Sustainability Management

Sustainability Basic Policy
MIRARTH HOLDINGS Group was holds as its purpose: "To design sustainable environments for a happier future for both people
and our planet." and contribute to solving social issues and achieving the SDGs by engaging in sustainability activities throughour business, such as the supply of housing and the introduction of natural energy, in order to gain the trust of different
stakeholders and society and achieve lasting development.

Customers
Shareholders
and investors

Competitors

Local communities,
NPOs, and NGOsMedia

Executives
and employees

Governments

Trading partners

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Sustainability Promotion System
The Group has established a sustainability promotion system based on the recognition that "addressing issues surrounding
sustainability, including consideration of climate change and other global environmental issues, respect for human rights,
consideration of employee health and the working environment and fair and appropriate treatment of employees, fair andappropriate transactions with business partners, and risk management in the event of natural disasters are importantmanagement issues."
The Sustainability Committee, chaired by the Representative Director and composed of directors, presidents and division headsof group companies, is responsible for promoting ESG strategies, determining policies and measures concerning sustainability,
examining and promoting materiality issues, reviewing progress, and deliberating on improvement plans.

Board of Directors
Reporting

Supervision

Sustainability Committee
Matters related to the revision or abolition of sustainability-related policies and material issues (materiality)
Determination and promotion of measures, review of progress, and deliberation of improvement plans

Members
Chair: Representative Director and President (Chief Executive Officer)
Vice Chair: Director in charge of Sustainability (Executive Officer)
Permanent members: Directors
Other presidents and department heads of the company and Group companies appointed by the chairperson

Secretariat
Group Corporate Planning Department

Sustainability Promotion Section,
Group Corporate Planning Department

Coordination andimplementation

Each department and Group company

Direction formulation, policy formulation,
policy implementation and awareness-raising,promotion management

Communication

Policy implementation, awareness-raising,progress management

Information disclosure

Communication

Stakeholders
Customers

Local communities

Business partners

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Employees

Shareholders
and investors

Message from the Director in Charge of Sustainability
Director,

Masashi Yamamoto

Group CFO and Managing Director/Executive Officer

In recent years, we are faced with major challenges that must be addressed by the entire world as we live on the
Earth, including environmental issues such as climate change, the impact of new coronavirus infections, and rising
conflicts and tensions in the international community. In addition, as the SDGs, a set of common global goals,
become more prevalent, and the role that companies should play and the expectations of their stakeholders rise,
we feel that the importance of sustainability initiatives in companies is increasing year by year.
Our Group has been promoting ESG initiatives not only by contributing to urban development and community
building through the supply and management of housing, but also by developing businesses in the clean energy
field, including the development and operation of mega solar power plants.
In April 2022, we established the Sustainability Committee with the aim of further strengthening our ESG strategy
and building a more cross-functional and agile sustainability promotion system. The Committee meeting was held
five times during the last fiscal year, and in addition to deciding on various sustainability-related policies andmeasures and setting targets for reducing greenhouse gas emissions, the participants discussed various social
issues surrounding the Group. In addition, upon transitioning to a holding company structure in October, we areestablishing and reorganizing organizations suitable for sustainability-related initiatives and working to unify
Group-wide awareness in each of these initiatives.
In addition to implementing various measures to reduce greenhouse gas emissions, we plan to re-identify key
issues (materialities) linked to management strategies and review KPIs in line with the Holdings structure. We will
accelerate our company-wide, cross-sectional efforts in our group's business activities. Your continued support will
be greatly appreciated.

9Va l u e C r e a t i o n &Materiality

Value Creation Process
MIRARTH HOLDINGS Group has achieved sustainable growth by providing products and services that meet diversifying
housing needs. With the transition to a holding company structure, we aim to provide new value by leveraging the strengths of
the Group that we have built up over the years and by creating group synergies.

Click here for a larger PDF.

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Sustainability Key Themes and Key Issue Identification Process
The Group has identified key sustainability themes and critical issues through the following steps.

Grasp and organize social issues
step

1

We identified 31 issues relating to the business environment based on GRI, SDGs, SASB, and otherinternational guidelines, as well as our Group philosophy and Medium-Term Management Plan and requests
from our customers, shareholders and investors, local communities, employees, and other stakeholders.

Evaluate the significance from the MIRARTH HOLDINGS Group’s perspectivestep

2

We set priorities by sorting out the results of questionnaires completed by all employees, including themanagement and officers, and each issue’s relation with our business and Group philosophy.

Evaluate the importance from our stakeholders’ perspectives
step

3

We set priorities by sorting out the results of questionnaires completed by customers, shareholders andinvestors, and business partners and the requirements based on international guidelines such as the GRI and
the SDGs.

Identify key issues
step

4

The key issues were identified after the priorities were reconsidered from the perspectives of the Takara Leben
Group and our stakeholders, and reviewed by the management.

step

5

Policy setting for key sustainability themes
Policies were set for the four key sustainability themes.

The 15 Issues Identified

Priorities for stakeholders

High

High

Priorities for the MIRARTH HOLDINGS Group11

1 Support for diversifying
lifestyles and globalization
2 Responses to changes tobusiness models brought
by an ageing society anddepopulation
3 Urban development andcreating towns
4 Construction and maintenance of a corporate
governance system
5 Promoting compliance
6 Employee health management
7 Encouraging the strongroles of diverse humanresources

8 Providing safe, secure
products and services
9 Improving customer
satisfaction
10 Improving value ofbuildings
11 Providing buildings andspaces that consider
the environment andculture12 Responses to global
warming
13 Initiatives for renewableenergy14 Effective use ofresources
15 Responses to disasters

Key Sustainability Themes

Creating Lifestyles
with Value
We contribute toimproving the richness ofpeople's lifestyles byreating new value.

Policies

Related SDGs

● Provide products and services that

respond to changing social issues andneeds.
● Provide lifestyles that harmonize

residents and surrounding
environments, such as the LEBEN or
NEBEL brands.

● Contributing to the revitalization ofregional areas through our regional
city revitalization business, whichconnects urban and regional areas.

Forming Communities
We form communities withstakeholders— such as local
communities, trading partners,
and employees—and aim for
growth together.

● Improve our ability to respond to risk

through thorough risk assessment andmanagement.
● Provide opportunities andenvironments where a diverse range of
people can work energetically.

Key Issues● Support for diversifying

lifestyles and globalization● Responses to changes tobusiness models brought byan ageing society anddepopulation● Urban development andcreating towns● Construction and maintenanceof a corporate governancesystem● Promoting compliance● Employee health management● Corporate activities that can respondto social needs with an emphasis on
dialogues with our stakeholders.

● Improve customer satisfaction levels

Providing Comfortable
Spaces of High Quality
We support the comfortable andsafe living of our customers byproviding products bringing
great satisfaction to ourcustomers.

Developing
Environments andCultures
We contribute to a sustainable
society by actively working on
environmental issues, and at thesame time, contribute toimproving quality of life byproviding opportunities formental activities such as learningand practicing the arts.

through the use of our proprietary
Service Quality Management System(SQMS®).

● Encouraging employment ofdiverse human resources● Providing safe, secure

products and services● Create housing that combines bothdesign and habitability, pursuing theperformance of housing.

● Improving customer

satisfaction● Improve building value through regular

repairs and renovations to improvebuilding comfort, functionality, andsafety● Reduce greenhouse gas emissions

through supplying housing with highenvironmental performance and ourrenewable energy power generation
business.
● Provide seismic-resistant andfire-resistant housing that canwithstand natural disasters.

● Improving value of buildings● Providing buildings andspaces that consider theenvironment and culture● Responses to global warming● Initiatives for renewable energy● Effective use of resources● Provide opportunities for culturalactivities to our stakeholders.

12● Responses to disasters

Targets and Achievements
FY Mar. 2023
Sustainability Key Themes

Targets

Creating Lifestyles with ValueFY Mar. 2024

KPIs
Results

Targets

Propose new lifestyle services

5 projects

13 projects

5 projects

Supply of new condominiums for sale overseas

3 condos*1

3 condos

3 projects*1

Supply of NEBEL series condominiums

3 condos

3 condos

3 condos*2

Redevelopment projects undertaken

2 projects

2 projects

2 projects

Community sponsorships

10

16

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Conduct the board effectiveness assessments〇*3

Enhancement and strengthening of corporate governance system〇*4

Consideration of introducing the clawback provisions△*5

Implement anti-corruption education and training△*6

Promote understanding of human rights issues among officers and employees〇*7

Number of cases of adverse treatment

0

0

0

Survey to confirm the recognition rate of the whistle-blowing system〇

Percentage of employees receiving healthcheckups

100%

99.1%

100%

Stress check examination rate

100%

87.9%

100%

Percentage of employees taking paid leave

70%

68.7%

70%

Percentage of employees with disabilities

2.30%

2.0%

2.30%

Percentage of female managers

9.5%*1

11.0%

9.5%*1

Percentage of employees returning to work aftermaternity or parental leave

100%

88.9%

100%

Training hours per employee

24 hours

28.3 hours

24 hours

Satisfaction rate of sales staff survey

90%

89.3%

90%

Number of nonconformities related to businessprocesses and quality standards

10 or less1 project

10 or less

Implementation of preventive action sharing
meetings

5 or more times

7 times

5 or more times

Training of SQMS® masters

2 or more persons

0*8

2 or more persons

Acquisition rate of housing performance evaluation
certificates

100%

100%

100%

Rate of accidents and lost time injuries (*covered:
employees)

0%

0%

0%

Number of lost workday injuries (*covered:
employees)

0

0

0

Safety meetings

once a year

once

once a year

Special patrols (safety checks)

4 times a year

3 times

4 times a year

Number of safety and health training sessions(*training targets: employees)

twice a year

once

twice a year

Results of supplier surveys

No plan to implement in
FY Mar. 2023－

A-rank acquisition rate
90%

Rate of accidents and lost time (*target: suppliers)

1.83% or less

0%

1.83% or lessForming Communities

Providing Comfortable Spacesof High Quality

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FY Mar. 2023
Sustainability Key Themes

Targets

Developing Environments andCultures

FY Mar. 2024

KPIs
Results

Acquisition and disclosure of CO2emissions〇*9

Setting CO2emission reduction targets〇*9

Targets

Percentage of houses certified for energy efficiency
rating (Flat 35)

100% of detachedhouses100% of detachedhouses100% of detachedhousesSponsorship for culture fostering events

5

8

5

Acquisition of ZEH condominium certification

1

1

1

Acquisition of CASBEE certification with A rank orhigher1

1

1

New operating generation capacity of power
generation facilities from renewable energy sources

20MW

10MW

20MW

Total power generation

360MW*1360MW360MW*1

Obtaining quantitative data on resources and water and setting reduction
targets△*10

Formulation of manuals for BCP measures△*11*1 Set as a mid-term target for FY March 31, 2025.
*2 Number of new projects participated in. In addition, eight projects are under construction or being promoted.
(Including the Excellent Building Maintenance Project, etc.)*3 conducted anonymous survey assessments and interviews targeting all directors and auditors, including external directors, utilizing external consulting firms.
*4 In addition to establishing a separate Compliance Committee and Risk Management Committee, and appointing a Group Chief Risk Officer (CRO), the Group
implemented measures to strengthen governance within the holding company structure.
*5 Conducted and continued review of the executive compensation system by the Compensation Committee.
*6 Partially implemented through compliance training.
*7 Formulate a group human rights policy and strengthen internal and external dissemination of the policy.
*8 No new recruitment due to promotion of measures by existing members.
*9 Target scope: Scope 1 and Scope 2.
*10 An internal system is being developed to establish data collection and aggregation.
*11 It is being reformulated in line with the holding structure.

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Stakeholder & Initiatives

Dialogue with Stakeholders

Main Stakeholders
Expectations and Requests

Major Responses of the GroupDefinition

Customers(corporations and individuals)

Contracting parties and tenants ofcondominiums and detached houses
Users of tenant buildings
Users, etc. of various services

Introduction of online consultation system
Supply of valuable products and services

Introduction of online condominium show room

Improvement of customer satisfaction in all

systemareas, including quality and cost

Provision of "clean air and spaces"

Supply of environmentally friendly products

Provision of properties with ZEH-M Oriented

Provision of accurate and appropriate

certification

information concerning products and services

Administration of sales staff questionnaire
Publication of "Smilax" quarterly

Local communities

Local communities, residents, local
governments, etc. related to MIRARTHHOLDINGS Group businessParticipation in and sponsorship of local
Prevention of accidents and disasters

eventsCollaboration and coordination in solving

Holding of community events at managedsocial issues

properties

Securing of employment

Implementation of social contribution activities

Participation in social contribution activities

Regional revitalization through rebuilding andredevelopment businessTrading partners

Fair and evenhanded transactions
Information sharing and collaboration with the

Fair and evenhanded transactions

Construction contractors
Business operators etc. related to theprovision of various services

aim of ensuring customer satisfaction and

Collaboration and coordination in operations

Employees

Creation of prosperous lives for employees

CSR procurement

and their families
Human resource utilization and development
Appropriate evaluation and compensation
Respect for human rights, personality, andMIRARTH HOLDINGS Group
employees and their families

individuality
Creation of workplaces in which diverse
personnel can thrive
Attention to occupational health and safety

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Implementation of training programs
Implementation of human resource andevaluation interviews
Operation of help line desks
Introduction of a Telework System
Promotion of staggered commuting times andreduced working hours
Establishment of a Health Committee

Shareholders and investors

Holding financial results briefings and general

Individual and institutional investors

Maintenance and improvement of corporate

meetings of shareholders

value

Holding meetings with domestic and overseas

Securing of stable profits and appropriate

institutional investors

return of profits

Conducting individual meetings with domestic

Enhancement of corporate governanceand overseas institutional investors

systemConducting shareholder surveys

Creation of risk management systems

Holding company-introductory sessions andAppropriate disclosure of corporate

participating in IR fairs

information at appropriate time

Disclosing IR information on the website
Obtaining external certification

Initiatives and Participation in Industry Groups
Signing the UN Global Compact
In 2020, Takara Leben (currently MIRARTH HOLDINGS) signed and registered as a participating company in the United Nations
Global Compact* proposed by the United Nations. We will continue our efforts to realize the ten principles of the United Nations
Global Compact, which comprise the four areas of human rights, labor, environment, and anti-corruption.
* The United Nations Global Compact was proposed by then UN Secretary-General Kofi Annan in 1999 at the World Economic Forum in Davos and was launched in
2000.

The Ten Principles of the UN Global Compact
1 Businesses should support and respect the protection of internationally proclaimed
human rights; andPrinciple 2 make sure that they are not complicit in human rights abuses.
Principle

Human Rights

3 Businesses should uphold the freedom of association and the effective recognitionof the right to collective bargaining;
Principle 4 the elimination of all forms of forced and compulsory labour;
Principle 5 the effective abolition of child labour; andPrinciple 6 the elimination of discrimination in respect of employment and occupation.
Principle

Labour7 Businesses should support a precautionary approach to environmental challenges;
8 undertake initiatives to promote greater environmental responsibility; andPrinciple 9 encourage the development and diffusion of environmentally friendly technologies.
Principle

Environment

Anti-Corruption

Principle

Principle10

Businesses should work against corruption in all its forms, including extortion and bribery.

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GRESB
Takara Leben (currently MIRARTH HOLDINGS) participated in the 2022 GRESB* Infrastructure Asset Evaluation for the fourthconsecutive year. Takara Leben Infrastructure Fund's solar power generation facilities and the Company's policies andperformance in addressing ESG issues were evaluated, and as a result, the Company received a higher overall score than lastyear and was awarded a 3-star rating in the GRESB Rating, a 5-level rating system based on global relative rankings.
Furthermore, Takara Leben Infrastructure Fund received a 4-star rating (the highest being 5-star) in the "GRESB Rating" andwas selected as an "Asia Sector Leader."In addition, Takara Leben Real Estate Investment Corporation received a "Green Star" rating in the 2022 GRESB Real Estate
Assessment for the fourth consecutive year, which indicates that the company received high marks for both management andperformance with respect to ESG.
* The name of the annual benchmark assessment that measures environmental, social, and governance (ESG) considerations in real estate and infrastructure
investments and the organization that administers it, created in 2009 primarily by a group of major European pension funds that led the Principles for Responsible
Investment (PRI).

Signing the Principles for Financial Action for the 21st Century
Takara PAG Real Estate Advisory endorses the concept of the Principles for Financial Action Toward a Sustainable Society (thePrinciples for Financial Action for the 21st Century) and signed on to them in March 2022.
The Principles for Financial Action for the 21st Century were formulated in October 2011 by the "Japanese Environmental
Financial Action Principles Drafting Committee," a broad range of financial institutions, based on the recommendations of theCentral Environmental Council of the Ministry of the Environment, as action guidelines for financial institutions to fulfill their
responsibilities and roles necessary for the creation of a sustainable society.
The company aims to implement initiatives based on the seven principles set forth by the Principles for Financial Action for the
21st Century to help create a sustainable society.

17Participation in the Japan Climate Initiative (JCI)In March 2022, Takara PAG Real Estate Advisory joined the Japan Climate Initiative (JCI) to endorse its declaration, "Japan's
participation at the forefront of the global effort to decarbonize."
The JCI was established in July 2018 as a network of Japanese companies, local governments, organizations, and NGOs thatare actively working to combat climate change in order to achieve the decarbonized society envisioned by the Paris Agreement.
The company is committed to working with JCI's stakeholders to strengthen the efforts to achieve a decarbonized society.

Participation in Industry Groups and Japan Business Federation,etc.
Member of the Real Estate Companies Association of Japan (a general incorporated association)
Member of National Housing Industry Association (a general incorporated association)
Member of Metropolitan Area Real Estate Fair Trade Council (a local public corporation)
Member of Japan Business Federation (a general incorporated association)

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Sustainability Finance

Sustainability Finance Initiatives
MIRARTH HOLDINGS Group aims to further strengthen its power generation business and contribute to achieving the goals ofSDGs, including "Goal 7: Affordable and Clean Energy" by utilizing Green Loans, which limit the use of funds to projects thatconsider environmental factors, and Sustainability Finance, in which funds are raised based on the evaluation of ESG
initiatives, information disclosure, and contribution to SDGs achievement, etc.

Green Loan
MIRARTH HOLDINGS has conducted fundraising through the syndication-style "Green Loan" provided by Sumitomo Mitsui Trust
Bank. In addition, JCR Green Loan Evaluation by Japan Credit Rating Agency, Ltd. awarded us with the highest rating,"Green1," for this transaction.
The funds raised through this Green Loan have been allocated to the acquisition of a solar power generation facility, "Leben
Solar Iwate Hachimantai Power Generation Facility (Hachimantai City, Iwate Prefecture)."Contract Date

January 27, 2022

Arranger/Agent

Sumitomo Mitsui Trust Bank, Limited

Origination Amount

3.8 billion yen

Use of Fund

Acquisition of Leben Solar Iwate Hachimantai Power Generation Facility

Loaners

The Gunma Bank, Ltd., The San-in Godo Bank, Ltd., The Nanto Bank, Ltd., The Hiroshima Bank, Ltd., Sumitomo Mitsui
Trust Bank, Limited

Rating for theCompany

Green1 (Highest rating)News Release(Jan. 2022)

Fundraising through the Green Loan

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Outlines of Leben Solar Iwate Hachimantai Power Generation Facility
Location: 495-1, Daiichi Chiwari, Matsuoyoriki, Hachimantai City, Iwate Prefecture
Area: approx. 34ha
Power generation capacity: approx. 9.8MW
Estimated annual power generation: approx. 9.76 million kWh
Unit price of electricity sold: 36 yen/kWh

Sustainability Linked Loan
Sustainability Linked Loans are designed to promote environmentally and socially sustainable economic activities and economic
growth by setting Sustainability Performance Targets (SPTs)* based on sustainability strategies and linking loan terms to theachievement of SPTs, thereby motivating the achievement of the targets.
Leben Clean Energy, which is responsible for the Group's energy business division, obtained a second opinion from Rating andInvestment Information, Inc. (R&I) to express its endorsement to contribute to the achievement of its sustainability strategy
through its business activities, and concluded a "Sustainability Linked Loan" financing agreement with Towa Bank, and also
raised funds. The funds raised will be used to finance projects related to renewable energy development, etc.
*SPTs (Sustainable Performance Targets): Ambitious targets that allow businesses to measure their level of achievement with respect to the SDGs.

Date of contract signing

December 27, 2022

Company Name

Leben Clean Energy Co., Ltd.

Loan amount

1 billion yen

Financing period

10 years

Use of Funds

Project financing for the achievement of SDG targets (project financing for renewable energy development, etc.)

In the cumulative output (kW) of renewable energy power generation facilities developed in-house and through theacquisition of existing operating properties
SPTs(1) Increase by 15,000 kW annually(2) Increase the average annual output by 15,000 kW (exceeding the planned cumulative output)

Second Opinion

Rating and Investment Information, Inc.

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ESG Management Support Loan
"ESG Management Support Loan" is an ESG evaluation-based financing product provided by Mitsubishi UFJ Bank to support
and assist companies in their ESG (Environmental, Social, and Governance) initiatives.
MIRARTH HOLDINGS has raised funds through the "ESG Management Support Loan" provided by Mitsubishi UFJ Bank andreceived an A rating in the MUFG ESG evaluation conducted for this transaction, indicating that we are "particularly advanced"
in our ESG efforts.
The funds raised through this ESG Management Support Loan will be utilized to develop our mega solar power generation
business.

News Release (Apr. 2022)

Fundraising through the ESG Management Support Loan

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ESG/SDGs Evaluation Syndication
MIRARTH HOLDINGS has raised funds through a syndicated loan based on the "ESG/SDGs Assessment Syndication" provided
by Sumitomo Mitsui Banking Corporation under the "ESG/SDGs Assessment Syndication." The "ESG/SDGs Evaluation
Syndication" is a loan product that evaluates a company's initiatives and information disclosure on ESG aspects and its
contribution to the achievement of the SDGs based on original evaluation criteria developed by SMBC and the Japan ResearchInstitute, and provides a return on the current analysis of the adequacy of initiatives and information disclosure, future issues
and examples of initiatives to address the issues.
The results of this evaluation of our company were judged to be of a very high standard in "Corporate Philosophy andCommitment to Sustainability," "Provision of Environmentally Conscious Products and Services," and "Consideration for Local
and Global Communities." The evaluation showed that the company has implemented a certain level of ESG initiatives andinformation disclosure in its corporate management, and that it is highly motivated to contribute to the achievement of the SDGs
through its business.
The funds raised will be used for the business development of Leben Clean Energy, which is the energy business arm of ourgroup.

News Release (Oct. 2021)

Fundraising Based on the ESG/SDGs Evaluation Syndication

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Business of Leben Clean Energy
Due to the increasing demand for renewable energy in Japan, Leben Clean Energy is developing a business model that is notdependent on the feed-in-tariff (FIT) system, with an eye to promoting on-site and off-site power purchase agreements (PPA)
and regional microgrid concepts.

PPA model in brief

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Chiba Bank SDGs Friends Loan
Leben Clean Energy, our Group company, has signed a loan agreement for "Chiba Bank SDGs Friends Loan" offered by the
Chiba Bank.
The "Chiba Bank SDGs Friends Loan" is a loan program for businesses to apply the Sustainable Development Goals (SDGs)
advocated by the United Nations to their own management. The unique "SDGs Check Sheet" enables visualization of therelationship between business activities and management issues and the SDGs.
We aim to further promote SDGs management by utilizing "Chiba Bank SDGs Friends Loan."

Name

Chiba Bank SDGs Friends Loan

Issue Amount

100 million yen

Use of funds

Working capital

LenderChiba Bank

Use of funds

Project financing for the achievement of SDG targets (project financing for renewable energy development, etc.)

Positive Impact Finance
MIRARTH HOLDINGS has raised funds through "First Positive Impact Finance" provided by the First Bank of Toyama.
First Positive Impact Finance is a financing product designed to increase positive impact and mitigate negative impact in theeconomic, environmental, and social aspects of corporate activities. The status of achievement of KPIs (Key Performance
Indicators) set for these impacts and the status of initiatives will be monitored on a regular basis.
The impact assessment will be conducted on MIRARTH HOLDINGS through the entire group, and the funds raised will be used
to fund Takara Leben's core business, the new condominium business.
It has been confirmed by a second opinion of Rating and Investment Information, Inc. (R&I) that the business processes of theimplementation system are applied in accordance with the PIF Principles.

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