Information Disclosure Based on TCFD Recommendations
June 24, 2024
Hoosiers Holdings Co., Ltd.

The Group's Policy on Climate Change
In recent years, extreme weather considered to have been caused partly by climate change has been
occurring and having a significant impact on our economic and social activities, making the response to
climate change a pressing issue. Under such circumstances, the movement to incorporate decarbonization
into corporate management accelerated globally after the Paris Agreement, and the private sector isrequired to contribute to the achievement of the Sustainable Development Goals (SDGs) through proactive
measures to combat climate change.
Under the Medium-Term Management Plan (for FY3/22 to FY3/26), the Group is promoting ESG
management with the target of integrating business strategy and ESG strategy. In September 2023, weannounced our endorsement of the recommendations of the Task Force on Climate-Related Financial
Disclosures (TCFD). Going forward, we will further accelerate our measures to combat climate changewith the aim of contributing to the achievement of the 2°C target set out by the Paris Agreement. We also
recognize the importance of the climate-related financial information disclosure and will work to enhance
the information disclosure recommended by the TCFD.

Recommended disclosure items in the TCFD recommendations
Disclose the organization’s governance around climate-related risks andGovernanceopportunities
Disclose the actual and potential impacts of climate-related risks andStrategy
opportunities on the organization’s business, strategy, and financial planning
Disclose how the organization identifies, assesses, and manages climateRisk management
related risks
Disclose the metrics and targets used to assess and manage relevant climateMetrics and targets
related risks and opportunities

11. Governance
The Company has the Sustainability Committee, chaired by the Chairman and Executive Officer andcomprised of executive officers and its subsidiaries’ presidents, etc. The roles of the Sustainability
Committee include determining the basic policies and plans related to the Group’s overall sustainability
strategy such as responses to climate change, establishing and improving an internal promotion system,
reviewing the progress of the sustainability promotion activities, and managing risk factors.
We also have a system whereby the Board of Directors monitors the status of the various sustainability
initiatives and oversees the risk factors based on the regular reports from the Sustainability Committee on
its activities, and provides advice to management, as necessary.

22. Strategy
The Group conducted a scenario analysis for the impact of the climate change on its business basedon the framework of the TCFD recommendations.
◆Assumptions
1) Segments subject to the analysis
As the TCFD recommendations require to assess
potential financial impact of climate-related risks andopportunities, we expanded the scope of analysis
from last year’s “Real Estate Development/CCRC” toScope of Analysis
FY3/23 Real Estate Development, CCRC
Real Estate Development, CCRC
FY3/24 Real Estate Investment,
Condominium Management and Related Services

the entire business of the Group.
2)Time horizon for the analysis
We selected 2050 (long-term) as the time horizon, one of the assumptions for the scenario analysis, inlight of the following two points.
❶ Japan aims to achieve carbon neutrality by 2050
(Reduce by 46% from the FY2013 level by FY2030 and achieve net zero GHG emissions by 2050)❷ There is no major difference among all scenarios with a nearly identical change in temperature up
until 2030, but the gap between the temperature change widens after 2030 and the impact ofclimate change varies depending on the scenario 1).
◆Analysis process
We performed the scenario analysis through the following process in line with the TCFD
recommendations.

【References】
1) Source: “Practical guide for Scenario Analysis in line with the TCFD recommendations 3rd edition” by Ministry of the Environment (2022)

3◆Identify significant risks and opportunities
We collected information on risks and opportunities associated with the real estate industry from the
TCFD Final Report, other climate change-related reports, and published information of the industry peers.
And we identified significant risks and opportunities that may have a significant impact on the segments
subject to the analysis, “Real Estate Development,” “CCRC,” “Real Estate Investment,” and “Condominium
Management and Related Services” by 2050 as shown in the table below based on the evaluation fromthe perspectives of the probability of occurrence and the degree of impact.
Major

Sub-

Sub-sub-

category

category

category

Changes in external environment
Increase in operational costs related to businessactivities due to introduction of a carbon tax and anincreased carbon prices
Increase in procurement cost of construction materials

Policy/Legal

due to price pass-through as a result of introduction of acarbon tax
Increase in costs to improve environmental performanceof housing in response to tightened environmental
regulations

Transition
risks

Technology

MarketMarket/Reputation

Climate-Acute

Development/renovation costs for housing/buildings, etc. that comply with environmental
regulations (ZEH, ZEB) increasefacilities and materials with high energy efficiency performance

Fluctuations in energy prices in the market due toElectricity prices fluctuate due to a fall in cost of fuels used in power generation, pass-through ofchanges in energy demand and supply

cost to introduce renewable energy, etc.

Decrease in demand for housing with low environmental
performance as a result of change in customer's
preference
Negative stance towards decarbonization affects funding
from investors/financial institutions

While low environmental performance in housing may lead to a decrease in competitiveness andnet sales, newly built houses with a certain level of environmental performance become
widespread following the revision of the Building Energy Efficiency Act, and therefore we do notassume a decrease in net sales solely due to environmental performance
Funding costs increase due to the slow progress of decarbonization of real estate for sale

Increase in damages and recovery costs due to the

The increase in tropical cyclones (typhoons) and river flooding leads to an increase in damages toescalation of natural disasters

and recovery costs for managed properties

Increase in the risk of suspension of development

Construction costs increase due to delay in development construction of housing caused by theconstructions due to the escalation of natural disasters

escalation of natural disasters

increase in damage
Increase in heat stress for construction workers due toan increase in the number of days with temperatures
Chronic

increases

Development/renovation costs of housing/buildings, etc. (ZEH, ZEB) increase due to a shift tothe escalation of natural disasters resulting in an

risks

The procurement cost of carbon-intensive construction materials such as steel and cement

meeting the environmental regulation standard

Increase in insurance payouts by non-life insurers due toPhysicalheadquarters, branches, and sales offices increases

Increase in costs to shift to energy-saving technologies

related risks
Reputation

Risks/opportunities for the Company
Carbon tax levied on GHG emissions generated by the business activities (Scope 1 + 2) ofover 30℃ as a result of the rise in average temperature
Increase in operating costs due to the rise in averagetemperature

Fire insurance premium associated with the business activities increases due to an increase ininsurance premium by non-life insurers

Construction site management costs increase to take preventive measures against heat stroke of
construction workers

Air-conditioning costs in the business activities increase to maintain employees' productivity

While high environmental performance in housing may lead to an increase in competitiveness andIncrease in demand for housing with high environmental net sales, newly built houses with a certain level of environmental performance become
Products/

performance due to an increase in eco-awarenessClimate-related

widespread following the revision of the Building Energy Efficiency Act, and therefore we do notassume an increase in net sales solely due to environmental performance

Services
Decrease in energy-saving equipment, etc. due to

Net sales increase due to a decline in construction costs of housing with high environmental

improvement/spread of low-carbon technologies

performance

opportunities
The momentum is growing among local governments
nationwide towards compact city development that
contributes to the realization of a low-carbon society
Marketthrough initiatives such as promoting the use of public

The opportunities to participate in regional development projects that consolidate multiple urban
functions around stations increasetransportation.
Recognition by investors/financial institutions for
decarbonization efforts

The decarbonization of real estate for sale progresses leads to a decrease in funding costs

4◆Define range of scenarios
One of the recommended disclosures included in the TCFD recommendations is the description of theresilience of the organization’s strategy, taking into consideration different climate-related scenarios,
including a 2°C or lower scenario. Accordingly, for the purpose of “eliminating the unexpected” in analyzing
the potential impact of the identified significant risks and opportunities on the Company, we have selected(1) 1.5°C scenario in which temperature rise is limited most effectively through decarbonization (= thehighest transition risk) and (2) 4°C scenario in which temperature rises the most due to a decline ofdecarbonization trends (=the highest physical risk).
［Main climate change-related materials and range of scenarios used as reference］
・International Energy Agency (IEA)（2022）: ”World Energy Outlook 2022”（Net Zero Emissions by 2050 Scenario (NZE)）・Intergovernmental Panel on Climate Change (IPCC)（2021）: ”Sixth Assessment Report”（SSP1-1.9 - SSP5-8.5）

Projected changes in global surface average temperature(difference with the average between 1850 and 1900)*The shadings around the SSP5-8.5 and the SSP1-1.9 show the range of uncertainties about predicted temperature change.
*Source: The Intergovernmental Panel on Climate Change (2021) “IPCC Sixth Assessment Report WG1 SPM Figure SPM.8(a)”Defined as
4℃
scenario

SSP5-8.5（Median: 4.7℃, Range of uncertainties:3.5- 6.2℃）
Scenario which assumes the highest emissions without climate policies
under the fossil-fueled development
SSP3-7.0
Scenario without climate policies under the development with regional
rivalry
SSP2-4.5
Scenario with climate policies under the middle-of-the-road development
SSP1-2.6
Scenario which limits temperature rises to below 2°C under thesustainable development

Defined as
1.5℃
scenario

SSP1-1.9（Median：1.4℃, Range of uncertainties：1.0- 1.7℃）
Scenario which limits temperature rises to below 1.5°C under thesustainable development

56◆Evaluate business impacts
We quantified the business impact brought about by identified significant risks and opportunities for eachof the aforementioned scenarios using the projected value published by external agencies and theCompany’s value.
In terms of the transition risk, it was identified that ZEH development cost to be incurred due to tighteningof the environmental regulations will have the largest impact under the 1.5°C scenario, followed by
payments of a carbon tax and price pass-through for construction materials. In terms of the physical risk,
it was identified that the potential damage in case of simultaneous inundation of our properties nationwide
due to the escalation of natural disasters could pose a substantial risk under the 4°C scenario. In terms ofopportunities, the regional redevelopment business contributing to compact city development will have thelargest impact under the 1.5°C scenario. The evaluation also showed that a reduction of ZEH development
costs due to the spread of decarbonization technology and a reduction in borrowing costs related todecarbonization initiatives will also have positive impacts.
Major

Sub-

Sub-sub-

category

category

category

Changes in external environment
Increase in operational costs related to businessactivities due to introduction of a carbon tax and anincreased carbon prices
Increase in procurement cost of construction materials

Policy/Legal

due to price pass-through as a result of introduction of acarbon tax
Increase in costs to improve environmental performanceof housing in response to tightened environmental
regulations

Transition
risks

Technology
MarketMarket/Climate-Reputation

related risks

Reputation

Acute

The procurement cost of carbon-intensive construction materials such as steel and cement
increases

regulations (ZEH, ZEB) increasefacilities and materials with high energy efficiency performance

Fluctuations in energy prices in the market due toElectricity prices fluctuate due to a fall in cost of fuels used in power generation, pass-through ofchanges in energy demand and supply

cost to introduce renewable energy, etc.

Decrease in demand for housing with low environmental
performance as a result of change in customer's
preference
Negative stance towards decarbonization affects funding
from investors/financial institutions

net sales, newly built houses with a certain level of environmental performance become
widespread following the revision of the Building Energy Efficiency Act, and therefore we do not

Funding costs increase due to the slow progress of decarbonization of real estate for saleescalation of natural disasters

and recovery costs for managed properties

Increase in the risk of suspension of development

Construction costs increase due to delay in development construction of housing caused by theconstructions due to the escalation of natural disasters

escalation of natural disasters

over 30℃ as a result of the rise in average temperature
Increase in operating costs due to the rise in averagetemperature

Low

No carbon tax

Low

Low

Medium

Low

Low

-

-

assume a decrease in net sales solely due to environmental performance

The increase in tropical cyclones (typhoons) and river flooding leads to an increase in damages toan increase in the number of days with temperatures

1.5℃ scenario

No carbon tax

While low environmental performance in housing may lead to a decrease in competitiveness andIncrease in damages and recovery costs due to theIncrease in heat stress for construction workers due toFinancial impact
4℃ scenario

Development/renovation costs for housing/buildings, etc. that comply with environmental

meeting the environmental regulation standard

increase in damage

Chronic

headquarters, branches, and sales offices increases

Development/renovation costs of housing/buildings, etc. (ZEH, ZEB) increase due to a shift tothe escalation of natural disasters resulting in an

risks

Carbon tax levied on GHG emissions generated by the business activities (Scope 1 + 2) ofIncrease in costs to shift to energy-saving technologies

Increase in insurance payouts by non-life insurers due toPhysicalRisks/opportunities for the Company

Fire insurance premium associated with the business activities increases due to an increase ininsurance premium by non-life insurers
Construction site management costs increase to take preventive measures against heat stroke of
construction workers
Air-conditioning costs in the business activities increase to maintain employees' productivity

Low

Low

Medium

Low

Low

Low

Low

Low

Low

Low

Low

Low

-

-

Low

Low

Low

MediumLow

Low

While high environmental performance in housing may lead to an increase in competitiveness andIncrease in demand for housing with high environmental net sales, newly built houses with a certain level of environmental performance become
Products/

performance due to an increase in eco-awareness

Services

widespread following the revision of the Building Energy Efficiency Act, and therefore we do notassume an increase in net sales solely due to environmental performance

Decrease in energy-saving equipment, etc. due to

Net sales increase due to a decline in construction costs of housing with high environmental

Climate-related

improvement/spread of low-carbon technologies

performance

opportunities

The momentum is growing among local governments
nationwide towards compact city development that
contributes to the realization of a low-carbon society
Marketthrough initiatives such as promoting the use of public

The opportunities to participate in regional development projects that consolidate multiple urban
functions around stations increasetransportation.
Recognition by investors/financial institutions for
decarbonization efforts

The decarbonization of real estate for sale progresses leads to a decrease in funding costs*Degree of financial impact: High (over 10% of net sales); Medium (between 3% and 10% of net sales); Low (less than 3% of net sales)7◆Consider potential responses
As potential responses to risks and opportunities that will have a significant impact on the business, wewill promote the following measures based on the results of the evaluation of business impacts.
＜Examples of potential responses＞
 Reduce greenhouse gas emissions to alleviate the burden of carbon taxes.
 Further promote regional redevelopment business that contributes to the compact city development.
 Accumulate ZEH development/sales know-how in preparation for stricter environmental regulations.
 Implement safety measures to prepare for natural disasters and temperature rises and enhance BCP

measures.
 Consider procurement of low-carbon construction materials (e.g. eco-friendly concrete) in anticipation of

the introduction of a carbon tax (in the medium- to long- term).
◇Toward the future
Following the scenario analysis, we will perform scenario analysis and disclose information on a regularbasis and promote the integration of the business strategy and ESG strategy, with an aim to increase themedium- to long-term corporate value.

83. Risk management
With the aim of ensuring thorough compliance across the Group and promoting the risk management froma company-wide perspective, the Company has the Compliance/Risk Control Committee, chaired byPresident and Executive Officer, and comprised of executive directors and its subsidiaries’ presidents, etc.
The Compliance/Risk Control Committee classifies the identified company-wide risks mainly into disasterrisk (1), external risk (2), investment risk (3), and internal risk (4) taking into consideration the changes ininternal and external environment and analyzes the degree of impact (severity) and the probability ofoccurrence according to the group common standard to assess the significance of risks and priority for
response.
Under such company-wide risk management system, the Company recognizes climate-related risks asmajor risks that may have a significant impact on the Group's management, and the Sustainability
Committee and the Compliance/Risk Control Committee work together under the supervision of Chairman
and President to identify risks and opportunities, assess risks and manage how to address them based on
the understanding that risks have two aspects of a positive factor (opportunity) and a negative factor(threat). We have in place a system in which the Board of Directors receives reports on climate-relatedrisks that have been identified and assessed on a regular basis and monitors how they are managed.

【Footnote】(1) Disaster risk: Disaster-induced risk that has a significant impact on customers, business continuity, etc.
(2) External risk: Risk associated with external factors that has an impact on business operations(3) Investment risk: Risk associated with individual investments(4) Internal risk: Operational risk arising within the Group9

4. Metrics and targets
In recent years, an international consensus has been formed on greenhouse gas emission reduction
targets, and in April 2021, the Japanese government announced that it would aim to reduce greenhousegas emissions by 46% by FY2030 (compared to FY2013) and achieve net zero by 2050.
In light of these social conditions, the Group set a target to “reduce greenhouse gas emissions associatedwith its business activities (Scope 1 and 2) by 50% by FY2030 compared to the FY2022 levels and toachieve net-zero emissions by FY2050” toward the realization of carbon neutrality by FY2050. We willcontinue to consider the reduction target for Scope 3.
［Metrics］ Greenhouse gas emissions［Scope］ Scope 1 and 2［Target］ Reduce by 50% by FY2030 compared to FY2022 levels and achieve net-zero emission by FY2050［Measures］✓Shift to green energy (use renewable energy and environmental certification(5))✓Save energy by introducing high-efficiency equipment✓Shift to EVs✓Use carbon offsets✓Use eco-friendly synthetic fuels (e-fuels) in the medium- to long-term, etc.
Unit：t-CO2
Scope 1

Direct emissions of greenhouse gases from business activities
Indirect emissions of greenhouse gases associatedScope 2

with the use of energy supplied by other companies

Scope 3

FY3/22

FY3/23（FY2021）（FY2022）

3,485

3,457

5,245

5,786

Indirect emissions other than Scopes 1 and 2-

352,664

Category 1

Products and services purchased-

184,532

Category 2

Capital goods-

504

Category 3

Fuel- and energy-related activities that are not included in Scope 1 and 2

-

1,490

Category 4

Transportation and delivery (upstream)--

Category 5

Waste generated by businesses-

659

Category 6

Business trips-

620

Category 7

Employers’ commuting-

105

Category 8

Lease assets (upstream)

-

1,780

Category 9

Transportation and delivery (downstream)--

Category 10 Processing of products sold--Category 11 Use of products sold-158,226

Category 12 Disposal of products sold

-

1,276

Category 13 Lease assets (downstream)--

Category 14 Franchise--

Category 15 Investments

-

-

-

-

3,472

8,731

361,907

Other

Total（Scope 1, 2 and 3）※1 The scope 1 and 2 of the data collection includes (1) properties owned or manages by the Group (holding company
and domestic consolidated subsidiaries) over which the Group has full authority to introduce and execute its management
policies (excluding those to which we do not have energy management authority and properties for sale), and (2) vehicles
owned or leased by the Group (holding company and domestic consolidated subsidiaries).
※2 Categories 4, 9, 10, 13, 14, and 15 are excluded from the calculations due to reasons such that there are no emission
sources or they are included in other categories or Scope 1+2.
【Footnote】(5) Environmental certification includes non-fossil certificate, green certificate, and J-credit<Disclaimer>
The information contained herein is based on judgments in view of information available as of the date of disclosure of this material. Actual information may
differ due to various factors.

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