Pre-contractual 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 haveas 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 the prohibition on having employees under the Act on Investment Trusts and Investment
Corporations of Japan and relies on KJR Management (the “asset manager”) to manage and operate the properties 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
Does this financial product have a sustainable investment objective?
Yes
It will make a minimum ofsustainable investments with anenvironmental objective: ___%
in economic activities that
qualify as environmentally
sustainable under the EU
Taxonomyin economic activities that do

No
It promotes Environmental/Social (E/S)
characteristics and while it does not have as
its objective a sustainable investment, it will
have a minimum proportion of ___% ofsustainable investmentswith an environmental objective in economic
activities that qualify as environmentally
sustainable under the EU Taxonomy

not qualify as environmentallywith an environmental objective insustainable under the EU

economic activities that do not qualify as

Taxonomyenvironmentally sustainable under the EU
Taxonomy

It will make a minimum ofsustainable investments with asocial objective: ___%

It promotes E/S characteristics, but will notmake any sustainable investments

What environmental and/or social characteristics are promoted by this financial
product?

JMF is managed by KJR Management (the “asset manager”), an asset management company thatspecializes in Japanese real estate investment. JMF primarily invests in retail properties, officebuildings, mixed-use properties, residences and hotels.
JMF has integrated the concept of responsible property investment (“RPI”) into our investment
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, fromits acquisition to the ongoing asset management, marketing, renovation, and maintenance througha 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 andsocial 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 our management through green building
certifications and other 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 our tenants and local community members to address the issues of
efficient water use and waste disposal. By strengthening the resilience of buildings throughdisaster prevention measures and the provision of community spaces, as well as social
contribution activities, JMF is committed to strengthening and improving connections withlocal people. By doing so, we 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.
What sustainability indicators are used to measure the attainment of each of theenvironmental or social characteristics promoted by this financial product?
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 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, we collectively manage our 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 data aspart 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 measures andmaking efforts toward more efficient energy use in our properties to give greater
consideration to the environment and lessen our 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 our portfolio as a whole. JMF
collectively manage electrical power, fuel, and water consumption and analyze theaccumulated data, which is both accurate and transparent to actively manage
reduction of energy use.
What are the objectives of the sustainable investments that the financial productpartially intends to make and how does the sustainable investment contribute to suchobjectives?
N/A. JMF promotes environmental or social characteristics, but does not have asustainable investment objective and does not make sustainable investments.
How do the sustainable investments that the financial product partially intends tomake, not cause significant harm to any environmental or social sustainable
investment objective?
N/A. JMF promotes environmental or social characteristics, but does not have asustainable investment objective and does not make sustainable investments.
How have the indicators for adverse impacts on sustainability factors been taken
into account?
N/A. JMF promotes environmental or social characteristics, but does not have asustainable investment objective and does not make sustainable investments.
How are the sustainable investments aligned with the OECD Guidelines forMultinational Enterprises and the UN Guiding Principles on Business and Human
Rights? Details:
N/A. JMF promotes environmental or social characteristics, but does not have asustainable investment objective and does not make sustainable investments.

Does this financial product consider principal adverse impacts on sustainability factors?
Yes
Our investments may have a principal adverse impact on sustainability factors (“PAI”) as defined inRegulation (EU) 2019/2088. The PAI throughout investment cycles is measured and evaluated withthe help of defined indicators based on the asset manager's own research.
JMF and its asset manager, KJR Management, recognize the importance of the principal adverse
impacts on sustainability factors (hereinafter also Principal Adverse Impacts or PAI) are taken into
account throughout investment cycles.
PAIs describe the negative effects of the company’s business activities and countries in which a fundinvests regarding environmental, social and employee concerns, respect for human rights anticorruption and bribery. Therefore, the aim of our PAI strategy is to limit the negative influences onsustainability factors associated with our investment decisions. To this end, systematic procedures
for measuring and evaluating, as well as measures for dealing with PAI in investment processes areapplied 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 that 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 billfor electricity and other services. The data is collected by a third-party property managementcompany and stored in a system provided by another third party. The collected data and the progressin reducing GHG emissions and Energy consumption is reported on by JMF at the sustainability
committee meetings, which aims to meet once a quarter.
As an engagement to reduce GHG emissions and energy consumption which are PAI, we provide
explanations to our tenants about our environmentally friendly initiatives and facility renewal. When
we renew facilities, we install energy-efficient equipment through green leases through engagementwith tenants. In this process, we hold dialogues with property management companies (third parties)
and tenants regarding GHG emissions and energy consumption of owned properties, including
investigation of the causes in purpose of assessing, monitoring and mitigating PAI.
In order to fundamentally 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 and updating air conditioning
units which reduce GHG emissions and Energy consumption.
Further information on PAIs can be found on JMF’s website: Environmental Performance.
JMF’s Semi-Annual Report can be found on JMF’s website: IR Library.
No

What investment strategy does this financial product follow?
Our Responsible Property Investment (RPI) strategy is integrated into the asset management of
the investment corporations and is implemented by all of our operational functions during the entire
ownership cycle, from the acquisition of the asset to the ongoing asset management, marketing,renovation and maintenance through sale. We are implementing our RPI strategy in our investment
and management process as follows:
Investment Decisions- Incorporate environmental and social risks into the evaluation criteria when acquiring, selling or
operating properties- Integrate RPI strategies, but not at the expense of long-term client financial performance
Refurbishment- Incorporate RPI strategies into the design and financial analysis of all property renovations- Evaluate obtaining green building certifications applicable for each property type and location
prior to refurbishment to expedite approval process and enhance the property's competitive
position to maximize occupancy, rents and tenant quality

- Engage with planners and other external project partners and consultants to achieve objectives
Operations and Maintenance- Define and implement best practice measures (priority on no costs and low costs) to improveenergy efficiency, water conservation and waste management for all operating assets in order topromote sustainable practices- Reduce operating expenses and thereby increasing property values- Evaluate obtaining green building certifications applicable for each property type and location inorder to enhance the property's competitive position to maximize occupancy, rents and tenantquality- Monitor changes in regulations and laws in order to adopt and implement RPI strategies- Collaborate with tenants, property managers and suppliers of services and materials to achieve
objectives
As for the environment, JMF is continuously working on environmental and energy conservation
measures and energy efficiency improvement in the properties owned by the investment corporation.
JMF is implementing environmental-friendly and energy-saving measures and making efforts toward
more efficient energy use in our properties to give greater consideration to the environment and lessen
our environmental impact. For example, JMF actively engages in the effective use of water resources.
JMF features more than 6,000 square meters of permeable paving, enabling rainwater to be restored
underground. Furthermore, JMF introduced a water-circulation portable hand-washing stand thatcan be installed even in places where there is no water supply and discharge equipment, and by using a
special filter, viruses can be completely removed, water can be reused.
JMF works to create important connections with local communities by implementing disasterprevention measures and performing activities that contribute to society at every one of our wide
range of properties.
JMF is also continuously cooperating in public rescue and assistance and mutual help initiatives
through public-private partnerships. As demonstrations of next-generation energy supply systems,
JMF has been conducted to promote electric vehicle use toward realization of a low-carbon society,and based on plans for ensuring safe urban regeneration of the entire area, rules have been
established for maintaining transportation during a disaster and evacuation drills have been carriedout in anticipation of people being unable to return home due to a large-scale earthquake. Throughparticipating in such initiatives, JMF is working with the community and the government to reduce
environmental impact and increase resilience.
What are the binding elements of the investment strategy used to select theinvestments to attain each of the environmental or social characteristics promoted bythis financial product?
JMF delegates its operations to the asset manager through the Asset Management
Agreement. Therefore, JMF follows an investment strategy established by the asset
manager which is described below. The asset manager has an Environmental Charter thatsets out our environmental principles and actions, wherein it commits to climate action
and the sustainable use of resources among other environmental objectives.
In addition, JMF integrated into the asset management of the investment corporations our
RPI strategy. The concept of responsible property investment incorporates environmental,social, and governance considerations into the investment and management process:investment decisions, refurbishment, and operations and maintenance. In terms ofinvestment decisions, the asset manager incorporates environmental and social risks into
the evaluation criteria when acquiring, selling, or operating properties. In terms ofrefurbishment, the key approach is to evaluate obtaining green building certifications
applicable for each property type and location prior to refurbishment to expedite approval
process and enhance the property’s competitive position to maximize occupancy, rents, andtenant quality. Finally, in terms of operations and maintenance, the asset manager monitors
opportunities to obtain green building certifications, monitor regulatory and legal changes,
and continuously seek opportunities to implement best sustainability practices measures
such as those regarding resource efficiency.
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 and making
efforts toward more efficient energy use in our properties to give greater consideration to theenvironment and lessen our environmental impact. Also, to reduce GHG emissions, which are
one of the risk factors for climate change, JMF has established systems for understanding
and managing GHG emissions in our portfolio as a whole.
What is the committed minimum rate to reduce the scope of the investments
considered prior to the application of that investment strategy?
JMF does not commit to a minimum rate to reduce the scope of the investments considered
prior to the application of its investment strategy. However, given the nature of the Art. 8
Funds, 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 andpolychlorinated biphenyls (PCBs) based on an ESG checklist used during the due diligenceprocess, which includes ESG-related items to be checked.
What is the policy to assess good governance practices of the investee companies?
JMF invests mainly in real estate. KJR Management is the asset manager of JMF. In the courseof making decisions regarding the acquisition, disposal, or operation and management ofassets, approval is obtained from the Investment Committee and the Senior Advisory
Board/Board of Directors. The asset manager takes various environmental factors into
consideration such as property inspections, and land history investigations. In additions, theasset manager investigates legal compliance, credit checks, and environmental risks such as
asbestos and PCBs based on ESG checklists.

What is the asset allocation planned for this financial product?
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
・Renewable energy: 50% share of renewable energy by 2030
The above indicators are considered to determine whether investments are aligned with E/Scharacteristics. 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 to attain theenvironmental or social characteristics promoted by the financial product.
The sub-category #1B Other E/S characteristics covers investments aligned with the environmental or social
characteristics that do not qualify as sustainable investments.
#2Other includes the remaining investments of the financial product which are neither aligned with theenvironmental 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 the above criteria andwere deemed aligned with E/S characteristics, and 20.8% were not aligned with E/S characteristics
based on gross floor area.
How does the use of derivatives attain the environmental or social characteristics
promoted by the financial product?
JMF uses derivatives for hedging market risks (mainly interest rate swaps) purposes only.
Therefore, this is not relevant to achieving ESG characteristics.

To what minimum extent are sustainable investments with an environmental objectivealigned with the EU Taxonomy?
Not applicable.
Does the financial product invest in fossil gas and/or nuclear energy related activities
that comply 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 is the minimum share of investments in transitional and enabling activities?
Not applicable

What is the minimum share of sustainable investments with an environmental objectivethat are not aligned with the EU Taxonomy?
Not applicable.

What is the minimum share of socially sustainable investments?
Not applicable.

What investments are included under “#2 Other”, what is their purpose and are 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 willcontinue to implement operations for properties that meet environmental and social characteristics.

Is a specific index designated as a reference benchmark to determine whether thisfinancial product is aligned with the environmental and/or social characteristics that it
promotes?
No specific index has been designated as reference benchmark to determine whether JMF is alignedwith the environmental and/or social characteristics that it promotes.
How is the reference benchmark continuously aligned with each of the environmental
or social characteristics promoted by the financial product?
JMF does not designate a reference benchmark.
How is the alignment of the investment strategy with the methodology of the index
ensured on a continuous basis?
JMF does not designate a reference benchmark.
How does the designated index differ from a relevant broad market index?
JMF does not designate a reference benchmark.
Where can the methodology used for the calculation of the designated index be found?
JMF does not designate a reference benchmark.

Where can I find more product specific information online?
More product-specific information can be found on the website:
Our overarching sustainability strategy can be found here:
Strategy: https://kjrm-sustainability.disclosure.site/en/themes/94/
JMF: https://jmf-reit_sustainability.disclosure.site/en/

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 technicalscreening criteria for the first two environmental objectives (climate change mitigation and climate change
adaptation) were adopted 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 andcontrol, 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 climatechange mitigation and/or climate change adaptation. This means that screening 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, data on 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 statethat 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 to those investments
underlying the financial product that takes into account the EU criteria for environmentally sustainableeconomic activities. The investments underlying the other portion of this financial product do not take into
account the EU criteria for environmentally sustainable economic activities.