Environmental Policy

Environmental Policy

MIRARTH HOLDINGS Group environmental policy
MIRARTH HOLDINGS Group was holds as its purpose: "To design sustainable environments for a happier future for bothpeople and our planet." The Group think more positively about the future happiness of people and the earth than anyone
else, and propose the creation of a sustainable environment that is friendly to the earth.

1. Providing environmentally friendly buildings and spaces
We will strive to improve environmental performance, reduce environmental impact, and actively incorporate environmentally friendly
technologies and ideas into our products and services to help address global warming and create a recycling-oriented city.
2. Addressing climate change
We will contribute to reducing greenhouse gas emissions and mitigating climate change issues through the efficient use of energy, thedevelopment and operation of renewable energy generation facilities, and the utilization of renewable energy.
3. Maintenance and conservation of biodiversity
In all of our business activities, we will strive to reduce the impact on, and conserve, biodiversity by taking into consideration the risks
that may affect the surrounding ecosystems and biodiversity, conducting appropriate risk management, and giving due consideration toenvironmental conservation in accordance with the natural and social conditions of the region.
4. Promotion of resource recycling
We will work to conserve the water environment and reduce waste, and, through the promotion of the 3Rs (reduce, reuse, recycle), we
will strive to reduce our environmental impact and contribute to the formation of a recycling-oriented society.
5. Compliance with environmental laws and regulations and environmental education
We will comply with environmental laws, regulations, and other relevant laws and regulations, and we will raise the environmental
awareness of our employees through education and awareness activities on the environment.
6. Establishment of environmental management
We will promote appropriate environmental management by setting and periodically reviewing environmental targets.

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Global Warming

Climate Change Initiatives
Endorsement of TCFD Recommendations
Group companies Takara Leben, Takara Asset Management, and Takara PAG Real Estate Advisory have expressed theirendorsement of the TCFD (Task Force on Climate-related Financial Disclosure) *1 recommendations and joined the TCFD
Consortium*2.
MIRARTH HOLDINGS has positioned "proactive response to ESG" as one of the pillars of its medium-term management planannounced in May 2021, and has set KPIs for each of the key issues identified and is promoting group-wide initiatives toresolve these issues. In particular, climate change is a systemic risk in finance, and many stakeholders, including investors, aredemanding disclosure of information on climate-related risks and opportunities. Identifying, assessing, and managing the risks
and opportunities posed by climate change and enhancing the resilience of our business is essential to ensure our sustainable
and stable earnings over the long term.
Going forward, we will strive to foster a relationship of trust with our stakeholders, enhance our corporate value, and contributeto the realization of a sustainable society by expanding our disclosure of information on climate change in line with the TCFD
recommendations.

*1 TCFD (Task Force on Climate-related Financial Disclosures): An international initiative established by the Financial Stability Board (FSB) at the request of the G20 to
examine how climate-related disclosures and financial institutions should be addressed, recommendations for companies and others to disclose their "governance,""strategy," "risk management," and "indicators and targets" related to climate change-related risks and opportunities.
TCFD Website*2 TCFD Consortium: A private-sector initiative established in 2019 to discuss effective disclosure of corporate information and efforts to link disclosed information toappropriate investment decisions by financial institutions and others.
TCFD Consortium Website

Governance
The following governance structure has been established to address climate-related risks and opportunities.
The Chief Executive Officer for climate-related issues is the Representative Director, and the Executive Officer is the Director in
charge of sustainability.
The Chief Operating Officer reports regularly to the Chief Executive Officer on matters related to climate change response,
including identification and assessment of climate change impacts, management of risks and opportunities, progress ofadaptation and mitigation efforts, and establishment of indicators and targets, at the Sustainability Committee meetings. After
deliberation and consideration of each agenda item by the attendees of the Sustainability Committee, decisions are made by
the Chief Executive Officer.

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Strategies
MIRARTH HOLDINGS establishes a process for identifying, evaluating, and managing the impact of climate-related risks andopportunities on its business activities, strategies, and financial plans and operates it appropriately.
In identifying and assessing climate-related risks and opportunities, we aim to do so systematically and objectively, utilizing
scientific and academic knowledge.
As part of our efforts to reduce CO 2 emissions, we entered the energy business in 2013 and have developed a number of mega
solar power plants across Japan, promoting solar power generation and other renewable energy projects.
Through the development and operation of solar power generation facilities, we will continue to contribute to regional
revitalization, including environmental improvement, energy self-sufficiency, and utilization of idle land, as well as further
renewable energy supply to achieve carbon neutrality through initiatives such as wind power and biomass power generation
projects.

Managing Risks and Opportunities
By managing identified climate-related risks/opportunities and promoting resilience initiatives, MIRARTH HOLDINGS aims to
reduce business risks and realize value creation opportunities to ensure sustainable and stable earnings over the long term.

Indicators and Targets
In order to achieve carbon neutrality by 2050, we have set a target to reduce greenhouse gas emissions (Scope-1 and 2) frombusiness activities of MIRARTH HOLDINGS Group by 50% (compared to FY2020) by FY2030 and to net zero by FY2050.
For Scope3, we are currently compiling energy data and plan to release our greenhouse gas emissions of this category in
FY2023.

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Repeal and Revision
The Sustainability Committee approves this policy and any amendments or revisions to its content.
At least once a year, the Sustainability Committee reviews the content of this policy to ensure that it is appropriate for ourapproach to climate-related issues.

25Energy & Resources

Energy Business
Renewable Energy Initiatives
MIRARTH HOLDINGS Group promotes energy projects that utilize renewable energy sources that contribute to the reduction of
CO 2 emissions. Since 2013, when we entered the energy business, we have been developing mega solar power plants andsmall- and medium-scale solar power plants on idle land and other sites across Japan, with a total generation capacity of
approximately 360 MW as of March 31, 2023.
In addition, we are also involved in other renewable energy projects other than solar power generation, such as wind power andbiomass.

TohokuAomori Prefecture●

LS Aomori Hiranai Power Generation Facility

Miyagi Prefecture
LS Miyagi Osato Power Generation Facility● LS Miyagi Sendai A & B Power Generation Facility● LS Miyagi Osato 2 Power Generation Facility● LS Miyagi Ohira Power Generation Facility● LS Miyagi Matsushima Power Generation Facility●

Fukushima Prefecture
LS Fukushima Yamatsur Power Generation Facility● LS Fukushima Kagamiishi 1 and 2 Power
Generation Facility● LS Fukushima Tamura Power Generation Facility●

Iwate Prefecture
LS Iwate Hirono Power Generation Facility● LS Iwate Hachimantai Power Generation Facility●

Kanto-Koshinetsu
Ibaraki Prefecture
LS Koga Onanuma Power Generation Facility● LS Tone A, B, and C Power Generation Facility● LS Chikusei Power Generation Facility● LS Tsukuba Bouchi Power Generation Facility● LS Miho Power Generation Facility● LS Mito Takada Power Generation Facility● LS Tone Fukawa Power Generation Facility● LS Sakuragawa 3 Power Generation Facility● LS Kamisu Hasaki Power Generation Facility● LS Hokota Power Generation Facility● LS Sakuragawa 2 Power Generation Facility● LS Inashiki Aranuma 1 Power Generation Facility● LS Sakuragawa Nakaizumi Power Generation
Facility● LS Sakuragawa 4 Power Generation Facility● LS Sakuragawa Shimoizumi Power Generation
Facility●

LS Sakuragawa 1 Power Generation Facility
LS Inashiki Aranuma 2 Power Generation Facility● LS Takahagi Power Generation Facility● LS Ibaraki Kasumigaura Power Generation Facility● LS Sakuragawa MakabePower Generation Facility●●

Tochigi Prefecture
LS Shioya Power Generation Facility● LS Nasu Nakagawa Power Generation Facility● LS Fujioka A Power Generation Facility● LS Fujioka B Power Generation Facility● LS Shioya 2 Power Generation Facility●

Kinki
Wakayama Prefecture●

LS Shirahama Power Generation Facility

Chugoku
Hiroshima Prefecture●

LS Hiroshima Mihara Power Generation Facility

Tottori Prefecture●

LS Tottori Daisen Power Generation Facility

Okayama Prefecture●

LS Okayama Tsuyama Power Generation
Facility

Nagano Prefecture●

LS Nagano Shiojiri Power Generation Facility

Tokyo Metropolitan Area
Saitama Prefecture●

LS Hanno Misugidai Power Generation Facility

Chiba Prefecture
LS Chiba Wakaba-ku Power Generation Facility
LS Sosa Power Generation Facility● LS Chiba Sammu East and West Power Generation
Facility● LS Chiba Narita Power Generation Facility● LS Chiba Katsuura Power Generation Facility
●
●

Chubu
Shizuoka Prefecture●

LS Shizuoka Omaezaki Power Generation
Facility

Kyushu and Okinawa
Nagasaki Prefecture
LS Nagasaki Isahaya Power Generation Facility
LS Nagasaki Sasebo Power Generation Facility● LWP LWP Nagasaki Tsushima Power
Generation Facility●●

Kagoshima Prefecture
LS Kirishima Kokubu Power Generation
Facility● LS Kagoshima Kanoya Power Generation
Facility● LS Kirishima Kokubu 2 Power Generation
Facility● LS Kagoshima Tanegashima Power
Generation Facility●

Miyazaki Prefecture●

Aichi Prefecture●

LS Aichi Toyohashi Power Generation Facility

Okinawa Prefecture

Mie Prefecture●

LS Miyazaki Miyakonojo Power Generation
Facility

LS Mie Yokkaichi Power Generation Facility●

LS Miyakojima Gusukube Power
Generation Facility
etc.

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Total power generation:
Approx.

360MW

wholesale* Including
portion

Other Group Achievements

Leben Solar Tottori Daisen Power Plant
In August 2022, Takara Leben, which has been developing mega solar power plants by installing solar panels on sites
unsuitable for building construction or idle land, held a completion ceremony for the Leben Solar Tottori Daisen Power Plant,
which utilizes a former golf course site in Saihaku-gun, Tottori Prefecture.
The plant is the largest power plant developed by the our group in the Chugoku region, generating approximately 16.5 million
kWh of electricity per year, which is equivalent to the electricity supply for approximately 4,800 households. In addition to thelonger mounting piles to prevent snow damage, double-sided power generation modules are used to convert reflected light fromthe ground surface onto the back of the panels as well as the front of the panels, resulting in greater power generation even ina limited space.

Property Name

LS (Leben Solar) Tottori Daisen Power Plant

Location339-2, Fukukane, Hoki-cho, Saihaku-gun, Tottori, etc.

Area

Approx. 254,645 ㎡Generating capacity

Approx. 14MW

Estimated annual power
generation

Approx. 16.5 million kWh

Unit price of electricity sold

24 yen/kWh27

Efforts to promote PPAMIRARTH HOLDINGS and Leben Clean Energy have signed a memorandum of understanding (MOU) on solar power generation
business with Mitsui & Co. Plant Systems to jointly develop Offsite Corporate PPA* to realize a decarbonized society.
With a track record of developing more than 200 high-voltage solar power plants nationwide, Leben Clean Energy is the corecompany in the renewable energy business of MIRARTH HOLDINGS Group. We are developing renewable energy, particularly
solar power, to meet the growing decarbonization needs of our customers while building a business model that does not dependon feed-in tariffs (FITs). In recent years, the number of large-scale solar power generation sites has been on the decline, andwe have been speeding up the development of medium- and small-scale solar power plants across Japan. This collaboration
with Mitsui & Co. Plant Systems is part of our efforts to quickly build a development system and commercialization of suchplants.
In addition, MIRARTH HOLDINGS is also promoting activities with a view to supplying post-FIT renewable energy by conducting
a tender offer for units of Takara Leben Infrastructure Fund through a limited liability company it has established. By actively
and continuously developing projects through Leben Clean Energy, we will work to develop more non-FIT solar power plants,
etc.
Going forward, the company plans to continue to provide solutions to a large number of customers through the project
development capabilities of Leben Clean Energy, the project management capabilities of Mitsui & Co. Plant Systems, and theextensive network of the Mitsui & Co. group.
*Offsite Corporate PPA: A system in which solar power plants are installed on idle land, etc., in remote areas throughout Japan, outside customer demand areas, andelectricity or environmental value is supplied using the existing power grid owned by a general transmission and distribution utility.

PPA Scheme Image

Power generationequipment development
MaintenanceOperation
Power plant

Power producer

Usage fee

Power plant
Renewable energy power

Consumer

Renewable energy power
Existing power grid28

Biomass Power Generation
In 2021, MIRARTH HOLDINGS entered the biomass power generation business for the first time in the company’s history. The
Fuji Asagiri Biomass Power Plant (Fujinomiya City, Shizuoka Prefecture), which is currently in trial operation to start sellingelectricity in FY2022, generates biomass power using cattle manure collected from members of the Fuji Kaitaku Agricultural
Cooperative Association. The power plant generates electricity by burning biogas generated from the fermentation process of
cattle manure, which emits less CO₂ than the direct combustion of wood waste and combustible waste. The liquid fertilizer
produced with the biogas will be marketed as Fuji Asagiri Biomass Liquid Fertilizer.
This project follows our solar power initiative as the second renewable energy venture. It aims to create a regional, recyclingoriented symbiotic zone, supplying clean energy through effective waste material utilization and addressing the issue of cattle
manure disposal.

LS Chiba Sammu East & West Power Plants Sign Specified
Wholesale Supply Agreement with Minna Denryoku Co.
Green Energy, a limited liability company whose asset management is entrusted to Takara Asset Management, has concluded a
specified wholesale supply contract with Minna Denryoku (currently UPDATER Inc.) for the LS Chiba Sammu East and WestPower Plants. Minna Denryoku is developing a service that connects electricity producers and users with renewable energy.
Through Minna Denryoku, we aim to promote a decarbonized society and the spread of renewable energy by supplying energy
to households that choose energy with low environmental impact and to companies that practice environmentally friendly
management.

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Measures to Reduce CO₂ Emissions
Takara Leben Infrastructure Fund and Green Energy, a limited liability company, aim to create a sustainable, earth-friendly
environment through investment in renewable energy generation facilities and other assets, contributing to the reduction of CO₂
emissions by approximately 76,302 tons per year*.
* Annual amount of reduction of CO₂ emissions compared to fossil fuel-fired thermal power plants based on the output of power generation facility panels.

Takara Leben Sustainability Fund
Takara Leben has begun operation of new means of financing with the aim of encouraging measures that contribute to theglobal environment. Leben Funding LLC. was established in January 2021, and in collaboration with Funds, Inc., it launched the
Takara Leben Sustainability Fund #1~3 and conducted crowdfunding to solicit loan investments from a wide range of investors.
The collected funds will be used as working capital for renewable energy projects and Sustainability (CSR) measures.

Individual
investors

Loan fundonline market

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TakaraLeben

Ecology & Culture

ZEH Condominium
Takara Leben is committed to supplying environmentally friendly ZEH condominiums.
*1 ZEH (Net Zero Energy House): A house that simultaneously achieves a "comfortable indoor environment" and a "net annual residential energy consumption of
approximately zero or less."

ZEH Condominium "LEBEN TOYAMA JINZUHONMACHI ONE TOWER"LEBEN TOYAMA JINZUHONMACHI ONE TOWER (Toyama City, Toyama Prefecture) by Takara Leben is insulated not only on
the exterior walls and folded parts but also on the ceiling surface to ensure the high insulation performance required for a
ZEH*1 condominium, and metal sashes and double-layer double glazing Low-E glass are used for openings.
The condominium has obtained Grade 4 in the "heat insulation performance grade" of energy conservation measures*2(whereas ordinary condominiums are rated Grade 3), and Grade 5 in the "primary energy consumption grade."
In addition, the building has received the highest rating of 5 stars (out of 5 scale) under the BELS, an energy efficiency rating
system that calculates the primary energy consumption of a house.

Heating
CoolingHeating
ventilation
CoolingLighting

ventilation
Lighting

hot water
supplyhot water
supplyhigh insulation

reduction

createCool summer and warm winterhomes that require minimal energy

Use energy effectively withhigh-performance equipment

Create energy*2 Energy measure grade: Established by the Ministry of Land, Infrastructure, Transport and Tourism as a grade that expresses energy-saving performance.

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ZEH Condominium "LEBEN TOYAMA NISHICHO RESONACIA"LEBEN TOYAMA NISHICHO RESONACIA is the first ZEH (Net Zero Energy House) condominium in Toyama Prefecture. It has
obtained the highest rating of 5 stars under the BELS, Energy Saving Performance Indication System, which calculates theprimary energy consumption of a house and assigns a 5-star rating.

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"L.Biz NIHOMBASHI" Acquired CASBEE Certification "A rank"
At L.Biz NIHOMBASHI (Chuo-ku, Tokyo), an office building developed by MIRARTH HOLDINGS and its Group company, Takara
Leben, we are working on heat load control of the building envelope to achieve environmental performance for the realization ofa decarbonized society, in line with the Group policy of "providing environmentally conscious buildings and spaces” and working
to improve the indoor environment by controlling room temperature and lighting. In addition, to encourage the use of naturalenergy such as sunlight, the building has a high floor height and curtain walls*1. Also, to conserve water resources, which are
non-renewable resources, we are working to reduce water consumption through water-saving devices.
These environmental performances were highly evaluated, and the property was the first in our series of office buildings toreceive the "A" rank in CASBEE*2 - Building (New Construction), a comprehensive assessment system for building
environmental performance.
*1 Curtain wall: A lightweight exterior wall that is installed to reduce the load on the building's structure by ensuring wind pressure from the outside and watertightness.
*2 CASBEE: A system for evaluating and rating the environmental performance of buildings. It comprehensively evaluates the quality of buildings, including
environmental considerations such as energy conservation and the use of materials and equipment with low environmental impact, as well as indoor comfort andconsideration for the landscape.

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Noda City Nakasato Logistics Facility Receives 5-Star BELS
Certification
Noda City Nakasato Logistics Facility (Noda City, Chiba Prefecture), the first logistics facility built by Takara Leben in March
2022, has a policy of "developing environmentally friendly properties" and has a solar power generation system on the roof. Theenergy generated is used for a portion of the facility's electricity consumption. In recognition of these environmentally friendly
efforts, the facility has received the highest rating of 5 stars under the BELS (Building Energy Efficiency and Low Energy
Performance Labeling System).

Environmental Initiatives through ISO 14001 Certification
Recognizing the need to promote environmental friendliness in the general construction industry, Leben Home Build acquired
ISO 14001 certification, the international standard for environmental management systems, in 2008. We continue to operate ourenvironmental management system by setting and regularly evaluating targets for reducing industrial waste resulting from our
production activities at work sites.

Separate trash at construction sites and promote recycling
Separate and reduce waste at each business site.
Regular cleaning outside the company by employees
Propose plans and designs for energy conservation

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Promotion of LEDs
For the purpose of effective use of resources and reduction of running costs, we are promoting the replacement of lighting
installed in managed properties with LED lighting, which has a longer life and consumes less power.

Initiatives of Leben TrustLeben Trust, a real estate leasing and management company, actively proposes environmentally friendly capital investments toowners, such as the use of LED lighting in common areas of managed properties, to promote energy conservation in buildings.

Takara PAG Real Estate Advisory Initiatives
Takara PAG Real Estate Advisory, which is entrusted with asset management of Takara Leben Real Estate Investment
Corporation, has implemented LED lighting in 41 of the properties it owns.

Number of properties(including some partially implemented)

Percentage of LEDs in portfolio

Common areas: 91.1%
LED conversion

41 properties

Total 73.1%
Exclusive areas: 62.1%(Based on floor space, as of the end of February 2023)

35

Environmental Initiatives in Office Buildings
Takara PAG Real Estate Advisory, which is entrusted with asset management of Takara Leben Real Estate Investment
Corporation, is promoting environmentally friendly initiatives to reduce environmental impact and improve the indoor
environment.
To reduce water consumption in office buildings, we use rainwater for toilet flushing water, conduct awareness raising activities
for tenants, and install "water-saving panels" to reduce the amount of water used in the water supply.
In addition, by displaying educational posters in common areas and tenants' private areas, we are promoting the reduction ofgreenhouse gas emissions and waste by fostering awareness of electricity conservation and the 3Rs.

Regular Cleaning Using Environmentally Friendly Detergents
As part of its commitment to environmental friendliness in condominium management services, Leben Community has officiallyintroduced biodegradable plant-derived surfactants since fiscal year 2022.
Although vegetable-based detergents had been introduced on a trial basis at some properties since FY21, the vegetable-based
detergents at that time had less cleaning power than conventional detergents and did not meet the quality required for theservices. After a number of trials and errors, we have officially introduced a detergent that does not fall under the PRTR
system* and that takes environmental recycling into consideration. Currently, the detergent is used at sites where cleaning andjanitorial staff belonging to Leben Community work.
*PRTR system: A system under which business operators are required to monitor and report to the government the amount of chemical substances released into theenvironment (air, water, and soil) from their business sites and the amount transferred out of their business sites in waste materials, which may be harmful to humanhealth or the ecosystem.

36

Environmental Data

Environmental Data
The Group's Scope 1 and Scope 2 greenhouse gas (CO₂) emissions and energy consumption are shown below:

Greenhouse gas (CO₂) emissions
Unit: t-CO₂
Category

FY2020

FY2021

FY2022

Scope1

374

380

610

Scope2

1,585

1,696

3,171

Total

1,959

2,076

3,781

Remarks

Combustion of city gas, LP gas, kerosene, gasoline

Use of electricity and cold water* The scope of environmental data calculation covers MIRARTH HOLDINGS Group (9 consolidated companies).
* The period covered is FY2020 and FY2022 (April 1, 2020 to March 31, 2023).
* The figures for FY2022 are provisional and subject to change.
In addition, from FY2022, with the expansion of the boundary of electricity use, etc., the scope of aggregation of business activities is additionally aggregated.
* The Group excludes greenhouse gases other than CO₂ (chlorofluorocarbons, etc.) because of their extremely small amounts, and it only calculates and reports CO₂
emissions.

37

Energy consumption
Unit: kL of crude oil equivalent
Energy TypeFY2020

FY2021

FY2022

Electricity

915.2

1,020.8

1,782.5

City gas

3.2

0.5

61.8

LP gas

0.0

0.4

56.1

Gasoline

140.8

145.2

136.7

Kerosene

0.7

0.3

0.1

Light oil

0.0

0.0

3.0

Cold water

1.2

0.4

0.5

1,061.1

1,167.6

2,040.5

Total* The scope and period covered by the energy data are the same as for CO₂.
* The values for FY2022 are provisional and subject to change.
* Crude oil conversion is a measure to compare the size of different energy sources, such as electricity and gas.

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