economic losses, CRR makes necessary Preparation for Disasters for its
properties and has a fire insurance that covers flood losses in place for each ofthem. Please check earthquake PML in Financial Statements.

Effort to advance health / wellness

Monthly pool events (SUP YOGA,
swimming clinic, water aerobics, etc.)
are held exclusively for residents of
COMFORIA SHINJUKU EASTSIDETOWER by TOKYU SPORTS Oasis.

62

Society
Initiatives to Suppliers
TRM recognizes the importance of cooperation with its suppliers, as stated in the Sustainability Policy, that it provides initiatives and procurement with consideration
to the environment and society, through engagement to suppliers such as PM , BM , Appraisal companies and Engineering Report companies etc. As part of theinitiatives, TRM established the Green Procurement Standard and monitors ESG consideration in the operation of its important suppliers including PM and othercompanies.

Joint seminars

Label-free Drink
We work to foster a culture that ESG
initiatives are to be taken by ourentire supply chain, not limited to theofficer and employees of TRM. To
that end, ESG training sessions are
co-organized by TRM and PMs.
In FY2022, TRM also organizedvirtual seminars themed ESG
overview and trend, how to approachto ESG issues of the Green
Procurement Standards.

Since April 2022, TRM has introduced
label-free pet bottle drinks to reduceusage of plastic and simplify wastesorting. The label free drinks are provided
to visitors and employees, procured fromsuppliers who are committed to work forsustainable society and environment, forthe purpose of enhancing theenvironment protection consciousness.

Local staff awards

At COMFORIA SHINJUKU EASTSIDE TOWER,
we provide awards for concierge staff.
In addition to increasing the motivation of thesestaff members, we believe this helps to establish
an operating structure with a feeling of
togetherness between asset management andbuilding management personnel.

63Society
Green Procurement Standard
As a member of TFHD Group, TRM shares the Groupʼs “Sustainable Procurement Policy” published on January 31, 2020 and works on challenges to environmental
crisis such as climate change. Our objective is to work on this goal, together with all the stakeholders including our suppliers. In line with the Groupʼs procurement
policy, TRM established the “Green Procurement Standard” to translate the policy into practical measures. This standard broadly states to suppliers that environmentfriendly procurement is to be carried out, and together with them, TRM works to promote more sophisticated efforts based on the Policy. The scope of application ofthis standard includes direct or indirect transactions related to products, services, raw materials, and design/construction procured by TRM and CRR.
TFHD Group Sustainable Procurement Policy Articles
1)Legal compliance1)-1 Total compliance with relevant laws and regulations2)Respect for human rights2)-1 Compliance with and respect for international humanrights and labor standards2)-2 No tolerance of discrimination2)-3 No tolerance of harassment2)-4 Respect for local residents2)-5 Respect for minority rights

3)Ensuring a work
environment based onsafety,health and well-being3)-1 Freedom of association, collective bargaining rights3)-2 No tolerance of forced labor3)-3 No tolerance of child labor3)-4 Fair wages3)-5 Elimination of excessive working hours3)-6 Workplace health and safety measures3)-7 Emergency preparedness3)-8 Prevention of occupational accidents and illness3)-9 Industrial Hygiene measures3)-10 Measures for physically demanding work3)-11 Proper sanitary facilities, meals and housing3)-12 Protection of foreign and migrant worker rights

4)Ensuring proper businessethics4)-1 Preventing corruption4)-2 Preventing contact with organized crime4)-3 Ensuring fair trade practices4)-4 Appropriate response to conflicts of interest4)-5 Responsible political involvement4)-6 Protection of intellectual property rights4)-7 Maintaining confidential information anddisclousure4)-8 Compliance hotline and whistleblower protection5)Environmental measures5)-1 Combatting climate change5)-2 Biodiversity protection5)-3 Protection of pollution5)-4 Effective use of resources5)-5 Proper water use
5)-6 Ensure appropriate use of forest resources6)Improving service and quality6)-1 Ensuring safety6)-2 Quality control and quality assurance systems6)-3 Proper information disclosure for products andservices

7)Proper information
management7)-1 Proper information management8)Business Continuity Planning8)-1 Business Continuity Planning9)Contributing to local
communities9)-1 Contributing to local communities

10)Extension of the Sustainable
Procurement Policy10)-1 Extension to business partners
10)-2 Cooperation for monitoring64

Society

Initiatives Complying with Green Procurement Standards
Environment-friendly/Energy-efficiency construction materials/facilities Lists
have been made and used as attachments in bid specifications for Large-scale
repair work.

COMFORIA GINZA EAST NIBANKAN

Recyclable
Tile Carpet adopted toenhance resource efficiency

65

Society
Investor Relations（Domestic）
CRR and TRM regard appropriate information disclosure and active dialogue with unitholders as one of the important tasks.
Based on this policy, TRM holds meetings with domestic institutional investors, as well as giving presentations for the individual investors in Japan and participating in
events and online seminars for individual investors, and release releasing videos of financial results briefings, to discloses information proactively.
Besides, with COVID-19 settled down, we actively participate in onsite and in-person interviews and events.
IR Activities for Domestic Institutional Investors◆

Sep 2022～Dec 2022

Sep 20, 2022

Video of Financial Results Briefing(Japanese Version only)◆◆Video of Financial Results Briefing(Japanese Version only)

One on One MTG
with domestic Investors

67

25th FPAug 2022

Mar 2023～Jun 2023

Mar 15, 2023◆

One on One MTG
with domestic Investors

55

26th FP
Sep

Oct

Nov

Dec

Jan. 2023

Feb

Mar

Apr

May

Jun

Jul

IR Activities for Domestic Individual Investors◆

Oct 29,2022

SMBC NIKKOWEB J-REIT Fair 2022◆

May 17, 2023

Ms. Mariko Mabuchi’s J-REIT Club (Face to Face)

66

Society
Investor Relations（Overseas）
CRR and TRM regularly meet with institutional investors in Japan and also in countries in Europe, North America, Asia, etc.
With COVID-19 settled down, we held onsite meetings during the 26th fiscal period.
As the first visit under the new management, we shared the current operation situation and discussed management issues
with our investors, in the meantime, we maintained relationships with existing investors and met with new investors who
had been developed during COVID-19, thereby fostering a feeling of trust with regard to CRR and TRM.
IR Activities for Overseas Institutional Investors（One on One Meetings）◆◆

Asia（Singapore・Hong Kong, etc）
Sep 2022～Dec 2022

Mar 2023～Jun 2023

Europe（UK・Netherland, etc）
Sep 2022～Dec 2022

Mar 2023～Jun 2023◆

Onsite Meetingsー◆Onsite Meetings

15◆

Onsite Meetingsー◆Onsite Meetings

4◆

Online Meetings

15◆

Online Meetings

4◆

Online Meetings

4◆

Online Meetings

3

May

Jul

25th FP

26th FPAug 2022
◆

Sep

Oct

Nov

Dec

Jan. 2023◆

North America（America・Canada）
Sep 2022～Dec 2022

Feb

Mar 2023～Jun 2023

Mar

Apr

Jun

Pacific（Australia）
Sep 2022～Dec 2022

Mar 2023～Jun 2023◆

Onsite Meetingsー◆Onsite Meetings

5◆

Onsite Meetingsー◆Onsite Meetings

5◆

Online Meetings

6◆

Online Meetings

2◆

Online Meetings

1◆

Online Meetings

167

Initiatives at COMFORIA SHINJUKU EASTSIDE TOWER

With a site area of more than 1,000 square
meters, COMFORIA SHINJUKU EASTSIDETOWER has developed a greening plan inaccordance with the Ordinance for theConservation and Restoration of Nature inTokyo, based on which it offers a lush
space filled with natural features.

Energy-efficient glass is used in thewindows to reduce the amount of sunlightand heat that enters, in this way
alleviating the burden on the airconditioning systems.

A large windowed entrance allows the useof natural daylight.

An open space is used as a walkway forneighboring residents and commuters.

Artworks of our Shinjuku 6-chome Plan Art
Project are exhibited on the premises andinside the building.

AEDs (automated external defibrillators) areinstalled in the disaster control center and at
the pool on the 32nd floor.

Monthly pool events (SUP YOGA,
swimming clinic, water aerobics, etc.) are
held exclusively for residents.

Pamphlets in Foreign Languages

Resident Satisfaction Surveys

To further improve user satisfaction, user guides forresidents from overseas are provided at Comforia
Shinjuku Eastside Tower. The guides are prepared in
English, Chinese, and Korean.

A questionnaire survey of residents is carried out oncea year and the issues identified are then improved.
Improvements：
Room temperature adjustments in each facility
Cleaning of gym equipment
Enhancement of lounge menus, etc.

68

Governance

Our View on Governance
We have established a comprehensive corporate
governance and compliance management structure andconduct ourselves in a highly ethical manner in order tomeet the expectations and earn the trust of society.

69GovernanceRelevant SDG targets

12.8 By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles inharmony with nature
16.7

Ensure responsive, inclusive, participatory and representative decision-making at all levels

CRR’s Corporate GovernancePursuant to the Act on Investment Trusts and Investment Corporations (“ITA”), CRR entrusts its asset management operations to TRM.
◼ CRR’s governance structure
CRRʼs organization comprises a unitholdersʼ meeting, a board of directors currently comprised of executive director and supervisory director, and an independent auditor.
It is stipulated that CRR shall have at least one executive director and at least two supervisory directors (however, the number of supervisory directors must be at least one
more than the number of executive directors). As of the end of July 2023, there were one executive director and two supervisory directors.

Board of Directors
Unitholders’ Meeting

Executive Director: Kentaro Yoshikawa
Supervisory Director: Koji Yamamoto
Supervisory Director: Masamichi Ohshima

Independent Auditor
Ernst & Young ShinNihon LLC◼ Unitholders’ meeting
Matters and issues on CRR, that are originally stipulated at ITA and other relevant laws & regulations, are to be resolved at unitholders' meeting.

70

Governance◼ Executive Director and Supervisory Directors
The term of office for directors and supervisory directors based on regulations are two years.

Position

Name

Number of Units Held

Executive Director

Kentaro Yoshikawa－

Koji Yamamoto－

Masamichi Ohshima－

Supervisory Directors◼ Eligibility requirements
Candidate for directors must not fall under any disqualification clause as defined in the ITA. Such candidates shall be examined and appointed at a unitholdersʼ meeting.

◼ Compensation
The maximum compensation amounts for the executive director and supervisory directors are stipulated in the articles of incorporation, and compensation is determinedby the board of directors.

Position

Name

Concurrent positions

Executive Director

Kentaro Yoshikawa

Executive Director, the General Manager of Asset Management
Department, Comforia Management Division, TLC REIT Management
Inc.

Koji Yamamoto

Compensation received（¥ thousand / fiscal period）－

Partner, WAKABA PARTNERS Law And Accounting Office

1,800

Kataoka & Kobayashi

1,800Supervisory Directors

Masamichi Ohshima◼ Board of Directors
At the meeting of the board of directors, the executive director reports on the performance of its duties and the supervisory directors supervise to ensure that CRR operates
the asset management in compliance with legal and regulatory requirements. The meeting frequency of the board should be at least once in three months as stipulated underinternal regulations of CRR. However, it is held every month with a 100% attendance of directors in FY2022.

71

Governance◼ Independent auditors
The independent auditor shall audit the financial statements of CRR and report to the supervisory directors any improper activity of the executive director. The term of office of the
independent auditor comes to an end at the first unitholdersʼ meeting held after the first financial period closed after one year or more from the appointment date. The auditor shallbe reappointed except as otherwise resolved in a unitholdersʼ meeting.
Excerpt from the semi-annual report for the fiscal period ended July 2023
Position

Name

Independent auditor

Ernst & Young ShinNihon LLC

Compensation（¥ thousand / period）
17,038(Note)（Note）The amount includes the fees pertaining to the production of an “Auditor’s Comfort Letter to Lead Underwriting Firm” related to the issuance of CRR bonds conducted in July 2022.

72

Governance
TRM’s Corporate Governance
TRM works to enhance corporate governance to exercise a fiduciary duty and a duty of loyalty to CRR as stipulated in the asset management agreement.
◼ TRM management organization
Under the management organization shown below, TRM exercises its asset management operation, and the Comforia Management Division undertakes the management ofassets of CRR. TRM has established the Investment Committee and the Compliance Committee to deliberate matters related to asset management and compliance, and theAcquisition Priority Review Meeting to determine the order of priority for consideration. In April 2021, TRM established the rules on the Sustainability Promotion System tostrengthen the system and expand the functionality of measures. Following this, the Sustainability Promotion Council obtained a more accurate position in the organization. The
Sustainability Department succeeds the ESG-related missions from the Environmental Engineering Department, and we will further promote our sustainability program.
Shareholders’ Meeting
Corporate Auditor
Board of Directors
Investment Committee

Compliance Committee
President & CEO

Sustainability Promotion
CouncilAcquisition Priority
Review Meeting

Internal Audit Dept.

Compliance Dept.

Corporate
Management
Div.

Corporate
Planning
Dept.

Human
Resources
Dept.

Finance &Accounting
Dept.

Activia
Management Div.

DigitalSustainability
Dept.

Transformation

Promotion
Dept.

Asset
Investment
Dept.

Environmental
Engineering
Dept.

Strategy
Dept.

Asset
Management
Dept.

Comforia
Management Div.

Strategy
Dept.

Asset
Management
Dept.

Broadia
Management
Div.

Strategy
Dept.

Asset
Management
Dept.

73

Governance◼ Compliance

TRM has established a Compliance Department and Compliance Committee, which ensure that compliance checks are implemented. The Compliance
Committee is a body that discusses and makes resolutions regarding conflicts of interest, transactions with related parties, internal compliance, andcompliance readiness. Compliance management is implemented in adherence to the TFHD Group Code of Conduct.

Compliance Policy

Key points of “TFHD Group Code of Conduct”
1.Ensure compliance with laws and regulations applicable to our business activities
2. As TFHD Group employee, treat our customers sincerely to maintain their trust
3. Generate a corporate culture that enables frank communication on difficult issues involving work
4. Enhance solidarity of TFHD Group and promote mutual understanding with stakeholders
5. Enforce proper management of information
6. All employees will understand and focus on ethical conducts and be a reasonable professional
7. Make efforts to create safe workplace and be considerate of the environmental conservation（Members）
General Manager of Compliance Department (Chair), representative directors, directors (if consecutively serving as General Manager of the Investment
Management Division, cannot attend Council meetings concerning REITs that the director is not in charge of), and external expert (attorney) on complianceappointed by the board of directors.
(Agenda)The Council shall resolve the following matters.
With respect to 1 to 5 , agenda shall be restricted to transactions with related parties and matters deemed necessary by the General Manager ofCompliance Department.

Compliance Committee

1. Establishment and amendment of basic investment policy concerning asset management by each REIT
2. Determination and change in acquisition or disposal of assets by each REIT and the terms and conditions thereof
3. Establishment and amendment of asset management plan by each REIT
4. Establishment and amendment of basic policy concerning asset management by each REIT
5. Establishment and amendment of basic policy concerning funding, cCRRtal policy and dividend policy for each REIT
6. Matters related to transactions with related parties (provided, however, excluding transactions defined as not requiring prior approval by theCompliance Council)
7. Preparation and amendment of the Compliance Manual and Compliance Program
8. Deliberation and resolution on improvement measures concerning inappropriate acts in terms of regulatory compliance and preventative
measures, etc.
9. Matters for which the General Manager of Compliance Department deems deliberation by the Compliance Council is necessary（Date and place）
As a general rule , the committee meets at the head office at least once every three months.

74

Governance◼ Measure taken to enhance compliance awareness
Divisional Compliance Staff

Each year, divisional compliance staff are appointed from each division to perform periodic monitoring on compliance matters. The officers
report compliance status in his/her division and share related information.

Compliance training

In order to ensure compliance and increase awareness, we provide over twice compliance trainings each year to all officers and employees
focusing on the enforcement of the compliance basic policy and standards, and learning applicable laws and regulations, etc., and provide
orientation and follow-up (for employees new to the financial instruments business, after six months have passed since hiring).

◼ Internal Auditing and Monitoring System
In its internal auditing regulations, TRM has formulated an internal auditing plan, which stipulates that internal auditing shall be conducted for all departments each fiscal year, withthe exception of the Internal Audit Department. As an asset management company, with a view to investor protection and fair market formation, it audits whether tasks related toreadiness in the areas of legal compliance, internal control, risk management, crisis management, etc. are being carried out appropriately and efficiently. Furthermore, with thesupport of external professionals, it audits a wide range of items for all departments, such as the appropriateness of information management, compliance with internal rules, andadherence to the Act on Prevention of Transfer of Criminal Proceeds and reports the audit results to TRM’s representative directors and board of directors. Matters detected by anaudit are communicated to the audited department via a ”Directive for Improvement,” and the head of the audited department that was notified implements improvement actions
and reports on the status of the improvements to the representative directors and the head of the Internal Audit Department without delay. The department in charge of auditing
also periodically verifies the status of improvements.
The 10 Principles of the UN Global Compact◼ Prevention of Corruption
Corruption creates significant obstacles against sustainable development and corrodes
the social structure. TRM recognizes that commitment to prevention of corruption is an
important issue for the society and has established rules on identity confirmation fortransaction with customers, etc. in accordance with the Act on Prevention of Transfer of
Criminal Proceeds.
TFHD is a signatory to the United Nations Global Compact (UNGC), and as a Group
member, TRM supports the ten principles of UNGC. (Principle 10. Businesses should
work against corruption in all its forms, including extortion and bribery.)HumanrightsPrinciple 1: Businesses should support and respect the protectionof internationally proclaimed human rights; andPrinciple 2: make sure that they are not complicit in human rights
abusesLabor

Principle 3: Businesses should uphold the freedom of associationand the effective recognition of the right to collective
bargaining
Principle 4: the elimination of all forms of forced and compulsory
labor:
Principle 5: the effective abolition of child labor; andPrinciple 6: the elimination of discrimination in respect of
employment and occupation

Environment

Principle 7: Businesses should support a precautionary approachto environmental challenges;
Principle 8: undertake initiatives to promote greater
environmental responsibility; andPrinciple 9: encourage the development and diffusion ofenvironmentally friendly technologies

Anticorruption

Principle 10: Businesses should work against all forms ofcorruption, including extortion and bribery

Supporting International Initiatives
The TFHD Group supports and respects the OECD Guidelines for Multinational
Enterprises, international labor standards, and the UN’s Guiding Principles on
Business and Human Rights. Moreover, it declared its support for the UN Global
Compact in December 2016. It is pursuing responsible management based on the 10
principles of the UN Global Compact, which is composed of “human rights,” “labor,”“environment,” and “anti-corruption,” and contributing to the realization of a sustainable
society.

75

Governance◼ Official Policy Against Antisocial Forces
In order to safeguard the propriety of its business activities and ensure that we are able to meet our social responsibilities and fulfill our public mission, TRM abjures dealings ofany kind with antisocial forces.
Working with legal and law enforcement bodies and other third parties, TRM is in a position to respond firmly to all improper demands. TRM’s Compliance Manual and Rules for
Responding to Antisocial Forces has established specific safeguards and procedures for responding to the actions of antisocial forces. TRM also promotes a thorough awarenessof these issues among management, employees, and other pertinent parties and provides the training needed to ensure a specific and appropriate response.

TFHD Group’s Whistle-blowing System◼ Establishment of whistle-blowing system
TRM established the Compliance Helpline Counter as a contact point to report andconsult on compliance matters including when harassment and bullying is
experienced or observed, enabling all officers and employees to directly report to theCompliance Officer of TRM, General Manager of Legal Affairs Department of TLC,
General Manager of Group Legal Affairs Department of TFHD, or external attorneys.
Moreover, we pledge to maintain the confidentiality of personal information or
investigation-related information about the individual who reported or consulted on thematter and the subject of the report or consultation, which shall not be disclosed
internally or externally without good reason.

Item

FY2017FY2018FY2019FY2020

FY2021

FY2022

TFHD GroupFY2030 KPI

Adherence with Compliance Code of Conduct

100%

100%

100%

100%

100%

98.7%

100%

Awareness of Compliance Helpline Counter

89%

90%

87%

90%

88%

89％

－

（Note）Shared Group-wide criteria for TFHD Group FY2030 KPI

76

Governance◼ Risk Management
TRM established a basic policy on the strategic targets, as well as risk management rules to implement appropriate management of risks.

(Basic Policy on Risk Management)

Basic Policy on Risk
Management

1. In accordance with our management principles, we aim to secure long-term stable revenue and maximize unitholder value by establishing amanagement system in accordance with these Rules and implementing appropriate risk management against various risks involved withengaging in investment management business.
2. Officers and employees, etc., shall recognize the importance of risk management, each be aware that they are the agent of risk management,
understand these Rules and internal rules, etc., and strictly comply with the same .
3. Risk management shall be executed with necessary and appropriate rules, detailed rules and standards, etc., being established; organizationaland resource measures implemented; and responsibilities clarified.
4. Necessary and appropriate management and supervision shall be implemented for business outsourcing partners as well as to officers andemployees, etc.
5. Risk management training, etc., shall be conducted to promote thorough awareness by officers and employees, etc., and to maintain/improve
effectiveness of the Basic Policy.
6. Basic Policy stated in this Article shall be reviewed periodically or as necessary such as when changes occur to strategic targets.

Risk management
framework

TRM conducts sophistication of its risk management framework with a certain support from external experts. Risk management function falls under the
responsibility of the Compliance Department supervised by the Compliance Officer. The Compliance Department is a stand-alone department, independent
from business operating divisions. It performs a series of risk assessment including operational risk, etc.

Risk management
training

TRM provides periodical risk management educational session with all officers and employees by external lecturers and works to improve risk
management ability of each department's members.

Information security

In order to enhance security of information assets and appropriate use of them, TRM has set forth basic rules on information security management which
stipulates principal matters related to information protection with clarifying the responsibility for information management. TRM has also established therules on IT management to stipulate appropriate management of information asset by each officer and employee according to the level of their roles andresponsibilities.

Business continuity
planning

To strengthen its resilience, TRM sets a business continuity plan, related rules and manuals, and makes updates when necessary, in preparation for
unexpected crisis such as disaster and social disruption. In accordance with these rules, we work to prevent and mitigate impact from crisis including
recent natural disasters and COVID-19. We also pay close attention to the materials and equipment used in the properties of CRR and make every effort toprevent incident by staying well informed of defect products and carrying out research.

77

GovernanceInitiatives for Governance Emphasizing Unitholders’ Value
While leveraging the TFHD Group’s value chain, CRR and TRM have developed a comprehensive governance structure aimed at maximizing CRR unitholders’value by ensuring objectivity in the asset management-related decision-making flow, aligning our interests with unitholders and sponsor, and implementing amanagement fee structure that includes management fees linked to the dividend per unit.

Securing objectivity in decision-making process
With a view to protecting the interests of unitholders, TRM has established a structure that ensures objectivity in the decision-making process for acquiring assets
under management by including third-party real estate appraisers as members of the Investment Committee.

Proposal by responsible department

Approval by Compliance Officer
In case of related-party transactions and other necessary cases

Compliance Committee deliberation and resolution (Note1)

Investment Committee deliberation and resolution(Note2)

Approval by each Chief Division Officer
In case of related-party transactions and other necessary cases

Prior approval by CRR’s board of directors(Note1)

Report to CRR

Report to the Board of Directors（Note1）Deliberation and resolution by the Compliance Committee as well as prior approval by CRR’s board of directors will be required for acquiring assets, etc.
In case of related-party transactions and other necessary cases.
（Note2）If the candidate acquisition asset is a healthcare facility, advisory from external experts related to healthcare facilities shall be sought. Furthermore, discussions shall be held upon receiving a reporton the content of reports, etc. created by external experts related to healthcare facilities and, if necessary, the Investment Committee shall be attended by the concerned external experts as observers
and their opinions shall be heard.

78

GovernanceAligning Interests Between Unitholders and the Sponsor
In the Sponsor Support Agreement, TLC has made it clear that if and when CRR decides to issue additional units, a subscription of a part of such issuance shall besincerely considered.
In the public offering held in Feb.2023, the sponsor acquired 2,100 units, which is 10% of the number of issuing units. Even in terms of apital relationship, CRR aims to
make a strong relationship with the sponsor and to achieve mutual interests improvement by aligning the interests of unitholders to that of the sponsor.

Sponsor’s investment ratio

9.1%（as of July 31, 2023）
Change in Asset Management Fee System
Under the asset management fee structure that has been applied since August 1 , 2020, Incentives have been introduced for further improvement of and growth ofunitholder value and enhanced linkage with the interests of unitholders.
Before change

Current

Total assets at the end of previous fiscal
period×0.3％（annual rate）

Total assets at the end of previous fiscal
period×0.2％（annual rate）

Ordinary CF × 3.0％

Ordinary CF×5.4％

Management feeⅢ

Property acquisition / disposition price×1.0％

Property acquisition / disposition price×1.0％(acquisition and disposition fee)

（0.5％ in the case of transactions with related parties）

Management fee Ⅰ（fee linked to total assets）

Management feeⅡ
（fee linked to profit）

Management feeⅤ
（incentive）―

Enhancing the linkage between
the interests of unitholders andasset management fees

(0.5％ in the case of transactions with related parties(excluding warehousing))

Ordinary CF×growth rate of ordinary CF
per unit ×10％

Strengthening incentives for
growth of AUM and distributions

However, no fee will occur when the value is negative

Newly established

79

GRI Content Index
Disclosure

Location or reason for omission

GRI2: General Disclosures 2021
1. The organization and its reporting practices
2-1

2-2
2-3

2-4
2-5

Organizational details

https://www.comforiareit.co.jp/en/about/profile.html
https://www.comforiareit.co.jp/en/about/structure.html

ProfileStructure

Entities included in the organization’ssustainability reporting

None

Reporting period, frequency and contact https://www.comforiapoint

reit.co.jp/en/sustainability/disclosure.html

Restatements of information

https://www.comforiareit.co.jp/en/contact/index.html
Nothing in particular

External assurance

https://www.comforiareit.co.jp/en/sustainability/disclosure.html

Sustainability Report and GRI Index
Contact us「Sustainability Report2023」
p56 Independent AssuranceStatement

2. Activities and workers
2-6

Activities, value chain and otherbusiness relationships

https://www.comforiareit.co.jp/en/features/index.html
https://www.comforiareit.co.jp/en/about/profile.html

Basic Policies
Profilehttps://www.tokyutrm.co.jp/en/sustainability/esg.html#c3
2-7

Employees

Since the Asset Management Company has
only one office, there are no regional【Asset Manager】
Key Employee Datedifferences (same below)
2-8Workers who are not employees

https://www.tokyu-【Asset Manager】

trm.co.jp/en/sustainability/esg.html#c3

Key Employee Date
80

GRI Content Index

Disclosure

Location or reason for omission

3. Governance
2-9

2-10

2-11

https://www.comforiaOfficers
reit.co.jp/en/about/profile.html
https://www.comforiaStructure
reit.co.jp/en/about/structure.html
https://www.comforiaPromotion System
reit.co.jp/en/sustainability/index.html
https://www.comforiaNomination and selection of the highest reit.co.jp/file/ir_library_other_fileArticles of Incorporation (in Japanese)
81414b4dc9a22288429b883023a83ccf01293c74.
governance body
pdf
Governance structure and composition

Chair of the highest governance bodyhttps://www.comforiareit.co.jp/file/ir_library_other_fileArticles of Incorporation (in Japanese)
81414b4dc9a22288429b883023a83ccf01293c74.
pdf

Role of the highest governance body2-12

in overseeing the management of
impacts

2-13
2-14

Delegation of responsibility for
managing impacts
Role of the highest governance bodyin sustainability reporting

https://www.comforiareit.co.jp/en/sustainability/index.html

Promotion System

https://www.comforiareit.co.jp/en/sustainability/materiality.html

Materiality

https://www.comforiareit.co.jp/en/sustainability/index.html

Promotion System

https://www.comforiareit.co.jp/en/sustainability/index.html

Promotion System

81

GRI Content Index

Disclosure
2-15

Conflicts of interest

2-16

Communication of critical concerns
Collective knowledge of the highest

Location or reason for omission
https://www.comforiaGovernance System
reit.co.jp/en/about/governance.html
https://www.comforiareit.co.jp/file/ir_library_other_fileReport on Management Structure of the
491f256ccf79dbb3769ac83e11aab563818b4658. REIT Issuer (in Japanese)
pdf
https://www.comforiareit.co.jp/en/sustainability/index.html
Promotion System
No critical concerns reported during the reporting
period.
https://www.comforiareit.co.jp/en/sustainability/index.html

Promotion Systemhighest governance bodyhttps://www.comforiareit.co.jp/en/sustainability/index.html

Sustainability Promotion Council

2-19

Remuneration policies

https://www.comforia-reit.co.jp/ja/ir/library.html

Articles of Incorporation (in Japanese)

2-20

Process to determine remuneration

https://www.comforia-reit.co.jp/ja/ir/library.html

Articles of Incorporation (in Japanese)

2-17
2-18

governance body
Evaluation of the performance of theLegally, the investment corporation
does not have employees. The
2-21

Annual total compensation ratio

relevant information of the asset
management company is notaggregated at this time.

82

GRI Content Index
Disclosure

Location or reason for omission

4. Strategy, policies and practices
2-22
2-23

Statement on sustainable development
strategy
Policy commitments

https://www.comforiareit.co.jp/en/about/index.html
https://www.comforiareit.co.jp/en/features/index.html
https://www.comforiareit.co.jp/en/sustainability/index.html
https://tokyu-fudosan-hdcsr.disclosure.site/en/themes/32※As a Group member, we share the Tokyu
Fudosan Holdings Group Human Rights

Greetings
Feature & Strategy
Sustainability Policy

Human Rights and Community（Tokyu Fudosan Holdings）

Policy.
2-24

2-25

2-26

Embedding policy commitments

https://www.comforiareit.co.jp/en/sustainability/index.html

Processes to remediate negative

https://www.tokyu-

impactstrm.co.jp/en/sustainability/esg.html#c4

Mechanisms for seeking advice andhttps://www.tokyu-

raising concerns

trm.co.jp/en/sustainability/esg.html#c4

2-27

Compliance with laws and regulations

2-28

Membership associations

Sustainability Promotion Council【Asset Manager】
Establishment of whistle-blowing
system【Asset Manager】
Establishment of whistle-blowing
systemhttps://www.tokyu-fudosan-

Establishment of Compliancehd.co.jp/english/about/compliance/

Helpline（Tokyu Fudosan Holdings）

No violations during the reporting period
https://www.comforiareit.co.jp/en/sustainability/initiative.html

International Initiatives, etc.
83

GRI Content Index
Disclosure

Location or reason for omission

5. Stakeholder engagement
2-29

Approach to stakeholder engagement

2-30

Collective bargaining agreements

https://www.comforiareit.co.jp/en/sustainability/examples.html
100%

Examples of initiatives【Asset Manager】

GRI 3: Material Topics 2021
3-1

Process to determine material topics

3-2

List of material topics

3-3Management of material topics

https://www.comforiareit.co.jp/en/sustainability/materiality.html
https://www.comforiareit.co.jp/en/sustainability/materiality.html
https://www.comforiareit.co.jp/en/sustainability/materiality.html
https://www.comforiareit.co.jp/en/sustainability/examples.html

Materiality
Materiality
Materiality
Examples of initiatives

201: Economic Performance 2016
201-2

Financial implications and other risks

https://www.comforia-

and opportunities due to climate change reit.co.jp/en/sustainability/climate.html

Addressing Climate Change

205: Anti-corruption 2016
205-2

Communication and training about anti- https://www.tokyu-【Asset Manager】

corruption policies and procedures

trm.co.jp/en/sustainability/esg.html#c4

Compliance Training

https://tokyu-fudosan-hd-

Anti-Corruption Policy（Tokyu Fudosan

csr.disclosure.site/en/themes/38

Holdings）※As a member of the Tokyu Land HoldingsGroup, we share the above policy
205-3

Confirmed incidents of corruption andactions taken

No incidents

206: Anti-competitive Behavior 2016
Legal actions for anti-competitive
206-1

behavior, anti-trust, and monopoly

No incidents

practices
84

GRI Content Index

Disclosure

Location or reason for omission

GRI 300: Environmental
302: Energy 2016
302-2
302-3

Energy consumption outside of thehttps://www.comforia-「Sustainability Report2023」

organization

reit.co.jp/en/sustainability/disclosure.html

p25 Actual Figures

https://www.comforia-「Sustainability Report2023」

reit.co.jp/en/sustainability/disclosure.html

p25 Actual Figures

https://www.comforia-「Sustainability Report2023」

reit.co.jp/en/sustainability/disclosure.html

p25 Actual Figures

https://www.comforia-「Sustainability Report2023」

reit.co.jp/en/sustainability/disclosure.html

p25 Actual Figures

https://www.comforia-「Sustainability Report2023」

reit.co.jp/en/sustainability/disclosure.html

p25 Actual Figures

Energy indirect (Scope 2) GHG

https://www.comforia-「Sustainability Report2023」

emissionsreit.co.jp/en/sustainability/disclosure.html

p25 Actual Figures

https://www.comforia-「Sustainability Report2023」

reit.co.jp/en/sustainability/disclosure.html

p25 Actual Figures

Energy intensity

303: Water 2018
303-5

Water consumption

305: Emissions 2016
305-1
305-2
305-4

Direct (Scope 1) GHG emissions

GHG emissions intensity

307: Environmental Compliance 2016
307-1

Non-compliance with environmental
laws and regulations

No violations during the reporting period

85

GRI Content Index
Disclosure

Location or reason for omission

GRI 400: Social
401-1

New employee hires and employee turnover

401-3

Parental leave

https://www.tokyu-【Asset Manager】

trm.co.jp/en/sustainability/esg.html#c3

New Hire

https://www.tokyu-【Asset Manager】

trm.co.jp/en/sustainability/esg.html#c3

Childcare leave users

https://www.tokyu-【Asset Manager】

trm.co.jp/en/sustainability/esg.html#c3

Health Committee

403: Occupational Health and Safety 2018403-2

Hazard identification, risk assessment, andincident investigation

403-4

Worker participation, consultation, andcommunication on occupational health andsafetyEmployees also take part in the healthcommittee disclosed below.

【Asset Manager】

https://www.tokyu-

Health Committee

trm.co.jp/en/sustainability/esg.html#c3
Caring out lectures by industrial doctors

403-5

Worker training on occupational health andsafetyand planned classes related to harassment.
https://www.tokyutrm.co.jp/en/sustainability/esg.html#c3

403-6

403-9

403-10

Promotion of worker health

Health Committee【Asset Manager】

health checks.

Our Commitment

https://www.tokyu-

Status of Work-Style Reform andtrm.co.jp/en/sustainability/esg.html#c3

Diversity Promotion

trm.co.jp/en/sustainability/esg.html#c3
https://www.tokyu-

Work-related ill health

Various employee training programs

Carrying out stress checks and regular

https://www.tokyuWork-related injuries【Asset Manager】

trm.co.jp/en/sustainability/esg.html#c3【Asset Manager】
Number of worker's injuries/death
incident【Asset Manager】
Status of Work-Style Reform andDiversity Promotion
86

GRI Content Index

Disclosure

Location or reason for omission

404: Training and Education 2016
404-1
404-2

Average hours of training per year per

https://www.tokyu-

employeetrm.co.jp/en/sustainability/esg.html#c3

Programs for upgrading employee skills https://www.tokyuand transition assistance programs

trm.co.jp/en/sustainability/esg.html#c3【Asset Manager】
Employee Development【Asset Manager】
Employee Development

Both contracted employees and regular
employees receive performance and career
404-3

Percentage of employees receiving

development reviews in the same

regular performance and career

structure, and aim to set the goals anddevelopment reviews

communicate with superiors.
https://www.tokyutrm.co.jp/en/sustainability/esg.html#c3【Asset Manager】
Performance Evaluation Process

405: Diversity and Equal Opportunity 2016405-1

Diversity of governance bodies andhttps://www.comforia-

employees

reit.co.jp/en/about/profile.html

Officers【Asset Manager】

https://www.tokyu-

Key Employee Datetrm.co.jp/en/sustainability/esg.html#c3

Status of Work-Style Reform andDiversity Promotion

87

GRI Content Index

Disclosure

Location or reason for omission

413： Local Communities 2016
Operations with local community engagement,
impact assessments, and development
programs
Note: We report information on our properties inconsideration of the purpose of this standard.
GRI G4: Construction and Real Estate Sector Disclosures
413-1

https://www.comforiareit.co.jp/en/sustainability/examples.html

Initiatives in local communities

CRE
Type and number of sustainability
certification, rating and labelling
CRE8

schemes for new construction,
management, occupation andhttps://www.comforiareit.co.jp/en/sustainability/evaluation.html

Environmental Certification

redevelopment

88Independent Assurance Statement89