Transparency of the promotion of environmental or social characteristics and ofsustainable investments on websites
Japan Metropolitan Fund Investment Corporation
We are making the following disclosures in accordance with Article 10 of Regulation (EU)2019/2088 on sustainability related disclosures in the financial services sector (the “SFDR”).
(a) Summary (Japanese follows English)
This document provides the transparency disclosure under Article 10 of the SFDR in
respect of Japan Metropolitan Fund Investment Corporation (“JMF”).
The disclosure requirements are subject to Regulatory Technical Standards on the content,
methodologies and presentation of disclosure under the SFDR (the “RTS”).
JMF promotes environmental and social characteristics, but does not have its objective
sustainable investment. JMF is managed by its asset manager, KJR Management (the“asset manager”), an asset management company that specializes in Japanese real estate
investment. The asset manager takes various environmental factors into considerationsuch as property inspections, and land history investigations. In addition, the asset
manager investigates legal compliance, credit checks, and environmental risks such as
asbestos and polychlorinated biphenyls (PCBs) based on an ESG checklist used during thedue diligence process.
JMF strives to ensure the quality of the buildings under its management and to improvebuilding comfort. JMF works actively on energy conservation measures that relate to asset
management, with the aim of creating a sustainable society through the reduction ofenvironmental impact. Indicators, such as GHG emissions and renewable energy, areused to measure the attainment of these environmental characteristics.
As far its an investment strategy is concerned, JMF mainly invests in real estate assets andreal estate-related assets. JMF has the following indicators:
・Acquiring certifications for 75% or more of the total portfolio (Total floor area basis);
・GHG emissions (absolute): 42% reduction by 2030 compared to 2020;and・Renewable energy ratio: 50% share of renewable energy by 2030.
JMF monitors the environmental indicators mentioned in its Article 8 disclosure, GHG
emissions and energy consumption, through the Sustainability Committee which meetsonce a quarter in principle.
JMF’s methodologies for the GHG emissions and energy consumption are as follows:
GHG emissions(t-CO2eq) = Energy use × CO2 emission factor
Energy consumption = Data in the invoice × Calorie conversion factor × Electric energy
conversion factor
For key sustainability indicators, such as GHG emissions and energy consumption, data
is gathered and collected by a third-party property management company and stored ina system provided by another third party.
JMF does not have strictly prescribed methodologies for data collection, but collects on a wide
range of data points mainly by outsourcing this work to external contractors. This enables
JMF to gather accurate and transparent data, which it considers limits the possible
unreliability or inaccuracy of its data. JMF considers that any limitations would be sufficiently
minor as to not affect how the environmental or social characteristics promoted by JMF aremet.

Due diligence is implemented in relation to hazardous substances related to soil
contamination and buildings.
In accordance with market best practices, JMF does not designate a reference benchmark
for financial instruments.

(b) No sustainable investment objective
JMF promotes environmental and social characteristics, but does not have as its objective
sustainable investments.
(c)Environmental or social characteristics of the financial product
JMF invests in retails properties, offices buildings and hotels andpromotes
environmental and social characteristics as follows:-ensuring the quality of the buildings under its management through certifications andother means and addresses issues related to climate change and energy efficiency.
-striving to improve building comfort and convenience and to raise the awareness about
ESG among tenant employees.
-working together with its tenants and local community members to address the issuesof efficient water use and waste disposal.

By strengthening the resilience of buildings through disaster prevention measures andthe provision of community spaces, as well as social contribution activities, JMF iscommitted to strengthening and improving connections with local people. By doing so, itwill work to establish partnerships and build green communities.
Indicators used to measure the attainment of these environmental characteristics
include:• Environmental indicators: GHG emissions and energy consumption
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 our carbon risk measures, JMF collectively manages its energy
consumption and GHG emissions by outsourcing this work to external contractors. Thishas enabled it to gather highly accurate and transparent data. JMF then analyzes this dataas part of its 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 measures andmaking efforts toward more efficient energy use in its properties to give greater
consideration to the environment and lessen its environmental impact. Also, to reduce
GHG emissions, which are one of the risk factors for climate change, it has establishedsystems for understanding and managing GHG emissions in the portfolio as a whole. JMF
collectively manages electrical power, fuel, and water consumption and analyzes theaccumulated data, which is both accurate and highly transparent to actively manage
reduction of energy use.
JMF strives for sustainable resource use and is making active efforts to utilize water
resources effectively.
JMF is engaged in efforts to minimize the amount of waste produced by its properties,
and to monitor and appropriately manages the amount of waste generated.
JMF periodically checks compost, waste quantity monitoring, recycling, waste separation
management and waste treatment at office properties with multiple tenants that it
directly manages in order to use resources effectively and handle hazardous waste
properly. Regarding communication with the local community, we have added greeneryto our facilities and opened up parks and other communal spaces. JMF also works
continuously to provide safe spaces for the local community and coordinates with local
events. Through these efforts, JMF is working to create an environment where local
residents see our facilities as part of their community.
(d) Investment strategy
JMF invests mainly in real estate. KJR Management is the asset manager for JMF. In thecourse of making decisions regarding the acquisition, disposal, or operation andmanagement of assets, approval is obtained from the Investment Committee and theSenior Advisory Board/Board of Directors. The asset manager takes various
environmental factors into consideration such as property inspections, and land history
investigations. In addition, the asset manager investigates legal compliance, credit
checks, and environmental risks such as asbestos and PCBs based on an ESG checklist
used during the due diligence process.

(e) Proportion of investments
JMF’s asset allocation is mainly in real estate assets. JMF has the following indicators:・Acquiring certifications for 75% or more of the total portfolio (Total floor area basis);
・GHG emissions (absolute): 42% reduction by 2030 compared to 2020;
・Renewable energy: 50% share of renewable energy by 2030.
These three indicators are considered to determine whether investments are aligned withenvironmental or social characteristics.
Even if investing assets which are not aligned with the environmental or social
characteristics, sustainability risks continue to be considered by fund managers throughthe lifecycle of an Investment. JMF’s fund managers are required to consider potential
sustainability risks as part of its mandatory pre-acquisition due diligence review andoperation process, based on the RPI policy established as a policy to integrate
environmental and social characteristics. At the time of investment decisions, theInvestment Committee reviews the specifics of potential investments, and at the time ofoperation, the activities are monitored by the Sustainability Committee. JMF therefore
integrates RPI strategies, but not at the expense of long-term client financial performance.
JMF uses derivatives for hedging market risks (mainly interest rate swaps) purpose only.
(f) Monitoring of environmental or social characteristics
JMF monitors environmental indicators, GHG emissions and energy consumption throughthe Sustainability Committee. The Committee has approved JMF's reduction targets.
Thereafter, JMF report on its progress in reducing GHG emissions and energy
consumption and its initiatives at the Committee meetings held once a quarter inprinciple.
(g) Methodologies for environmental or social characteristics
JMF’s methodologies for GHG emissions and energy consumption are as follows:
GHG emissions(t-CO2eq) = Energy use × CO2 emission factor
Energy consumption = Data in the invoice × Calorie conversion factor × Electric energy
conversion factor
For further details, refer to the following links. It contains the figures guaranteed bythird parties for energy consumption, GHG emissions, water consumption and waste,etc., as well as details of the formulas.
https://jmf-reit_sustainability.disclosure.site/data/themes_127/web_information_2022_en.pdf(h) Data sources and processing
For key sustainability indicators such as GHG emissions or energy consumption, data isgathered and is collected by a third-party property management company, which collectsdata visually from meters or from invoices, and stored in a system provided by anotherthird party. Calculation results are reviewed by other third parties. Third party assurance
reports for the fund are available on JMF’s website at the following link:
https://jmf-reit_sustainability.disclosure.site/data/themes_127/independent_assurance_report_2022_en.pdf(i) Limitations to methodologies and data
JMF does not have strictly prescribed methodologies for data collection, but collects a wide
range of data points mainly by outsourcing this work to external contractors. This hasenabled JMF to gather accurate and transparent data, which limits the possible unreliability
or inaccuracy of its data. JMF considers that any limitations would be sufficiently minor as tonot affect how the environmental and social characteristics promoted by it are met.
(j) Due diligence
JMF recognizes that hazardous substances related to soil contamination and buildings(PCB, asbestos, etc.) are one of the risk factors in real estate transactions. Adequate andreasonable measures are taken in light of market practice, trustee obligations, legal
regulations, complaints, and other risk management strategies are implemented inrelation to hazardous substance contamination of soil and buildings.
The following are some points to keep in mind for risk management during the procedure.
1 Accurately calculate the risk for the judgment materials for the acquisition of real estate
2 Minimize risk in acquiring real estate
3 Compliance with laws and regulations regarding soil contamination, etc. after
acquisition of real estate (soil contamination countermeasures laws).
(k) Engagement policies
JMF invests mainly in real estate. KJR Management is the asset manager for JMF. In thecourse of making decisions regarding the acquisition, disposal, or operation andmanagement of assets, approval is obtained from the Investment Committee and theSenior Advisory Board/Board of Directors. The asset manager takes various
environmental factors into consideration such as property inspections, and land history
investigations. In addition, the asset manager investigates legal compliance, credit
checks, and environmental risks such as asbestos and PCBs based on an ESG checklist
used during the due diligence process.
(l) Designated reference benchmark
JMF does not designate a reference benchmark.