Green Bond Framework
Mori Building Co., Ltd.

July, 2022

contents

1. Introduction ����������������������� 2
1.1. Overview of issuer������������������ 2
1.2. Environmental Philosophy�������������� 2
1.3. Medium & Long Term Targets for Net-Zero Emission� 3
1.4. Initiatives for Achieving Net-Zero Emission ����� 4
1.5. Sustainable Management System ���������� 4
1.6. Participation in External Initiatives���������� 5
1.7. Rationale for Green Bonds Issuance ��������� 5
2. Green Bond Framework ����������������� 6
2.1. Use of Proceeds������������������� 6
2.2. Project Evaluation and Selection Process������ 7
2.3. Management of Proceeds �������������� 7
2.4. Reporting ���������������������� 72.5. External Review ������������������� 8-1-1. Introduction
Mori Building Co., Ltd. (hereinafter, "Mori Building")

has established a Green Bond Framework(hereinafter, "this Framework") in order to further raise awareness among a wide range of stakeholdersof its consistent commitment to urban developments since its establishment and its contribution to theglobal environment through its businesses. Mori Building has obtained a second party opinion from
Sustainalytics, that this Framework is aligned with the Green Bond Principles 2021(ICMA) and Green
Bond Guidelines 2020 (Ministry of the Environment, Japan).
Mori Building will issue green bonds based on this Framework.

1.1. Overview of issuer
Mori Building Co., Ltd. is a general developer company established in Japan in 1959, following thefoundation of its predecessor Mori Fudosan in 1955. Since the establishment, its core business has
been the leasing and management of office buildings primarily in Tokyo's Minato Ward, but it began todiversify its business around 1975, entering the commercial facilities market with the opening of LaForet
Harajuku in 1978. After the completion of ARK Hills in 1986, Mori Building has promoted complexurban redevelopment projects involving office, residential, commercial, cultural facilities, etc. It has also
entered the overseas market since 1994.
In recent years, with the opening of Roppongi Hills, Mori Building has expanded into the cultural, hotel,
and urban development consulting businesses, while the building leasing remaining its core business.
Mori Building is aiming to create a rich urban lifestyle and to further develop Tokyo as an international
city.

1.2. Environmental Philosophy
Mori Building contributes to the creation of a sustainable society for the future by promoting theharmonious coexistence of cities and nature, zero-carbon cities, and resource recycling. It do so throughurban development and operation that takes as its ideal the Vertical Garden City. In order to promote
the above, Mori Building is working on "Legal compliance and development of an environmental
management system," "Disclosure of environmental information," and "Implementing environmental
education and activities to develop environmental awareness".

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Vertical Garden City
The Vertical Garden City concept proposed by Mori Building refers to compact urban complexes
in which functions for work, residence, recreation, commerce, education and relaxation are highly
integrated within walking distances. By aggregating subdivided small plots of land into a large
floor plate and build high-rise buildings, the ground level can be freed up for wide-open green
spaces to nurture the environment.
This not only fosters urban nature and achieves living where people can experience the four
seasons, but also mitigates the heat island phenomenon by covering ground surface and rooftops
with greenery.
The aggregation of diverse urban functions also brings about a leveling of energy demand,
enhancing energy efficiency. A compact city where work and residence are in close proximity
greatly reduces the time and energy required for commuting to work or school and it also has
positive effects on resource recycling and efficiency of distribution. Moreover, making high-leveluse of urban centers in this form aids in the protection of nature in suburbs. The Vertical Garden
City is a new urban model that aims for the harmonious coexistence of cities and nature whileconstraining impact on the global environment.

1.3. Medium & Long Term Targets for Net-Zero EmissionUnder its commitment to help realize a decarbonized society, Mori Building has set group targets toreduce Scope 1 and 2 greenhouse gas emissions from business activities in its consolidated group by50% in fiscal 2030 (compared to fiscal 2019) , and by 30% for Scope 3, aiming to reach net-zero emissions
by fiscal 2050.
Mori Building group's
CO2 emissions in FY2019

Medium term = SBTi targets

Total 674,000 tons
95,000 tons
(14%)

Scope 1&2

Scope 1（gas etc.）

Scope 3（indirect）

Scope 2（electricity &heat）▲ 50%Net zero

Scope 1&2161,000
tons (24%)▲ 30%
Scope 3418,999
tons (62%)
FY 2019（base）-3-Net zero

Scope 3

FY 2030（medium term）

FY 2050（long term）

1.4. Initiatives for Achieving Net-Zero Emission
Based on the Vertical Garden City concept, Mori Building has been working on urban decarbonization
through large-scale urban redevelopment projects and introduction of both high-efficiency equipment
in new projects and extensive energy saving measures at existing properties before setting Medium &Long Term Targets.
Mori Building is establishing a structure to achieve its medium and long term targets and promotefurther disclosure, and will expend its effort on reducing Scope 1 and 2 emissions by strengthening
existing measures as well as introducing new measures. In addition, as for Scope 3, Mori Building will
identify and reduce emissions during the construction in cooperation with supply-chain companies.

Strengthen and newly introduce for Net-Zero Emission
Strengthen (1)Environmental performance of new buildings under ZEB and ZEH andacquisition of environmental certifications

Strengthen (2)Establishment of next-generation energy network

Newly introduce (1)Renewable-energy electricity in existing buildings

Newly introduce (2)Facilities for stable supply of renewable energy

New
Buildings

Increased demand fromfuture developments

Net zero

Scope1+2

FY 2030
FY 2050（medium term） （long term）

Others

FY 2019（base）▲50%

Existing
Buildings

Scope1+2

Strengthen(1):Environmental performance of new buildings under
ZEB and ZEH and acquisition of environmental
certifications

Strengthen(2):Establishment of next-generation energy network

Ongoing:

Thorough adoption of energy-saving measures

Ongoing:

Improvement of eco-performance via energy-saving
renovations

Newly introduce(1): Renewable-energy electricity in existing buildings
Newly introduce(2): Facilities for stable supply of renewable energy
Future:Gas decarbonization (methanation, etc.)…Strengthen or newly introduce

1.5. Sustainable Management System
Mori Building has established the Sustainability Committee, chaired by the President and CEO, andits subordinate committees, the Environmental Promotion Committee and the Committee on HumanRights and Societal Issues.
The Sustainability Committee deliberates on important sustainability-related issues such as climatechange, human rights, and supply chain management and supervises and monitors subordinatecommittees. The Board of Directors receives reports from the Sustainability Committee regularly andmanages and supervises important matters through discussion by the Board of Directors.
The Environmental Promotion Committee, chaired by the director in charge of the Environmental
Promotion Department, promotes and manages cross-sectional efforts to address various environmental
issues, including climate change, and reports regularly to the Sustainability Committee. The Sustainability
Committee discusses essential matters such as formulating policies to address climate-related risks andopportunities and establishing greenhouse gas (GHG) emissions targets. The Environmental Promotion
Committee is responsible for reporting and discussing important matters and implementing approved
policies and plans including identification, assessment, and management of risks and opportunities.

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The Board of Directors
Sustainability Committee

Environmental Promotion
Committee

Committee on Human Rights
and Societal Issues

1.6. Participation in External Initiatives• SBTi Validation
As setting its long term targets, Mori Building committed to set science-based reduction targets in linewith the Paris Agreement as the Science-Based Target initiative (SBTi) recommended. Mori Building
has submitted its targets as 1.5°
C-aligned targets (science-based reduction targets to limit temperaturerise to within 1.5 °C of pre-industrial levels) to the SBTi and its targets are expected to be validated
within fiscal 2022.

• Japan Climate Leaders' Partnership (JCLP) Participation
Mori Building is applying for the participation of RE100.

• CDP
Mori Building will report its annual performance from July 2022 based on its disclosure to CDP, aclimate-related information-disclosure platform.

• RE100 Participation
Mori Building joined the Japan Climate Leaders' Partnership from April 2022.

• Task Force on Climate-related Financial Disclosures (TCFD)
Mori Building became a supporter of TCFD Recommendations in April 2022, and will disclose
information in accordance with the recommendations.

1.7. Rationale for Green Bonds IssuanceMori Building has issued green bonds to further raise awareness among a wide range of stakeholdersof its consistent commitment to urban developments since its establishment and its contribution to theglobal environment through its businesses.
Mori Building, in line with its philosophy“Create Cities, Nurture Cities,”is committed to pursuing
harmonious coexistence between cities and nature, zero-carbon cities and resource recycling in order tohelp realize a more sustainable society.

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2.1. Use of Proceeds
Mori Building will use the proceeds of the green bonds to finance and refinance projects that meetthe following eligibility criteria. Expenditures may include costs related to acquisition of land orbuildings, planning and development, construction (including the cost of acquisition of reserved floor),
refurbishment and operational management.

Project Category
Green Buildings

Eligibility Criteria

SDGs

Expenditures or investments in new and/or existing

9.Industry, Innovationbuildings that meet one of the following three criteria.

and Infrastructure

Green Bond
Principles：

11.Sustainable Cities
i.

have received at least one of the following third-

Green Buildings

party green building certifications or recertifications（Environmentalwithin 24 months prior to the date of green bondobjectives:issuance

Climate change
mitigation）

and Communities

ii. a r e e x p e c t e d t o r e c e i v e c e r t i f i c a t i o n s o rrecertifications post issuanceiii. have a construction completion date within 24
months prior to the date of green bond issuanceand have achieved at least one of the following
certifications or recertifications- A or S Rank under the Comprehensive Assessment
System for Built Environment Efficiency (CASBEE)
Certification for Buildings (New Construction,Existing Buildings, and Renovation) or CASBEE
Certification for Real Estate- Platinum or Gold Rank under the LEED BD+C
(Building Design and Construction) or LEED O+M(Building Operations and Maintenance)- 4 or 5 Stars under the Building Energy-efficiency
Labeling System (BELS)- 4 or 5 Stars under DBJ Green Building Certification- Gold Plus or Platinum Rank under the BCA GreenMark Certification
Mori Building will continuously recertify third-party green building certifications for its assets after
their expiration by sustaining and improving assets' environmental performance through maintenanceand refurbishment.

-6-2.2. Project Evaluation and Selection Process
Mori Building set the eligibility criteria to select projects which will contribute to its mission,"Environment and Greenery". The net proceeds of the green bonds will be allocated to projects whichmeets the eligibility criteria.
The Finance Department and the Sustainability Committee will be charged with project selection inaccordance with the eligibility criteria. Selection of eligible projects is approved by a corporate officerof the Finance Department and the Sustainability Committee and the final decision is made by thePresident and CEO of the company.
While selecting projects, Mori Building confirms that all projects address the following requirements toreduce environmental and social risks.

• Compliance with all applicable laws and regulations, including Environmental Impact Assessment
and the System of Building Environment Plan

• As necessary for project implementation, information provision to residents and hearing of residents
and related municipalities' opinions

2.3. Management of Proceeds
Mori Building's Finance Department will manage the allocation of the net proceeds of green bonds ona biannual basis, using the internal management system until the maturity of the green bond.
Mori Building will disclose its policy of managing proceeds in the form of cash or cash equivalents
while pending their allocation to eligible projects in Shelf Registration Supplements or other statutory
documents at the date of the issuance.

2.4. Reporting
2.4.1. Allocation Reporting
Mori Building will annually disclose its allocation reporting on its website. The contents of disclosure
are the list of assets financed/refinanced, the amount of net proceeds allocated, share of financing vsrefinancing, unallocated proceeds and scheduled allocation period on a project by project basis until theproceeds have been fully allocated to projects which meets the eligibility criteria.
Mori Building will report timely in the event of a significant change etc. after full allocation of theproceeds.

2.4.2. Impact Reporting
Mori Building will disclose the following indicators to the extent practicable until the maturity of thegreen bond. This reporting will be provided annually on its website.

• Name of the building and project• Name and level of certifications the eligible project received• Energy consumption• CO2 emissions• CO2 emissions of total floor area
• Water consumption-7-

2.5. External Review
2.5.1. Pre-issuance external review
Mori Building has obtained a second party opinion from Sustainalytics, an independent externalreviewer, on the alignment of this Framework with Green Bond Principles 2021(ICMA) and Green Bond
Guidelines 2020(Ministry of the Environment, Japan).

2.5.2. Post-issuance external review
Mori Building intends to obtain reviews from Sustainalytics, an independent external reviewer,
primarily on the status of reporting, including the allocation of proceeds and the disclosure of indicators
related to environmental benefits.

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