Transition Plan toward Decarbonized Society

TOKYU FUDOSAN HOLDINGSINTRODUCTION

Environmental Management by Tokyu Fudosan Holdings andthe Positioning of the Transition Plan◼

The group has established materialities based on social challenges and has set forth a long-term management policy with environmental
management as one of its group policies. We will promote this long-term management policy and realize our ideal vision.

Long-term management policy

Materialities

Our Ideal Vision

Build a solid business foundation
The Group policy
Environmental management
LifestyleLiveable City

Create value for the futureDX

Environment

Business policy
Utilization of intellectual assets

Co-creation with partners

Strengthen the management baseDX◼

Human capital

Governance

Financial capital
strategy

Human Capital andOrganizational Climate

Future where everyone canbe themselves, and shine
vigorously

Governance

Additionally, through its myriad of business activities, the group has been tackling the realization of a sustainable society and environment
challenges since its founding. In May 2021, we formulated our GROUP VISION 2030, the Group’s long-term visionbased on materialities
such as creating lifestyles that contribute to the environment.

◼

In our long-term vision and our Medium-Term Management Plan 2025, having positioned environmental management as a major pillar, we
will strive to expand business opportunities with the environment as the starting point through our efforts in tackling areas such as adecarbonized society, a recycling-based society, and biodiversity.
Where a decarbonized society in particular is concerned, we have adopted reduction targets for CO2 emissions and are striving to reduce
our environmental impact through our businesses.

◼

This document is a transition plan that organizes and summarizes information on our efforts toward decarbonization from these Long-Term
Management Policies, Mid-Term Management Plan and our other initiatives.
© TOKYU FUDOSAN HOLDINGS CORPORATION

3

Upon Forming Transition Plan◼

Aiming to reduce its environmental footprint through all of its businesses, the group has adopted a policy of net zero emissions by theyear 2050 with a decarbonized society as its goal. We are also taking part in Business Ambition for 1.5℃ and Race to Zero, both ofwhich are international campaigns, and are pushing forward with associated efforts.

◼

As a milestone, we are aiming to make the group carbon minus by 2025, the final year of Medium-Term Management Plan 2025.
We commits to reduce absolute scope 1 and 2 GHG emissions 46.2% by FY2030 from a FY2019 base year. We also commits to
reduce absolute scope 3 GHG emissions from purchased goods and services, capital goods, and use of sold products *1 46.2% overthe same timeframe.(SBTi-approved targets).
In addition, the Medium-Term Management Plan called for a 50% reduction in Scope 1 and 2 GHG*2 emissions in FY2023, and weachieved this goal one year ahead of schedule with a 50.6% reduction in FY2022 (preliminary figures).

Targets related to climate change
The Group2025

Carbon minus*3
The Group’s CO2 emissions <Volume of contribution to reduction by creating renewable energy, etc.>

The Group + Supply chain

2030

Achievement of SBT 1.5˚C Target
CO2 emissions reduction by 46.2%

2050

Zero Emissions
Net zero CO2 emissions◼

Under GROUP VISION 2030, the Group’s long-term vision, we are aiming to achieve these targets based on the premise of our businessgrowth. However, in doing so, factors such as the engagement with the group’s supply chain and technological development areimperative. We may also be subject to the further intensification of climate change and regulatory tightening beyond what we areenvisioning. While regularly following up on these trends, we will proceed to revise our business plans as appropriate.

◼

Additionally, for our longer-term plans aimed at realizing net zero emissions by the year 2050, we plan on further implementing efforts inthe future while gathering information on the likes of technological development and business trends.

*1: Categorie1: purchased goods and services / Category2: capital goods / Category11: use of sold products(CO2 emissions in Scope 3 account for over 90% of those three categories)*2: Since more than 99.9% of our GHG emissions are CO2, the term "CO2" is used hereafter.

*3: For details, see the GROUP VISION 2030

© TOKYU FUDOSAN HOLDINGS CORPORATION

4History of the Group's Environmental Management Efforts
Trends inside andoutside Japan

2015
・Adoption of Paris Agreement
・Adoption of SDGs

2016

2013
Establishment of Tokyu Fudosan Holdings
Corporation

1998

2020

2018

2050 Carbon Neutrality
Declaration (Naoto Kan Cabinet)

1.5˚C Special Report(IPCC)

Support for United Nations
Global Compact

2021

2019
▪Support for TCFD
recommendations▪ Participation in RE100
Tokyu Land Corporation

Formulation of an Environmental
Philosophy▪ SBT 1.5℃ approval▪ Introduction of ICP▪ GROUP VISION 2030
long- term vision
Net zero emissions

2022▪ Completion of switch
to 100% renewableenergyTokyu Land Corporation(Revised as an Environmental Vision in 2011)

In 1998, the Environmental Philosophy wasformulated to promote environmental
Creating Cities Co-exisiting
Nature.
conservation efforts Groupwide. To bolster Creatingwith
a Future for People.
efforts, the Group's Environmental Vision
was announced in 2011(later revised in2015). We target five environmental issues
and make proactive efforts to solve themthrough our business activities.

[ Three viewpoints ][ Five environmental issues ]・Publicize a goal and・Climate change
・Biodiversity
implement action・Endeavor to implement
・Pollution and resources
・Water use
progressive activities
・Conduct community-based・Supply chainsactivities in collaboration
with local people

Accommodated TCFD

[ Environmental Vision ]Environmental Philosophy: We will create value to connect cities
and nature, and people with the
future.
Environmental Policy: We will make efforts to harmonize theenvironment and the economy throughbusiness activities.
Environmental Action: We will tackle five environmental issues
from three viewpoints.

in the renewable energy
2014 Participation
business

Nearly ZEB
2019 Acquired
Tokyo Community Technology Training Center NOTIA

2018

2020

2023

Implemented scenario analysis
as Ministry of the Environmentsupported project

Expansion of target fields
Revision of scenario analysis

Incorporation of net zero
emissions by 2050 based on
updated scenario by IEA

Implemented analysis for 2˚C and 4˚Cscenarios.
Target businesses were urban
development, which was analyzed for2030, and leisure, which wasanalyzed for 2050.

Implemented analysis for 1.5˚C, 3˚C and4˚C scenarios.
Target businesses were urban
development, residential, leisure andrenewable energy, each of which wereanalyzed for 2030 and 2050.

Incorporated newly-presented 1.5˚Cscenario.
Target businesses were urban
development, residential, leisure andrenewable energy, each of which wereanalyzed for 2030 and 2050.

© TOKYU FUDOSAN HOLDINGS CORPORATION

5

Highlights of Efforts Geared Towards Decarbonization
Condominiums that have introduced 100%
renewable energy electricity

Example of environment certification acquired(Properties with DBJ Green Building Certification)●5Stars●4Stars

Branz Tower Tanimachi 4-Chome has
introduced effectively 100% renewable energy
for all units and common areas, achieving anenvironmentally advanced condominium
promoting decarbonization together withresidents.

EffortExampleBRANZ Chiyoda Fujimi (ZEH-certified)

SHIBUYASOLASTA

Hibiya Park Front

Shin-Aoyama
Tokyu Building

Acquired ZEH oriented certification. While
preserving the quality of the indoor environment,
we will aim to reduce primary energy consumption
in the entire condominium, common areas
included, by at least 20%.

Example of a ZEB certified property

Utilized onsite PPA at LOGI’Q logistics facility●COCONO SUSUKINO (scheduled for completion in
2023)
Obtained "ZEB Ready" certification, the nation's largest
certification for a commercial/hotel mixed-use building as
a whole.

We will reduce environmental impact with the use of ReENE green
energy, which is 100% powered by renewable energy, for tenant
enterprises, their shipper companies, etc. in LOGI’Q.

Highlights infigure form
(FY2022)

TOKYO PORTCITY
TAKESHIBA

Scope1, 2
50.6% reduction inemissions*1(Target achieved 1 year
ahead of schedule)
RE100
Switch to renewableenergyAchieved 100%*2(Tokyu Land Corporation)

Jimbocho Kita
Tokyu Building

Shin-Meguro
Tokyu Building●Tokyo Community Technology Training Center
NOTIA (completed in 2019)
First city office building to acquire nearly ZEB certification.
Successfully reduced primary energy consumption by 87%,
which is above standard levels, in FY2020.

Environment certificationacquisition*3(CASBEE/DBJ, etc.)
48.7%

CDP climate change
A list2 consecutive years

ZEB/ZEH level*4
25%

Environmental efforts
through business
36 cumulative efforts

Renewable Energy Business・Rated capacity*5 : 1,577MW・Amount of generation per year*5 :3,495GWh(equivalent to approximately
736,000 ordinary households*6)
・CO2 reduction*7 :approximately 1,520,000 t-CO2/year*1: FY2022 results are preliminary figures before third-party certification. *2: Certain exceptions (joint businesses, etc.) are present. *3: Non-residential large-scale holdings (total floor area of 10,000 m2 or more).
Excluding some joint projects, etc. *4: Percentage of condominiums, offices, and other facilities for sale by Tokyu Land Corporation that have building performance equivalent to ZEB/ZEH Oriented or higher (basedon construction starts). *5: Before calculation of equity share (including projects under development). *6: Calculated based on the electricity consumption per household of 4,743 kWh/year (based on the “Indication
Guidelines FY2022” from Japan Photovoltaic Energy Association). *7: CO2 emission factor of 435g-CO2/kWh for nationwide average coefficient in "Emission Factors by Electric Utility (FY2021 Results)" published by
the Ministry of the Environment and the Ministry of Economy, Trade and Industry.

© TOKYU FUDOSAN HOLDINGS CORPORATION

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INDEXINTRODUCTION

Environmental Management by Tokyu Fudosan Holdings and the Positioning of theTransition Plan

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 3

Upon Formulating Transition Plan ・・・・・・・・・・・・・・・・・・・・・・・・

4

・・・・・・・・・・・・

5Highlights of Efforts Toward Decarbonization ・・・・・・・・・・・・・・・・・・

6

Corporate Governance System ・・・・・・・・・・・・・・・・・・・・・・・・・

9

・・・・・・・・・・・・・

10

・・・・・・・・・

11

・・・・・・・・・・・・・・・・・・

14

Indicators and Targets

・・・・・・・・・・・・・・・・・・・・・・・・・・・・

18

Stakeholder Engagement

・・・・・・・・・・・・・・・・・・・・・・・・・・・

20

・・・・・・・・・・・・・・・・・・・・・

25

Other Efforts Concerning the Environment ・・・・・・・・・・・・・・ ・・・・・

26

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

27

History of the Group's Environmental Management Efforts

TRANSITION PLAN
Roadmap Towards Realization of Decarbonized Society

Measures Geared Towards Realization of Decarbonized Society
Scenario Analysis, Risks and Opportunities

Skill and Human Capital Development

Explanation of Terms

TRANSITION PLAN

Corporate Governance System◼

Governance

Strategy

Riskmanagement

Metrics andtargets

With climate-related targets, etc. having been approved by the board of directors, the group has established a system to oversee associated progress.
―

Upon electing directors, we are mindful of outfitting competence in the environment and sustainability.

―

Having clarified the roles and responsibility of management, we are responsibly working towards the realization of net zero emissions by the year
2050.

Main roles of organization◼

The group established a sustainability committee with the◼

The group executive committee and sustainability committee work inpresident & CEO (Chair) and operating officers as its members.

tandem to formulae policies, targets (KPI) and action plans relatedThis committee devises plans and verified results with respect toto environmental management, with oversight provided by the board

material sustainability issues including the assesment and theof directors.

management of climate change risk and opportunity.
◼

Organizational chart

The board of directors receives reports from the sustainability◼

The monitoring of KPI progress and the management of results is
conducted by the sustainability committee.
General Meeting of
Shareholders

committee on material climate-related issues and the results of
Cooperation

deliberations and oversees progress as well as conducts regularreviews.

Audit & Supervisory Board
Audit & Supervisory Board
Members

Cooperation

Auditing

Auditing
Board of Directors

Accounting Auditor

Nomination andCompensation Advisory
Committee

Auditing

Auditing

Based on the instructions of the president & CEO to adopt
environmental management as one of our pillars, in FY2020, weestablished net zero emissions by 2050 as a target and applied for

Cooperation

President

Cooperation

Risk Management Committee
Group Executive Committee
Sustainability Committee

SBT 1.5˚C target, and acquired its approval in FY2021.
Also starting in FY2021 year, we also take efforts for climate-Group Internal Audit
Department

Auditing
All divisions

related challenges and other ESG into consideration when
determining officer remuneration.

Group management
Auditing
Each Group Company© TOKYU FUDOSAN HOLDINGS CORPORATION

9Roadmap Towards Realization of Decarbonized Society◼

Governance

Strategy

Riskmanagement

Metrics andtargets

The group formulated GROUP VISION 2030, the Group’s long-term vision with the aim of realizing net zero emissions by the year 2050. We are already
reducing CO2 emissions through efforts such as switching power used at offices of and facilities held by Tokyu Land Corporation, our core company, to100% renewable energy, setting ZEB standards for new buildings in principle, and promoting ZEH as a standard specification at BRANZ condominiums.

◼

Gong forward, we will continue to pursue reductions of CO2 emmisions through our businesses and target decarbonization as a business opportunity as
we aim to further reduce environmental impact through the growth of the group.
[Emissions:[Emissions:
Ten thousand
t-CO2] [Profit:
Billion yen]Thousandt-CO2]

210
196

208

◼

180
177

Concrete reduction measures with aview to 2025

172

Achieve RE100

150.0

150

Promote ZEB/ZEH at buildings
Environment certification acquisition
120

90

110.4

120.0

Apply internal carbon pricing (ICP)

◼

83.8

79.3

75.0

view to 2030

65.0

Reinforce environment-related business

56.5

60

48.2
38.6

30

• Expand renewable energy business

35.1
21.7

0

[FY]

2019

2020

Concrete reduction measures with a

2021

2022

2025

(Target)2030(Target)Operatingprofit
営業利益• Engage in people- and environment-

Net profit
当期純利益(Profit attributableto owners of parent)
CO2CO2排出量
emissionsfriendly urban development

2050(Target)Scheduled amount of total investment: 2,200 billion yen (FY2021-FY2025)© TOKYU FUDOSAN HOLDINGS CORPORATION

10Measures Aimed at Realizing a Decarbonized Society

Governance

Strategy

Riskmanagement

Metrics andtargets◼

Under our Medium-Term Management Plan, we are pursuing the below efforts in order to achieve our CO2 emmisions reduction targets. Efforts
by the group are steadily making progress. At Tokyu Land Corporation, we completed the switch of power used at offices of and facilities heldby the company to 100% renewable energy, one of the RE100 requirements, in December 2022*1.

◼

We will continue to promote ZEB/ZEH standardization at facilities, environment certification acquisition, and implement other efforts.

Targets

Results

TopicsAchieved in 2022
(Tokyu Land Corporation)

Completed switch to 100%
renewable energy
in December 2022

Utilized highest domestic level of renewable energy power generation capability
Achieved faster*2 than any other Japanese business company

FY2025: Approx. 50%
FY2030: 100%

Achieved 25%(FY2022)

March 2022: All new buildings to be ZEB level in principle
Sep 2022: Promoted ZEH as standard specification at all BRANZ

Environment
Certification
Acquisition*4

FY2025: Approx. 70%
FY2030: 100%

48.7%
(FY2022)

Example of acquisition of certifications: Properties for which we acquired 5 stars
under DBJ certification
TOKYO PORTCITY TAKESHIBA/SHIBUYA SOLASTA/Hibiya Park Front

Introduction of
ICP

FY2023Introduction into management
decisions

Commencement of “visualization”
in cases submitted to Executive
Committee or review(FY2022)

MeasuresScope1 and 2

RE100

Scope3

ZEB/ZEH level *3

Other measures

GX League
SupportIn support of the basic concept of the GX League,
we have decided to officially join the GX League.

*1: Certain exceptions (joint businesses, etc.) are present*2: According to list at end of RE100 Annual disclosure report*3: Percentage of condominiums, offices and other facilities of Tokyu Land
Corporation with a building performance equivalent to or greater than ZEB/ZEH
Oriented (construction start basis)*4: Large non-residential properties held (with a floor space of 10,000 m2 or more)are subject to certification. Certain exceptions (joint businesses, etc.) are present.

© TOKYU FUDOSAN HOLDINGS CORPORATION

11

Measures Aimed at Realizing a Decarbonized Society - Efforts
Regarding Renewable Energy◼

Governance

Strategy

Riskmanagement

Metrics andtargets

The group implements a renewable energy business as a strategic investment business. Further expansion of power generation capacity, whichis among the highest in Japan, will be promoted.

Long-term stable power supply initiatives

Total amount of investment in renewable energy business: Approx.
240 billion yen(5-year period between FY2021-2025)

Profit plan based on facilities secured and total amount ofinvestment[As of end of March 31, 2023] Rated capacity*5: 1,577MW• Facilities in operation: 65 (59 solar power/5 wind power/1 biomass)• Facilities in development: 23 (12 solar power/7 wind power/4 biomass)*Separate rooftop businesses: 1 (Rooftop solar power aggregated as 1 business)[Gross profit: Hundred million
yen][Amount invested: Hundred
million yen]
4,000

Target for FY2025 rated capacity: 2.1 GW*1
(Equivalent to 2 nuclear power plants*2)

3,631

Amount of investment in relocatedfacilities (before amortization)
3,500

Profit from power sales (gross profit)

100
2,759

3,000

•

Expanding power generation
sources

2,500

Expanding electric power retail businessdomain• Promoting local generation andconsumption of electric power(building micro-grids, etc.)

1,500

•
•
•

Utilizing renewable energy

1,988
2,000

•
•

Policy recommendations [REASP*3]
Community coexistence [FOURE*4]*1: Before calculation of equity share *2: Power generated per station calculated as 1GW*3: General Incorporated Association for the Promotion of Long-Term Stable Power Supply from
Renewable Energies*4: General Incorporated Association for Renewable Energy Community Revitalization

65
1,411

60

62

53

40
36

805
1,000

20
500

Building co-creation
relationships and developing
systems

80

2,265Entering new power generation projects
such as offshore wind power
Implementing of solar sharing
Expanding non-FIT businesses

120

183
78

0

0

2018
[FY]

2019

2020

2021

2022

2023

2024

(Forecast)(Target)SecuredFacility total*5：Before calculation of equity share (including projects under development)

For details, see Briefing Materials on FY2022 Financial Results© TOKYU FUDOSAN HOLDINGS CORPORATION

12

Measures Aimed at Realizing a Decarbonized Society-Policy on Financing◼

Governance

Strategy

Riskmanagement

Metrics andtargets

For us to set our sights on new business opportunities and strive for decarbonization through our businesses, financing from outside thegroup is imperative.To widely disseminate and promote the group’s efforts aimed at climate change and other ESG and bolster both thecreation of stable investment opportunities for bond investors and engagement, we formulated the WE ARE GREEN bond policy as ourbasic policy for ESG bond issuance in FY2021.

◼

The use of funds from ESG bonds is in line with the themes of our efforts to create value (materialities) established in our GROUP VISION
2030, the Group’s long-term vision. We aim to elevate the ratio of ESG bonds to our bond issuance balance to 50% or more by the end of
FY2025 and to 70% or more by the end of FY2030.

Movements in ratio of ESG bonds

200 billion yen/95%

210 billion yen/75%

Rise in ratio of ESG bonds
through ongoing issuance70 billion yen/25%
10 billion yen/5%
End of March 2020

ESG bonds

Non-ESG bonds

End of March 2023

End of March 2026

End of March 2031

© TOKYU FUDOSAN HOLDINGS CORPORATION

13

Scenario Analysis, Risks and Opportunities

Metrics andtargets◼

We performed analysis based on the three cases of 1.5˚C, 3˚C and 4˚C using scenarios by the International Energy Agency (IEA) and theIntergovernmental Panel on Climate Change (IPCC) as a reference

Adopted scenario of keeping the rise in average global
temperature at the end of the 21st century to 1.5˚C relative tothat before the Industrial Revolution as government policy,
technology, markets, etc. steadily make the transition to a
decarbonized society under the Paris Agreement.

3˚C scenario

Material climate-related challenges◼

With respect to climate-related risks and opportunities, significant challenges that impact theGroup are recognized in the following fashion.

Classification

Adopted scenario in which government policy, technology,
markets, etc. grow along their current trajectory and the rise inaverage global temperature at the end of the 21st century isapprox. 4℃ relative to that before the Industrial Revolution,
causing climate change-induced natural disaster risks toincrease.
For details, see Disclosures based on TCFD recommendations

Types

Material issues

SeriousimpactCurrent regulation

Energy conservation reporting requirement
Energy Efficient Building Codes

Emerging Regulation

More stringent GHG emission reduction regulations
Carbon taxation〇

Technologies

Increase in construction and renovation costs for ZEB/ZEH〇

Legal costs

Credit purchase under Tokyo Cap-and-Trade Program

MarketDelayed response to price trend reflecting environmental value
Increasing energy cost

Reputation

Changing attitudes of customers and investors

Acute

Intensified extreme weather events

Chronic

Rising temperature / sea level

Resource efficiency

Transition to high-efficiency buildings, Recycling

Energy source

Wider use of renewable energy source, government subsidies

Products / services

Expanding low carbon products/services

MarketUtilization ESG finance

Resilience

Energy conservation renovation of operating assets, BCP complianceTransition risks

Adopted scenario in which the rise in average global temperature
at the end of the 21st century is approx. 3˚C relative to that
before the Industrial Revolution should each country comply with
Nationally Determined Contributions (NDCs).

4˚C scenario◼

Riskmanagement

We perform scenario analysis to identify, assess and manage risks and opportunities related to climate change over the medium term (FY2030)
and long term (FY2050) for the group’s four businesses (Urban development, leisure, residential and renewable energy) and incorporate those
assessments in our business strategy.

1.5˚C scenario◼

Strategy◼

Scenarios referenced◼

GovernancePhysicalrisks

Opportunities

〇

〇

〇

© TOKYU FUDOSAN HOLDINGS CORPORATION

14

Scenario Analysis, Risks and Opportunities- Overview of 1.5˚C Scenario Analysis -Governance

Strategy

Riskmanagement

Metrics andtargets

Financial impact

Category

Description of risks and opportunities

Strategies of the group
Businesses[Transition risks]
Policy and legal /Technologies /Markets /Reputation

Rise in cost of new construction, improvements and repairs in line Act on
the Rational Use of Energy being reinforced and ZEB/ZEH becoming
mandatory[Risks]Cost of construction and operation rising due to introduction of carbon
pricing program[Risks][Opportunities]
Energy sources /Products andservices /MarketIncrease in tenant-side needs for ZEB buildings affecting rents and vacancy
rates

or
[Opportunities]

Promote ZEB/ZEH at newly-constructed buildings, carry out
equipment updates at existing facilities of operation anddifferentiate ourselves through early introduction of renewableenergy power
Reduce CO2 emissions up to the building stage by working
together with general contractors and reduce the impact of theintroduction of carbon pricing
Promote low carbon under each business by introducing internalcarbon pricing and reduce the impact of the introduction of official
pricing system

Increase in residence buyer-side needs for ZEH buildings causing
competition among products to intensify

Medium
term

Long
term

High

Mediumlow

Mediumlow

Low

Mediumlow

Low

Medium
high

Low

Low

Mediumlow

Low

Mediumlow

Low

Mediumlow

Low

Mediumlow

Expand businesses that accommodate that increase in needs[Opportunities] Considerable increase in renewable energy power needs

Utilize local natural energy

Gradual increase in damage to facilities as a result of natural disasters[Physical risks]
Acute / Chronic[Risks][Opportunities]
Resilience[Risks]Shorter business hours at ski resorts due to rise in outdoor temperatures

Increase in tenant-side needs for Business Continuity Plan (BCP) at
facilities affecting rent and vacancy rates
Secure revenues through off-season use of facilities

or[Opportunities]

Facilitate differentiation through bolstering of BCP/LCP throughselection of building locations and cooperation with tenants andresidents

Increase in residence buyer-side needs for Life Continuity Plan (LCP)
causing regional selection and competition among products to intensify

Urban Development: ■ Residential:■ Leisure: ■Renewable Energy:■*The degree of impact is classified as shown below.
High: 10% or more of consolidated operating revenue Medium-high: 10% or more of operating revenue of applicable business portfolio Medium: 5% to 10% of operating revenue of applicable business portfolio
Medium-low: 2% to 5% of operating revenue of applicable business portfolio Low: Less than 2% of operating revenue of applicable business portfolio© TOKYU FUDOSAN HOLDINGS CORPORATION

15

Scenario Analysis, Risks and Opportunities- Overview of 3˚C Scenario Analysis -Governance

Strategy

Riskmanagement

Metrics andtargets

Financial impact

Category

Description of risks and opportunities

Strategies of the group
Businesses[Transition risks]
Policy and legal /Technologies /Markets /Reputation[Risks]Rise in cost of new construction, improvements and repairs
in line Act on the Rational Use of Energy being reinforced and ZEB/ZEH
becoming mandatory
Cost of construction and operation rising due to introduction of carbon
pricing program[Risks]Increase in tenant-side needs for ZEB buildings affecting rents and vacancy
rates

or
[Opportunities]
Energy sources /Products andservices /Market[Opportunities]

Increase in residence buyer-side needs for ZEH buildings causing
competition among products to intensify

Mediumhigh

Mediumhigh

Mediumlow

Mediumlow

Mediumlow

Mediumlow

Mediumhigh

Mediumhigh

Low

Mediumlow

Low

Mediumlow

Low

MediumLow

Mediumlow

Promote low carbon under each business by introducing internalcarbon pricing and reduce the impact of the introduction of official
pricing system

Considerable increase in renewable energy power needs
Utilize local natural energy
Shrinking demand for tenant offices due to popularization of teleworking
affecting increase in demand for satellite offices despite rent and vacancy
rates being impacted

Gradual increase in damage to facilities as a result of natural disasters[Opportunities]
Resilience

Reduce CO2 emissions up to the building stage by working
together with general contractors and reduce the impact of theintroduction of carbon pricing

Long
term

Expand businesses that accommodate that increase in needs[Opportunities][Physical risks]
Acute / Chronic

Promote ZEB/ZEH at newly-constructed buildings, carry out
equipment updates at existing facilities of operation anddifferentiate ourselves through early introduction of renewableenergy power

Mediumterm[Risks]Expand satellite offices in anticipation of popularization

Facilitate differentiation through bolstering of BCP/LCP throughselection of building locations and cooperation with tenants andresidents

Shorter business hours at ski resorts due to rise in outdoor temperatures[Risks]Increase in tenant-side needs for BCP at facilities affecting rent andvacancy ratesorFacilitate differentiation from competing facilities through offseason use of facilities, intensive investment in ski resorts
located in high-longitude areas where there is ample snowfall
and golf course management using turf with formidable heat
tolerance[Opportunities] Increase in residence buyer-side needs for LCP causing regional selection
and competition among products to intensify

Urban Development: ■ Residential:■ Leisure: ■Renewable Energy:■*The degree of impact is classified as shown below.
High: 10% or more of consolidated operating revenue Medium-high: 10% or more of operating revenue of applicable business portfolio Medium: 5% to 10% of operating revenue of applicable business portfolio
Medium-low: 2% to 5% of operating revenue of applicable business portfolio Low: Less than 2% of operating revenue of applicable business portfolio© TOKYU FUDOSAN HOLDINGS CORPORATION

16

Scenario Analysis, Risks and Opportunities- Overview of 4˚C Scenario Analysis -Governance

Strategy

Riskmanagement

Metrics andtargets

Financial impact

Category

Description of risks and opportunities

Strategies of the group
Businesses[Transition risks]
Policy and legal /Technologies /Markets /Reputation[Risks][Risks][Opportunities]
Energy sources /Products andservices /MarketIncrease in building costs of general contractors and air conditioning
expenses during operation due to rise in outdoor temperatures

Medium
term

Long
term

Low

Low

Low

Mediumlow

Low

MediumLow

Low

Aggressively enhance performance of newly-built buildings andupdate equipment of existing facilities in operation anddifferentiate ourselves through early introduction of renewableenergy power

Increase in residence buyer-side needs for high-performance residences
to cope with higher outdoor temperatures

Expand businesses that accommodate that increase in needs

Anemic government policy support for and unclear market trends
surrounding renewable energy power

Propose new leisure lifestyles such as workationsor[Opportunities]

Shrinking demand for tenant offices due to popularization of teleworking and[Opportunities] increase in demand for satellite offices despite rent and vacancy rates being
impacted[Physical risks]
Acute / Chronic[Risks][Opportunities]
Resilience[Risks]Increase of impact from rise in sea level, prompting rapid increase indamage to facilities from natural disasters

Facilitate differentiation through bolstering of BCP/LCP throughselection of building locations and cooperation with tenants andresidents

Low

MediumShorter business hours at ski resorts due to rise in outdoor temperatures

Facilitate differentiation in the form of measures to reinforce
infrastructure in local communities, including introduction ofstorage cells

Low

MediumLow

Mediumhigh

Low

MediumIncrease in tenant-side needs for BCP at facilities affecting rent andvacancy rates

or[Opportunities]

Expand satellite offices in anticipation of popularization

Increase in residence buyer-side needs for LCP causing regional selection
and competition among products to intensify

Facilitate differentiation from competing facilities through offseason use of facilities, intensive investment in ski resorts
located in high-longitude areas where there is ample snowfall
and golf course management using turf with formidable heat
tolerance

Urban Development: ■ Residential:■ Leisure: ■Renewable Energy:■*The degree of impact is classified as shown below.
High: 10% or more of consolidated operating revenue Medium-high: 10% or more of operating revenue of applicable business portfolio Medium: 5% to 10% of operating revenue of applicable business portfolio
Medium-low: 2% to 5% of operating revenue of applicable business portfolio Low: Less than 2% of operating revenue of applicable business portfolio© TOKYU FUDOSAN HOLDINGS CORPORATION

17

Metrics and targets - CO2 Emission-related -Governance

Strategy

Riskmanagement

Metrics andtargets

Commitments◼

The group is endeavoring to simultaneously achieve net zero emissions by the year 2050 and corporate growth.

◼

With a view to the above, in order to manage the climate change risk assessed in the scenario analysis, we set a target of 46.2% reduction of CO2
emissions in Scope 1 and 2 (in-house) and Scope 3 (supply chain (reduction targets: Category 1, 2, and 11)) in FY2030 based on FY 2019, and(SBT approved), and we are managing actual CO2 emissions.
―

In addition, the Medium-Term Management Plan called for a 50% reduction in Scope 1 and 2 CO2 emissions in FY2023, and we achieved thisgoal one year ahead of schedule with a 50.6% reduction in FY2022 (preliminary figures).

―Our emission figures undergo a third-party guarantee by an environmental certification agency.

Emission results and targets[Thousand t-CO2][SBT certification target][Company target]-46.2%

2,000

1,500
1,793

1,701

1,511

1,000

1,597

Scope3(Categories 1/2/11)

Scopes 1 & 2
Reached target 1 year ahead ofschedule
964

Scope 1 and 2

500

283

256

257

2019

2020

2021

0
[FY]

(Base year)-50.6%
140

2022

142

[Company target]
-50%

152

2023

2030

(Target)(Target)[SBT certification target]-46.2%© TOKYU FUDOSAN HOLDINGS CORPORATION

18

Metrics and targets - Other ◼

Governance

Strategy

Riskmanagement

Metrics andtargets

In addition to CO2 emissions, the group has set KPI for the below items, which each of our business departments tackling them responsibly.
KPI

Financial
targets

FY2021 result

FY2022 result

10% or more

9%

5.7%

7.3%

ROA

5% or more

4%

3.2%

4.1%

2.0 times or less

2.2 times or less

2.3 times

2.2 times

Operating profit

150 billion yen or more

120 billion yen

83.8 billion yen

110.4 billion yen

Net profit

75 billion yen or more

65 billion yen

35.1 billion yen

48.2 billion yen

Achieved

Achieved-

Completed switch

60% or more

65%

4.0%

52.9%

100%

70%

35%

48.7%

100 cases or more

50 cases or more

22 cases

36 cases

100%

100%

100%

100%

Achieve RE100 (Tokyu Land Corporation)
Percentage of renewable energy power usage
Environment certification acquisition*1
Environmental efforts through business(cumulative)

BCP targets

FY2025 targets

ROE

D/E ratio

Environmen
tal targets

FY2030 targets

Strengthening of safety and security measures*2*1: Large non-residential properties held (with a floor space of 10,000 m2 or more) are subject to certification. Certain exceptions (joint businesses, etc.) are present.
*2: Support people who have difficulty returning home in the event of a disaster in a large and non-residential building, etc.

Examples of CASBEE, DBJ and other environmental certifications⚫ In FY2019, we acquired an S-rank of CASBEE’s⚫ In FY2020, we acquired a 5-star DBJ Green

new CASBEE-Wellness Office certification, theBuilding ranking for an outstanding level ofhighest rank of that certification, at SHIBUYA

environmental and social consideration,

SOLASTA, where our headquarters is located.

among the highest in Japan, at the TOKYOPORTCITY TAKESHIBA Office Tower.

© TOKYU FUDOSAN HOLDINGS CORPORATION

19

Stakeholder Engagement◼

Governance

Strategy

Riskmanagement

Metrics andtargets

In the real estate business operated by the group, the processes between the development and operation of our residential, office, commercial,leisure and other facilities include the involvement of many interested parties over a long period of time. In order to conduct an appropriate
environmental response, we believe that we must tackle it through out our supply chain as a whole, working together with our stakeholders(design and construction companies, customers, etc.).

◼

With respect to supplier-side decarbonization efforts, we have stipulated in our Sustainable Procurement Policy that we will
endeavor to promote the efficient use of energy and the use of renewable energy and reduce the impact of GHG emissions
generated by our business activities on climate change.

◼

Also, through these efforts, we were selected as the CDP2022 Supplier Engagement Leader. (Selected for three consecutive
years)◼

In addition, we believe it is vital that we work together with various initiatives as an environmentally advanced company.

Endorsement of various initiatives◼

We endorse the below organizations, engaging in the likes of information-gathering and cooperation with fellow industry players.
⚫ In addition to acquiring approval for
SBT 1.5˚C targets, we are also a party
to “Business Ambition for 1.5˚C” and“Race to Zero”, two international
campaigns whose aim is carbon
neutrality by the year 2050.

RE100

United Nations
Global Compact⚫ Along with declaring our support for
TCFD, we are an active member of the
TCFD Consortium, an organization of
supporting Japanese enterprises.

JCI

PRI

© TOKYU FUDOSAN HOLDINGS CORPORATION

20

Stakeholder Engagement -Upstream-

Governance

Strategy

Riskmanagement

Metrics andtargets

Activities through industry organizations◼

The Real Estate Companies Association of Japan, of which we are a member, announced the real estate industry’s long-term vision aimed atrealizing a decarbonized society. Alongside implementing climate change measures, we give policy recommendations on various real estaterelated systems to the Japanese government as well as conduct associated investigations and research.

Participation in formulation of manual for calculating GHG emissions upon construction
◼

image

In order to achieve emission reduction targets pertaining to the upstream (Scope 3 Categories 1/2), it is＊necessary to ascertain the current situation by improving the precision of emission calculations as well as to
examine and implement measures aimed at reduction. Given demands in the industry at large to improve theprecision of emission calculations upstream, the Real Estate Companies Association of Japan formulated anemission calculation manual.
◼

As a member of the Environmental Committee at the Real Estate Companies Association of Japan as well as the
Study Group (and Subcommittee) for Manual for Calculating GHG Emissions upon Construction (tentative name),
which is established within that committee. we proactively participated in the above formulation of that manual.

Dissemination of environmental policy◼

We distribute our Sustainable Procurement Policy to the construction companies that constitute our suppliers and verify suppliers’ status ofcompliance with our environmental policy. We aim to establish a responsible supply chain by cooperating and collaborating to respond toissues when they are present.

◼

Tokyu Re・design Corporation conducts training at safety convention and other forums for members of management and personnel in chargeof actual business at the construction companies that constitute our suppliers. In the course of doing so, we explain our environmental policy
and endeavor to disseminate it. In FY2022, we conduct training on areas such as the handling of construction waste and measures to prevent
environmental contamination by harmful substances generated during work.
＊ https://fdk.or.jp/k_environment/pdf/ghg_press_2306.pdf
Manual image from the above release article© TOKYU FUDOSAN HOLDINGS CORPORATION

21

Stakeholder Engagement - Downstream-

Governance

Strategy

Riskmanagement

Metrics andtargets

Efforts for offsite corporate PPA◼

Alongside Takashimaya Co., Ltd. and DIGITAL GRID Corporation, Tokyu Land
Users (Yokohama Store/Takasaki Store)

Corporation and ReENE Co., Ltd. engage in large-scale offsite corporate powerpurchase agreements (PPA) based on short-term agreements, a first for Japan*1,

Renewable energy powerreceipt agreement

Electricity supply
agreementwith a view to making the swift transition to a decarbonized society and propagating
renewable energy in Japan.

Tokyu Land
Corporation*1: Applies to PPA agreement services for which single-year agreements can be entered that are not based on an agreementin which the power plant and the user facility are the same corporation. (According to research by three companies(DIGITAL GRID Corporation, Tokyu Land Corporation and ReENE Co., Ltd.)

Renewable energy suppliersElectricity retailers*Insufficient amount procured over power
marketPromotion of ZEH as standard specification at all BRANZ properties to be conducted ahead of schedule in FY2023◼

As one of its decarbonization measures, Tokyu Land Corporation moved up the timetable for its initial target of promoting ZEH as a standard
specification at approx. 50% of properties on which worked commenced by FY2025 and 100% of properties on which worked commenced by
FY2030. Instead, the company will equip all of the BRANZ condominiums that it commences work on in FY2023 and beyond with ZEHequivalent environmental functions. Also we aim to achieve ZEB-level environmental performance in new non-residntial buildings in principle.
The same will been done for all buildings at the COMFORIA rental residence and the CAMPUS VILLAGE student residents, on which work willcommence in FY2025 and beyond.

◼

Tokyu Livable, Inc. will equip all of the L’GENTE properties that it commences work on in FY2024 and beyond with ZEH-equivalentenvironmental functions.

Utilization of green energy at logistics facilities◼

At the LOGI’Q logistics facility, we will reduce environmental impact with the use of ReENE Green
Energy, which is 100% powered by renewable energy from the group, for tenant enterprises, their

Rooftop solar power
generation(onsite PPA)

Tokyu Land Corporation,
power generation businessshipper companies, etc. In addition to installing solar power generation equipment through an onsite
PPA agreement system on the roofs of logistics facilities and utilizing the raw green power generated

Raw green power

there at those facilities, we will supply power from 100% renewable energy generated at the renewableenergy power plants that we will develop across Japan to both common and exclusive areas.

Power from 100%
renewable energy

Non-fossil fuelcertificate withtracking

Exclusive areas (tenant
enterprises, etc.)
ReENE/green energy

Shared areas© TOKYU FUDOSAN HOLDINGS CORPORATION

22

Stakeholder Engagement - National Government◼

Governance

Strategy

Riskmanagement

Metrics andtargets

In order to achieve net zero emissions around the world by the year 2050, we believe it is vital that we work together with the national
government as an environmentally advanced company.

Proactive participation in national government projects◼

We take part in the provision of information and sharing of case studies (SBT, ICP and scenario analysis) through proactive participation in
support projects by the Ministry of the Environment as well as in “the GX League” organized by the Ministry of Economy, Trade and Industry.
We also take part in “the ESG-TCFD Practitioner Working Group in the Real Estate Sector” organized by the Ministry of Land, Infrastructure
Transport and Tourism as well as “the Scenario and Data-Related Organ Roundtable for the Purpose of Assessing Climate Change Risks
and Opportunities”, which straddles multiple ministries and agencies.

◼

We contribute to the development of TCFD disclosure through the*1*2

progressive disclosure of information. Examples of these include theselection of TCFD disclosure by the Group for inclusion amongcollections of case studies in “the Disclosures of Sustainability Informationin Annual Securities Reports” publicly released by the Financial Services
Agency and “the Guidelines on Climate-Related Financial Information
Disclosure 3.0” publicly released by the TCFD Consortium.

REASP activities◼

Tokyu Land Corporation is active in the Renewable Energy Association for Sustainable Power Supply(REASP) from a neutral standpoint. Alongside presenting the REASP’s thoughts on “the Sixth
Strategic Energy Plan” formulated by the Ministry of Economy, Trade and Industry and promoting
climate change measures, we give policy recommendations on various renewable energy-related
systems to the Japanese government as well as conduct associated investigations and research.
*1 https://www.fsa.go.jp/news/r4/singi/20230131/01.pdf*2 https://tcfd-consortium.jp/pdf/news/22100501/TCFD_Guidance_3.0_Case_Examples_j_v2.pdf© TOKYU FUDOSAN HOLDINGS CORPORATION

23

Stakeholder Engagement - Local Communities-

Governance

Strategy

Riskmanagement

Metrics andtargets

Regional coexistence efforts in the town of Matsumae, Hokkaido◼

Having entered an agreement on implementation work for corporate cooperation-based community
planning and other efforts with the Town of Matsumae in Hokkaido’s Matsumae County, Tokyu Land
Corporation is leveraging its knowledge and networks in community planning and renewable energy tojointly implement various projects aimed at sustainable community planning in the Town of Matsumae,
including the formation of a regional micro grid.

◼

We took advantage of local assets in the form of one of Japan’s strongest winds to develop and operate the
ReENE Matsumae Wind Power Plant. In addition, we seek to contribute to regional revitalization thatleverages the likes of tuna, Matsumae beef, cherry blossoms and other tourism resources.

Ideal form of our vision modeled after
town emblem

Efforts to introduce solar power generation equipment in Yokohama municipal schools◼

Tokyu Land Corporation was selected as an operator to introduce PPA-based solar power generationequipment in 53 municipal elementary, junior high, high and special assistance schools in Yokohama City.

◼

Through this effort, we will aim to reduce CO2 by approx. 26% over previous levels. By introducing solar
power generation and storage cells, in addition to using the generated power at the schools during thedaytime, we made it possible to use the surplus power to charge storage cells that can be used to supply
power at night, during rainy weather, and so forth.

◼

We will continue to do our part to improve the renewable energy power ratio in Yokohama City by supplying* The photos are visual

representations.

power to commercial facilities and hotels in the city on holidays.

For details, see Environmentally Advanced TOPICS© TOKYU FUDOSAN HOLDINGS CORPORATION

24

Skill and Human Capital Development◼

In order to achieve net zero emissions by 2050, we believe that all of us in the group must collectively tackle climate change.

◼

To that end, we offer programs and conduct training for employees of the group to enhance their awareness of the environment andsustainability.

Programs offered and training conducted◼

In FY2022, we established the “Sustainable Action Award” torecognize group employees as practitioners who take on thechallenge of sustainable initiatives. In FY2022, we received
123 entries for this award, out of which 12 entries wererecognized. We intend to continue holding the award in
FY2023 as well.

◼

The group offers programs for enhancing its employees’
awareness of sustainability (including environmental themes)
and engages in associated training.
‒

We conduct e-training for group employees once every six months in which we cover themes concerning sustainability. We also publish
articles on sustainability in “TFHD GROUP MAGAZINE” (T-MAG), the group’s online newsletter.

‒

Tokyu Land Corporation conducted e-training on environmental management in January 2023.

© TOKYU FUDOSAN HOLDINGS CORPORATION

25

Other Efforts Concerning the Environment◼

Under GROUP VISION 2030, the Group’s long-term vision, we are pursuing environmental management as one of our group policies, andare focusing on a recycling-based society and biodiversity as well as a decarbonized society. Also, as climate change is envisioned to yielda certain level of impact even in a society that aims to decarbonaize, we will also move to respond to physical risks as an adaptation
measure and maintain our business continuity.

◼

For efforts that we will pursue as we aim to realize a decarbonized society, we will endeavor to ascertain risks from multiple sides throughour Sustainability Committee, and will carry out those efforts after taking our contribution to a recycling-based society and impact on
biodiversity into consideration.

Recycling-based society

Response to physical risks◼

◼

Having set forth the likes of verifying the status ofdamage to company-managed real estate and payment
to business partners as important operations in its
BCP, Tokyu Housing Lease Corporation wasrecognized for its efforts in business continuity insituations where the risk of a large-scale disasteroccurs and in other areas. This resulted in the company
acquiring Resilience Certification, which is granted by
ASSOCIATION FOR RESILIENCE JAPAN to certify
organizations that contribute to national resilience.

◼

Tokyu Land Corporation has acquired the "ResREAL(flood damage version)" certification system thatquantifies and visualizes the resilience of real estateagainst natural disasters certified by the Japan Real
Estate Institute for the "Shibuya Minami Tokyu
Building" owned by Tokyu Land Corporation.
(Certification grade: GOLD)◼

We are bolstering our BCP through the selection of building locations
and cooperation with tenants and residents.

Contribution to realization of recyclingoriented business cycle and sustainablelocal communities－ Reduction of waste and water use－

Stock utilization－

Businesses based on coexistence
between the community and theenvironment

Forestgate
Daikanyama, a place
for realizing thecircular economy

Biodiversity◼

Contribution to preservation of local
ecosystems with city and regional
characteristics retained－

CO2 Absorption Type J-Credit
Certification for Company-Owned
Forests－

Long-term maintenance andmanagement of urban greenery－

Sustainable procurement

Tokyu Resort Town
Tateshina promotes"MORIGURASHI®".

For details, see Environmental Management Report 2022

© TOKYU FUDOSAN HOLDINGS CORPORATION

26

Explanation of Terms◼ Reference scenarios for scenario analysis (p. 14-17)

IEA

International Energy Agency: Established in 1974 in the aftermath of the first oil crisis as an international agency within the framework of the Organisation for
Economic Cooperation and Development (OECD) with the main purpose of improving the energy situation in oil-consuming nations.
[Scenarios]
・SDS: Sustainable Development Scenario (under 2˚C)
・B2DS: Beyond 2 Degrees Scenario (under 2˚C)・NZE2050: Net Zero by 2050 (1.5˚C scenario)
・STEPS: Stated Policies Scenario
・RTS: Reference Technology Scenario

IPCC

Intergovernmental Panel on Climate Change: Organization established by the United Nations Environment Programme (UNEP) and the World MeteorologicalOrganization (WMO) in 1988 to comprehensively assess manmade climate change, its effects, and adaptation and mitigation measures from scientific,
technological and socioeconomic perspectives.
[Scenarios]
RCP: Representative Concentration Pathways

1.5˚C[IEA] SDS, B2DS, NZE2050[IPCC] RCP2.6

3˚C[IEA] STEPS, RTS,
[IPCC] RCP6.0

4˚C[IPCC] RCP8.5◼ Terms
P. 4

Race To Zero

International campaign calling upon corporations, local autonomous bodies, investors, universities and other non-government actors totake action immediately to achieve the goal of reducing greenhouse gas emissions by essentially half by the year 2030.

P. 4

Scope 1, 2 & 3

Categorizations of greenhouse gasses established as part of the Greenhouse Gas (GHG) Protocol, an international standard of
calculating and reporting GHG emissions. Depending on the emitting entity, GHG are categorized into one of the following: Scope 1(direct emissions), Scope 2 (indirect emissions) or Scope 3 (other emissions). The sum of these is considered to be emissions by theoverall supply chain.

P. 5

SBT 1.5˚C targets

Science Based Targets: GHG emission reduction targets configured by corporations with 5 to 10 years as the target years. SBT
conform with the standards required under the Paris Agreement (rise in global temperature is at a level well below 2˚C of that before theIndustrial Revolution or kept at 1.5˚C).

P. 5

IPCC

Intergovernmental Panel on Climate Change. Organization established by the United Nations Environment Programme (UNEP) and theWorld Meteorological Organization (WMO) in 1988 to comprehensively assess manmade climate change, its effects, and adaptationand mitigation measures from scientific, technological and socioeconomic perspectives.

TCFD

Task Force on Climate-related Financial Disclosures: Established in 2015 by the Financial Stability Board (FSB) at the request of theG20 with Michael Bloomberg as Chair. Publicly released its final report in June 2017. Requests the proactive disclosure of information
on what kind of initiatives geared towards climate change are being conducted by corporations and institutions. Revised in 2021. It
recommends that companies and institutions proactively disclose the following items on how they are tackling climate change.
Disclosure recommendations: governance, strategy, risk management, metrics and targets

P. 5

Explanation of Terms

P. 5

RE100

Renewable Energy 100%: An international collaborative initiative, in which companies from around the world participate with the goal of
procuring 100% of the electric power consumed by their business activities from renewable energy sources.

P. 5

ICP

Internal Carbon Pricing: A method where a company sets carbon prices independently and uses it to visualize the business impact of acarbon tax, or for organizational strategy and decision making. This is one method of carbon pricing which puts a price on CO 2
emissions to change the behavior of emitters.

P. 5

ZEB/ZEH

net Zero Energy Building / net Zero Energy House: Buildings with net zero or negative annual primary energy consumption. The amountof reduction is found by summing the amount of energy saving and the amount of energy creation, in comparison with conventionalbuildings.

P. 6

PPA

Power Purchase Agreement: System through which power generated by renewable energy generation systems installed by companies
who own and manage renewable energy generation equipment (PPA operators) in sites, on roofs and in other spaces supplied by thefacility owner is provided to power users at that facility at a charge.
・Onsite PPA: System through which PPA operators install power generation equipment in user sites and provide electricity.
・Offsite PPA: System through which PPA operators provide electricity to specific general users through a general power grid.

P. 11

GX League(GX: Green Transformation): Forum for corporations that seek to realize sustainable growth to work in unison with corporate groups,
government agencies and universities that engage in similar initiatives in order to transform socioeconomic systems and practice forcreating new markets.

p.12

FIT

Feed In Tariff: System made compulsory for electric power companies so that electricity generated using renewable energy such as
solar power generation is purchased at prices determined by the national government.

P.12

Micro grid

System for bringing together energy supply sources and consumption facilities within a certain scope and locally producing energy for
local consumption. Distributed power sources for the likes of renewable energy such as solar and wind power are used to supply
energy.

P.12

FOURE concept

Reciprocal and Regional Revitalization with Renewable Energy: Agreement between Tokyu Land Corporation, Osaka Gas, Looop,
Tokyo Gas and Renewable Japan to jointly examine reciprocal and regional revitalization through renewable energy with the goal of
having renewable energy and regions to develop together while taking into account policy trends of principal ministries and agencies.

P. 20

United Nations Global Compact

UNGC: Initiative through which the UN advocated complying with and practicing ten principles that concern human rights, labor rights,
the environment and anti-corruption at the World Economic Forum in 1999.

P. 20

JCI

Japan Climate Initiative: Established in 2018 with the participation of 105 organizations as a loose network to reinforce thecommunication of information and exchange of opinions by corporations, local autonomous bodies, NGOs, etc. that proactively engage
in climate change measures.

P. 20

PRI

Principles for Responsible Investment: launched through a partnership between the UNEP Finance Initiative and the UN Global
Compact based on advocacy by the UN in 2006. Requests investors to engage in investment behavior that takes ESG information into
consideration from a long-term perspective after analyzing and evaluating companies.

◼
⚫

The following were used as a reference in the preparation of this report.
Task Force on Climate-related Financial Disclosures（TCFD）－ “Guidance on Metrics, Targets, and Transition Plans”⚫

CDP－ “Climate Transition Plan: Discussion Paper”⚫

Transition Plan Taskforce（TPT）－ “The Transition Plan Taskforce Disclosure Framework Consultation”⚫

United Nations’ High-Level Expert Group on the Net Zero Emissions Commitments of Non-State Entities（UN HLEG）－ “Integrity Matters: Net Zero commitments by Businesses, Financial Institutions, Cities and Regions”

Disclaimer on Forward-Looking Statements
The forecasts and other forward-looking statements in this report are based on available information and certain assumptions determined as rational as of July 2023.
Consequently, any statements herein do not constitute assurances regarding actual results by the company. Actual performance may significantly differ from these forecasts due tovarious factors in the future.

TOKYU FUDOSAN HOLDINGS

私たstrive
ち は、ループが展開する多様なグリーンの力を融合させ、誰 もが自分らしく、いきいきと輝ける未来をつくります
We
toグ
merge
the power of various forms ofgreen deployed by our Groupto create a future where
everyonecan be themselves and shine。vigorously.

Group Sustainability Promotion Department, Tokyu Fudosan Holdings Corporation

https://www.tokyu-fudosan-hd.co.jp