2021

ESG
ReportGLP J-REITIndex

MessageP. 32021 Highlights

P. 5

ESG Policy

P. 9

Environment

P. 12

SocialP. 19

Governance

P. 28

ESG Finance

P. 32

1

Editorial Policy
GLP J-REIT publishes a sustainability website and sustainability reports for our
stakeholders in an effort to disclose ESG information that describes our efforts
toward realizing a sustainable society.
Our sustainability reports, which we publish once each year, containstraightforwardly organized summaries of information pertaining to GLP J-REIT andthe rest of the GLP Group, including our ESG policy, highlights of ESG efforts active
during the current year, our level of KPI achievement, and ESG-related data.

Reporting System
On our sustainability website, we leverage the attributes of our website and makecomprehensive postings of policies, detailed numerical data, and other information
about the Group’s sustainability activities. We consider timeliness among otherfactors, and operate the website such that it reflects and discloses the latest
information. We published our first sustainability report in 2021, and now disclose
information in a more systematic, organized manner based on information posted on
the sustainability website.

Period in the report
Although the report covers the period from March 2021 to February 2022, it also
includes information from outside the period.

Publication date

April 2022

Next scheduled publication

April 2023

Report creator/
Contact point for inquiries

GLP Japan Advisors Inc.
Corporate Planning Department
Tel. 03-3289-9630

GLP J-REIT 2021 ESG REPORT

2

Message

A Message from Our Executives

A Message from CSO

Yoshiyuki Miura

Hisatake Miki

Executive Director of GLP J-REIT and
President of GLP Japan Advisors Inc.

CSO of GLP JapanTo begin, please let me express my best wishes for all of our investor clients.
As the COVID-19 pandemic persists without a clear end in sight, I would also like to express my hopes thatanyone who may have contracted the disease has a speedy recovery, and my sincere respect and gratitude
to all health care workers and others who have sustained the constant battle day after day.

Advisors Inc.

Amid an increasing focus on efforts to combat climate change and other environmental issues aswell as work style reform, community revitalization, and other social issues, GLP J-REIT and its
asset management firm GLP Japan Advisors Inc. take several actions based on our belief in theincreasing importance of taking steps to consider ESG in all operations, working together withstakeholders toward such consideration, and actively and appropriately disclosing information
about such efforts. We will continue publishing an ESG Annual Report, an effort we started lastyear, and also launch a new ESG page on our website, improve access to ESG-related information,and consolidate the information to facilitate understanding. Additionally, we have added new
ESG-related KPIs in an effort to better visualize the progress of individual efforts.
Our ESG Committee, which we launched last year, takes full advantage of its meetings to share
information about the status of individual ESG efforts and discuss matters such as establishing
new KPIs; accordingly, we run the committee in such a way as to maximize its functions as a key
piece of internal infrastructure.
By further enhancing efforts toward ESG and appropriately disclosing our performance as we
continue to invest in and manage logistics facilities, we aim to strengthen trust-based
relationships with our stakeholders and achieve a balance between efforts toward worthy
endeavors such as environmental consideration and coexistence with local communities on the
one hand, and improving the value of our assets over the medium and long term on the other.

GLP J-REIT is Japan’s leading listed real estate investment corporation specializing in logistics facilities.
We at GLP J-REIT, together with our asset management firm GLP Japan Advisors Inc., consider it to be oursocial mission to strive for a sustainable society through our business activities. To that end, we haveenhanced our efforts toward sustainability.
Through our endorsement of the Recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD) last year, we reinforced our commitment to ESG, demonstrated in part by ourachievement of the highest rating in one of the leading ESG metrics—a 5-star GRESB rating—for two
consecutive years. Accordingly, we are continuing our proactive efforts toward environmental, social, andcorporate governance. Additionally, the GLP Group became a signatory of Principles for Responsible
Investment (PRI), and adopted an Environment, Social Governance & Due Diligence (ESG DD) process andmade other efforts to incorporate PRI into daily operations. In this way, we are further strengthening ourefforts to combat climate change.
Our ESG Committee, which was launched last year and has met seven times, actively discussed anddetermined our course of action for a variety of ESG-related topics, including investment decisions,
measures to enhance environmental considerations, and the execution of new ESG financing thatleverages our efforts toward ESG.
GLP J-REIT and our asset management firm will continue to maintain and enhance our sustainability
measures, and by disclosing ESG information we will deepen our communication with our various
stakeholders from investors, tenants, and members of our supply chain to the wider regional communityand employees. We hope to work together with our stakeholders to strive toward a sustainable society.

GLP J-REIT 2021 ESG REPORT

3

A quick overview of GLP J-REIT

Other! Invests in advanced logistics facilities, and is one of the largest logistics JREITs in terms of assets! With the most properties of any logistics J-REIT, its investment area covers
the entirety of Japan, centered in the greater Tokyo area and the Kansai area
known as excellent locations for logistics but with locations from Hokkaido in
the north to Kyushu in the south

No. of properties
owned

86
No. of tenantcompanies

170

12%
Kansai area

21%

Kanto area

67%

Asset size

7,800
billion yen

Operating ratio

99.1!"#"$%&$'%()"&*+',"-)"./0"12REIT

Data is accurate as of February 28, 2022

GLP J-REIT 2021 ESG REPORT

4

2021 Highlights
ESG Committee ( GLP Japan Advisors )ESG Task Force ( the GLP Group )The Group is united in implementing ESG efforts, determining policy and sharing information through the ESG Committee as well as the ESG Task Force, a joint conference entity with sponsors.

Awarded 5 Stars and Green Star,
Named Global and Asia Sector Leaders from GRESB

Endorsed TCFD Recommendations
n Our asset management firm GLP Japan Advisors Inc. endorsed the Recommendations of the TCFD and joined the
TCFD Consortium to further promote efforts toward a decarbonized society.

n GLP J-REIT was awarded the prestigious 5 Stars and Green Star in the2021 GRESB Real Estate Assessment for the second consecutive year.
n GLP J-REIT ranked first among the 34 companies worldwide in thelisted logistics real estate sector, and first among the nine logistics JREITs

n GLP J-REIT was selected as the Global Sector Leader in the listed
logistics real estate sector.
n GLP J-REIT was selected as the Regional Sector Leader in the listed
and non-listed logistics real estate sector.

Endorsed Principles for Responsible Investment (PRI)n The GLP Group endorses the basic concept and approach of PRI, and became a certified signatory in November
2021.
PRI is a global network of investors aiming to achieve the six principles
listed below. The network is promoted by the United Nations
Environment Programe Finance Initiative (UNEP FI) and the United
Nations Global Compact (UNGC).

The six Principles for Responsible Investment

Expanded Environmental Certificationn Obtained BELS (Building-Housing Energy-efficiency Labeling
System) evaluation certification at GLP Kawashima and seven otherproperties. Seven of the eight properties obtained a ZEB Readyrating in addition to the 5-star rating, which is the highest rating of
BELS.
n Obtained CASBEE certification with ratings of S or A at GLPUrayasu and 12 other properties.
n The number of properties that have acquired CASBEE certification
has expanded to 51, and the ratio of environmental certification has
increased to 76%.

1.

We will incorporate ESG issues into investment analysis and decision-making processes.

2.

We will be active owners and incorporate ESG issues into our ownership policies and practices.

3.

We will seek appropriate disclosure on ESG issues by the entities in which we invest.

4.

We will promote acceptance and implementation of the Principles within the investment industry.

5.

We will work together to enhance our effectiveness in implementing the Principles.

6.

We will each report on our activities and progress towards implementing the Principles.

Joined the Japan Climate Initiativen Our asset management firm GLP Japan Advisors became the first J-REIT
specializing in logistics to join the Japan Climate Initiative, a network aiming forthe cross-sectoral dissemination of information and exchange of opinions
between companies, local governments, NGOs, and others working on
measures to counter climate change.
GLP J-REIT 2021 ESG REPORT

5

2021 Highlights
Promoted Green Leases! GLP J-REIT includes a green lease clause in our standard lease contracts with tenants, and in 2021 concluded more
contracts that include environmentally conscious clauses, specifically those aiming to save energy and water,
reduce waste, and encourage cooperation in acquiring the ESG target of green building certification.
! GLP J-REIT included green lease clauses in all 53 contracts (Total area: Approximately 850,000 m2) concluded in
2021.
! Actively implemented an educational campaign for tenants through various efforts to reduce environmental
impact and save water and electricity, namely promoting the visualization of electricity usage by sending data frommeter readings to tenants and urging them save water, conserve electricity, and switch off their car engines when
they are not moving.

Implemented a System for Ascertaining Data on Utility Usage! GLP J-REIT is working on various initiatives to collaborate with tenants to save energy and water and reduce waste.
! We have introduced the new system to all GLP J-REIT properties in an effort to realize the centralized, efficientcollection of data on utility usage.

Data coverage (2021 measurements)
Electricity usage

Greenhouse gas (GHG)
emissions

100 %Water usage

100 %Waste amount

100 %Expanded Contributions to Local Communities throughDisaster Agreements with Local Governments! In disaster agreements with local governments, GLP J-REIT agrees to provide assistance for rapid evacuation by
opening its properties within the local governments’ jurisdictions to local residents as temporary evacuation sites
when disasters strike or are imminent.
! In 2021, GLP J-REIT concluded disaster agreements with five new municipalities, bringing the total number to nine
! GLP J-REIT owns a total of 19 facilities that are not subject to these disaster agreements, and has implemented
efforts to provide them as temporary evacuation areas for local residents or to provide portions of the properties
as disaster coordination centers (reconstruction support centers or evacuation centers during disasters andemergencies) when requested by the central or local governments.

New Disaster Agreements: Partner Municipalities and Target Properties
Properties

Location

Year/month ofagreement

Amagasaki, Hyogo

GLP Amagasaki

231-2, Nishimukojima-cho, Amagasaki, Hyogo

2021/10

Ota-ku, Tokyo

GLP Tokyo

2-1-2 Tokai, Ota-ku, Tokyo

2021/12

Hidaka, Saitama

GLP SayamaHidaka II

788-1 Myogasawa, Kamikayama, Hidaka-shi,
Saitama

2021/12

Soja, Okayama

GLP Soja I/II

4 Nagara, Soja City, Okayama

2022/3Kanagawa

Properties locatedin the prefecture

Agreement Signed with

79 %STEP 1

STEP 2

STEP 3

Pipeline Review

ESG Screening

Internal DD /DD by outside experts

2022/3

The four signers of the disaster agreement with thecity of Soja in Okayama Prefecture, shown at thesigning ceremony
From left: President Miura, GLP Japan Advisors;
President Chosa, GLP Japan Inc.; Mayor Kataoka, Cityof Soja; President Matsuda, Ryobi Holdings

Implemented an ESG DD Process! GLP J-REIT introduced an ESG DD process to check the impact of investment decisions on ESG and established adecision-making process that prevents investments from being executed if they are inappropriate in terms of ESG.
! Formulated and introduced a standard ESG DD process checklist for the entire GLP Group.
! Applied the ESG DD process to the four properties purchased by GLP J-REIT in June 2021 (GLP Zama, GLP Niiza,
GLP Sayama-Hidaka I, GLP Rokko IV), and made the purchases after confirming that there were no problems.

-“Corporate Hometown Tax” Donations! GLP Japan Advisors made “corporate hometown tax” donations
to municipalities where GLP J-REIT properties are located! Made contributions to local communities by donating tobusinesses that promote employment, implement disaster
control measures, and the like
Image from a meeting with the Yokohama Disaster Risk Reduction
Learning Center, the recipient of a “corporate hometown tax”
donation from GLP Japan Advisors
GLP J-REIT 2021 ESG REPORT

6

2021 Highlights
Issued Incentive-Based Interest Rate-Type Sustainability-Linked Bonds

Results of ESG Committee Activities! Issued the world’s first incentive-based interest rate-type sustainability-linked bonds in the publicly issued bondmarket, maintained the highest amount of ESG bonds issued among the 62 listed J-REITs! Expanded the investor base through proactive new acquisitions with the Dai-ichi Life Group in ESG investment! Enjoyed a greenium through proactive ESG financing amid ESG bond market expansion! The ESG Committee, which was established in 2021, fulfilled its functions by consolidating relevant informationand discussing and determining policy for initiatives.

ESG Committee

Expansion of CASBEE Certification

Members

18th Unsecured Investment Corporation Bond
(Sustainability Link Bond)

Name

Provide regularIssue Date

September 28, 2021

Issue amount/year

6 billion yen / 7 years

Updates to

Sustainability Performance Targets:! ESG-related Issuer Targets! High-ranking environmental certification for at least 80% of the portfolio(based on gross floor area)

SPTs

Initial interest rate : 0.284
Interest rate after achievement of SPTs: 0.234% (Interest rate

Board ofDirectors/
Investment
Committee

Each
Department/
Rep Member

Initiatives! Formulation of ESG mid to long-term
basic policies! Formulation of GRESB response policy
and implementation of result analysis! Formulation and implementation ofpolicies related to green sustainability
finance! Deliberation of other ESG-related
matters

0.05% from initial)
related matters deliberated in ESG

Variable interest rate period

ReportBoard of Directors

Report Investment committee

Fixed interest rate period! Consists of representative members ofeach department, including thepresident of GLP Japan Advisors! Chairman of Committee : CSO

Formulate Policy/
Monitor activities

committee

Initial interest rate
Payment
date

5bps

Interest rate after
achievement of
SPTs

Redemption
date

Number of meetings

7

Attendance by relevant
peopleAttendees: President, CFO, CSO, Investment Department Chair (acting CIO),
Corporate Planning Department Senior Manager
Attendees for specific agenda items: Members of the Investment and Financedepartments

×Achievement of SPTs

Interest rate will be determined at the end of July and applied in September every year after the end of December 2024.

Main matters fordiscussion/policy
determination

!
!
!
!
!

Determining policy for initiatives in 2022
Efforts to strengthen information disclosure
Formulating and tracking progress of KPIs that contribute to ESG
Initiatives for new ESG financing
Evaluating assets qualified for ESG bonds and ESG loan procurement

Main matters forreporting/sharing

!
!
!
!
!
!
!
!
!
!

Reports on details of ESG Task Force discussions
2020 GRESB evaluation results and issues to tackle in 2021
ESG due diligence results for the four properties scheduled for acquisition
Status of considerations for new ESG financing
Actual energy usage figures for properties
Status of efforts toward acquiring environmental certification
Status of efforts toward concluding disaster agreements with local governments
Overview and status of efforts for “corporate hometown tax” donations
Creating a new ESG page on the GLP J-REIT website
Reflecting on initiatives in 2021

Outstanding ESG Bonds(bn yen)

%#

40.9
30

$!
"#
!

GLP

28.5

28

23.5

19

17.4

13.5

13.4

Company A Company B Company C Company D Company E Company F Company G Company H(As of February 2022)

GLP J-REIT 2021 ESG REPORT

7

2021 Highlights
ESG-Related KPIs of GLP J-REIT
Progress on KPIs Through Last Year
Achieve 100% data coveragefor properties under
GLP J-REIT control

Establishing New KPIs

Include a green lease clausein all fixed-termbuilding lease contracts

Acquire environmental
certification for at least
80% of properties

Transition to100% green
energy as thesource forelectricity used incommon areas

44 %

76 %

Transition to100% LED
lighting incommon areas inall properties

Target achievement year:

Target achievement year:

Target achievement year:

Target achievement year:

Target achievement year:

FY2021

FY2023

FY2024FY2022

FY2025(*) As of March 31, 2022

Amid our push to strengthen efforts to
reduce electricity usage throughtransitioning to LED lighting, we willcomplete the transition in common areas
under GLP J-REIT control(*) during 2022.

We will complete a transition to 100% green
energy(*) as the source for electricity used incommon areas of our properties by 2025.
We will also make proposals to tenants topromote efforts to transition to green
energy in tenant-controlled areas as well.

(*) Referring to the main common areas ofproperties in which GLP J-REIT holds a majority
interest.

(*) Referring to the use of non-fossil certificates etc. tovirtually transition to renewable energy sources forelectricity.

Achieve

100 %

(*)

(*)

GLP J-REIT 2021 ESG REPORT

8

ESG Policy
Purpose of the ESG Policy Framework
At GLP, we are committed to a broad range of environmental, social andgovernance (ESG) commitments that elevate our business, create value forour shareholders and investors, support our employees and customers, andshow respect to the local communities in which we work. We believe ESG is
our corporate responsibility as business builders and investors as well as anopportunity to promote good business ethics and focus on a more sustainable
and resilient future.

We focus on improving efficiency across our businesses through the use andintegration of data and technology. As a result, we are able to reduce
consumption, better manage assets and invest capital more efficiently, which
in turn generates better returns for our shareholders and investors, reduces
costs for our customers and partners, and helps our global employees by
increasing motivation and productivity to enhance an individual’s livelihood.
We aim to be a global leader on integrated ESG commitments because webelieve that sustainability is an essential part of our long-term success as
global corporate citizens. To be a global leader we are committed tocontinuously improving our ESG policy to meet or exceed evolving standards
and expectations of our shareholders, investors, customers, employees andcommunities.
This ESG Policy Framework has been prepared to support us in developing
ESG commitments, integration into our overall business and investment
approach, responsibility of implementation and monitoring and reporting
framework.
GLP J-REIT 2021 ESG REPORT

9ESG Policy
GLP’s Sustainability Principles
At GLP, we are committed to making sustainability a core component of ourbusiness in order to build a more sustainable and resilient future. The intent of
GLP’s sustainability commitment is to implement our unique ESG Sustainability
Principles that support this ESG Policy Framework:

Build Businesses andInvest Responsibly

Improve Efficiency andEnhance ValueAt GLP, building businesses and investing responsiblymeans embedding ESG into our investment and decisionmaking processes. This helps us to identify and avoid
ESG risks and means that:As a leading global investment manager and businessbuilder, GLP’s mission is to build sustainable businesses
and generate attractive risk-adjusted returns toshareholders and investors over the long term, whileproviding exceptional investment and operational
services that enhance value. GLP’s asset management
teams are responsible for enhancing the value of ourassets through effective operations.

l we understand and identify how GLP’s activities canimpact material ESG factors and how these can affectour reputation, capital value and stakeholders;l we focus on how we can best manage our workforce,
whether it is our own employees or contractors andsuppliers;
l we recognize how we can work with the communities
where we invest and operate businesses and how we
can enhance our presence through economic
development, limiting our environmental impact andseeking a community’s license to operate.

Develop and Manage Sustainable
AssetsFor GLP, ESG also is considered after the development,
acquisition or investment decision. GLP teams acrossinvestment management, asset management andcorporate management are empowered to prioritise, act,
track and monitor the sustainability performance of ourassets and in certain instances collaborate with ourworkforce, partners and communities.
Consistent ESG performance across an asset’s lifestyle
helps us to actively manage the sustainability of assets.

Additionally, GLP develops and invests in technologies
and innovations that enhance the efficiency of our assets
including data analytics, robotics, automated clearance
systems, digital loading docks, smart sorting, telematics,
energy-efficient fleet management systems, Internet ofThings, resource conservation and our transition to
renewable energy.
To provide our global customers with increased
opportunities to enhance their sustainability endeavours,
GLP focuses on sustainability initiatives that increase
resource conservation, leverage climate action, improvehealth and well-being and support local communities.

Govern with High Ethics andTransparency

recognizes the importance of strong corporate
governance and the maintenance of high standards ofaccountability to GLP’s shareholders and remains firmly
committed to seeing that those standards are satisfied
through an evolving suite of governance practices thatare woven into the fabric of the GLP’s business.
GLP continually reviews and refines its processes in lightof best practice, consistent with the needs andcircumstances of the group.
We maintain a zero-tolerance approach to bribery andcorruption and require all management and employees
to comply with our Code of Business Conduct at all times
and provide annual certification.

Promote Well-Being
GLP aims to incorporate health and well-being
throughout its organization and assets in support of its
employees, customers and the communities in which we
work. By focusing on promoting well-being we canenhance an individual’s livelihood, increase motivationand productivity as well as bring communities together.
We focus on introducing well-being concepts such as
creating spaces that encourage physical activity,
integrating natural lighting, improving access to natureand providing areas for healthy eating and socializing.

GLP is committed to maintaining the highest standards ofcorporate governance as a means of enhancing
corporate performance and accountability. To
demonstrate its commitment towards excellence incorporate governance, GLP has established a series ofwell-defined policies and processes to protect its
stakeholders’ interests. GLP’s leadership team

GLP J-REIT 2021 ESG REPORT

10ESG Policy
Efforts to achieve the SDGs

Important issues and initiatives in each ESG area

ESG Committee

Important issues

GLP J-REIT has established the ESG Committee at GLP Japan Advisors Inc. to promote its
sustainability initiatives. Under the supervision of the Chief Sustainability Officer (CSO), the ESG
Committee consists of representative members from each department, including President of GLP
Japan Advisors Inc. In addition to formulating medium- and long-term basic ESG policies, thecommittee promotes sustainability initiatives by setting ESG-related targets, monitoring progress,and deliberating on various initiatives.

Environment

Reducing
the environmental load

GLP J-REIT’s Initiatives

Initiatives against climate change-Initiatives in renewable energy-Initiatives in energy saving
Initiatives in water resources-Using rainwater and well water-Updating toilet equipment and installingsaving devices Initiatives in recycling-Promoting the reuse of logistics goods through business partnerships-Separating trash in collaboration with tenants

ESG Committee

SocialMembers

Board ofDirectors/
Investment
Committee

Provide regular
Updates to
Board ofDirectors

Report Investment committee
related matters deliberated in
ESG committee! Consists of representative
members of each department,
including the president of GLP
Japan Advisors! Chairman of Committee : CSO! Formulation of ESG mid to longterm basic policies! Formulation of GRESB response
policy and implementation of
result analysis! Formulation and implementationof policies related to green
sustainability finance! Deliberation of other ESGrelated matters

Realizing a sustainable society

ReportEach
Department/
Rep Member

Initiatives

Coexisting with local communities

A work environment thatencourages diverse work styles,
human resource development,
and gender equality

Formulate
Policy/Monitor
activities

Contributing to solving social
issuesGovernanceAchieving healthy growth for all
stakeholders

Initiatives in local communities-Contributing as a local disaster prevention center
Initiatives in BCP-Seismic isolation structure-Flood and snow damage control-Stockpiling disaster-relief supplies for disaster prevention-Conducting daily COVID-19 countermeasures
Initiatives for tenant employees-Replete with amenities such as cafeterias and stores-Conducting customer satisfaction surveys
Initiatives for employees-Promoting paid leave-Promoting remote work and other diverse ways of working-Implementing training programs and supporting certification exams
CSR activities-Providing work experience opportunities-Trash pickup campaign!Reinforcing governance structure-Governance by general meeting of unitholders, board of directors’
meetings, and auditors-Disclosing decision-making processes-Establishing a compliance structure to ensure legal compliance-Eliminating anti-social forces-Pursuing fiduciary responsibility by implementing governancestructure for related-party transactions!Pursuing mutual interests with unitholders-Operating an employee stock ownership plan targeting officers andemployees of the sponsor and the asset management company!Timely and appropriate disclosure of information

GLP J-REIT 2021 ESG REPORT

11

The GLP Group's fundamental approach to facility design andoperational processes is energy-saving. We strive to improveenergy efficiency in both existing facilities and new facility
developments. In accordance with the above policy, GLP J-REIT
actively owns environmentally friendly buildings and introduces
eco-friendly equipment, as well as develops rules for checking
sustainability and environment protection items in the due
diligence process when considering the purchase of a property.
Thus, it takes utmost care in that its asset management
operations pay consideration to the sustainability of society andenvironmental protection. At the facilities it operates, GLP J-REIT
sets numerical targets and monitors the amount of energy andwater used within the facility as well as the amount of waste.
Furthermore, GLP J-REIT not only strives to save energy andreduce waste in common areas but also shares information on theamount of energy used and waste with tenant companies in aneffort to reduce environmental load together with tenantcompanies by issuing an energy-saving guidebook according toenergy use and recommending to stop idling engines within
facility premises.

Environment

Basic Policy

GLP J-REIT 2021 ESG REPORT

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Environment
SocialGovernance

Environment

Initiatives against climate change
Initiatives in renewable energy

Initiatives in energy-saving
GLP J-REIT strives to reduce the use of energy within its logistics facilities by adopting LED lighting and humanpresence sensors in its facilities and segmenting light switching in the warehouse areas.

LED lighting

GLP J-REIT also improves energy efficiency within buildings by promoting energy-saving through updates of airconditioning equipment at facilities and adopting heat-insulating panels on the exterior walls of the facilities that
improve heat insulation performance.

Solar power generation facilities

Wind power generation

Human-presence sensors

Number ofsolar facilities

Annual solar power
generation

21

28,754

MW
2020

Updating air-conditioning
equipment

Heat-insulating panels

GLP J-REIT 2021 ESG REPORT

13

Environment
SocialGovernance

Environment

Cooperation with tenantsInitiatives in water resources

At the facilities it operates, GLP J-REIT sets numerical targets and monitors the amount of energy used within
the facility. Furthermore, it not only strives to save energy and reduce waste in the common areas but also
makes efforts to reduce environmental load together with tenant companies through initiatives such as
issuing an energy-saving guidebook according to the use of energy by the tenants.

GLP J-REIT makes efforts to save water by updating toilet equipment when
tenants move in or leave, and by using rainwater and well water.
Water-saving
devices

After installation

Green lease
GLP J-REIT includes green lease clauses in standard lease contracts with tenants to reduce energy
and water consumption, waste, and to collaborate in acquiring green building certification.
In addition, we carry out renovations to improve environmental performance in cooperation withtenants. We have been improving environmental performance and reducing running costs ofproperties through installation of LED lighting, air conditioning upgrades, and other works.

Water-saving by updating toilet
equipment

Installation of water-saving devices.

Tenant management programs
In cooperation with tenants, GLP Group takes part in various initiatives that reduce environmental
load. We proactively work to increase tenant awareness regarding how to reduce environmentalload and cut water and electricity consumption. Specifically, we promote the visualization ofelectricity consumption by sending meter data to our tenants, encouraging them to turn off theirvehicles when stopped, and encouraging them to save water and electricity.
-Visualize electricity consumption in cooperation with tenants-Provide tenants with information on energy, water, waste, and other consumption and emissions-Tenant awareness and education activities, etc.

In an effort to save water, well water and rainwater are used to drain toilets
as well as to water the plants in the facility.

Initiatives in waste management
Formed a business alliance with Hyperion, the operator of the second-hand logistics equipment purchase site
"Matebank," and sold cheaply when moving in (purchase price 5-10% OFF) and expensive purchase when moving out(purchase price 5-10% UP). Realized. We support the cost reduction associated with the relocation and move-out of
residents.

Trash separation

Energy-saving guidebook

Reuse Purchase

Storing until Buyer appears
Purchasing backwith high-priceUnnecessary Logistic
Equipment

Reuse Sales Rental

Sellingwith low-priceSecond-hand Logistic
Equipment

GLP J-REIT 2021 ESG REPORT

14

Environment
SocialGovernance

Environment

Consideration for the environment andregional revitalization in urban development
GLP Group develops facilities that are environmentally friendly and contribute to the regional revitalization.

Reduce environmental load throughredevelopmentn Rebuilt and redeveloped an existing facility (B building) at GLP Urayasu II
by GLP Groupn Upon redevelopment, the building acquired Rank A certification from
CASBEE for Real Estate as it was able to reduce electricity use by
installing LED lighting throughout the entire newly developed building andthrough large ceiling fans in air-conditioned areas

GLP Urayasu II

Consideration for the regional revitalization in urban developmentn GLP Group is implementing development that will lead to regional revitalization, such as opening cafeteriastyle restaurants to local communities, setting up convenience stores and cafes, and securing community
spaces, etc.

Pollution Prevention
n When acquiring real-estate-related assets, etc., as a rule, experts conduct an environmental contamination survey
prior to the conclusion of a purchase agreement, and the survey results will be evaluated and considered inaccordance with the following “soil survey chart” based on the Asset Management Guidelines.
n Moreover, as a rule, our investment targets will be properties that are appropriately treated for soil contamination,etc., in accordance with the Soil Contamination Countermeasures Act (Act No. 53, 2002), other related
environmental laws, and municipal ordinances or guidance.
n In addition, GLP Group, including GLP J-REIT, conducts its own ESG due diligence when acquiring land, properties,
etc., and checks in advance the impact on the environment and the community.
n When developing logistics facilities in undeveloped areas, it is necessary to consider environmental impact of thedevelopment more carefully. GLP Group careful identifies risks through unique ESG-focused due diligence.
Additionally, we have a policy of obtaining green building certifications to reduce the impact on the environment.

GLP J-REIT 2021 ESG REPORT

15

Environment
SocialGovernance

Environment

Acquisition of environmental certification
GLP J-REIT intends to pursue the acquisition of third-party green building certifications in order to enhance theobjectivity and reliability of its efforts to reduce the environmental burden of its properties and to solve
environmental issues through the operation of modern logistics facilities. The figure below shows the current
percentage of green building certifications in our portfolio. We plan to raise the proportion of green building
certification (3rd level from the top or above *) to 80% or higher in our portfolio (based on total floor area) by 2024.

Number of Green Certified
Assets

Proportion of Green
Certified Assets(based on total floor area)

Proportion of Green
Certified Assets(based on Purchase Price)

53 properties

75.6 %

77.5 %

BELS certification

CASBEE certification

LEED certification

18 properties

43 properties

1 property

Certifications of 3rd level fromthe top or above
are green building certifications that meet thefollowing criteria.
BELS: 3 or above
CASBEE real estate or construction (newconstruction):B+or above
LEED: Silver or above
DBJ Green Building certification: 3
or
above

GLP Sayama-Hidaka II/ ZEB Ready

BELS and ZEB! BELS (Building Energy-efficiency Labeling System) is a public system that evaluates the energy-saving performanceof non-residential buildings, which was set by the Ministry of Land, Infrastructure, Transport and Tourism in April
2014. This is a system in which a third-party organization evaluates energy conservation performance based on
primary energy consumption based on the Energy Conservation Law (Note) regardless of whether it is a newbuilding or an existing building. The evaluation is based on five levels of energy conservation performance labeling() is displayed.
! A Net Zero Energy Building (“ZEB”) is a building that aims at zero energy balance with considerably reduced annual
energy consumption by saving as much energy as possible via better heat insulation, solar shading, natural energy
and high-efficiency equipment, coupled with creating energy by photovoltaic power generation (or other energy
generating methods), while maintaining a comfortable environment. Since the Building Energy Index (BEI), which isused for BELS evaluation, is also used for ZEB evaluation, it is possible to display ZEB evaluation in BELS evaluation.
ZEB evaluation can be indicated with four levels, "ZEB," "Nearly ZEB," "ZEB Ready," and "ZEB Oriented,"depending on the zero energy achievement status.

GLP Kobe-Nishi

GLP Atsugi II

BELS
Certification
Rank

BELS
Certification
Rank

ZEB
Certification

GLP Kobe-Nishi

GLP Iwatsuki

GLP Atsugi II

GLP Koriyama I

GLP Yoshimi

GLP Misato II

GLP MFLP IchikawaYokohama

ZEB Ready

GLP Sugito

GLP Kawashima

ZEB Ready

GLP Tosu I

GLP Sayama-Hidaka II

ZEB Ready

GLP Motoyama

GLP Kashiwa II

ZEB Ready

GLP Komaki

GLP Rokko III

ZEB Ready

GLP Tokyo II

GLP Niiza

ZEB Ready

GLP Sayama-Hidaka I

ZEB Ready

ZEB
Certification

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16

Environment
SocialGovernance

Environment

CASBEELEED! CASBEE Comprehensive Assessment System for Built Environment
CASBEE (Comprehensive Assessment System for Built Environment
Efficiency) is a comprehensive rating system provided by the Institute for
Building Environment and Energy Conservation (IBEC), a non-profit
organization supervised by the Japanese government, which assesses andevaluates buildings' environmental functions based on various factors
including environmentally friendly construction materials and workplace
comfort/amenities, and how the building complements the local
community and environment.
! CASBEE Certifications are based on a five-scale system ("Rank S(excellent)," "Rank A (very good)," "Rank B+ (good)," "Rank B- (slightly
inferior)" and "Rank C (inferior)") for buildings that have been completed
for more than one year.

! LEED (Leadership in Energy & Environmental Design) was developed and operated by the U.S. Green Building
Council (USGBC), the non-profit and reviewed by GBCI for certification, and a system for evaluating theenvironmental performance of built environments (building and urban environments)! In order to receive LEED certification, you must meet the mandatory requirements for each certification system(Building Design and Construction (BD+C), Interior Design and Construction (ID+C), Operation and Maintenanceof Existing Buildings (O+M), Neighborhood Development (ND), and Housing (HOMES)), and earn points forselected items. Based on the number of points achieved, a project earns one of four LEED rating levels: Platinum(80+ points), Gold (60-79 points), Silver (50-59 points), and Standard Certification (40-49 points).

GLP Tokyo S Rank

Property with LEED evaluation
GLP Zama

GLP Soja I

Platinum

S RankProperty with CASBEE evaluation
GLP Koshigaya II

S Rank

GLP Misato III

S Rank

GLP Kazo

A Rank

GLP Fukaehama

A Rank

GLP Sodegaura

S Rank

GLP Komaki

S RankGLP Hamura

A Rank

GLP Tokai

A Rank

GLP Urayasu III

S Rank

GLP Soja I

S Rank

GLP Tokyo

A RankGLP Hayashima

A Rank

GLP Sugito

S Rank

GLP Soja II

S Rank

GLP Shinsuna

A RankGLP Hayashima II

A Rank

GLP-MFLP IchikawaS Rank
Shiohama

GLP Osaka

S Rank

GLP Sendai

A Rank

GLP Ebetsu

A RankGLP Yoshimi

S Rank

GLP Koriyama III

S Rank

GLP Funabashi II

A RankGLP Hiroshima

A Rank

GLP Kobe-Nishi

S Rank

GLP Atsugi II

S Rank

GLP Shiga

A Rank

GLP Urayasu IIBuilding B

A Rank

GLP Tosu I

S Rank

GLP NodaYoshiharu

S Rank

GLP Neyagawa

A RankGLP Yachiyo II

A Rank

GLP Sugito II

S RankGLP Yokohama

S Rank

GLP Funabashi III

A Rank

GLP Misato II

S Rank

GLP Urayasu

S Rank

GLP Narashino

A Rank

GLP Tokyo II

S Rank

GLP Shonan

S Rank

GLP Matsudo

A Rank

GLP Amagasaki

S Rank

GLP Tomiya

S Rank

GLP Amagasaki II

A Rank

GLP Zama

Platinum

GLP J-REIT 2021 ESG REPORT

17

Environment
SocialGovernance

Environment

Environmental Performance
Through various initiatives, the Investment Corporation is working with tenants to reduce the use of energy, water,
and waste.
In 2021, a new system for the collection and understanding of water and utility data is being implemented to ensure
uniform and efficient collection of water and utility data.

Electricity usage
Electricity usage
MWh
Coverage rate

2019

2020

130,216

147,615

164,068

Water usage
Water usage%

Greenhouse gas (GHG) emissions
Greenhouse gas (GHG)
emissions t-CO2
Coverage rate

2018

Coverage rate

86 %

99 %

100 %

2018

2019

2020

62,341

71,48773,011%

Renewable Energy Output
Renewable Energy
Output MWh

84 %

99 %

100 %

2018

2019

2020

26,55727,45828,754

2018

2019

2020

245,649

299,871

341,267

80 %

88 %

100 %

2018

2019

2020

51%

39%

61%

67 %

66 %

79 %

%

Waste amount
Recycling rate%

Coverage rate%

GLP J-REIT 2021 ESG REPORT

18

Basic Policy

SocialThe GLP Group will conduct business management by placingemphasis on ensuring the comfort and health of its employees
and customers as well as local communities. In accordance withthe above policy, GLP J-REIT actively engages in CSR activities infull coordination with the GLP Group. It also contributes to the
BCP of tenant companies by ensuring the safety of tenants,
facility users, and local communities as well as that of the stored
cargo and employees of tenant companies. Furthermore, it
conducts a customer satisfaction survey of tenant companies
each year to provide buildings and services that offer comfort totenants and facility users and makes improvements to its
buildings and services on a continuous basis based on the
feedback obtained from the survey. It also pays consideration to
the surrounding environment through activities such as theplanting of trees as well as volunteering and hosting events in aneffort to contribute to building a safe and comfortable community.
We also carry out various initiatives each year to offer job
satisfaction to employees as well, such as conducting an
employee satisfaction survey targeting the employees of GLP
Japan Advisors.

GLP J-REIT 2021 ESG REPORT

19

Environment
SocialGovernanceSocialInformation Disclosure and Dialogue with Stakeholders

GLP Group's CSR Activities
The GLP Group is actively engaged in CSR activities, offering support indiscovering and nurturing children's possibilities and talents.

Investors and lenders

Tenants and business partners! Briefings on financial results and briefings
for investors;! Disclosure through appropriate and timely
press releases and the like;! Use of the website to disseminate
information;! Compliance with eco-friendly certification
systems and environmental ratings; etc...

! Efforts to save energy and to cut CO2
emissions;! Cooperation with tenants based on “green
lease” clauses;! Implementation of tenant satisfaction
surveys;! Switching to LED, introduction of solar
power generation; etc...

Proactive disclosure

Activities in JapanSports events

Work experience opportunities

Delivering picture books to children
in developing countries

Picking up trash at the coast

Cooperation in considerationof sustainability

Contributing to
the regional society

Creation of a fair andfulfilling workplace

The local community

Employees! Initiatives toward volunteering and thelike;! Provision of facilities in the event of adisaster;! Opening of shared space; etc...

! Prioritizing the health and safety of
employees;! Promoting a variety of work styles;! Raising the level of human resources;! Implementation of employee awarenesssurveys; etc...

Activities abroad
Founded GLP Hope School and provided educational opportunities to around 10,000 students

GLP J-REIT 2021 ESG REPORT

20

Environment
SocialGovernanceSocialDisaster response

Contribution to local communities as a disaster prevention base

The GLP Group has entered into agreements with many local governments to use its modern logistics facilities as areconstruction support base or evacuation point at times of a natural disaster or emergency, building on its highly
rated business continuity measures such as seismic isolation structures, backup power supply, and groundwatersupply equipment.

17 properties available as emergency sites
or disaster management bases(Capacity of 12,790 people)

The GLP Group has also entered into agreements with local authorities for use of GLP J-REIT facilities as temporary
reconstruction support centers and evacuation site in the event of a natural disaster or other emergency. GLP J-REIT
multi-tenant properties are available for use as emergency shelters for local residents upon request from the local
authority or residents of the afflicted area. Part of the premises can be used as a disaster management base (atemporary reconstruction support center and shelter for the local municipality in the event of a natural disaster orother emergency).
Cooperation agreement on disaster managementwith local governments

GLP Kawashima
GLP Tokyo II

A slope that people can climb at the same time
during a disaster

GLP Komaki
GLP Amagasaki
GLP Soja II
GLP Tosu I

GLP Osaka
GLP Soja I

GLP Sugito II
GLP Sugito
GLP Misato II
GLP Sayama-Hidaka II
GLP Urayasu III
GLP Tokyo
GLP Yokohama
GLP Atsugi II
GLP Zama

Open cafeterias, etc.,
as temporary evacuation sites

Distributing and stockpiling ofdisaster-relief supplies

Installing in-elevator
fire prevention cabinets

GLP Yokohama (Emergency capacity: 922 people)

GLP Kawajima
In September 2020, during the approach of Typhoon#12, the local government asked for the use of GLP
Kawajima as an emergency shelter based on thedisaster agreement.

GLP Atsugi II

GLP J-REIT 2021 ESG REPORT

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Environment
SocialGovernanceSocialContribution to local communities

Ensuring tenant safety

A logistics faculty is more than just a warehouse. When a logistics facility is created, not only does it create a logistics
hub, but other things such as new jobs, people-to-people connections, and human flows are created. We also endeavor
to create a space that brings out the best in the area.

The GLP Group makes efforts to provide buildings and services that pays consideration to the safety of tenantcompanies and facility users. It also contributes to companies' BCPs by ensuring the safety of the stored cargo and theemployees of tenant firms.

In consideration of co-existence with local communities and contributing to the development of communities thatoffer safety and comfort, the GLP Group carries out initiatives such as opening up convenience stores and cafeterias
to the neighborhood as shared spaces at some of our facilities, planting trees and installing photocatalytic pavement,
as well as having our employees conduct beautification activities around our facilities.

Opening convenience stores as shared space

Introduction of reservation-based
parking-matching services

At some of our facilities,
we open up convenience stores and cafeterias
to the neighborhood as shared spaces
Planting trees

Photocatalytic pavement

Seismic isolation structure
We developed and started using our own unique seismic isolation system, the GLP Pile Cap Seismic Isolation
Construction Method (Patent No. 4934769), which functions properly even in major earthquakes. Furthermore, in
2015, we developed a new seismic isolation analysis method known as GLP Simultaneous Analysis Method (Patent No.
5698402) that further reduced costs, and it was implemented at GLP Naruohama.

Snow damage control

Flood damage control

We deploy light trucks with blade snowplows toremove snow after snowfall.

We have installed watertight doors that prevent
flooding at key facilities.

Employees conduct beautification activities
around our facilities

24-hour security

AEDs

GLP J-REIT 2021 ESG REPORT

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Environment
SocialGovernanceDonation to local governments (GLP Japan Advisors)
GLP Japan Advisors makes tax-deductible donations to local governments where GLP J-REIT properties is located.
Contribution to local communities through these donations to businesses working to promote employment, etc.

Meeting with Yokohama City Disaster Prevention Center,recipient of donations

the Meeting with Funabashi City Mayor, recipient of donations

Response to COVID-19
For Customers

Employee support

COVID-19 GLP Facility Guideline

Employee support aimed at
improving physical and mental healthand productivity / efficiency

Collect Infection Dataand Information

Upon notification of outbreak of COVID-19 within a facility, the PM informs theindividuals involved, as well as those in the Disaster Control Center. Information
about the origins of the outbreak include each employee’s test results,
symptoms, and the names of others in close contact. An outbreak response HQ
is also established within the facility for fast and effective decision-making.

Contact Customers

Property manager inform all employees and companies within the facility of theoutbreak via email. Notices with information about the infection are displayed
throughout the facility!"#$#%&'()"&*#"'+,"#-.'/0'1)&2"#-3

Enhanced daily cleaning and disinfection measures are implemented within thefacility to prevent infection through touch. Extreme disinfection efforts areconcentrated on area where the infected individual worked within the facility.
Those who were known to come into close contact with the infected employee
are advised to quarantine at home.

Outbreak Contained

Outbreak response HQ is disbanded, enhanced precautions are lifted,
customers are informed of the containment of the outbreak, and GLP
employees previously advised to stay home can return to the facility

1Well-being Support
Supporting diverse work styles andphysical and mental health

Ensuring employee health1

Remote work support

2

Supports various expenses such asutility costs and communication costs
associated with remote work

Ensuring office safety
Installation of partitions on the desk, layout design tomaintain social distanceIntroduction of pulse check (Monthly)

2

3

4

Regularly check the physical and mental health due tochanges in the working environment and provide
appropriate support.

Department Manager / Group Leader &Regular Communication of Human Resources
Extract title changes and problems in various work
styles and make improvements

Establishment of consultation desk
Individual employees are confused about how towork ! Suck up opinions and make improvements

GLP J-REIT 2021 ESG REPORT

23

Environment
SocialGovernanceSocial

BCP measures

Providing tenants with comfort
The GLP Group aims to provide buildings and services that offer comfort to tenant companies and facility users. It
conducts a customer satisfaction survey of tenant companies each year to improve its buildings and services on acontinuous basis based on the feedback obtained from the survey. We have also established GLP Concierge, a onestop consultation desk that cooperates with tenants and business partners to provide a wide range of consultation
services for tenants’ problems and requests. By helping to solve our customers’ issues, we also contribute to solving
Japan’s logistics issues, all the while strengthening relationships with our tenants who are key stakeholders.

BCP measures in use
n We have back-up power facilities to ensure security functions throughout all buildings in the event of apower outage by making lighting and electrical outlets available at security systems and some offices
n Groundwater and rainwater supply systems allow use of toilets in the event that water supply is cut offn Fuel storage bases have been installed at the facilities, and there are plans to provide fuel to tenantcompanies and neighboring facilities in the event of a disastern Digital signage automatically displaying weather warnings and earthquake information has been
installed at entrances and cafeterias to ensure access to the latest information in the event of a disastern Flood control measures have been implemented to protect power conversion facilities from water
damage caused by heavy rains or floods.
n Seismic isolation structures are used to ensure the safety of the building even in a major earthquaken A4-sized disaster prevention emergency kits have been stockpiled
n Disaster-relief vending machines have been installed

Cafeteria

KitchenResting space

Rental conference room

Large ceiling fan

Universal design toilets

Convenience store

Kiosk

Nursery

Staffing officeCommuter bus

Shower room

GLP J-REIT 2021 ESG REPORT

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Environment
SocialGovernanceSocialConducting customer satisfaction surveys
We conduct customer satisfaction surveys to obtain requests and opinionsfrom customers. We entrust an independent research agency with annual
satisfaction surveys of our customers housed in multi-tenant logistics
facilities. In fiscal 2020, we received a high rating of 98% in our survey titled“Intent to Continue Using GLP Japan.” Furthermore, the PM team of GLP
Japan Inc., the sponsor of GLP J-REIT, conducts satisfaction surveys ofcustomers housed in BTS logistics facilities as well.

Solving logistics issues with cutting-edge technology
Customer
Satisfaction

98%

With an aim to solve all logistics issues, GLP Group uses advanced
technologies to develop and implement various systems.

Shared consignee system

Truck ledger

Streamlining overall cargo operations

Streamlining incoming and outgoing trucks

Conducting tenant communication meetings
In an effort to better manage and operate our facilities and build relationships with our customers, GLP Group’s
Property Management Department conducts tenant communication meetings with GLP J-REIT’s facility customers
once every quarter.
GLP Tokyo II

GLP Osaka!

Waiting time is clarified by registering trucks oftenant companies on a tablet in the shared consignee
room

Business partnership with PASCO CORPORATION! Solved the problem of long waiting times for trucks! Reduced workload through application management! Further streamlining by collecting and analyzing
data

Haisha Plus

Appropriate placement of workers

Streamlining vehicle allocation andStreamlining procurement management operations

collection operationsof short-term staff

Business partnership with TRANCOM CO.,LTD.
! Significantly reduced the workload of vehicle
allocation management! Visualized and shared the status of vehicle allocation
to streamline transportation! Responding to waves in logistics quantities throughquick matching!

Solving tenant issues (GLP Concierge)
GLP Group has established GLP
Concierge, a one-stop
consultation desk that cooperates
with tenants and business
partners to provide a wide rangeof consultation services fortenants’ problems and requests byhelping to solve our customers’issues, we contribute to solving
Japan’s logistics issues, all thewhile strengthening relationships
with our tenants who are key
stakeholders.

The Strength of GLP’s Network
Number of Companies using facilities : 3,000 companies per day
Number of companies with which GLP is in contract : 15,000 companies

Providing solutions to customers’ issues
Site optimization
Employment support
Facility management support

Transportation anddelivery support
Procuring inexpensive
Materials and equipment
Progress in automation!
!

Possible to request and confirm responses frommany dispatch and placement agencies at the sametime
Avoiding congestion during registration by using
tablets to take staff attendance
Reducing management risks by linking attendancewith daily reports by digitizing attendance
information
GLP J-REIT 2021 ESG REPORT

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Environment
SocialGovernanceSocialInitiatives for employees

Improving sophistication of human resources

GLP has led the market as a leading provider of modern logistics facilities. And we will continue to innovate
beyond people's imagination by keeping on challenging without resting on our laurels. To that end, we arecommitted to improve the work environment and review the personnel system ahead of the social situation sothat employees can enjoy their work, support each other, demonstrate maximum performance, and achieve
big goals. We are making efforts to create a work environment with various innovations.
To note, since GLP J-REIT does not have any employees because of J-REIT regulation and is virtually managed
by officers and employees of the Asset Management Company, below information applies to all employees of
GLP including GLP Japan Advisors Inc., the Asset Management company.

Introduction of Training System

Pursuing comfort and health of employees
Support Content

OutlineHealth check /human dock assistanceAll employees are required to undergo regular medical examinations orhuman dock examinations once a year, and we are promoting the health of
employees by providing cost subsidies.

Mental health care training
Occupational physician
interview system

Harassment / mental health related webinars (twice) for department heads
Prevent health risks with expert support

Promotion of diverse work styles
We have introduced the following employee support with the aim of creating diverse work styles that allow
each employee to devise ways to maximize productivity and efficiency, including the institutionalization of
remote work.
Support Content

Based on the independent training program developed by each employee, we have introduced a system to support
growth opportunities through seminars, lectures, and courses that will contribute to their careers in the medium tolong run (100,000 yen per person per year)

Training overview
Name of training

Target level

Management and leadership training

Managers

Support for certification exams
The asset management company supports its employees in acquiring specialist certifications including as an
Association for Real Estate Securitization (ARES) Certified Master (an educational program that systematicallyteaches practical expert know-how in the fields of real estate and finance) and as a real estate notary. The asset
management company bears the costs for the training and exams in acquiring the various certificates as well as formaintaining the certificates and increasing and maintaining expertise through seminars, etc., and all employees andofficers have access to funding.
The number of ARES Certified Masters and real estate notaries as of the end of December 2019 is as follows.
Name of certification

Number of certifications

ARES Certified Master6 people

Real estate notary

5 people

OutlineWell-being support

Supporting diverse work styles and physical and mental health

Remote work support

Supports various expenses such as utility costs and communication costs
associated with remote work

Introduction of
E-learning platform

Practical training program foryoung employees and new hires

GLP Group has introduced an E-Learning
platform as part of training for all
employees, enabling them to utilize theabundant learning content of over 3000
titles and GLP's unique content, as well as
connecting employees on a global level.

GLP offers a variety of training and practical training for young
employees and new hires. Specifically, we provide OJT training anddepartment briefing sessions in each department, site tours, amentor system, and regular follow-up interviews after hiring. We
support new employees so that they can quickly become familiar
with GLP’s corporate culture and play an active role in GLP.

GLP J-REIT 2021 ESG REPORT

26

Environment
SocialGovernanceSocialCreating a fair and rewarding workplace
Various benefits programs

Fair evaluation and compensation
Item

Prenatal and postnatal leave

Reemployment of elderlyChild care leave

Employee stock ownership plan

Sick/injured child care leave

Defined contribution pension plan

GLP’s personnel evaluation system is a reward-and-evaluate system which strongly encourages each
employee to contribute to achieving the mission and vision of the company. The personnel evaluation system
is also designed with cross-departmental collaboration, one of GLP’s business characteristics, in mind, andthrough the administration of the system, all departments, including the revenue and administration
departments, are expected to work together to achieve corporate growth. In addition, the system encourages
employees to take on new challenges and evaluates them appropriately. This personnel evaluation system has
motivated each and every employee to create an organization that takes on challenges and innovates for the
rapid growth of the company.

Family care leave

Company housing system

Conducting employee satisfaction surveys

Cafeteria plan

Health support (EAP) program

As part of our efforts to establish favorable mutual relations between the employees and the company, we
regularly conduct employee satisfaction surveys through Wevox to evaluate job satisfaction levels, work

Congratulatory or condolence money

Group long-term disability (GLTD) income compensation

environment satisfaction levels, and other requests to the company (92% response rate). By visualizingorganizational issues based on these survey results, we are able to realize the well-being of each of ouremployees and improve the working environment and the organization.

Health screening and physical exam
assistance

Health insurance association

Welfare pension

Employment insurance

Labor insurance

Special leave

Diversity & Inclusion
To promote employee diversity, the GLP Group offers over 100 programs on diversity and inclusion in a

Domestic and international businesstravel insurance

Corporate rental car agreement

learning platform for all employees.

Comprehensive welfare group term insurance

Whistleblowing System
Institutionalization of remote work
Other allowances (remote work support allowances, wellbeing support allowances)

GLP Group has introduced a whistleblowing system that accepts whistleblowing not only from all employees
but also from employees' families and business partners etc. The content covers all fields such as various
harassment, labor-related issues and environmental issues. Consultations can be made anonymously and areprotected in accordance with the Whistleblower Protection Act.

GLP J-REIT 2021 ESG REPORT

27

Governance
GLP J-REIT 2021 ESG REPORT

28

Environment
SocialGovernanceCorporate Governance

Since its listing, GLP J-REIT, together with GLP Japan Advisors, has pursued the maximization of unitholder interest bycontinuously enhancing governance systems to establish a strong relationship that aligns the interests of unitholders,
GLP J-REIT and GLP Japan Advisors.

Asset Management Company’s
Executive Decision-Making Mechanism

Adoption of performance-linked
asset management fee to meet unitholder interest

J-REIT

The asset management fee is a performance-linked fee where approximately two-thirds of asset management
remuneration is linked to NOI and EPU.

Compliance Committee
Supervisory
Director*Approved by unitholders

Implementation of employee training on ethical standards
To strengthen governance structure, we provide training on ethical standards to all employees (including part-timeand contract employees) of GLP Japan Inc., Sponsor, and the Asset Management Company every year.

Investment Committee

Outside Expert(s)Board of Directors

Outside Expert(s)The approval of the J-REIT board on the new appointment of an outside expert is required.

1.

Approval of the J-REIT board is necessary for transactions that require the consent of a J-REIT based on the resolution of the J-REIT board, andreporting to the board is necessary for other cases.
Click here for more information on decision-making mechanisms:(Report on the Management Structure and System of the Issuer of Real Estate Investment Trust Units and Related Parties)PDF

Outline of the Various Committees
Committee

Investment
Committee

Item

To deliberate and decide upon matters concerning the management, etc.
of the assets of GLP J-REIT

Constituent members

President, Directors, CIO, CFO, Compliance Officer, one External Officer

PurposeCompliance
Committee

ESG
Committee

Details

PurposeFrequency of meetings

Further enhancing governance throughan Employee Stock Ownership Plan (ESOP)
Established ESOP targeting officers and employees of GLP Japan Inc. and the asset management company of GLP JREIT in May 2020, with a policy to further enhance the alignment of interests with our unitholders.

Supervisory
Director!Note"The GLP Group's holding of investment units(same boat investment)

GLP J-REIT was the first J-REIT to implement information disclosure to a wide range of unitholders by holding amanagement call meeting for overseas investors in capital increase through public offering.
GLP J-REIT was the first J-REIT to introduce a telephone conference system for the purpose of information disclosure
to a wide range of unitholders at the financial presentation meetings.
GLP J-REIT discloses Japanese and English press releases and disclosure material simultaneously.

Compliance Officer

Executive
Director

GLP J-REIT is not allowed to carry out related-party transactions without the approval of independent outside
expert(s) of the asset management company’s Investment Committee and Compliance Committee.
The selection of such outside expert(s) requires the approval of the J-REIT board.

Highly transparent and appropriate information disclosurein pursuit of fair disclosure

Executive Director CIO/CFO

Board of Directors

Introduction of a strict governance structure
for related-party transactions

GLP J-REIT seeks to improve mutual interest by aligning the interests of GLP J-REIT's unitholders and the interests of
the GLP Group by having the GLP Group hold investment units.

Asset Manager

In principle, once every three months,
with emergency meetings called as the need arises
To ensure thorough compliance with laws and ordinances,
rules and regulations, and other related matters

Constituent members

President, Compliance Officer, one External Officer

Frequency of meetings

In principle, once every three months,
with emergency meetings called as the need arises

PurposeTo deliberate and decide upon matters concerning the promotion of ESG, etc.

Constituent members

President, CSO, CIO, CFO

Frequency of meetings

Meetings held regularly, with emergency meetings called as the need arises

GLP J-REIT 2021 ESG REPORT

29

Environment
SocialGovernanceCorporate GovernanceThinking Regarding Compliance

Compliance Officer

GLP J-REIT (hereinafter referred to as the “Investment Corporation”) and GLP Japan Advisors Inc. (hereinafterreferred to as the “Asset Management Company”) are fully cognizant of the significance of the fact that the asset
management the Asset Management Company conducts for the assets of the Investment Corporation constitutes the
management of the funds of the Investment Corporation’s investors, and the Asset Management Company has
prepared internal compliance rules and other necessary rules and has established a Compliance Committee and aposition of Compliance Officer as described below to ensure full compliance with applicable laws and regulations inorder to ensure the development of an appropriate management structure.

The Asset Management Company, fully cognizant of the significance ofthe fact that the asset management it conducts with the assets of theInvestment Corporation constitutes the management of the funds ofthe Investment Corporation’s investors, in order to ensure thedevelopment of an appropriate management structure, hasestablished the position of Compliance Officer as the key person
responsible for compliance, thereby ensuring the effectiveness of thefunction of internal oversight of other units The selection or thedismissal of the Compliance Officer requires the approval of twothirds or more of the directors in attendance at meeting of the board of
directors that is attended by a majority of all the directors with voting
rights. The Compliance Officer, as the key person responsible forcompliance at the Asset Management Company, is charged withestablishing and maintaining the internal compliance structure of thecompany and raising the level of standards awareness within thecompany in regard to compliance with all applicable laws, regulations
and rules. To those ends, the Compliance Officer prepares a
Compliance Manual and Compliance Program through the Compliance
Committee, continually monitors to ensure that all operations
conducted for the asset management of the Investment Corporationby the Asset Management Company comply with all applicable laws,
regulations, rules and the articles of incorporation of the Investment
Corporation, and exercises supervision over the overall internal
compliance environment in daily operations. The General
Administration Department, established under the overall direction
and control of the CFO (Executive Officer) and being charged withoverall general administrative operations, will assist the work of theCompliance Officer. In view of the importance of the duties of theCompliance Officer, the Compliance Officer at the Asset Management
Company devotes him/herself exclusively and on a full-time basis toaddressing compliance matters. Only a person having adequate
investigative and supervisory capacity for ensuring compliance with allapplicable laws, regulations and rules may be appointed as theCompliance Officer. The Compliance Officer is also in charge ofinternal auditing of the Asset Management Company (However, theinternal auditing of the Compliance Officer is conducted by the
President.) All internal organization and job classifications are subject
to internal audit; audit and other procedures to assess whether theoperations and management of all internal organizations comply withall applicable laws, regulations and rules and are being conducted
appropriately and efficiently will be carried out on a regular basis
based on the Compliance Program and the Internal Audit Rules. Wheninternal audits are conducted all departments must submit and explain
all documents, account books or other materials as requested by theCompliance Officer and cooperate fully to ensure the smooth
implementation of the internal auditing.

Compliance Structure(structure for ensuring compliance with laws and regulations)

Compliance Committee
In order to establish an appropriate management
structure for the Asset Management Company toconduct the asset management of the Investment
Corporation, the Asset Management Company has
established a Compliance Committee charged with therevision (excluding the correction of errata) ofcompliance rules; the formulation and revision of aCompliance Manual and Compliance Program(excluding the correction of errata); deciding on
corrective measures regarding conduct which is, or issuspected to be, inappropriate from a compliancestandpoint; and the review on whether there are issuesof compliance with respect to matters concerningtransactions with related parties and other mattersregarding that the Compliance Officer judges there to
be questions in terms of compliance. The Compliance
Committee is composed of the Compliance Officer aschairperson, the President, and at least one outside
professional designated by the Board of Directors(hereinafter referred to as the “Outside Expert(s) on the
Compliance Committee”). When designating theOutside Expert(s) on the Compliance Committee, theapproval of the board of directors of the Investment
Corporation will be required (but will not be required
for reappointment). As of the date of this report, anoutside attorney is the one Outside Expert on the
Compliance Committee. Furthermore, the General
Administration Department has been established under
the order by the CFO (Executive Officer) and a memberof the General Administration Department will attend

meetings of the Compliance Committee under the roleof secretariat to the Compliance Committee to assist
the Compliance Officer. In principle, the Compliance
Committee meets once every three months asconvened by the chairperson, and as otherwise
necessary. Decisions of the Compliance Committee
require that a majority of all of the members with voting
rights and all Outside Expert(s) on the Compliance
Committee be present and a majority of those members
and all Outside Expert(s) on the Compliance Committee
vote their approval. When the Compliance Committee
reviews as one of the matters it must decide on whether
there are issues of compliance with respect to mattersconcerning transactions between related parties andthe Investment Corporation, a committee member withvoting rights who is a related party or a committee
member with voting rights who currently holds the
position of an officer or employee (including as aconcurrent position, but excluding cases when such
person has been seconded or transferred to the AssetManagement Company) of a related party, which is a
corporation, may not participate in the decision.
Decisions of the Compliance Committee will bereported regularly to the Board of Directors by theCompliance Officer. When the Compliance Committee
reviews and approves matters which the Investment
Committee must decide, the substance of the review(including any minority opinion presented during thecourse of the review) will be reported to the Investment
Committee by the Compliance Officer.

Implementation ofinternal audit
GLP J-REIT is not allowed to carry out
related-party transactions without theapproval of independent outside expert(s) of
the asset management company’s
Investment Committee and Compliance
Committee.
The selection of such outside expert(s)requires the approval of the J-REIT board.

Whistleblowing System
GLP Group has introduced a whistleblowing
system that accepts whistleblowing not only
from all employees but also from employees'
families and business partners etc. The
content covers all fields such as cheating by
officers and employees and antisocial
behavior. Consultations can be madeanonymously and are protected inaccordance with the Whistleblower
Protection Act.

Anti-Corruption Regulations
GLP Group has established a system tostrictly prohibit and prevent corruption that
violates laws and regulations such as bribery
by formulating "Anti-Corruption
Regulations.“
In addition, as a measure to prevent bribery
and corruption, the "Compliance Manual" ofthe Asset Management Company stipulates
that "Employees and officers shall notprovide or receive excessive entertainmentand gifts to or from the company, business
partners, related parties, etc.."
An independent Compliance Officer holds
Compliance Committee as necessary tosupervise such anti-corruption practices. The
Asset Management Company has neverbeen involved in serious problems related tobribery and corruption since its
establishment.

GLP J-REIT 2021 ESG REPORT

30

Environment
SocialGovernanceCorporate GovernanceRisk Management
Definition of risks

Basic stance on risk management
With regard to the management of our company’s inherent risks, we take the following basic stance in ourwork, with the goal of reinforcing our dual duties of loyalty and care as an asset management fiduciary.

Risks associated with assets
entrusted and managed

Risks of degradation of
reputation
1.

Our company, as an asset management firm, is solely devoted to that business, and thegreatest risk we face is the risk of degradation of our reputation due to a decline in thevalue and confidence placed in us by the investment corporations and their investors(including potential investors in the securities market in general), who trust us with the
management of their assets.

2.

It is essential that we carefully and rigorously manage all risks, including risks regarding
the handling and management of assets, operational risks, and legal and compliancerisks, as risks such as these are a major potential cause of such declines in value andconfidence.

Financial market risks

Operational risks
Risks relating to themarketability of real estate
Concentrated investment risks

Legal and compliance risks

Transaction liquidity risks

Other risks
Credit risks

Event risks

Outsourcing risks

With regard to the management of operational risks of investment corporation assets, we take the following
basic stance in our work, with the goal of reinforcing our investment management capability while striving toprotect the assets under our management.

1.

The primary investment target being real estate, it should be noted that owning realestate or similar specific assets, as opposed to traditional financial assets, comes with its
own set of risks, on top of the general risks associated with asset management, such as
so-called “market risks.” It is necessary to execute sufficient analysis andcountermeasures when handling these kinds of real estate risks.

2.

In the management of these risks, we distinguish those risks that can lead to returns
from risks that need to be eliminated or mitigated, and we act in a safe and reliable
manner with regard to the latter category of risk.

3.

We will not engage in any action that deviates from the basic stance set forth in thepreceding paragraph or that neglects strict risk management and the appropriateacquisition of profits.

GLP J-REIT 2021 ESG REPORT

31

Finance
GLP J-REIT 2021 ESG REPORT32

ESG Finance
Finance

GLP J-REIT ESG Finance

Sustainability Linked Bonds (Reward Type)ESG Finance Issuance History

Purpose of Issue

Type

Issuance Date

Amount of issue(mil yen)Term2022/2

3,300

3/10

2021/123,500

152021/35,000

20

2020/95,000

10Sustainability Bonds! GLP J-REIT aim to diversify sources of financing and further strengthen the financial base by expanding investor
base willing to invest in ESG through the issuance of the Sustainability Linked Bonds(SLB).
! The Sustainability Performance Targets (SPTs) of the SLB are linked with ESG targets on the ESG Report issued by
GLP J-REIT in April 2021. GLP J-REIT believes that the issuance of the SLB accelerate GLP J-REIT’s ESG activities
and contribute to achieve the ESG targets.

Feature! GLP J-REIT became the world’s first issuer of interest rate reward-type SLB in the public bond market! Expanding the investor base through ESG active investor, with Dai-ichi Life Group

Sustainability Loans

2022/2

3,000

5Green Bonds/
Sustainability Linked Bonds

2021/96,000

7

2019/115,000

10! Enjoying Greenium by active issuance of ESG bonds along with the expansion of ESG bond market

Expansion of CASBEE Certification
18th Unsecured Investment Corporation Bond
(Sustainability Link Bond)

Name
Green Bonds

2019/78,000

2018/12

10

5,100

10

Issue Date

September 28, 2021

Issue amount/year

6 billion yen / 7 years
Sustainability Performance Targets:! ESG-related Issuer Targets! High-ranking environmental certification for at least 80% of the portfolio(based on gross floor area)

SPTs

Sustainability Loan Initiatives! Refinancing in February 2022 by procuring GLP J-REIT's first sustainability loan (3 billion yen)Interest rate

Initial interest rate : 0.284
Interest rate after achievement of SPTs: 0.234% (0.05% from initial)

Outstanding ESG Bonds
%#

30

$!
"#
!

Fixed interest rate period

40.9
28.5

Initial interest rate
28

23.5

19

17.4

13.5

13.4

Payment
date

Achievement of SPTs
GLP

Variable interest rate period

Company A Company B Company C Company D Company E Company F Company G Company H

5bps

Interest rate after
achievement of
SPTs

Redemption
date×(bn yen)Interest rate will be determined at the end of July and applied in September every year after the end of December 2024.

(As of February 2022)

GLP J-REIT 2021 ESG REPORT33

ESG Finance
Finance

Sustainability Finance Overview of the Sustainability Framework
Use of Proceeds from Sustainability FinanceManagement of Proceeds

The net proceeds from sustainability finance will be used for the acquisition of assets in the Eligible Green Projects asprovided for in Eligible Sustainability Projects below, refinancing of loans required for the acquisition of assets in the
Eligible Sustainability Projects, and for the redemption of the investment corporation bonds that have already been
issued (including sustainability bonds/green bonds) for the acquisition of assets in the Eligible Sustainability Projects.

The upper limit of green finance (limit of the "Debts of Eligible Sustainability Projects") shall be the amount calculated
by multiplying the total acquisition cost of the Eligible Sustainability Projects by the ratio of actual interest-bearing
debt to total assets as of the end of the latest fiscal period that can be calculated on the payment date or loan date ofeach investment corporation bond, or as of the end of every February.

Eligible Sustainability Projects

Property acquisition costfor GLP J-REIT

Eligible Sustainability Projects are assets or projects that satisfy either of the Eligible Green Project Criteria and the
Eligible Social Project Criteria shown below.

Sustainability Balance Sheet
788 billion yen
86 properties

Eligible Green Projects

Eligible Sustainability Projects

Eligible Sustainability Projects

352.2 billion yen
17 properties

352.2 billion yen
17 properties

610.9 billion yen
54 properties

Eligible Green Project Criteria
Green buildings
New, existing or renovated buildings that have obtained at least one of the following certifications;

DBJ Green Building Certification (Japan) : five, four or three stars
CASBEE (Japan) : S, A or B+
BELS (Japan) : five, four, or three
LEED (U.S.) : Platinum, Gold, Silver

Contribution to the sustainable growth of local communities

Debts of Eligible Sustainability

Project 155.3 billion yen
Interest-bearing debt ratio
as of the end of August 2021
(end of the 19th period)!as of February 28, 2022 "! Eligible Sustainability Projects that also fall under the definition of Eligible Green Projects under GLP J-REIT’s Green Finance Framework are included
both in the total value of Eligible Sustainability Projects and in that of Eligible Green Projects. Any amount of funding provided for those projects in theform of sustainability finance or green finance is included both in the outstanding balance of sustainability finance and in that of green finance. The
amount included in the total value and the outstanding balance overlaps between the two forms of finance.

Reporting on Social Benefits
Item

NumberNumber of properties that are Eligible Green Projects

17

New, existing, or refurbished buildings that contribute to either of items a through d shown below:

a. Safety of local residents in times of disaster

44.1%

Output indicators

b. Development of the local living environment

Emergency shelter for people affected by disaster17 properties
12,790 people

c. Revitalization of the local community

Standby station for Disaster Relief Teams and Emergency
Fire Response Teams in the event of a disaster17 properties

Backup power supply (72 hours)

8 properties

Stockpile volume of fuel19,178 L(15 properties)

Groundwater facility*

GLP Atsugi !
GLP Soja "GLP Zama

d. Provision of parenting support

Outcome indicators! Some properties have groundwater facilities available for use during a water outage.

GLP J-REIT 2021 ESG REPORT34

ESG Finance
FinanceGreen Finance Overview of the Sustainability Framework
Use of Proceeds from Green Finance

Investment corporation bonds

The net proceeds from green finance will be used for the acquisition of assets in the Eligible Green Projects asprovided for in Eligible Green Projects below, refinancing of loans required for the acquisition of assets in the Eligible
Green Projects, and for the redemption of the investment corporation bonds that have already been issued (including
green bonds) for the acquisition of assets in the Eligible Green Projects.

Name
12th Unsecured Bonds(Green Bonds)

Eligible Green Projects

13th Unsecured Bonds

Eligible Green Projects mean the projects involving assets that meet either of the following requirements.

(Green Bonds)

14th Unsecured Bonds(Green Bonds)

Being a green building

15th Unsecured Bonds

A new, existing or refurbished building for which at least one of the following certifications has been obtained:(Sustainability Bonds)

16th Unsecured Bonds(Sustainability Bonds)

DBJ Green Building Certification (in Japan) : five, four or three stars

17th Unsecured Bonds(Sustainability Bonds)

CASBEE (in Japan) : S, A or B+

18th Unsecured Bonds

BELS (in Japan) : five, four, or three(Sustainability Bonds)

19th Unsecured Bonds

LEED (in the United States) : Platinum, Gold, Silver(Sustainability Bonds)

20th Unsecured Bonds(Sustainability Bonds)

Management of Proceeds
The upper limit of green finance (limit of the "Debts of Eligible Green Projects") shall be the amount calculated
by multiplying the total acquisition cost of the Eligible Green Projects by the ratio of actual interest-bearing
debt to total assets as of the end of the latest fiscal period that can be calculated on the payment date or loan
date of each investment corporation bond, or as of the end of every February.

Total AmountInterest Rate

Term

Issuance Date

Maturity Date

5,100

0.680%

10

2018/12/20

2028/12/20

8,000

0.608%

10

2019/7/8

2029/7/6

5,000

0.550%

10

2019/11/27

2029/11/27

5,000

0.510%

10

2020/9/25

2030/9/25

3,500

0.750%

15

2020/12/23

2035/12/21

5,000

0.970%

20

2021/3/23

2041/3/22

6,000

0.284% 1

72021/9/28

2028/9/28

2,000

0.130%

3

2022/2/25

2025/2/25

1,300

0.520%

10

2022/2/25

2032/2/25(mm yen)1: Interest rate of 0.284% per annum will be applied during the period from the day immediately following September 28, 2021 through September 28, 2025.
Also, interest rate of 0.234% per annum will be applied from the day immediately following September 28, 2025 if the SPTs is achieved as of each Observation
date after end of December 2024.

Sustainability Loan Issuance

GLP J-REIT acquisition price788 billion yen
86 properties

Green balance sheet
44.1%

Eligible Green Projects

Eligible Green Projects

610.9 billion yen
54 properties

610.9 billion yen
54 properties

Debts of Eligible Green Projects

269.5 billion yen

Name

Total Amount

Sustainability Loan Signed in
February 2022

3,000

(mm yen)Interest Rate

Term

Issuance Date

Maturity Date

Base rate +
0.165

5

2022/2/28

2027/2/26

Interest-bearing debt ratio
as of the end of August 2021
(end of the 19th period)!as of February 28, 2022"! Eligible Sustainability Projects that also fall under the definition of Eligible Green Projects under GLP J-REIT’s Green Finance Framework are included
both in the total value of Eligible Sustainability Projects and in that of Eligible Green Projects. Any amount of funding provided for those projects in theform of sustainability finance or green finance is included both in the outstanding balance of sustainability finance and in that of green finance. The
amount included in the total value and the outstanding balance overlaps between the two forms of finance.

GLP J-REIT 2021 ESG REPORT35