Sustainable
investment means
an investment inan economic
activity that
contributes to an
environmental orsocial objective,
provided that theinvestment does
not significantly
harm anyenvironmental orsocial objective
and that theinvesteecompanies follow
good governancepractices.

The EU Taxonomy
is a classification
system laid downin Regulation (EU)2020/852,
establishing a listofenvironmentally
sustainableeconomic
activities. That
Regulation does
not lay down a listof sociallysustainableeconomic
activities.
Sustainable
investments withan environmental
objective might
be aligned with
the Taxonomy ornot.

Periodic disclosure for the financial products referred to in
Article 8, paragraphs 1, 2 and 2a, of Regulation (EU) 2019/2088 and
Article 6, first paragraph, of Regulation (EU) 2020/852
Product name: Japan Metropolitan Fund Investment Corporation
Legal entity identifier: 353800QDHNIP60E1LQ93
Japan Metropolitan Fund Investment Corporation (“JMF”) promotes environmental or social
characteristics, but does not have as its objective a sustainable investment within the meaning of
Article 9(1) of Regulation (EU) 2019/2088 (“SFDR”). JMF has no employees in accordance with theprohibition on having employees under the Act on Investment Trusts and Investment Corporationsof Japan and relies on KJR Management (the “asset manager”) to manage and operate theproperties in JMF’s portfolio. JMF and the asset manager are hereinafter referred to collectively as“we,” “us” or “our,” unless noted otherwise.

Environmental and/or social characteristics
Did this financial product have a sustainable investment objective?
Yes
It made sustainable
investments with anenvironmental objective: ___%
in economic activities that
qualify as environmentally
sustainable under the EU
Taxonomyin economic activities that do
not qualify as environmentally
sustainable under the EU
TaxonomyNo
It promoted Environmental/Social (E/S)
characteristics andwhile it did not have as its objective asustainable investment, it had a proportion of___% of sustainable investmentswith an environmental objective in economic
activities that qualify as environmentally
sustainable under the EU Taxonomy
with an environmental objective ineconomic activities that do not qualify asenvironmentally sustainable under the EU
Taxonomywith a social objective

It made sustainable
investments with a social
objective: ___%

It promoted E/S characteristics, but did not
make any sustainable investments

To what extent were the environmental and/or social characteristics promotedby this financial product met?
Sustainability
indicators measure
how theenvironmental orsocialcharacteristics
promoted by thefinancial productare attained.

JMF has integrated the concept of responsible property investment (RPI) into ourinvestment management process. The RPI strategy is integrated into the asset
management of JMF and is implemented by all operational functions of the company
during the entire ownership cycle, from its acquisition to the ongoing asset management,
marketing, renovation, and maintenance through a sale. In addition, ESG-related items
are checked when properties are considered for acquisition. As an integration of ESG at
the time of management, the KPIs used to evaluate environmental and social
performance are set and monitored.
JMF does not have a specific index designated as a reference benchmark to determine
whether JMF is aligned with the environmental or social characteristics that it promotes.
JMF specifically promotes environmental and social characteristics as follows:•

Ensuring the quality of the buildings under its management through green building
certifications and other means and addresses issues related to climate change andenergy efficiency.

•

Striving to improve building comfort and convenience and to raise theawareness about ESG among tenant employees.

•

Working together with its tenants and local community members to address theissues of efficient water use and waste disposal. By strengthening the resilience ofbuildings through disaster prevention measures and the provision of community
spaces, as well as social contribution activities, JMF is committed to strengthening
and improving connections with local people. By doing so, it will work to establish
partnerships and build green communities.

•

JMF does not designate a reference benchmark to measure the achievement of theenvironmental or social characteristics.
For specific examples of how JMF has met some of these environmental and social
characteristics, please refer to the later questions.
How did the sustainability indicators perform?
Indicators used to measure the attainment of these environmental and social
characteristics include:

Environmental indicators: GHG emissions; Scope1, Scope2 and Scope3(PAI 18, Table 2)Energy consumption; Fuels, District Heating & Cooling and Electricity(PAI 19, Table 2)

Acquiring green building certifications

JMF monitors environmental indicators, GHG emissions and energy consumption

through its Sustainability Committee which meets once a quarter. Although JMF does
not set reference benchmarks, it manage its progress and the results are disclosed on
JMF’s website at the following links:
Environmental Performance:
https://jmf-reit_sustainability.disclosure.site/en/themes/138/
Acquiring green building certifications:
https://jmf-reit_sustainability.disclosure.site/en/themes/127/
JMF works actively on energy conservation measures that relate to asset management,with the aim of creating a sustainable society through the reduction of environmental
impact. As part of its carbon risk measures, JMF collectively manages its energy
consumption and GHG emissions by outsourcing this work to external contractors; thishas enabled JMF to gather accurate and transparent data. JMF then analyzes this dataas part of continuing efforts at managing reductions in energy consumption.
JMF is responding to the problem of climate change, which is becoming more serious
year by year, by implementing environmental-friendly and energy-saving measuresand making efforts toward more efficient energy use in its properties to give greater
consideration to the environment and lessen its environmental impact. Also, toreduce GHG emissions, which are one of the risk factors for climate change, JMF hasestablished systems for understanding and managing GHG emissions in its portfolio
as a whole. JMF collectively manages electrical power, fuel, and water consumption
and analyzes the accumulated data, which is both accurate and transparent toactively manage reduction of energy use.
…and compared to previous periods?
See above.
What were the objectives of the sustainable investments that the financial
product partially made and how did the sustainable investment contribute to suchobjectives?
Not applicable. JMF promotes environmental and social characteristics but does
not have a sustainable investment objective and does not make sustainable
investments.
How did the sustainable investments that the financial product partially made notcause significant harm to any environmental or social sustainable investment
objective?
Not applicable. JMF promotes environmental and social characteristics but does
not have a sustainable investment objective and does not make sustainable
investments.
How were the indicators for adverse impacts on sustainability factors taken
into account?
Not applicable. JMF promotes environmental and social characteristics but
does not have a sustainable investment objective and does not makesustainable investments.

Were sustainable investments aligned with the OECD Guidelines forMultinational Enterprises and the UN Guiding Principles on Business andHuman Rights? Details:
Not applicable. JMF promotes environemntal and social characteristics but
does not have a sustainable investment objective and does not makesustainable investments.

How did this financial product consider principal adverse impacts onsustainability factors?
Principal adverse
impacts are themost significant
negative impacts ofinvestment
decisions onsustainability factors
relating toenvironmental,social and employee
matters, respect forhuman rights, anti‐
corruption and anti‐
bribery matters.

JMF’s investments may have a principal adverse impact on sustainability factors(“PAI”) as defined in Regulation (EU) 2019/2088. The PAI throughout theinvestment cycles is measured and evaluated with the help of defined indicators
based on the asset manager's own research.
JMF and its asset manager, KJR Management, recognize the importance of the PAIs on
sustainability factors which are taken into account throughout investment cycles.
PAIs describe the negative effects of the company’s business activities and countries inwhich JMF invests regarding environmental, social and employee concerns, respect forhuman rights, anti-corruption and bribery. Therefore, the aim of JMF’s PAI strategy is tolimit the negative influences on sustainability factors associated with its investment
decisions. To this end, systematic procedures for measuring and evaluating, as well as
measures for dealing with PAI in investment processes are applied as explained below.
The PAI throughout investment cycles is measured and evaluated with the help of
defined indicators based on the asset manager's own research.
The following indicators are used to measure the PAI of JMF:
1. GHG emissions; Scope1, Scope2 and Scope3
2. Energy consumption; Fuels, District Heating & Cooling and Electricity
GHG emissions and Energy consumption data are provided by each energy supply vendor
used to bill for electricity and other services. The data is collected by a third-party property
management company and stored in a system provided by another third party. The
collected data and the progress in reducing GHG emissions and Energy consumption isreported on by JMF at the sustainability committee meetings, which aims to meet once aquarter.
As an engagement to reduce GHG emissions and energy consumption which are PAI, JMF
provides explanations to its tenants about its environmentally friendly initiatives andfacility renewal. When it renews facilities, JMF installs energy-efficient equipment
through green leases through engagement with tenants. In this process, it holds dialogues
with property management companies (third parties) and tenants regarding GHG
emissions and energy consumption of owned properties, including investigation of thecauses in purpose of assessing, monitoring and mitigating PAI.

In order to limit the negative sustainability impacts associated with the investments, JMF
has taken steps to install solar power generation and renewable energy, purchase green
power and implement energy-saving modification such as conversion to LEDs andupdating air conditioning units which reduce GHG emissions and Energy consumption.
Further information on PAIs can be found on the Environmental Performance section of
JMF’s website.

What were the top investments of this financial product?
The list includes
the investments
constituting thegreatest
proportion of
investments of thefinancial productduring thereference period
which is:September 1, 2023
to February 29,2024.

Largest investments

SectorTwin 21mozo wonder city
Higashi-Totsuka Aurora City
JMF-Bldg. Akasaka 02
Nara Family
AEON MALL Musashi
G-Bldg. Shinsaibashi 03
KAWASAKI Le FRONTAEON MALL Tsudanuma
JMF-Bldg. Yokohama
JMF-Bldg. Kawasaki 01
GYRE
AEON MALL Tsurumi
AEON MALL Itami
JMF-Bldg. Ichigaya 01

Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate
Real Estate% Assets(based on
acquisition price)
4.9%
4.6%
4.2%
3.5%
2.9%
2.5%
2.5%
2.5%
2.3%
2.0%
2.0%
1.9%
1.9%
1.8%
1.7%

Country

Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan

What was the proportion of sustainability-related investments?
Asset
allocation
describes theshare ofinvestments inspecific assets.

What was the asset allocation?
JMF’s asset allocation is mainly in real estate assets. JMF has the following
indicators;•

Acquiring green building certifications•

GHG emissions (absolute): 42% reduction by 2030 compared to 2020
(Scope 1&2)•

Renewable energy: 50% share of renewable energy by 2030

The above indicators are considered to determine whether investments arealigned with E/S characteristics. An asset is considered to be consistent with
E/S characteristics when it meets one of the above three criteria.

Japan Metropolitan
Fund Investment
Corporation

79.2% is #1 Aligned with
E/S

#1B Other E/Scharacteristics

20.8% qualifies as #2
Other#1 Aligned with E/S characteristics includes the investments of the financial product used toattain the environmental or social characteristics promoted by the financial product.
The sub-category #1B Other E/S characteristics covers investments aligned with theenvironmental or social characteristics that do not qualify as sustainable investments.
#2Other includes the remaining investments of the financial product which are neither alignedwith the environmental or social characteristics, nor are qualified as sustainable investments.

As of February 29, 2024, 79.2% of the properties in the portfolio met one of theabove criteria and were deemed aligned with E/S characteristics, and 20.8% were
not aligned with E/S characteristics based on gross floor area.
In which economic sectors were the investments made?
JMF invests in Japanese real estate.

To what extent were the sustainable investments with an environmental
objective aligned with the EU Taxonomy?
Not applicable.
Did the financial product invest in fossil gas and/or nuclear energy related
activities complying with the EU Taxonomy?
Yes:
In fossil gas

In nuclear energy

No
JMF does not invest in real estate assets involved in fossil gas and/or nuclear
energy-related activities.
What was the share of investments made in transitional and enabling activities?
Not applicable.
How did the percentage of investments that were aligned with the EU Taxonomy
compare with previous reference periods?
Not applicable.

What was the share of sustainable investments with an environmental
objective not aligned with the EU Taxonomy?
Not applicable.

What was the share of socially sustainable investments?
Not applicable.

What investments were included under “other”, what was their purpose andwere there any minimum environmental or social safeguards?
Investments included under “#2 Other” indicate properties without green building
certifications, which was 20.8% as of February 29, 2024 based gross floor area. Even if
certification is not obtained, JMF will continue to implement operations for properties
that meet environmental and social characteristics.

What actions have been taken to meet the environmental and/or social
characteristics during the reference period?
•

JMF established new GHG emission reduction targets.

•

Acquisition of green building certification.
Ensuring the quality of the buildings under its management through green building
certifications and other means and addressing issues related to climate change andenergy efficiency.
Green Building Certification Ratio: 79.2% (based on gross floor area as of February
29, 2024)•

Conducted studies on the introduction of renewable energy, such as interviews withmaster lease tenants and installation of solar power generation facilities.
Percentage of renewable energy consumption to the entire portfolio electricity
consumption: 16.2% (As of February 29, 2024)•

JMF's environmental initiatives and management processes were certified andregistered under Eco Action 21, an environmental management system establishedby the Ministry of the Environment.

•

Conclusion of green lease contracts.

•

Conducted environmental awareness activities for tenants.

•

Striving to improve building comfort and convenience and to raise awarenessabout ESG among tenant employees.

•

Working together with its tenants and local community members to address theissues of efficient water use and waste disposal. By strengthening the resilienceof buildings through disaster prevention measures and the provision ofcommunity spaces, as well as social contribution activities, JMF is committed tostrengthening and improving connections with local people. By doing so, it will
work to establish partnerships and build green communities.

•

Acquisition of SBTi Certification

•

Signatures in support of the Biodiversity Initiative

How did this financial product perform compared to the reference benchmark?
N/A. No specific index has been designated as reference benchmark to determine
whether JMF is aligned with the environmental and/or social characteristics that it
promotes.
How does the reference benchmark differ from a broad market index?
N/A. JMF does not designate a reference benchmark.
How did this financial product perform with regard to the sustainability indicators
to determine the alignment of the reference benchmark with the environmental
or social characteristics promoted?
N/A. JMF does not designate a reference benchmark.
How did this financial product perform compared with the reference benchmark?
N/A. JMF does not designate a reference benchmark.
How did this financial product perform compared with the broad market index?
N/A. JMF does not designate a reference benchmark.

Note Regarding the EU Taxonomy Regulation
As set out above, we promote certain environmental characteristics.
The asset manager is required, under Regulation (EU) 2020/852 (the “EU Taxonomy
Regulation”), to disclose whether its assets are aligned with the environmental objectives
formulated in the EU Taxonomy Regulation. The EU Taxonomy Regulation is complemented
by technical standards and screening criteria. The technical screening criteria for the first twoenvironmental objectives (climate change mitigation and climate change adaptation) wereadopted in December 2021 and amended in June 2023. The amended criteria apply as ofJanuary 1, 2024. The technical screening criteria for the other four environmental objectives(sustainable use and protection of water and marine resources, transition to a circular
economy, pollution prevention and control, and protection and restoration of biodiversity
and ecosystems) were adopted in June 2023. They apply as of January 1, 2024.
JMF invests in economic activities that are eligible under the EU Taxonomy Regulation in
respect of climate change mitigation and/or climate change adaptation. This means thatscreening criteria for these investments have been or will be developed. The asset manager
expressly states that in view of the fact that the regulations are still under development or
have only recently been adopted and/or amended and the fact that, as a result thereof, dataon alignment of JMF’s investments with these environmental objectives and climate related
goals in line with the EU Taxonomy Regulation are not sufficiently available, the asset
manager is not currently in a position to disclose on an accurate and reliable basis to what
extent JMF’s investments technically qualify as Taxonomy-aligned or “environmentally
sustainable” within the specific meaning of the EU Taxonomy Regulation. JMF’s investments
may have a positive contribution to these environmental objectives and may therefore
eventually be considered Taxonomy-aligned, but at this stage, the asset manager is required
to state that there is no minimum proportion of JMF’s investments that qualify as such.

The asset manager further states that the “do no significant harm” principle applies only tothose investments underlying the financial product that takes into account the EU criteria forenvironmentally sustainable economic activities. The investments underlying the otherportion of this financial product do not take into account the EU criteria for environmentally
sustainable economic activities.