Sustainability
Report 2021
Issued on December 15, 2021

About thisSustainability
ReportIn recent years, interest in ESG (environment, social andgovernance) has been growing since then among companies
and investors.
Daiwa Office Investment Corporation (the “Investment
Corporation”) has, together with Daiwa Real Estate AssetManagement Co. Ltd. (the “Asset Manager”) to which theInvestment Corporation entrusts asset management, taken ESG
into consideration through its business activities.
Through this Sustainability Report, we hope that you will deepen
your understanding of the ideas and efforts of the Investment
Corporation and the Asset Manager toward sustainability.

Contents■Policy Regarding Sustainability
and Sustainability Promotion
System■Social Initiatives

Policy Regarding Sustainability andSustainability Promotion System�������� 1

Disaster Prevention Efforts�������������� 16■Environmental Initiatives
Environmental Targets
and Performance������������������������������ 4
Implementing Eco-Friendly Initiatives
via Real Estate Investment���������������� 6
Eco-Friendly Initiatives
with Stakeholders��������������������������� 10

Efforts for Tenants�������������������������� 11
Efforts for Community�������������������� 13
Efforts for Employees���������������������� 17■Governance Initiatives
Investment Corporation Institutions /Management Structure������������������� 24
Compliance Structure��������������������� 28■Acquisition of External
Assessments/Certifications
Participation in External
Assessments���������������������������������� 32
Acquired External Certifications�������� 33■Green FinanceGreen Finance�������������������������������� 38

Policy RegardingPromotion
Sustainability
andSustainability
SystemTop Message

Daiwa Office Investment Corporation
Executive Director

Seiya Miyamoto

Daiwa Real Estate Asset Management
Co. Ltd.
President and Representative Director

Toshio Fukushima

Recognizing that emphasizing ESG, which are environmental consideration, social contribution and stronger organizational
governance, upon promoting asset management business contributes to the enhancement of investment corporations’corporate value over the medium to long term, the asset manager of the Investment Corporation (Daiwa Real Estate AssetManagement Co. Ltd., the “Asset Manager”) has established a system to promote ESG through company-wide efforts.
The Asset Manager established the “Sustainability Promotion Committee” in 2014 and the “Policy Regarding ESG” in March
2019. Furthermore, through establishment of the Sustainability Promotion Office at the Asset Manager in June 2021 for further
strengthening of initiatives on sustainability, sustainability initiatives have been promoted on an organizational basis, including
strengthening of the authority of the Sustainability Promotion Committee.
The Investment Corporation has continuously participated in GRESB Real Estate Assessment since 2011 and acquired several
environmental certifications and ratings by external evaluation organizations. It has been working to lower the environmental
burden at its portfolio properties through effective utilization of limited resources, including energy saving, reduction ofgreenhouse gas emissions, water saving and such. Furthermore, the Investment Corporation is determined to further enhance
its corporate value while aiming to realize sustainable society by coordinating and working together with all stakeholders
involved in the portfolio properties (investors, tenants, local communities, employee, etc.) by forming favorable relationships
with them.
1Policy Regarding ESG
The Investment Corporation will focus on the following items in the asset management for the Investment Corporation judging
that emphasizing ESG (Environment, Social and Governance) contributes to the enhancement of the Investment Corporation's
medium- to long-term corporate value.
SFDR Principal Adverse Impact Statement PDF
Summary of SFDR Pre-Contractual Disclosure (Articles 8, 6 and 5) PDF

1. Initiatives on Environmental Protection (Environment)
We will proactively promote initiatives on environmental protection including resource and energy-saving measures such as theintroduction of facilities and equipment contributing to environmental protection at the properties owned.

2. Connection to Society (Social)
We will proactively disclose information and fulfill our accountability to all stakeholders through IR activities, etc. We willaccomplish the social mission of an asset manager by providing high-quality and comfortable residential spaces for tenants.
Moreover, in order to contribute to society through superior asset management, we strive to create a comfortable work
environment that respects the work-life balance of executives and employees and at the same time endeavor to develop humanresources through internal and external training.

3. Corporate Governance (Governance)
We will make highly transparent and reasonable decisions under laws and regulations and various rules while being aware of
the importance of corporate ethics and compliance. In addition, the Asset Manager will work to strengthen internal control
systems including avoidance of conflicts of interest and risk management and to train officers and employees in order to fulfill
the duty of care and fiduciary duty.

2

Sustainability Promotion System
The Asset Manager has established the following organizational structure in order to implement the Policy Regarding ESG andcontinuously promote initiatives on sustainability.

Sustainability Promotion Committee（Members）● President and Representative Director (Chief Executive O cer for Sustainability Promotion)● Executive Managing Director● General Managers of DOI Investment Management Dept., DLI Investment Management Dept., Private REIT Investment Management
Dept., and Private Fund Management Dept. (Chief Sustainability Officers)● Head of Sustainable Promotion Office● Compliance Officer● Others who are appointed by the Chief Executive Officer(Contents of deliberation/reports, frequency, consideration process)The Sustainability Promotion Committee is held regularly (once a month, in principle) in order to realize the policy and targets
for sustainability. The committee deliberates matters such as management policies on sustainability, target setting, and theirrevision and abolition, and reports on the progress of the targets, etc.

Establishment of Sustainable Promotion Office
The Sustainable Promotion Office was newly established at the Asset Manager on June 1, 2021, to further strengthen initiatives
on sustainability. Matters concerning ESG and SDGs of all investment corporations whose assets are managed by the AssetManager and of the Asset Manager will be planned, drafted and executed organizationally by the office.

3

Environmental Targets and Performance
The Investment Corporation is striving to improve environmental performance by establishing environmental targets for the
reduction of energy consumption, CO2 emissions, and water consumption across the entire portfolio and monitoring its
performance with respect to achieving them.

Environmental Targets
Energy Consumption

Reduction of 5% in energy consumption across the entire portfolio on an intensity basis by FY2024 compared to the baselineyear

CO Emissions

Reduction of 5% in CO2 emissions across the entire portfolio on an intensity basis by FY2024 compared to the baseline year

Water Consumption

Maintaining the same level of water usage across the entire portfolio by FY2024 compared with the baseline year
* The baseline year for setting the above targets is FY2019. The coverage rate within the portfolio when calculating the above data is 100%.

4

Performance
In conjunction with the medium- to long-term targets formulated for its ESG initiatives, the Investment Corporation is working
to keep track of energy consumption, CO emissions, water consumption, and so forth at real estate that it owns.
Item

Reduction target(Medium- to long-term target)

EnergyReduction of 5% on an intensity
basis compared with base year

CO

Reduction of 5% on an intensity
basis compared with base year

Water

Maintain the current level

Waste

―

Actual reduction
Unit

FY(base year)

FY

Rate ofchangeConsumption (MWh)114,466

107,902-5.73%

Consumption intensity (MWh/㎡)

0.196

0.181

-7.65%

Emission (t-CO )50,04044,675-10.72%Emission intensity (t-CO2/㎡)

0.085

0.075

-11.77%

Consumption (㎥)431,914313,046-27.52%

Consumption intensity (㎥/㎡)

0.739

0.525

-28.96%

Consumption (t)

4,878

3,991

―

Amount of recycled waste (t)

2,868

2,401

―

Recycling (%)

58.80

60.16

―

*1 Reduction target (Medium- to long-term target): The following targets are established for all properties[Energy and CO2] 5% reduction compared to base year over 5 years (from FY2019 (base year) to FY2024) on an intensity basis[Water] Maintain current level over 5 years (from FY2019 (base year) to FY2024)*2 Aggregation method: Intensity is calculated by dividing each consumption/emission for each fiscal year by intensity denominator (sum of the total floor areas(㎡) in accordance with the period of ownership of each building).
The recycling rate is calculated by dividing consumption for each fiscal year by the amount of recycled waste.
*3 CO2 emissions from Scope 1 (city gas) and Scope 2 (indirect emissions from the use of electricity, heat and steam provided by other companies). The figure
includes CO2 emissions derived from energy consumption by tenant activities for the tenant space.

Environmental Management System
In order to pursue energy-saving, CO2 emissions reduction, and efficient use of water resources, the Investment Corporation
has established an environmental management system. Focusing on energy consumption, CO2 emissions, and water usage, it
sets targets, tracks performance, manages budgets, and executes countermeasures (PDCA cycle), contributing to the realizationof a sustainable society through the reduction of its environmental footprint.
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At Shinjuku Maynds Tower, a property owned by the Investment Corporation, the promotion of LED lighting fixtures has
been ongoing since 2012. It has been possible for both the tenants and the owner to enjoy the benefits since 2014 dueto the use of a green lease system for tenantsʼ private areas. With the conversion to LED, tenants have been able toreduce their electricity fees to about half of the level prior to the implementation of LED upgrading work, while thebuildingʼs owner has been able to reduce its investment burden and improve the propertyʼs value by receiving green
lease fees.

In order to promote environmental and social initiatives in its supply chain, the Investment Corporation has establisheda Sustainable Procurement Policy. When selecting new property management companies, suppliers, etc. or evaluating
existing counterparties, the status of their sustainability-related initiatives is included in the criteria, along with theirfacilities management services, lease operation and management services, leasing services, etc., and they are required
to understand and cooperate with the Investment Corporationʼs environmental and social initiatives.

While the Investment Corporation is a J-REIT, there is a real estate development team with specialized expertise within
the Asset Manager, and it pursues urban development projects by developing new office properties on sites it has
acquired. The first such initiative by the Investment Corporation is the Nihonbashi Bakurocho 1-Chome Development
Project (scheduled for completion in November 2022), for which it has hired The Sankei Building Co., Ltd. to provide
project management services and contracted JDC Corporation to handle construction work and design management. The
companies will work together to pursue environmentally friendly urban development/revitalization.

The Investment Corporationʼsfirst urban development project(Nihonbashi Bakurocho 1-Chome
Development Project)10

11

Digital Signage Installation
We installed digital signage in elevator halls and other common areas of portfolio properties. We are displaying energy
consumption with an aim to increase tenants’ awareness of energy reduction.

Digital signage installation(Daiwa Ginza)

Tenant Safety & Security
In its facility operation, the Investment Corporation works to ensure the safety and security of its property tenants, facility
users and visitors.

Countermeasures Against COVID- 9● Displaying notices on safety measures● Installing disinfectants, air cleaners, etc.
● Making sure that employees of building management and building cleaning companies thoroughly follow hygienic measures (facemasks, hand-washing, disinfection, etc.).
● Disinfecting common areas on a daily basis and establishing system for implementing disinfection in cooperation withadministrative bodies when a COVID- 9 case arises, etc.
● Introducing VR previews of properties● Providing a vaccination site for tenants (Daiwa River Gate)

Installed air cleaners(Daiwa River Gate)

Implemented antibacterial treatment
12

Introduced VR viewing service(you can view Daiwa Ginza from the code above)Efforts for Community
Installation of Cycle Port/Introduction of Car Sharing
We installed a cycle port for cycle sharing on the building’s site and introduced car sharing, contributing to convenience fortenant employees, local residents and others.

Installed cycle sharing port
(Shinjuku Maynds Tower)

Participation/Collaboration in Local Events
To coexist with and stimulate the areas around our properties, we contribute to the sustainable development of local
communities by participating in and collaborating with the following community events organized by urban development
councils and private sector groups.

Participated in Shinjuku Minami Lumi (Shinjuku Maynds Tower)

Yokohama Portside District
Collaborated in an urban development
council’s event “Hikari no Machizukuri”(CONCURRED Yokohama)
13

Food Truck Attraction
We attract food trucks to our property sites to improve office worker and local resident satisfaction and produce the area’s
weekday lunchtime outdoor lively scene.

Attracted food trucks(Daiwa Nakano-Sakaue)

Expression of Respect for Health Care Workers
We implemented blue illumination to prevent people from crowding and the healthcare system from collapsing. This was an
expression of gratitude and respect for healthcare workers and shared the thought with users of the office.

Blue illumination of the symbol tree, building, etc.
(Daiwa Shibuya Miyamasuzaka)(Shinjuku Maynds Tower)

14

Charity & Volunteer Activities
The Asset Manager does “Jeans Day,” an initiative of the sponsor Daiwa Securities Group Inc. Since June 2021, employees cancome to the office in casual wear such as polo shirts and jeans on Fridays, and a charity drive is held to aid those impacted by
COVID- (on third Fridays).

Implement Jeans Day

Engagement with investors
The Investment Corporation strives to proactively disclose information and be accountable to all stakeholders through IR
activities. In order to promote understanding of the Investment Corporation, we hold individual meetings with domestic andforeign institutional investors, and hold seminars for individual investors.
The IR activities results from FY2019 to FY2020 are as follows.

Number of meetings and seminars
For institutional investors

Domestic investors

Foreign investors

Number of IR meetings in FY2019

76

47

Number of IR meetings in FY2020

8859

For individual investors

Seminars

Number of seminars held in FY2019

2

Number of seminars held in FY2020

1

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Disaster Prevention Efforts
Disaster Prevention Efforts
We formulated BCP measures in order to secure the safety of tenants, facility users and employees as well as continue with
important business operations at our properties in times of emergency such as disasters. We periodically hold emergency drills
in collaboration with PMs and BMs and promote disaster prevention measures with AEDs, elevator emergency goods boxes,
emergency stockpiles, etc. at portfolio properties where these can be installed. Some of our properties have excellent seismic
capacity with seismically isolated or vibration-damping structures.

Install emergency stockpile

Elevator emergency goods box(Daiwa Azabu Terrace)16

Efforts for Employees
Efforts for Employees
The Act on Investment Trusts and Investment Corporations prevents investment corporations from hiring employees, so theasset manager’s employees are responsible for operation in practice. The Asset Manager to which the Investment Corporation
entrusts asset management cultivates its human resources through initiatives like the following to achieve high-level asset
management.

Promotion of Active Participation of Diverse Personnel
Believing that promotion of active participation of diverse personnel improves the organization, the Asset Manager monitors
employee diversity. Daiwa Securities Group proactively promotes talented employees regardless of gender and endorsed thedeclaration of the Cabinet Office Gender Equality Bureau’s Male Leaders Coalition for Empowerment of Women in 2015.
End of FY2019

End of FY2020

Employees

113

127

Female employees

37

39

Ratio of female employees

32.7％

30.7％

Directors (including part-time)

6

7

Female directors (including part-time)00Managerial positions

84

91

Female managers

18

18

Ratio of female managers

21.4％

19.8％

Employees over 60

1

3

17

Personnel Hiring/Training Strategy
The Asset Manager has signed a sponsor support agreement for cooperation in personnel hiring with Daiwa Securities Group
Inc. It receives seconded employees from Daiwa Securities Group and promotes sharing and succession of real estate asset
management expertise to increase the entire organization’s sustainability.
End of FY201

End of FY2020

26

28

Secondments from sponsor

Qualification Acquisition Support
The Asset Manager supports employees in obtaining qualifications to improve their abilities by offering training, testing andrenewal fee payment for real estate and various other qualifications with which they can demonstrate a high level of expertise.

Qualification Holders
End of March 2021
Real Estate Transaction Specialist

75

ARES Certified Master

43

Certified Building Administrator

11

First-Class Architect

9Real Estate Consulting Master

7

Real Estate Appraiser

2

Chartered Member of The Security Analysts Association of
Japan

8

Certified Public Tax Accountant

2

18

Employee Health & Comfort
Working Environment Improvement
The Asset Manager developed the office environment for employee health, work style flexibility and productivity, for example
establishing a cafeteria space where employees can work comfortably, installing free vending machines, developing thecommunication environment including Wi-Fi at office area and meeting rooms and utilizing free space for remote work.

Benefits
The Asset Manager offers the following benefit programs to build a diverse, flexible working environment and ensure that life
events like birth, childrearing and elderly care do not force employees to give up working.

All Employees

Consecutive holiday, flextime, medical checkups, Life Support paid holiday, The telecommuting system

Childrearing

Childcare leave, Childcare Support Leave, Pre-childcare leave for male employees, Short working hours system,
Exemption/restriction on overtime work, Nursing care leave, Daycare subsidy, Babysitter system, Support desk for employees
looking for nursery schools

Female Employees
Daiwa ELLE Plan

Nursing Care

Nursing care leave, Nursing care-support leave

19Bene ts Data
FY

FYChildcare leave takers

3

4 (including 1 male)

Return rate from child care leave

100%

100%

Childcare Support Leave takers

22Childcare Support leave usage rate

50%

100%

Nursing care leave takers

00

Health Management
The Asset Manager manages employee health by subsidizing costs such as medical checkups and flu vaccination and ensuring
thorough health examinations.

Employee Health Data
FY2019FY2020Percentage of employees who took the stress
check

97%

94%

Paid holiday usage rate

78％

72％

Yearly paid holidays taken per person

17.9

16.6

Countermeasures Against COVID- 9● Developing remote work system (lending laptops and mobile phones to all employees, including temporary workers, subsidizing
monitors costs, etc. for working at home)● Installing disinfectant in o ces, etc.
● Promoting IT use such as online meetings● Ensuring physical distance in o ces● Staggering working hours● O ering workplace vaccination (Daiwa Securities Group o ered workplace vaccination to all employees, including a liatecompanies, and their families)● Subsidizing home PCR tests

20

ABW Trial
We granted subsidies for remote work plans at hotels owned by Daiwa Hotel Private Investment Corporation whose
management is entrusted to the Asset Manager. Furthermore, we attempted to address various workplace and work-stylematters such as using conference rooms and free space as temporary offices to secure space at offices.
* ABW：Activity-Based Working

Fulfilling Workplace Creation
Employee Satisfaction Surveys
Believing in the importance of reflecting employee feedback in various measures to build a better working environment, theAsset Manager regularly conducts employee satisfaction surveys and uses the results to improve the in-house environment.

Evaluation System
The Asset manager conducts performance reviews of all employees every six months and pays bonuses commensurate with
their achievement of half-year targets. The regular evaluation and feedback help employees in their career development andforms a transparent HR evaluation system.

Ongoing Anti-Harassment Training
The Asset Manager increases employee sensitivity to and awareness of harassment by instructing employees on their first day(or secondment) about harassment, the whistleblowing system and other internal controls, conducting regular anti-harassment
training thereafter and ensuring thorough awareness of the compliance consultation process. It also asks about harassment
when employees submit their career plans twice a year.

21HR Data
FY

FY

Employees

113

127

Men

76

88

Women

37

39

Permanent employees

113

127

Men

76

88

Women

37

39

Contract employees

0

0

Men

0

0

Women

0

0

(Ref.) Temporary employees

5

5

Men

0

0

Women

5

5

New hires

10

15

Men

6

13

Women

4

2

Directors (including part-time)

6

7

Departures

4

3

Rate of departure

3.8％

2.7％

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Investment Corporation
Institutions/Management
Structure
Investment Corporation Institutions
In addition to the General Meeting of Unitholders composed of investment unitholders, the Investment Corporation’s
institutions include a Board of Directors, composed of one executive director and two supervisory directors, and an Accounting
Auditor.

Institutions（a）General Meeting of Unitholders

Certain resolutions, which are stipulated in the Act on Investment Trusts and Investment Corporations or the articles ofincorporation, are adopted at the General Meeting of Unitholders.
Unless otherwise stipulated in the law or articles of incorporation, resolutions of the General Meeting of Unitholders shall be
adopted by a majority of the voting rights of the unitholders present. However, for certain important matters such as
amendments to the articles of incorporation, resolutions (special resolutions) must be adopted by two-thirds or more of thevoting rights of the unitholders present at a meeting where unitholders holding a majority of the investment units issued andoutstanding are present.

（b）Executive Director, Supervisory Directors & Board of Directors

The executive director has the authority to execute the business of the Investment Corporation and to represent the Investment
Corporation in all judicial or extrajudicial acts related to its business. The supervisory directors have the authority to supervise
the executive director's execution of duties. The Board of Directors, which is composed of all executive directors andsupervisory directors, has the authority to approve the execution of certain duties, the authority stipulated in the Investment
Trust Act and the articles of incorporation and the authority to supervise the executive director's execution of duties.

（c）Accounting Auditor

The Investment Corporation has appointed KPMG AZSA LLC as its accounting auditor. The Accounting Auditor shall audit theInvestment Corporation's financial statements, report to the supervisory directors any wrongful act or material fact in violationof the law or articles of incorporation it discovers in connection with the executive director's execution of duties, and perform
other legally stipulated duties.

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Performance-Based Management Compensation
Basis of the calculation

Fee rate

Management Fee Ⅰ(based on assets undermanagement)

Total appraisal value of assets under management(based on market value)

0.05％

Management Fee Ⅱ(rent revenue standard)

Rent revenue

5.5%Management Fee Ⅲ(based on distributable amount)

Distributable amount

3.5%

Management Fee Ⅳ(asset acquisition standard)

Acquisition price of target real estate

0.75%

Management Fee Ⅴ(asset sale standard)

Transfer price of target real estate

0.5%

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Prevention of Conflicts of Interest among Funds
In case of competition over a property acquisition opportunity among the Investment Corporation and other funds, etc. managed
by the Asset Manager, conflicts of interest among the Investment Corporations and other funds, etc. shall be prevented by first
granting the Investment Corporation the preferential right to consider the acquisition. The acquisition opportunity will beavailable to the other funds, etc. only when the Investment Corporation decides not to exercise the concerned preferential right.
Furthermore, in the case of rental residences, the Asset Manager shall prevent arbitrary distribution of property information andavoid conflicts of interest among Daiwa Residential Private Investment Corporation, Daiwa Securities Living Investment
Corporation and other funds, etc. by establishing the "Rotation Rule."

Officers
Concurrent Positions

Total Compensationfor
Position in This Period(thousands of yen)

Seiya Miyamoto

―

3,000

Takayuki Hiraishi

Attorney at Spring Partners
Audit & Supervisory Board Member,
Delivery Consulting Inc.
Audit & Supervisory Board Member, Peerto
Inc.

4,200

Title
Executive Director

Supervisory
Director

Name

Hiroshi Sakuma

CPA/tax accountant at Sakuma CPA Firm
Director at Just Planning Inc.

Click here for career summaries.

Accounting Auditor
Title

Name

Concurrent Positions

Total Compensation for Positionin This Period(thousands of yen)Accounting Auditor

KPMG AZSA LLC―

15,000

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Property Name

Location

Daiwa Sarugakucho

2-6-10 Kanda Sarugakucho, Chiyoda-ku, Tokyo

Shinjuku Maynds Tower

2-1-1 Yoyogi, Shibuya-ku, Tokyo

Daiwa Harumi

3-10-1 Harumi, Chuo-ku, Tokyo

Daiwa Tsukiji

2-14-17 Tsukiji, Chuo-ku, Tokyo

Daiwa Tsukishima

4-16-13 Tsukishima, Chuo-ku, Tokyo

Daiwa Kayabacho Building

1-1-11 Nihonbashi Kayabacho, Chuo-ku, Tokyo

E SPACE TOWER

3-6 Maruyamacho, Shibuya-ku, Tokyo

Daiwa Shibuya Square

16-28 Nanpeidai, Shibuya-ku, Tokyo

Daiwa River Gate

36-2 Nihonbashi Hakozakicho, Chuo-ku, Tokyo

Kirin Nihonbashi Building

2-5 Nihonbashi Koami-cho,Chuo-ku, Tokyo

Daiwa Daikanyama

8-7 Daikanyamacho, Shibuya-ku, Tokyo

Daiwa Ogikubo

5-26-13 Ogikubo, Suginami-ku, Tokyo

Daiwa Shinagawa Gotenyama

3-3-5 Kita-Shinagawa, Shinagawa-ku, Tokyo

Daiwa Misakicho

2-2-15 Kanda Misakicho, Chiyoda-ku, Tokyo

Daiwa Nihonbashi Horidomecho

2-9-8 Nihombashi-Horidomecho, Chuo-ku, Tokyo

Daiwa Nishi-Shimbashi

3-2-1 Nishi-Shimbashi, Minato-ku, Tokyo

Daiwa Jinbocho 3-chome

3-2-3 other Kanda Jimbocho, Chiyoda-ku, Tokyo

Daiwa Nihonbashi Hongokucho

4-2-16 Nihombashi Hongokucho, Chuo-ku, Tokyo

Daiwa Kitahama

2-2-14 Awajicho, Chuo-ku, Osaka City, Osaka

Shinsen Place

9-1 Shinsen-cho, Shibuya-ku, Tokyo

Daiwa Hatchobori ekimae

3-25-7 Hatchobori, Chuo-ku, Tokyo

Daiwa Hatchobori ekimae West3-25-9 Hatchobori, Chuo-ku, Tokyo

Daiwa Kanda Mikuracho Building

5-1 Kanda Mikura-cho, Chiyoda-ku, Tokyo

Daiwa Mita 2-Chome

2-10-4 Mita, Minato-ku, Tokyo
35

Certi cation Level

Year

Rank S

2021

2020

Rank A

2021

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Green Finance
The Investment Corporation has established the Green Finance Framework under the belief that providing investment opportunities for investors
who are active in ESG investment through green financing is of social significance.
The Investment Corporation has received Green 1(F), the highest rating in “JCR Green Finance Framework Evaluation” from Japan Credit Rating
Agency, Ltd. as a third-party evaluation for the Green Finance Framework.
(Note) JCR Green Finance Framework Evaluations related to the Investment Corporation are described on the JCR website below.
https://www.jcr.co.jp/en/greenfinance/green/

Green Finance Framework
1.Use of Procured Funds
Funds raised through green bonds or green loans will be used to acquire properties that meet the following eligible criteria or to refinance the funds.

【Eligible criteria】

Properties which have received or will receive any of the following certifications from third-party certification bodies
DBJ Green Building Certification

3 Stars, 4 Stars or 5 Stars

CASBEE for Buildings (New Construction)

B+ Rating, A Rating or S Rating

BELS Certification

3 Stars, 4 Stars or 5 Stars

LEED Certification

Silver, Gold or Platinum.Evaluation/selection Process of Projects
Under the advice of the asset manager of the Asset Manager, the Finance Department will consider the suitability for eligible criteria, and thenevaluate and select the projects.
Raising funds through green financing for the project is examined by the Asset Manager’s Sustainability Promotion Committee, deliberated by the DOI
Investment Committee and the Board of Directors, and approved by the Board of Directors of the Investment Corporation.

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【Selection process of projects】

3.Management of Procured Funds
Setting the total acquisition price of eligible green assets as the maximum issuance amount of green bonds, the Investment Corporation manages sothat, as long as there is an unredeemed balance of the relevant green bonds, the total amount of the outstanding green bonds does not exceed thetotal acquisition price of eligible green assets.
In addition, the Investment Corporation internally tracks and manages the allocated funds for each portfolio asset as long as there is an unredeemedbalance of the relevant green bonds. In the case where all or part of the net proceeds of the green bond is not immediately allocated to eligible green
assets, the Investment Corporation first identifies such unallocated funds, and then manages all or part of the funds in cash and cash equivalent until
such is allocated to eligible green assets.

4.Impact Reporting
As long as there is an unredeemed balance of the relevant green bonds, the Investment Corporation will annually disclose allocation, the number ofthe buildings of eligible green assets and environmental performance indices on its website. The reporting as of May 31, 2021, is as follows.

(Allocation Reporting)

The Investment Corporation confirmed that the net proceeds of the green bonds are fully allocated to eligible green assets in accordance with its
Green Bond Framework, and that the total amount of the outstanding green bonds does not exceed the total acquisition price of eligible green assets.
Total amount of the outstanding green bonds

3,900 million yen

Total acquisition price of eligible green assets

286,073 million yen

39Total issue
amount(million yen)Interest
rate

Issue date

Redemption
date

Issue
period1,500

0.310%

September11, 2020

September11, 2025

5
years

Seventh Series ofUnsecured
Investment
Corporation Bonds

Allocation status

Fully allocated to part of therepayment funds for shortterm borrowings for theacquisition of Daiwa Harumi,
one of the eligible green assets(Green bond)
Eighth Series ofUnsecured
Investment
Corporation Bonds

2,400

0.600%

September11, 2020

September11, 2030

10
years

3,900

－

－

－

－

(Green bond)
Total

－

(Impact Reporting)● The number of the buildings, the total amount of the oor area of eligible green assets
Eligible green assets

Environmental certi cation

Number of properties

Total oor area

CASBEE for Real Estate29

260,801.22㎡

DBJ Green Building Certi cation

282,282.76㎡

LEED

1

15,012.46㎡

30

301,093.10㎡

Portfolio Total(Note 1) When several certi cations have been obtained for the same property, it is counted as one property so as to calculate the total value without any duplication.
(Note 2) For sectional ownership buildings, the total oor area is calculated based on the ownership ratio of the Investment Corporation.

● Quantitative indicators regarding eligible green assets
FY 2020
Energy Consumption, MWh

CO emissions, t-CO

Water consumption, m³(Note) Calculated based on data of eligible green assets for which the Investment Corporation has energy management authority from April 2020 to March 2021.
40