Sustainability
Report 2023

Issued on October 3, 2023

Maximize unitholder value by
improving sustainability
MEL is committed to endeavoring to enhance consideration towards the environment, social contributions
and corporate governance to improve the sustainability of society. We recognize that this is an importantsocial responsibility for a listed enterprise to assume, and also believe that it is essential for maximizing
our unitholder value.
To put our commitment into practice, MEL together with its asset management company, MJIA, shares
the sustainability objectives, and continues to embed sustainability into our business.

CONTENTS
Sustainability policy/promotion system
Top Message .................................................................. 1

Initiatives to Tenant ...................................................... 45

Initiatives for Sustainability.............................................. 2

Investor Relations Initiatives ......................................... 48

Sustainability Policy ........................................................ 4

Contributions to Local Communities ................................ 49

Sustainability Committee ................................................. 5

Human Resource Development ...................................... 53

Stakeholder Engagement ................................................ 8

Promotion of Diversity ＆ Inclusion ................................. 56
Employee Health and Well-being ～Creating Productive and
Employee-friendly Workplace～ ...................................... 58

Materiality
Materiality ..................................................................... 9Work-life Balance ～Create a comfortable workplace where
employee will want to work for a long period of time～ ..... 61
Human Rights .............................................................. 63

International Initiatives and Participation ......................... 13
Environmental Assessment and Cer................... 16.......................................... 19

Governance Initiatives (G)Governance Initiatives .................................................. 65
Corporate Governance .................................................. 69
Compliance ................................................................. 71

Environmental initiatives (E)Environmental Performance ........................................... 22
Climate Change Initiatives ............................................. 25
Water Resources and Waste Reduction, etc ..................... 33
Contributions to the Environment through Our Portfolio .... 34
Environmental Collaborwith Tenant・Stakeholders .............................................. 36
Green Finance.............................................................. 38

Risk Management ......................................................... 73

ESG Disclosure Policy and Reporting Framework
ESG Disclosure Policy and Reporting Framework............... 74
GRI STANDARDS Content Index .................................... 75
SASB Standards ........................................................... 81
SFDR Sustainability-Related Disclosures .......................... 85

Sustainability Report
We have published this report for the purpose of publicizing our approach to ESG
and our initiatives to a wide range of stakeholders, including investors.

Top Message

Ken Takanashi, Executive Director,
Mitsubishi Estate Logistics REIT Investment Corporation
The global economy has confronted unprecedented challenges in recent years, from the COVID-19 pandemic to theRussia-Ukraine conflict along with supply chain disruptions, rising energy prices, and food crises, leading toeconomic slowdowns and political instability. MEL thinks that the significance of sustainability with a mid-to-longterm perspectives is becoming increasingly important.
All our properties are deeply rooted in the neighborhood to support people's daily lives with a close relationship tothe local communities over the mid-to-long term. We believe that it is our social responsibility as a J-REIT toengage in sustainability improvement, such as environmental considerations, social contributions, and governanceenhancement, and that it is essential to maximize unitholder value. For implementing these initiatives, MEL is
promoting various efforts based on the "Sustainability Policy," a basic guideline formulated by MJIA in February
2019.
The most recent specific initiatives include expanding disclosure based on TCFD (Task Force on Climate-related
Financial Disclosure) recommendations, formulating a Climate Transition Plan (roadmap) to achieve a
decarbonized society, and obtaining certification by SBTi for its newly set GHG emission reduction targets for
FY2030. We will continue to make earnest efforts to reduce our environmental impact, including addressing climatechange, and promote energy conservation in our properties, introduction of renewable energy, and greening of ourportfolio. In addition, we will be conscious of responding to ever-changing social issues and ensuring reliable andtransparent governance and will work to ensure the safety and security of our portfolio, improve comfort, and build
a governance structure with a high degree of diversity.
Furthermore, the Mitsubishi Estate Group, to which MJIA belongs, has established the "Mitsubishi Estate Group
Sustainability Vision" with a view to sustainability management in

identified the "Mitsubishi Estate Group Sustainable Development Goals. To achieve this vision, we have" in the Long-Term Management Plan

as a milestone that defines specific themes and actions to achieve this vision, which is also shared by MJIA.
MEL will continue to strive to build a relationship of trust with various stakeholders including our unitholders andfulfill its mission of maximizing unitholder value over the mid-to-long term through further enhancement of ESG
initiatives in asset management and appropriate disclosure of its performance.
1

Initiatives for Sustainability

Basic stance
MEL is committed to endeavoring to enhance consideration towards the environment, social contributions andcorporate governance to improve the sustainability of society. We recognize that this is an important social
responsibility for a listed enterprise to assume, and also believe that it is essential for maximizing our unitholder
value.
To put our commitment into practice, MEL together with its asset management company, Mitsubishi Jisho
Investment Advisors, Inc. ("MJIA"), shares the sustainability objectives, and continues to embed sustainability into
our business.

Mitsubishi Estate Group's efforts and policies on ESG issues

2Positioning of the Investment Corporation Materiality

For more details, please refer to: Materiality

3

Sustainability Policy.Pursue Energy Efficiency and Low Carbon
We proactively pursue energy efficiency and takes steps to reduce greenhouse gas emissions in our portfolio by
installing and switching to energy-saving products and utilizing renewable energy.

2.Improve Water Resource Management and Waste Management
We strive to improve the efficiency of water use and to implement 3R waste programs (reduce, reuse, recycle) inorder to make effective use of limited resources in our portfolio.

3.Enhance of Tenant Safety, Security and Satisfaction
We implement disaster preparedness and damage prevention measures in our portfolio and strive to increasetenant safety and security. We promote improvement of operation methods based on our tenants’ needs,
installment of equipment, and improve tenant satisfaction.

4.Empower Our People
We provide various training and skills/career development programs into our development of employees’capabilities to raise environmental awareness. We are also committed to creating a work environment that is
comfortable for all members of our diverse pool of talent, thereby making it possible for everyone to reach theirfull potential.

1

5.Collaborate with External Stakeholders
We strive to build relationships of goodwill with external stakeholders including tenants, property managers andall others along the supply chain, as well as with local communities and local governing bodies. We focus oncollaborating with these parties as we put this policy into practice.

6.Disclose ESG Information and Obtain Environmental Certifications
We endeavor to disclose ESG related information to our investors and various other stakeholders. In addition, we
work to obtain environmental certifications as needed in order to strengthen our sustainability efforts.

7.Ensure Compliance and Risk Management
In addition to complying laws and regulations, we adhere to social norms including fair transactions, appropriate
information management practices, prevention of corruption, prevention of conflicts of interest and respect forhuman rights and diversity. Over the medium- to long-term, we consider the environmental and social risks related
to our portfolio, incorporate these considerations into the real estate management process to minimize risk.

4

Sustainability Committee

MEL believes that efforts to improve sustainability are indispensable for maximizing unitholder value. The
Sustainability Committee discusses on important issues, targets, and measures related to sustainability of MEL
and MJIA, reports on the status of implementation, and conducts evaluations and analyses related to theseissues, as well as sharing the latest knowledge on sustainability.

Sustainability Promotion Structure

Reporting details, meeting frequency and examination process
The Sustainability Committee generally meets once a quarter to discuss sustainability-related key issues, goals
and various measures to achieve these goals. The Committee also evaluates the sustainability performances,
share the progress on the goals they have set. The contents of the Sustainability Committee are reported to andsupervised by the Board of Directors and MEL's Board of Directors, which are held on a regular basis.

Establishment of Sustainability Management OfficeIn April, the Sustainability Management Office was newly established within the Corporate Management

Department of MJIA to further enhancing its commitment to sustainability. Additionally, MJIA appointed asustainability officer to strengthen the structure further.

5Sustainability Promotion Based on PDCA Cycle

In 2022, MEL received Eco Action 21 certification, the certification and registration system in which third party
organizations certify and register businesses that promote environmental management, based on "Eco Action
21 Guidelines" formulated by Japan's Ministry of the Environment as part of its Environmental Management
System.
Therefore, MEL's PDCA cycle is implemented in accordance with Eco Action 21.

Establishment of the Sustainability Promotion Manual
MJIA has formulated various "Sustainability Promotion Manuals" that stipulate basic policies and specificprocedures for monitoring and reduction of greenhouse gas emissions, energy consumption, water
consumption, waste volume, etc., and for collaboration with third parties (sustainable procurement), with theaim of enhancing the feasibility of sustainability promotion.
＜Overview of the Sustainability Promotion Manual＞
ManualContents
Operational Rules for Sustainability Policy and its Detailed

Environmental Management System
Operation Rules

Regulations
Establishment, management, and maintenance of EMSs
based on PDCA cycle

Greenhouse Gas Emission Reduction

Basic policy for continuously identifying the amounts used,

Promotion Implementation Manual

discharged and recycling rates, reducing the amounts usedand discharged and improving recycling rates

6

ManualContents

Energy Conservation Promotion

Management and analysis of amounts used, discharged and

Implementation Manualwaste recycling

Water Use Eefficiency Manual
Waste Management Manual
Provisions for consideration of sustainability in the
procurement of goods and services related to the asset
management business of MEL and specific measures to
Sustainable procurement implementation
manualpromote sustainability in cooperation with suppliers
including property manager
Application of sustainable procurement to all suppliers.
Requirement to have in place policies and systems related tocorporate ethics, including anti-fraud and anti-corruption.

7

Stakeholder Engagement

Basic Policy
The Investment Corporation's business activities are conducted with the support of its many stakeholders. For thisreason, we recognize that fulfilling the social responsibilities required of the Investment Corporation is also
important in our own sustainable business activities.
The Investment Corporation's main stakeholders are investors, tenants, business partners, communities, andemployees. The Investment Corporation will deepen its relationships of trust through constructive dialogue withthese stakeholders, and take their expectations and requests seriously and apply them in the business activities of
the Investment Corporation and ESG initiatives.

8

Materiality

Identified Materiality
Environment (E)Responding to Climate Change/Enhancing Portfolio Resilience
GHG Emissions (Scope 1 + 2)
Total GHG Emissions
KPIs and targets

PolicyPage

For the entire Value Chain

Target: 42% reduction by FY 2030 (based on FY 2021)

Target: Achieving Net Zero by FY 2050

GHG emissions intensity

Target: 30% reduction by FY 2030 (based on FY 2017)

Energy consumption intensity

Target: 15% reduction by FY 2030 (based on FY 2017)

We aim to reduce greenhouse gas emissions by introducing equipment that contributes toenergy efficiency and energy conservation in our portfolio.
https://mel-reit.co.jp/en/esg /environment/

Resource savings

Water consumption intensity

Target: Not increased by FY 2030 (based on FY 2017)

Waste recycling

Target rate: 70% or more by FY 2030

KPIs and targets

We will promote the efficient use of resources (including water) and promote the reduction
Policyand recycling of waste.
When disposing of waste, we comply with laws and regulations and properly dispose of such
waste (including hazardous substances).

Page

https://mel-reit.co.jp/en/esg /environment/

Promotion of Green Portfolio/Active Receipt of Green Building Certification

KPIs and targets

PolicyPage

Green building certification

Target: Increase to 100% by FY 2030

Obtain various green building certifications and visualize the objectivity and performance of
GHG emissions reductions.

https://mel-reit.co.jp/en/esg /external/greenbuilding.html

9Society (S)Improvement of Health, Safety and Comfort/Improvement of Tenant Satisfaction

KPIs and targets

Regular implementation of Tenant Satisfaction Surveys

We aim to improve tenant satisfaction by conducting regular tenant satisfaction surveys,
Policyconducting renovation work in response to diversifying social needs, and expanding tenant
support services. (environmental and energy-saving measures, health, safety, comfort
improvement, etc.)Page

https://mel-reit.co.jp/en/esg /social/

Contribution to local communities and implementation of community contribution programs
KPIs and targets

Regular implementation of community contribution programs
We will strive to contribute to society by regularly implementing community contribution

Policyprograms (including participation in local cleaning activities) and contributing as a disasterprevention center for our portfolio.

Page

https://mel-reit.co.jp/en/esg /social/communities.html

Creating a safe and comfortable work environment for everyone and improving employee satisfaction
Implementation of an employee satisfaction survey

KPIs and targets

Acquisition rate of paid

Target: 90% or more (calculated by employees on April 1

holidaysof each fiscal year)

Female management ratio

PolicyPage

We will respect the basic rights and diversity of our employees and create an environmentand system that maintains a good work-life balance.
https://mel-reit.co.jp/en/esg /social/balance.html

Human Resource Development by Enhancing Continuous Training
Training hours per employee

KPIs and targets

Number of qualified employees
We regard employees as important management resources "human assets" for a company,

Policyand conduct various types of training to improve a wide range of expertise and skills, as thegrowth of employees is essential to our growth as a company.

Page

https://mel-reit.co.jp/en/esg /social/developing.html

10Governance (G)Thorough Compliance and Risk Management
Meetings of the Compliance Risk Management Committee
Frequency of compliance and risk management training
sessions
KPIs and targets

Target: Held as needed

Target: 4 times par year

Compliance and Risk Management Training Participation Rate

Target: 100%

Safety confirmation training

Target: twice a year

Internal audit
We aim to thoroughly comply with laws and regulations by fostering each employee's
awareness of compliance and risk management and enhancing his/her knowledge.
PolicyWe will conduct appropriate internal audits to ensure effective internal controls.
We will prevent unfair and impartial transactions with stakeholders based on internal
regulations and deliberations by the Compliance and Risk Management Committee.

Page

https://mel-reit.co.jp/en/esg /governance/compliance.html

Enhancing GovernanceFrequency of the Board of Directors of MEL
KPIs and targets
Attendance rate for the Board of Directors of MEL

PolicyPage

We aim to build a governance system by ensuring the third-party nature and diversity of the
Directors of MEL.
https://mel-reit.co.jp/en/esg /governance/

Enhance Clear Information Disclosure and Engagement with Stakeholders (Investors)
GRESB、MSCI、PRI
KPIs and targets
Number of IR meeting
We aim to build an strong relationship of trust by disclosing information in a timely,
Policyappropriate, and proactive manner, including sustainability information, and regularly
holding engagement with stakeholders (investors) through business activities that utilize IR
and other means.

Page

https://mel-reit.co.jp/en/esg /external/environmental.html

11Materiality Identification Process
Step 1 Identification of Issue Items
With reference to the evaluation items of the main evaluation organizations (GRESB, etc.) and disclosure frameworks (GRIs, etc.) related
to sustainability of the Investment Corporation, issues were identified over a wide area based on the expectations of stakeholders andthe status of other companies in the same industry.

Step 2 Focusing and Prioritizing
Formulate materiality (draft) by organizing and integrating issues as appropriate and prioritizing them in light of social trends andexpectations demanded by internal and external stakeholders and the impact on the business and performance of the Investment
Corporation.

STEP 3 Meetings, Validation and Approval by Management
The materiality (draft) is discussed external specialized institution and management, including President ＆ Chief Exective officer of
MIJA, and approved by the Sustainability Committee of MIJA identify materiality.

12International Initiatives and Participation

Signing of PRI
The Principles for Responsible Investment ("PRI") comprises an international network of investor signatories thatworks to realize the Six Principles established for the finance industry in 2006 under the leadership of the thenUnited Nations Secretary-General, Kofi Annan. This network is promoted through the United Nations Environment
Programme ("UNEP") and the United Nations Global Compact ("UNGC").
PRI encourages the incorporation of Environment, Social and Governance issues into investment decision-making
processes, with the aim to help companies enhance long-term investment performance and better fulfill theirfiduciary duty. As of March 2019, approximately 2,300 institutions, representing more than US$86 trillion in assets
under management, have signed on to PRI.
MJIA agreed with the basic approach of PRI and became a signatory in March 2020.
＜The Six Principles＞
Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
Principle 6: We will each report on our activities and progress towards implementing the Principles.

Supporting the TCFD Recommendations
TCFD (Task Force on Climate-Related Financial Disclosures) was established by the Financial Stability Board (FSB)
to consider how to disclose climate-related information and respond to financial institutions.
In its final report in June 2017, TCFD published recommendations to identify and recommend public disclosuresabout the financial consequences of climate change for companies and other entities.
In December 2021, MJIA announced its suppose for the recommendation of the TCFD and joined TCFD Consortium,a group of domestic companies that support TCFD recommendation.
The Investment Corporation also recognizes that the risks and opportunities related to climate change have an
impact on its business, and will respond to these risks and further promote the disclosure of information.

Please refer to”Climate Change Initiatives” for details.
13

Obtaining of SBTi Approval
SBT is GHG emission reduction targets based on scientific evidence certified by “Science Based Targets initiative(SBTi)”, which is an international initiative jointly run by CDP, United Nations Global Compact (UNGC), World
Resources Institute (WRI) and World Wide Fund for Nature (WWF). In SBT, GHG emission levels set by Paris
Agreement (which aims to curb global temperature rise to well-below 2℃ above pre-industrial levels and pursuingeffort to limit warming to 1.5℃) is required.
As a strategy based on the TCFD recommendations, MEL has formulated roadmap for reducing GHG emissions.
While clearly stating its goal of net-zero GHG emissions by FY2050 in this roadmap, MEL established new KPI as set
forth below to achieve science-based emission reductions and this KPI has been certified for SBT (Near-TermTargets) in March 2023.
Scope of coverage

Base year

Target year

GHG emission reduction targets

Scope1+2

FY 2021

FY 2030

42% reduction

For more details, please refer to: Environmental Performance

Participation in UNGC
UNGC is a voluntary, global initiative supporting a global framework for sustainable growth through thedemonstration of creative, responsible leadership by the respective corporations and organizations as principledmembers of society.
First proposed in 1999 by the then United Nations Secretary-General Kofi Annan, participants currently number
more than 13,000 organizations and companies based in 160 countries (as of July 2018). It engages in activities
based on ten universally-accepted principles in the four areas of human rights, labor, environment, and anticorruption.
Mitsubishi Estate Co., Ltd. became a signatory of the UNGC and Mitsubishi Estate Group was registered as
participants in April 2018. Along with this, Asset Management Company has participated in this initiative as amember of Mitsubishi Estate Group.

14Participation in JCIThe Japan Climate Initiative (JCI) is a network committed to strengthening communication and exchange ofstrategies and solutions among non-state actors such as Japanese domestic companies, local governments, andNGOs that are actively working to address climate change.
The JCI pledges to voluntarily accelerate energy efficiency and use of renewable energy toward the realization of
the decarbonized society envisioned by the Paris Agreement, and to strengthen efforts to contribute to therealization of net-zero carbon emissions by 2050.
MJIA joined the JCI in September 2022 in support of this proactive approach to the realization of a decarbonizedsociety.

15

Environmental Assessment and Certifications

GRESB Real Estate Assessment
GRESB assesses the sustainability performance of real assets across the globe. The assessment was established in2009 primarily by major European pension funds which took the lead in Principles for Responsible Investment(PRI). The GRESB Real Estate Assessment is distinguished by its comprehensive evaluation of initiatives forsustainability of property companies, REITs and real estate funds. MEL has been awarded the prestigious “5 Stars”
for the fourth consecutive year and “Green Star” for the fifth consecutive year by the 2023 GRESB.
October 3, 2023 Notice concerning GRESB Real Estate Assessment Results

GRESB Public Disclosure
MEL also received the highest “A Level” for the GRESB Public Disclosure for the fourth consecutive year, whichassess the width of our ESG disclosure.

16

MSCI ESG Ratings (A)MEL has received A in its MSCI ESG rating.

Disclaimer
The use by MEL of any MSCI ESG Research LLC or its affiliates ("MSCI") data, and the use of MSCI logos, trademarks,
service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or
promotion of MEL by MSCI. MSCI services and data are the property of MSCI or its information providers and areprovided "as-is" and without warranty. MSCI names and logos are trademarks or service marks of MSCI.

EcoAction 21
The EcoAction 21 Certification/Registration Program is the certification and registration system by a third party forbusiness operators promoting environmental management based on "EcoAction 21 Guidelines" formulated by
Japan's Ministry of the Environment as part of its Environmental Management System.

＜Scope of Certification and Registration＞
Investment and management of real estate, etc.
and Real Estate Trust Beneficiary Interest

MUFG ESG Rating Certificate for J-REIT supported by JCR
Mitsubishi UFJ Research and Consulting Co., Ltd. promotes strategic efforts on ESG (Environment, Society,
Governance) to improve corporate value in response to the growing demand from external stakeholders regarding
active disclosure of ESG related information. Under the support of Japan Credit Rating Agency, one of Japan's
leading rating companies and expert in credit risk analysis, the certificate was produced and is dedicated to J-REIT
that evaluates efforts against ESG. MEL undertook the “ESG Loan for J-REIT” from MUFG Bank, Ltd.
MEL received the ESG rating as the first J-REIT company in November 2018, and the highest rank of "S " from
reacquisition following the renewal of the rating in September 2021.

For detailed information, please refer to Mitsubishi UFJ Research and Consulting
Co., Ltd.:(Japanese only)
https://www.murc.jp/sp/1810/j-reit/index.html

17Funding to Promote SDGs from Sumitomo Mitsui Banking Corporation
The Funding to Promote SDGs to be procured from Sumitomo Mitsui Banking Corporation, which is the first J-REIT
deal, will be executed on the basis of an evaluation of a company's current efforts in relation to the SDGs based on
the proprietary evaluation criteria developed by Sumitomo Mitsui Banking Corporation and The Japan ResearchInstitute, Limited.
We have recieved a report containing analytical advice from The Japan Research Institute, Limited., and will utilize
for future SDGs initiatives. MEL was highly evaluated (as of September 2020) regarding contributions to local
communities through promoting energy conservation and the use of renewable energy at owned properties, andimprove quality in logistic facities and maintain logistics networks through collaboration with tenants andstakeholders.

18Green Building Certifications《Target（KPI）》
Green Building Certificated portfolio up to 100% by FY2030.

Total of Green Building Certification
As of September 29, 2023
Number of Properties（Note）
S

Total Floor Area (㎡)16Ratio (％)

1,295,517-

CASBEEA

3

59,360Total

19

1,354,877

★★★★★

16

（ZEB）

＜1＞

（ZEB Ready）

＜5＞

★★★★

2

213,132★★

1

145,809

Total

19

1,293,626

84.3

22

1,404,316

91.5

88.3

934,685
-

BELS

Total
(Note)

When one property has obtained multiple environmental certifications and evaluations, it is counted as one property.

CASBEECASBEE(Comprehensive Assessment System for Built Environmental Efficiency) is a method for evaluating andrating the environmental performance of buildings and the built environment. This system comprehensively
assesses the environmental performance of buildings, including consideration for landscapes, in addition to theenvironmental impact reduction aspects of energy and resource conservation and recyclability. Evaluation results
are displayed in five levels (rank S to rank C).

19

For more information about CASBEE
http://www.ibec.or.jp/CASBEE/certification/certification.html

BELS
The Ministry of Land, Infrastructure, Transport and Tourism has established the Evaluation Guidelines for
Indicating Energy Conservation Performance of Non-Housing Buildings (2013) in order to further improve theenergy conservation performance of non-residential buildings and to contribute to the provision of appropriate
information in the real estate market, etc. Based on these guidelines, BELS evaluates and labels the energy
conservation performance of non-residential buildings and uses an evaluation method that conforms to the revised
Energy Conservation Standards (fully enforced on April 1, 2014).
Independent of new and existing buildings, third-party organizations evaluate energy conservation performance on
the basis of various measures, and the assessment is displayed in five stars (★★★★★ to ★).

For more information about BELS
https://www.hyoukakyoukai.or.jp/bels/info.html

Assessment Results
Property Name

CASBEE

BELS

Logicross Fukuoka Hisayama

S Rank for Real Estate

Logicross Atsugi

S Rank for Real Estate★★★★★

Logicross Kobe Sanda

A Rank for Real Estate★★★★

Logicross Osaka

S Rank for Real Estate★★★★★

Logicross Nagoya Kasadera

S Rank for Real Estate★★★★★

Logicross Narashino

S Rank for Real Estate★★★★★

Logicross AtsugiⅡS Rank for Real Estate★★★★★
（ZEB Ready）

Logicross Yokohama Kohoku

A Rank for Real Estate
20

Property Name

CASBEEBELS

LOGIPORT Sagamihara

S Rank for Real Estate★★★★

LOGIPORT Hashimoto

S Rank for Real Estate★★

LOGIPORT Osaka Taisho

S Rank for Real Estate

LOGIPORT Kawasaki Bay

S Rank for Real Estate

★★★★★
（ZEB）

LOGiSTA･Logicross Ibaraki Saito (A)S Rank for Real Estate★★★★★

LOGiSTA･Logicross Ibaraki Saito (B)S Rank for Real Estate★★★★★
（ZEB Ready）

MJ Logipark Kazo 1★★★★★
（ZEB Ready）★★★★★

MJ Logipark Osaka 1

S Rank for Real Estate★★★★★
（ZEB Ready）

MJ Logipark Fukuoka 1

S Rank for Real Estate★★★★★
（ZEB Ready）

MJ Logipark Kasugai 1

S Rank for Real Estate

MJ Logipark Inzai 1★★★★★

MJ Logipark Takatsuki 1★★★★★

MJ Logipark Funabashi 2

S Rank for Real Estate★★★★★

MJ Logipark Kakogawa 1

A Rank for New Construction★★★★★

＜Number of properties＞

19

19＜Total Floor Area (㎡)＞

1,354,877

1,293,626＜Ratio（％）＞

88.3

84.3

21

Environmental Performance

Basic Policy
The Mitsubishi Estate Group has established an environmental management system and strives to protect the environment
by promoting environmental initiatives and reducing environmental impact, while also complying with environmental laws
and regulations. The Mitsubishi Estate Group also proposes cutting-edge environmental initiatives to ensure that its businessactivities play a leading role in the development of sustainable communities.
MEL strives to invest in environmentally friendly logistics facilities, and will continue to focus on maximizing the energy
efficiency of our properties and is committed to minimizing environmental impact through various sustainable features andinitiatives.
In addition, our sponsor, Mitsubishi Estate Inc., announced “Sustainable Development Goals 2030” in January 2020. We willcontinue to take on initiatives to realize a sustainable society as a Mitsubishi Estate group.

Environmental Performance Data
15% reduction by FY2030 (FY2017 standard)

Energy Consumption

Total energy
consumption(MWh)Breakdown (MWh)Gas/fuelElectricity

consumption

consumptionDatacoverage(GFA basis)(Note 1)

Energyconsumption
intensity(kWh/m2)(Note 2)

Percentage
Change(intensity)

FY201727,9201,625

26,294

100%

50.20

-

FY201830,601

1,629

28,972

100%

54.95

9.5%

FY201933,314

1,793

31,521

100%

46.78

▲6.8%

FY202039,1462,504

36,642

100%

45.30

▲9.7%

FY2021

42,172

2,613

39,559

100%

38.49

▲23.3%FY2022

52,7162,790

49,926

100%

37.95

▲24.4%

Data
coverage(Floorarea
basis)(Note 1)GHG
emission
intensity(tCO2/m2)(Note 2)

Percentage
Change(intensity)

30% reduction by FY2030 (FY2017 standard)
Breakdown (t-CO2)
GHG
emissions(t-CO2)(Note 3)

FY2017FY2018GHG emissions

Scope1

Scope2(Locationbased
method)Scope3(Category#13)

13,7540.0

9,319.7

4,434.3

100%

0.025

-

14,6620.0

9,608.0

5,053.8

100%

0.026

6.5%

22

Breakdown (t-CO2)
GHG
emissions

GHG emissions

Scope2(t-CO2)(Note 3)

Scope1FY201914,885

FY2020Data

GHG

coverage(Floorarea
basis)(Note 1)emission
intensity(tCO2/m2)(Note 2)

Percentage
Change(intensity)(Locationbased
method)Scope3(Category#13)

0.1

5,763.3

9,121.3

100%

0.021

▲15.3%

16,755

0.3

6,811.4

9,943.6

100%

0.019

▲21.3%FY2021

20,6190.4

7,011.0

10,586.9

100%

0.016

▲34.7%FY2022

22,2190.3

2,849.0

19,369.5

100%

0.016

▲35.2%※ We are only accounting for Scope 2 emissions for which MEL has management authority from FY2022.

42% reduction of GHG emissions（Scope 1 + 2）by FY2030 (FY2021 standard) ※SBT certified
Scope1

Scope2 (Market-based method)

Scope1+2(t-CO2)(t-CO2) (Note)(t-CO2)

Percentage Change

FY2021

0.4

938.8

939.2

-

FY2022

0.3

860.2

860.5

▲8.4%

(Note)

Scope 2 (Market-based method) is calculated considering co-ownership.

Do not increase by FY2030 (FY2017 standard)

Water supply usage (m3)

Data coverage(GFA basis)(Note 1)

Water consumption intensity(m3/m2) (Note 2)

Percentage
ChangeFY2017

63,255

100%

0.114

-

FY201870,833

100%

0.127

11.9%

FY201973,839

100%

0.103

▲9.8%

FY202080,550

100%

0.092

▲18.9%FY2021

84,855

100%

0.082

▲27.6%FY2022

110,410

100%

0.078

▲31.4%

Water Consumption

70% or more by FY2030

Waste Management

Data coverage(Floor area basis) (Note 1)

Waste discharge weight (t)Data coverage(GFA basis) (Note 1)

FY2017

1,202

82.5%

54.9%

FY2018

1,624

87.9%

73.3%

FY2019

1,700

93.6%

66.6%

23

Waste Management

Data coverage(Floor area basis) (Note 1)

Waste discharge weight (t)Data coverage(GFA basis) (Note 1)

FY2020

1,867

86.7%

63.4%

FY2021

3,939

90.6%

62.3%

FY2022

4,802

79.1%

70.2%

(Note 1) Numerator: Total floor area (m2) of properties for which data for the current year are identified. Denominator: Total portfolio floorarea for the current fiscal year
(Note 2) The basic unit is a value calculated by considering the utilization rate, with the numerator for each consumption, etc., and the total
portfolio floor area for each fiscal year as the denominator.
(Note 3) Emissions from the tenant-management portion are accounted for in Scope3 based on the owners/tenants' control authority.
In addition, Scope of the same property may differ from year to year depending on the status of acquiring the data.

Solar Power Generation

Annual power generation(Kwh)(Note)(Note)FY20187,017,147

FY20196,710,582

FY202011,432,928

FY2021

14,311,834

FY2022

12,005,844

Renewable energy generated by the portfolio properties is sold externally with some exceptions. The figures for co-ownershipproperties are based on 100%. The amount of solar power generation is based on the properties for which the requisite data andperiods are available.

Some data that is the basis of the above table "Environment-related data" is subject to limited guarantee by a third-party
organization (Japan Environmental Certification Organization). Please refer to the following third party warranty report for
details.
※Greenhouse Gas Emissions Independent Verification Report※Environmental Performance Data Independent Verification Report24

Climate Change Initiatives

Policy on Climate Change
MJIA recognizes that climate change is an important (material) issue that brings about drastic changes to naturalenvironment and social structure and has a significant impact on our operations as well as business overall. In
order to respond to these issues, in October 2021, MJIA established“the Policy on Climate Change Initiatives”as apolicy for addressing risks and opportunities related to climate change and initiatives related to business andstrategy resilience to climate-related issues.

Awareness of Climate Change
The Paris Agreement, adopted in 2015, is an international treaty aimed at keeping global average temperatures
below 2℃ (effort goal 1.5℃) before the Industrial Revolution and reducing greenhouse gas emissions (hereinafterreferred to as "GHG emissions") to zero by the latter half of the 21st century. There are 197 member countries
worldwide. Efforts and regulations to reduce GHG emissions are already being strengthened in many countries,
regions and industries to achieve this target, and the possibility of further tightening GHG emission regulations isbeing discussed.
Also, according to IPCC Report (Note), climate change (global warming) has actually progressed since the latter halfof the 20th century, and this has already begun to lead to frequent heat waves and increased natural disasters suchas extreme heavy rains. MEL recognizes that addressing climate change is the most important issue in materiality
and regards it as a material issue that closely affects its business.
（Note）IPCC 1.5 Special Report…Report published in 2018 by the United Nations Intergovernmental Panel on Climate Change(IPCC)

Support for TCFD Recommendations
TCFD (Task Force on Climate-Related Financial Disclosures) was established by the Financial Stability Board (FSB)
to consider how to disclose climate-related information and respond to financial institutions.
In its final report in June 2017, TCFD published recommendations to identify and recommend public disclosuresabout the financial consequences of climate change for companies and other entities.
In December 2021, MJIA announced its support for the TCFD recommendations and joined the TCFD Consortium, anorganization of domestic companies that support TCFD recommendation.
MEL also recognizes that the risks and opportunities related to climate change have an impact on its business, andwill respond to these risks and further promote the disclosure of information.
The TCFD published its final report in June 2017, and recommend that companies and others disclose the following
items related to climate change-related risks and opportunities.
(Disclosure Items Recommended by TCFD)
Disclosure Item
Governance

Disclosure Details
Organizational governance relating to climate-related risks and opportunities
25

Disclosure Item

Disclosure Details
Actual and potential impacts from climate-related risks and opportunities on the organization's

Strategybusinesses, strategies, and financial planning

Risk management

The organization's climate-related risk identification, assessment, and management processes

Metrics and Targets

Metrics and targets used to assess and manage climate-related risks and opportunities

Governance
MJIA's Sustainability Committee discusses and decides on climate-related strategies, identification of risks andopportunities, setting of indicators and targets, and measures to them, and reports to the Board of Directors.
Please refer to the ”Organization Chart for Promoting Sustainability” page for the system for promoting
sustainability (including responses to climate change; the same hereafter) at MJIA.

Strategy
1.Scenario analysis
MEL conducted multiple scenario analyses to identify the risks and opportunities posed by climate change risks to
MEL and to examine their impact on its business.
＜Assumptions for Scenario Analysis＞
MEL conducted scenario analysis using future climate projections published by international organizations as themain source of information. The table below shows the main sources of information referred to by MEL. Climatechange risks can also be broadly categorized into "transition risk" and "physical risk," and the relationshipbetween them is considered not to be completely independent but interdependent or trade-off.

Climate Change Risks

Main Information Sources Referenced

Transition risk

Risks arising from new regulations, tax systems,
technologies, etc. to realize a decarbonized society

IEA (International Energy Agency) World
Energy Outlook 2020

Physical risk

Risks rising by climate change itself, such aschanges in weather

IPCC (Intergovernmental Panel on Climate
Change) Fifth Assessment Report (AR5)【4℃ Scenario】
The 4℃ Scenario assumes that natural disasters will become severe and physical risks will be extremely high due tothe lack of progress in global decarbonization efforts, although the risk of transition will be relatively small due tothe lack of progress in strengthening legal regulations.

26

【1.5℃ Scenario】
1.5℃ Scenario is based on the assumption that emissions of greenhouse gases will tend to be reduced by
implementing strict regulations and taxation systems to realize a decarbonizing society. Physical risks are low, andtransition risks are high.

27

2.Identification of Climate Change Risks and Opportunities and Verification of Financial
Impacts

Scope of Financial Impact Amount

Category

Relations

Transition

Enhancerisk

Taxationthrough the

Policiesand Laws

Type

Financial

1.5℃

4℃

impacts
MediumLong

Medium

Long

term

term

term

term

Large

Large

Small

Small

Increased tax
burden on
Risk

portfolio

Introduction of
a Carbon Taxes

GHG
emissions

Enhanceenergy-saving
standards inreal estate

Risk

Increasedburden of
portfoliorenovation
costs

Large

Large

Small

Small

Risk

Increasedbusiness
expenses toreporting

Small

Small

Small

Small

Risk

Increased
cost ofintroducing
newtechnology

Large

Large

Small

Small

Small

Small

Small

Small

Large

Large

Small

Small

Large

Large

Small

Small

Strict obligation
to report
emissions

Evolution anddisseminationof re-energy andenergy-saving
technologies
Technology
Cost reduction
through energy
conservation
and renewableenergyOpportunity

Markets

Reduction ofutility costs
sourcedexternally

Increase in
Deterioration of
procurement
conditions formarketparticipants not
responding toclimate change

Increasing
demand ofgreen buildings
from tenants

funding
costs,
difficulty infinancingand decreaseininvestment
unit price

Risk

Decrease inrent income
due todifficulty indeveloping
new tenants
and reduced
retention

Risk

28

Scope of Financial Impact Amount

Category

Relations

Develop new

Transition
risk

Type

Financial
impacts

1.5℃

4℃

Medium
term

Long
term

Medium
term

Long
term

Large

Large

Small

Small

Opportunity

Utilization ofgreen bonds.
Increasing
volume andlowering
funding costsbyresponding
to ESGfocusedinvestors

Large

Large

Small

Small

Risk

Decrease inrent
premiums
due to brandstrength
Rising cost of
funds

Large

Large

Small

Small

Small

Small

Large

Large

Small

Large

Large

Large

Opportunity

Incometenants byincrease andexpanding theoccupancy

provision ofrate

green building

improvement
bydeveloping
tenants

Markets

Develop andenlightenmentof new investors

Reputation

Devaluing abrand due tounderdeveloped
green building

Increase inrepair costs
andinsurance

Physicalrisk
Increased
typhoons,
torrential rains
and floods

Risk

premiums
Decline in
portfolio
occupancy

Acute

Building aportfolio withhigh resilience
performance

Opportunity

29

Reduction of
repair costs
andinsurance
premiums
Improve
portfolio
utilization
rateScope of Financial Impact Amount

Category

Physicalrisk

Chronic

Relations

Inundation of

Type

Risk

Financial
impacts

Decreased

properties withutilization of

low altitude due
to sea level riseportfolios

1.5℃

4℃

Medium
term

Long
term

Medium
term

Long
term

Small

Small

Small

Large

Small

Small

Large

Large

that
requiringmajorrenovations

Increased
demand for air
conditioning
due to extreme
weather
conditions(Note)

New
installationof airconditioning
equipment
and increasein operatingtime andrepair costs

Risk

Medium term: As of 2030, Long term: As of 2050.

Transition Plan（Roadmap for Reducing GHG Emissions :Scope1,2 and 3）
MEL has formulated roadmap for reducing GHG emissions and established new KPIs.
Going forward, MEL have set a goal of "achieving net zero GHG emissions for the entire value chain by FY2050," andwill steadily implement each measure to achieve this goal.

30

Investment Corporation s Measures to Climate Change Risks
MEL is promoting a variety of measures and specific actions to address the transition risks and physical risks ofclimate change, including green projects to reduce GHG emissions and improve energy efficiency, and theacquisition of green building certification.
Specific initiatives are as follows.
＜Planned purchase of non-fossil certificates＞
MEL has advocated the use of environmental value as part of reduction measures through the promotion ofrenewable energy, and since FY2021, MEL has been purchasing non-fossil certificates for a part of its portfolio inorder to introduce renewable energy. We will systematically purchase non-fossil certificates and reduce GHG
emissions.
＜Contribution to the environment in the real estate under management＞
https://mel-reit.co.jp/en/esg /environment/contributions.html＜Collaboration with tenants and stakeholders on the environmental front＞
https://mel-reit.co.jp/en/esg /environment/collaboration.html

Risk Management
The risk management system for sustainability at MJIA is as follows.
At the time of investment decision: When making a new investment in assets under management, the management
meeting makes an investment decision based on various surveys on climate change risk in the due diligenceprocess. Specifically, regarding the possibility of flooding of the target property, we are investigating andconfirming the inundation level, inundation history, and implementation history of hydraulic engineering work,
etc. using various hazard maps. We also check the existence of environmental and energy-saving equipment,
including the acquisition of environmental certification, and the status of BCP compliance.
During operation: The Sustainability Committee manages and monitors overall sustainability-related risks,
including climate change risks. Specifically, we monitor the environmental performance of our properties andmanage the progress of various targets (see "Indicators and Targets" below for details), and consider necessary
measures based on these.

31Metrics and Targets
MEL recognizes that resolving environmental issues such as climate change is an important management issue in
MEL s sustainable business and its business strategy for realizing it. Based on this understanding, MEL is building a
low-environmental impact portfolio by investing in low-environmental impact properties and making energy use
more efficient and reducing GHG emissions through the implementation of environmental and energy-saving
measures in owened properties.
Promotion of Green Property in possession
Target (KPI)
Raise the ratio of property aquired Green Building Certi cation to 100％ by 2030.
Improvement of environmental performance
Targets (KPIs)
Reduce our portfolio GHG emissions (Scope 1, 2) by 42% by FY2030. (based on FY2021)
Achieve net zero GHG emissions for the entire value chain by FY2050
Reduce GHG emissions intensity by 30% by FY 2030.（based on FY 2017）
Reduce the energy consumption intensity by 15% by 2030.（based on FY 2017)
Environmentally Performance Data
https://mel-reit.co.jp/en/esg /environment/

In setting targets for GHG emissions intensity, CRREM(Carbon Risk Real Estate Monitor, a tool for analyzing
transitional risks, was used.
The Carbon Risk Real Estate Monitor (CRREM), with the support of the European Union (EU), targets commercial
real estate and is a pathway for GHG emissions up to 2050 that meets the 2°C and 1.5°C targets of the Paris
Agreement. Decarbonization route) is calculated and published. MEL sets GHG reduction targets by measuring the
GHG emission intensity of the portfolio using the CRREM 1.5°C decarbonization route as a benchmark.

32

Water Resources and Waste Reduction, etc

Preserving Water Resources
We are working on reducing water consumption by installing water meters that support automatic meter readings,
water-saving toilets and Flushing sound simulators, and by installing smart irrigation facilities.

Rain sensor irrigation device

Water-saving toilet

Promoting Waste Reduction
We are continuously monitoring the amount of waste discharged and working with our tenants to reduce wastewith the aim of ensuring proper separation of waste and improvement of the recycling rate. Reuse of OA floor
panels used in office buildings in the Marunouchi area was also implemented.

Recycling enlightenment poster

Reuse the OA floor panelsof the Marunouchi office buildings

33

Contributions to the Environment through Our Portfolio

Renewable Energy Use
Mitsubishi Estate Group is committed to develop environmentally friendly facilities which are key components of its
ESG initiatives. As part of its renewable energy program, Mitsubishi Estate plans to install solar panels systems on
the rooftops of facilities. In addition, MEL is considering to install solar panels for the properties that has no yetbeen installed.

Logicross Fukuoka Hisayama

MJ Logipark Sendai 1

Logicross Atsugi

MJ Logipark Tsuchiura 1

Energy Saving Initiatives
MEL conducts "sampling energy saving diagnosis" by BM companies and specialized companies as appropriate tounderstand the current state of energy saving and to use it in formulating future policies.

Insulated sandwich panels for exterior wall

Installment of motion detected sensor
34

Installation of LED lightings

Installation of advanced LED with tabletcontrolled
and time-controlled dimming systems

Installation of LED lightings with

Update air-conditioning system

motion detected sensor

ESG evaluation at the time of property acquisition
Before acquiring a property, MEL evaluates the property by reviewing whether or not green building certification
has been obtained in addition to the basic inspections on physical, legal, economic, and other aspects.
Furthermore, we conduct onsite inspections of the subject land, as well as third-party engineering reports, soil
contamination risk reports, and other environment-related surveys, and make decisions after considering
environmental factors such as soil contamination and toxic substances.

Creation of greenery through green spaces, etc.
MEL is promoting measures such as installing public green spaces from the viewpoint of environmental
consideration and biodiversity conservation.
Green spaces are public open spaces that mainly have a natural environment and are used for environmental
conservation, pollution mitigation, disaster prevention, landscape improvement, and use as green roads.

Public green space（MJ Logipark Atsugi ）35

Environmental Collaboration Efforts with Tenant・
Stakeholders

MEL and MJIA, endeavors to contribute to a sustainable environment by improving the environmental performanceof the properties under management. However, we believe that the understanding and cooperation of tenants arealso important. We aim to collaborate for a sustainable environmental society in order to promote awarenessraising activities for tenants. MEL has introduced Green Lease contract that allows both building owners andtenants to share merits, and actively promoted sustainability-related initiatives in cooperation with tenants.

Aggressive Introduction of Green Lease
MEL has concluded Green Lease contract between the owner and the tenant and been installing LED lighting in thetenant's exclusive area at the expense of MEL. Under the Green Lease contract, tenants can reduce electricity
charges and maintenance costs (tube replacement costs), and MEL receives Green Lease fee as a portion of thecost-savings. Furthermore, to promote energy-saving measures in cooperation with tenants, MEL has introduced
Green Lease clauses (environmentally conscious clauses) to the fixed-term building lease contract templates for allproperties.

Awareness-Raising Activities for Tenants
In order to take the lead in energy-saving activities, we have prepared building regulation manuals describing theenvironmental cooperation clause such as waste sorting, recycling recommendations, air conditioning operation
standards, idling stopping. In addition, we are implementing awareness-raising activities by distributing posters tocommon areas on each floor.

Sustainability guides for our Tenants
MJIA prepared and distributed the Tenant Sustainability Guide in 2021 with the aim of promoting sustainabilityrelated initiatives together with tenants.

36

Cooperation with Property Management Company and Selection Criteria‧
Evaluation Measures
MEL has established a criteria for the selection of property management companies to which property
management is entrusted, and in principle, evaluates all property management companies once a year.
MEL and MJIA are engaging with property management companies to share our vision, policies of sustainability
and when making contract with a new tenant, property managers explain these ideas to tenants to achieve theircooperation.

Education to Employees on Sustainability
MJIA provides sustainability training annually by external specialist to improve awareness and knowledge onsustainability for its employees.

37

Green Finance

Sustainability-Linked Loan
As an initiative to procure funds utilizing ESG assessments, MEL has been procuring funds through Sustainability
Linked Loans ("SLL"). Based on the SLL agreement, MEL will be evaluated in every assessment period based on KPIand SPTs (Sustainability Performance Targets) including the targets below that MEL stipulates toward FY 2030, andalso will be granted lower loan spread as an incentive according to the achievement status. For SPTs related to eachloan, please refer to the "Remarks" of the Sustainability-Linked Loan.

【KPIs】
GHG emissions
Green Property ratio
Energy consumption
GRESB Real Estate Assessment
For more details, please refer to: Environmental Performance Data
Environmental Assessment and Certifications

Sustainability-Linked Loan
LenderBorrowingAmountProcurement
Date

Repayment

Remarks

Date

Third-Party Opinion from Japan Credit
Rating Agency, Ltd. (JCR) (available only inJapanese)
The
Norinchukin
Bank

2,000
million yen

Mar. 1, 2022

Mar. 1, 2032

Conclusion of Sustainability Linked Loan
Agreement
Notice Concerning Debt Financing (including“Green Loan” and “Sustainability-Linked
Loan”)The

Conclusion of Sustainability Linked Loan
2,000

Norinchukin
Bankmillion yen

Shinsei Bank

2,000
million yen

Sumitomo
Mitsui Banking
Corporation

Oct. 25, 2022

Oct. 25, 2031

Agreement
Notice Concerning Debt Financing

3,000
million yen

Dec. 1, 2022

Dec. 1, 2031

Notice Concerning Debt Financing

Sep. 4, 2023

Sep. 4, 2031

Notice Concerning Debt Financing(“Sustainability-Linked Loan”)
Sumitomo Mitsui Banking Corporation
announces Sustainability Linked Loan to
MEL (available only in Japanese)38

Lender

The
Norinchukin
Bank

Borrowing

Procurement

Repayment

AmountDate

Date

500 million

Sep. 29, 2031

yen
Sep. 29, 2023

Nippon Life
Insurance
Company

Remarks

1,000
million yen

Notice Concerning Debt Financing
Sep. 29, 2033

Green Finance Framework
Use of Proceeds of Green FinanceNet proceeds from the green bonds or green loans will be used to fund the acquisition of specified assets that willmeet the eligibility criteria in below (Green Eligible Assets) or refinance borrowings required for acquiring the Green
Eligible Assets.

Eligible Criteria
Eligible Criteria are assets or projects that satisfy either of the following requirements.
a.The assets for which MEL has obtained or plans to obtain the following third-party certification① 5-star, 4-star or 3-star DBJ Green Building Certification② S rank, A rank or B+ rank in Certification for CASBEE for Real Estate③ 5-star, 4-star or 3-star BELS Evaluation
b.Renewable energy generation facilities associated with buildings (limited to solar power generation facilities on
the premises)c.Equipment designed to reduce environmental impacts (limited to equipment that achieves 30% or higher energy
efficiency before introduction)

Management of Proceeds
If there are unappropriated funds at the time of issuing green bonds or green loans, MEL will disclose anappropriation plan on its website. In addition, if the property for which the proceeds will be used will no longer be a
subject of the use of proceeds due to its sale, MEL will disclose this in its press release and its website.
Upper limit of green finance procurement is calculated by total acquisition price of Eligible Green Projects multiple
by total asset LTV.

Reporting
MEL will publish the allocation status of the proceeds from green financing on its website once every year. If there
are unappropriated funds at the time of issuing green bonds or green loans, MEL will disclose an appropriation planon its website. In addition, if the property for which the proceeds will be used will no longer be a subject of the useof proceeds due to its sale, MEL will disclose that the unused funds that arise temporarily will be managed by the
portfolio management, the balance in its green financing and the maximum amount of green eligible liabilities in its
press release.
Further, as long as there remains any outstanding balance in its green financing, MEL will disclose the following
benchmarks on its website once every year.

39

Status of Green Building
For detailed information : Green Building Certifications
Impact Reporting
Water supply usage
Total energy consumption (Electricity consumption and Gas fuel consumption)
GHG emissions
Waste management
Annual power generation of solar panels
Details of equipment introduced as equipment aimed at reducing environmental load and energy saving effect
For detailed information : Environmental Performance Data

Amount of Procured Funds and Allocation (As of August 31, 2023)（Note）LTV-based Green Finance (Debt) Capacity =Total Acquisition Price of Green Eligible Assets × The Total Asset LTV

No. of Properties

AmountTotal Properties

32

261,659 million yen

Eligible Criteria (Note)

21

218,781 million yen

CASBEE18

207,656 million yen

BELS

18

191,520 million yen（Note）When one property has obtained multiple environmental certifications and evaluations, it is counted as one property.

Funds

Green Loan

1,350

(Sumitomo Mitsui
Banking
Corporation)

millionyen

Procurement

Repayment
Date/

Date

Redemption
Date

Mar. 9, 2021

Mar. 9, 2025

Allocation

Use of Initial Funds

allocated

Acquisition of Logicross
Osaka(additional acquisitionof 40%)and Logicross Naogya
Kasadera(additional
acquisition of 40%)

40

FundsGreen Loan
(Mizuho Bank)

Procurement
Date

Repayment
Date/
Redemption
Date

Allocation

Aquisition of LogicrossFukuoka Hisayama,
LOGIPORT Sagamihara (49%720
millionyen

Use of Initial Funds

Sep. 14, 2021

Sep. 14, 2028

allocatedco-ownership interest),
LOGIPORT Hashimoto (45%co-ownership interest),and MJ Logipark Kazo 1
Acquisition of LOGIPORTOsaka Taisho(20% co-Green Bond

2,000
millionyen

Apr. 14, 2021

Apr. 14, 2036

allocatedownership interest),
Logicross Osaka(additional
acquisition of 40%)and Logicross Naogya
Kasadera(additional
acquisition of 40%)

Green Loan
(Mizuho Bank)

1,000
millionyen

Green Loan
(Shinkin Central
Bank)

2,000
millionyen

Mar. 1, 2031

allocatedallocated
Mar. 1, 2022

Green Loan
(Shinsei Bank)

1,000
millionyen

Green Loan
(The Yamaguchi
Bank)

1,000
millionyen

Green Loan
(Sumitomo Mitsui
Banking
Corporation)
Green Loan
(Daishi Hokuetsu
Bank)

Green Loan
(The Chiba Bank)Green Loan
(Mizuho Bank)

Mar. 1, 2032

allocated

Acquisition of Logicross Atsugi
Ⅱand LOGIPORT Kawasaki Bay(45% co-ownereship interest)

allocated

1,000
million

Oct. 31, 2026

allocated

yen

1,000
millionyen

allocated
Oct. 25, 2022

Oct. 31, 2027

2,000
millionallocated

yen
1,000
millionyen

Oct. 31, 2031

41

allocated

Acquisition of LOGiSTA･Logicross Ibaraki Saito (A)(45% co-ownership interest)and LOGiSTA･Logicross Ibaraki
Saito (B) (45% co-ownershipinterest)

FundsProcurement
Date

Repayment
Date/
Redemption
Date

Allocation

Use of Initial Funds

Acquisition of LogicrossFukuoka Hisayama,
LOGIPORT Sagamihara (49%Green Loan
(Sumitomo Mitsui
Banking
Corporation)

2,880
millionyen

Dec. 14, 2022

Oct. 25, 2026

allocatedco-ownership interest),
LOGIPORT Hashimoto (45%co-ownership interest),
MJ Logipark Fukuoka 1,
MJ Logipark Kazo 1,
Logicross Atsugi and Logicross
Kobe Sanda
Acquisition of LogicrossGreen Loan

1,500

(The Yamaguchi
Bank, Ltd.)millionyen

Yokohama Kohoku,
Logicross Ibaraki Saito (A)(45% co-ownership interest),
Mar. 14, 2023

Sep. 1, 2032

allocated

LOGiSTA･Logicross Ibaraki
Saito (B)(45% co-ownershipinterest),
MJ Logipark Inzai 1,
MJ Logipark Takatsuki 1
Acquisition of LogicrossFukuoka Hisayama,
LOGIPORT Sagamihara (49%Green Bond

2,500
millionJul. 25, 2023

Jul. 25, 2033

allocatedyen

co-ownership interest),
LOGIPORT Hashimoto (45%co-ownership interest),
MJ Logipark Kazo 1,
MJ Logipark Fukuoka 1,
LOGIPORT Kawasaki Bay (45%co-ownereship interest),
Logicross Atsugi Ⅱ
Acquisition of LogicrossFukuoka Hisayama,

Green Loan
(Mizuho Bank)

1,330
millionyen

Sep. 14, 2023

Sep. 14, 2030

allocated

LOGIPORT Sagamihara (49%
co-ownership interest),
LOGIPORT Hashimoto (45%co-ownership interest),
MJ Logipark Kazo 1,
MJ Logipark Osaka 1,
MJ Logipark Fukuoka 1

Green Loan
(The Gunma
Bank)Green Loan
(Daishi Hokuetsu
Bank)
Green Loan
(Shinkin Central
Bank)

300

allocated

millionyen

Sep. 29, 2028

300
millionyen
500
millionyen

allocated

Sep. 29, 2023

Sep. 29, 2032

42

allocated

Acquisition of MJ Logipark
Kakogawa 1

Repayment
Funds

Total Green Finace(Debt)

LTV-based Green
Finance (Debt) Capacity(As of August 31, 2023)

Procurement

Date/

Date

Redemption
Date

Allocation

Use of Initial Funds

23,380
millionyen
83,574
millionyen

Evaluation by Third-Party Entities
MEL has obtained a Green 1(F) (highest for JCR Green Bond Evaluation) rating in preliminary evaluation for thecompetence of its Green Finance Framework from Japan Credit Rating Agency, Ltd. (JCR). Please refer to JCR’s
website.
For detailed information : JCR Green Finance Framework Assessment

Green Equity Framework
Use of Proceeds of Green Equity
Net proceeds from Green Equity Offering will be used to fund the acquisition of specified assets that will meet theeligibility criteria in below (Green Eligible Assets) or refinance borrowings required for acquiring the Green Eligible
Assets.

Eligibility Criteria
Eligible Criteria are assets or projects that satisfy one of the following requirements.
a.Properties that obtained or renewed, or to be acquired in the future with one of the certifications from a thirdparty certifier listed in (1) to (3) below.
(1) DBJ Green Building Certification: 5, 4 or 3 stars(2) CASBEE Certification: S, A or B+(3) BELS Evaluation: 5, 4 or 3 stars
b.Renewable energy generation facilities associated with buildings(limited to solar power generation facilities on the premises)c.Equipment designed to reduce environmental impacts(limited to equipment that achieves 30% or higher energy efficiency before introduction)

Management of Proceeds
Net proceeds from the Green Equity Offering will be used to the acquisition of new or existing properties or torefinance immediately after the execution of that. The proceeds from the Green Equity Offering are managed in cash
or cash equivalents until the fully allocated to the eligible green projects.

Reporting43

MEL will disclose the allocation plans with respect to the appropriation of proceeds from the Green Equity Offering, ifany, that is not yet allocated at the time of issuance of the investment units. In addition, regarding the status ofallocation of proceeds and the following impact reporting, the amount to be appropriated and the detail of subjected
property to be appropriated shall be disclosed promptly. Disclosure of the allocation status shall be completed upon
the allocation of the proceeds are completed.
＜Status of Green Building＞
Number, Type, and Rank of environmental certifications of the assets
For detailed information : Green Building Certifications＜Environmental Benefit＞*Disclose on a portfolio basis considering confidential information of MEL.
Water usage
Total energy consumption (electricity consumption and gas/fuel consumption)
GHG emissions
Waste discharge weight
Solar power electricity generation
Details of equipment and facilities installed to reduce environmental impacts and energy efficiency(saving)
benefits.
For detailed information : Environmental Performance Data

Amount of Procured Funds and Allocation

5th Follow-on
Offering

Funds

Payment
Date

Date of
Allocation

Allocation

22,042
millionyen

Mar. 1, 2022

Mar. 1, 2022

allocated

Use of Initial Funds

Acquisition of Logicross Atsugi Ⅱ
and LOGIPORT Kawasaki Bay (45% coownereship interest)

Evaluation by Third-Party Entities
MEL formulated “Green Equity Framework” with reference to the four elements indicated by the Green Bond
Principles stipulated by the International Capital Market Association (ICMA) and the Green Bond Guidelines by the
Ministry of the Environment. MEL has obtained a second-party opinion for the eligibility of the “Green Equity
Framework” from DNV GL, a third-party ESG evaluation agency.
For detailed information : DNV SECOND-PARTY OPINION＜Disclaimer＞
Our Green Equity Framework and DNV’s second opinion related thereto are available here, consistent with our past
disclosure practice with respect to our financings. These documents do not constitute an offer or sale of our
securities in Japan, the United States or any other jurisdiction. Neither we nor Mitsubishi Jisho Investment Advisors,
Inc., our asset manager, are experts in green equity assessment, nor do we have the ability to assess or
independently verify the assessment provided to us by DNV. The information contained in the Green Equity
Framework or DNV’s second opinion should not be relied upon in making an investment decision with respect to anyof our securities.

44

Initiatives to Tenant

Improve Tenant Satisfaction
MEL has identified “improve tenant satisfaction” as a material topic. We strive to create an environment that our tenants canuse comfortably and with peace of mind.

Restaurants and Lounge

Convenience store

Shower room

Shuttle bus

Tenant Satisfaction Survey
MEL regularly conducts tenant satisfaction surveys in "face-to-face (interview)" and "questionnaire" formats, and reflects theresults in facility operations, services, renovation work, etc., in an effort to improve tenant satisfaction. Most recently, inorder to obtain more detailed and objective opinions, we commissioned a third-party research company to conduct a tenantsatisfaction survey in the form of a questionnaire in 2021.
(Example)
In 2019, prior to the renovation of the lounge at MJ Logipark Fukuoka 1, hearings were held with tenant employees. Based on
the results, we installed free Wi-Fi, rechargeable outlets, large TVs, microwave ovens, and adopted layouts that facilitate
individual use. In addition, we held competition for the wall design in cooperation with local universities and technicalcolleges, and decided on a design proposal.

Before Renovation

After Renovation

45

(Example)
In 2019, MJ Logipark Kasugai 1 conducted a satisfaction survey (face-to-face interview) targeting tenant companies. Based on
the results, we implemented the installation of handdriers in toilets.

(Example)
We reviewed our electricity suppliers for multiple properties, reduced electricity cost for tenants, and improved tenantsatisfaction.
(Example)
In 2021, based on the results of the survey, Logicross Nagoya Kasadera installed a thermo-camera and AED.

Furthermore, digital signage (for advertising) and AI cameras (a system to check smoking room usage) were installed in fivesmoking rooms in 2022.

(Example)
In 2022, based on the results of the survey, MJ Logipark Fukuoka 1 carried out the release of hawks by falconers in response
to bird damage.

46

Initiatives for the Safety of Tenants
MEL has been proactively implementing measures for the safety of tenants. In addition, emergency reporting system has
been implemented in all properties owned by MEL.

Conduct fire drills

24-hour security

Installation of a disaster-relief vending machine

Automated external defibrillators (AEDs)

Installation of disaster prevention cabinet

Secure reserves in case of emergency(Food & portable toilet)

BCP Initiatives

Installment of private power generators

Seismic isolators

47

Investor Relations Initiatives

MEL launched its ESG website in January 2022 and has been actively disclosing ESG information by continuously
publishing Sustainability Reports. Furthermore, the opinions and requests obtained through the IR meetings arereported to the Sustainability Committee of MJIA and the Board of Directors of MEL.
Completed IR Activities (including online meetings and telephone/web conferences)(April 2022-March 2023)
Results briefings for domestic institutional investors andanalysts

2 times

IR meetings for domestic institutional investors andanalysts

184 times

IR meetings for overseas institutional investors (physical)

2 times (North America‧
Singapore)

IR meetings for overseas institutional investors(telephone/web conferences)

50 times

Results briefings for individual investors

0 times48

Contributions to Local Communities

Social Responsibility
The Mitsubishi Estate Group has adopted as its fundamental mission the goal of creating a truly meaningful society bybuilding attractive, environmentally sound communities where people can live, work and relax with contentment. By
putting this mission into practice, MEL aim to coexist with local communities by engaging in initiatives that contribute to
the health, security, and safety of local communities.

Urban Revitalization (Building Versatility・Expansion of Local Employment)
MEL owns highly versatile facilities, with space that can be converted to meet the needs of diverse tenants. These enable
to operate the property stably over the long term, contributing to the promotion of local employment and regional
revitalization.
Specifically, these are equipped not only with warehouse section as their main use,but also with office section.
As a result, tenants can use it not only as a warehouse, but also as a office for multiple purposes.

Coexistence with Local Communities
MEL has been participating in a range of activities to contribute to local communities and local society. We also foster
mutual communication with various stakeholders, including local authorities, local residents, and visitors of ourfacilities, through such activities.

Cleanup volunteer activity after

Cleanup and flower bed maintenance

Atsugi Ayu Firework Festival

volunteer activity (Logicross Atsugi)(MJ Logipark Atsugi 1)

Distribution of food and drinks to

Installed charity vending machinetenant employees to reduce food waste(MJ Logipark Fukuoka 1)(MJ Logipark Fukuoka 1)
49

Free salt candy service for tenants(for all properties held as of 2022)

Cooperation with Local Disaster Prevention
Register for Disaster Cooperation Building(LOGIPORT Sagamihara, LOGIPORT Hashimoto)

Designation as a Tsunami Evacuation Facility Conclusion of disaster prevention agreements in case of assumed flood
damage, etc.
(Logicross Nagoya Kasadera)

Provided as a designated emergency evacuation site in the case of a tsunami disaster or flood(LOGIPORT Osaka Taisho)50

Community Contribution Activities by MJIA
MJIA also conducts various community and social contribution activities and established supporting programs.

①Participation in cleanup activities at office locations
MJIA participates in the "Chiyoda Ward Cleanup Activities" organized by Chiyoda Ward.

Cleaning activities on the Chiyoda Ward General
Cleanup Day(Marunouchi, Chiyoda-ku)②Programs to Support Employee Volunteer Activities
MJIA is working to create an environment that makes it easy for employees to volunteer activities, such as byestablishing Volunteer Support Programs available to employees.
MJIA allows their employees to use accumulated leave (special paid leave) when theyVolunteer leave

perform volunteer activities related to disasters to which the Disaster Relief Act
applies.

Volunteer insurance

MJIA provides insurance that compensates for accidents during volunteering (also forfamily members)

Activity fee subsidy

MJIA partially subsidizes volunteer participation and travel expenses (also for family
members)

Subsidy program for volunteer's travel
expenses to disaster-affected areas

MJIA partially subsidizes travel expenses for volunteering related to disasters covered
under the Disaster Relief Act (also for family members)③Relief Supplies to the Developing Countries
As a substitute for notebooks, we donated unused calendars to elementary schools in developing countries throughsupport organizations to support children in the future.
We also collect used stamps and provide support to developing countries through the Japan International Volunteer
Support Center.
https://www.ngo-jvc.net/support/goods.html④Donate Masks to Chiyoda Ward Health Center
Under the current circumstances of the shortage of masks at medical institutions, we donated the 1,900 unused surge
masks we have stored to the Chiyoda Ward Health Center.

⑤Participation in local contribution activities at group companies

51‧Ecosystem conservation project in the moat of the Imperial Palace
MJIA participates in "Hori Project" ("Hori PJ") conducted by Mitsubishi Estate to improve the waterside environment andrestore and preserve rare water plants originating from the moat in the outer garden of the Imperial Palace.
"Hori PJ" aims to regenerate the ecosystem by building a network of biodiversity connected around the moat, and also tomake the city even more attractive.
Mitsubishi Estate site（Preserving Biodiversity）

Ecosystem conservation projectin the moat of the Imperial Palace52

Human Resource Development

Human Resource Development
MJIA believes that the growth of its all employees, including part-time and contract, is necessary for sustainablegrowth. Therefore, MJIA actively hires not only personnel with a certain level of experience and skills, but also
those in their 20s to early 30s who are relatively inexperienced, and promotes comprehensive human resource
development through training by multiple levels.

Training hours per employee：25.1※Fiscal 2022
Training Programs by Theme
MJIA conduct multiple compliance and risk management training sessions throughout the year for all employees.
Training Program by Job Level
MJIA has a training program for all full-time employees, which can be selected by job level, to develop humanresources.
Manager Training
Mitsubishi Estate Group implements management training for not only managers but also future managerial
candidates to help them acquire the management skills they need in the future.

Classification

Implementation

Training Name

New manager training

MItsubishi Estate
Group

－

Ongoing manager training

MItsubishi Estate
Group

－

Financial Instruments and Exchange Act
SeminarInvite externalteacher

Nishimura & Asahi

Harassment prevention

In-house－

Insider trading prevention

In-house－

Revised Act on the Protection of
Personal Information

In-house－

Seminar on the Whistleblower
Protection Act

In-house－

Level-specificTraining

Compliance / Risk
Management Training

Remarks

Methods

53

Classification

Compliance / Risk
Management Training

Implementation
Methods

Training Name

Remarks

Cyber Security

In-house－

Information Asset Management Training

In-house－

Internal Control System Training for

Invite external

Deloitte Touche

Financial Instruments Dealers

teacherTohmatsu LLC

Fraud and scandal prevention training

In-house－

online－Business English training

OnlineBizmates

Sustainability Training

In-house / Invite
external teacher

CSR Design Green
Investment Advisory
Co.,Ltd.

Business skill training

Held externally

Learning Agency

PowerPoint skills training

OnlineOTSUKA CORPORATION

The training on Daily Action Guidelines
for Implementing MJIA Values

In-house－

Market and risk training (real estate
investment, rental market, economic
environment analysis)
English Training

OthersTraining cost per employee: 93,397 yen※The training on "Daily Action Guidelines for Implementing MJIA Values" mentions "Respect for Diversity" in it.

Acceptance of External Human Resources (Utilizing Specialist Skills)
MJIA continually host junior employees (with fewer than ten yearsʼ experience) seconded from our sponsor who
regularly recruits new graduates. By creating a well-balanced, diverse workforce consisting of both young andexperienced professionals, we ensure that our specialized knowledge and skills in real estate asset management
are shared and passed on within the company, thereby enhancing the sustainability of the organization as a whole.
The staff members including new graduates seconded from our sponsor are eligible for highly specialized training
opportunities provided by each person original employer (sponsor) under its position-based, systematic humanresources development programs. As some of these programs are also available to our employees; we encourage
all of them to take advantage of such educational opportunities.
For more details on our sponsor's training programs, please refer to the following website:＜Mitsubishi Estate＞
https://mec.disclosure.site/e/sustainability/activities/social/human-resource/
Furthermore, MJIA accepts outstanding human resources with experience and expertise in real estate investment
and real estate management from the Group companies. We also accept attorneys and real estate appraisers withhigh expertise in various legal systems and real estate valuation. We aim to maximize our operational performanceby fully utilizing such external human resources.

54

Acceptance of External Human Resources for FY 2022
・Attorney (2 person)
・Real estate appraisers (1 person)
・MEC Human Resources, Inc. (1 person)
・Mitsubishi Jisho IT Solutions Co., Ltd. (1 person)
・Mitsubishi Estate Co., Ltd. (13 person)
Targets
Number of compliance and risk management training sessions: 4 per year
Employee attendance at compliance and risk management training: 100%

Employee Development & Training
Support Career Enrichment, Qualifications and Licenses
We subsidize, for all full-time employees, the costs required to obtain and maintain professional qualifications thatassist employees in improving their real estate asset management practices. Examples of such qualifications
include the Association for Real Estate Securitization (ARES) Certified Master, Certified Building Administrator, Real
Estate Transaction Specialist, Certified Real Estate Consultant and Real Estate Appraiser.
Number of Employees with Qualifications

Certificate Name

Number of
Employee

Certificate Name

Number of
Employee

Real Estate Appraiser

10Real Estate Transaction Specialist

52

Certified Building
Administrator

17

Association for Real Estate Securitization
Certified Master75

Certified Real EstateConsultant

2※As of April 1, 2023
※Including seconded employees

55

Promotion of Diversity ＆ Inclusion

Secure Diverse Human Resources
Mitsubishi Estate Group believes that human resources are a very important management asset and recognizes that
employee growth is essential to the Group's continued growth. We believe that securing talented personnel is an
essential element in achieving high-level management of real estate funds, and we are recruiting a wide range oftalented personnel by employing skills as well as potential. In addition, in order to maximize the capabilities of each
employee, we have created opportunities to communicate with each employee regarding job satisfaction and confirm
career plans so that they can be appropriately assigned.

Female management ratio：16.7％※As of April 1, 2023

Employee turnover ratio：5.9％※FY2022

Personnel data
Employee Data
Full-time employee
Generalist
Staff

SecondedPart-time
employeeTemporary employee

Management

Management

Male

71

71

17

0

2

17

8

0

Female

34

22

3

12

15

2

1

4

Total

105

93

20

12

17

19

9

4

※As of April 1, 2023
Employee Who Newly Joined and Left the Company・Employee Turnover Ratio
Employee who newly

Employee who left

joined the company

the company

FY2022

30

7

5.9%

FY2021

16

7

7.2%

FY2020

12

5

6.0%

※Exclude transfers of seconded employees

56

Employee turnover ratio

Appropriate Evaluation
MJIA has introduced a ”Management by Objective (MBO)” for all employees in order to encourage individuals skills・
career development. In the beginning of the year, employees set a specific goal through interviews with the personnel
evaluator. Interviews are then conducted to provide employees’ their feedbacks on progress and evaluation during theperiod, and at the end of the period.

57

Employee Health and Well-being～Creating Productive and Employee-friendly Workplace～

Improve Work Environment for Productivity
Introduction of Activity-based Working
We have established diverse offices in places where we work, such as group addresses, co-workspace, centralized booths andhigh desks. We are working to improve productivity by freely choosing the environment based on the work of each time.

An open space that secures ceiling height

Utilization of natural light (sunlight)

High chairs and desks for employees' health-being

Co-workspace

Co-workspace

Centralized booths

Ensure security with entrance management

Provide information to employees

systemthrough electronic bulletin board

58

Utilization of ICT
We are working to make paperless and operational efficiency by actively using ICTs, such as mobile PCs, rental of iPhone, andenhancement of WiFi environment.

Initiatives to Promote Internal Communication
Improvement of Community Space in the Office
A coffee shop where barista offers specialized coffee, is set up to induce informal communication with other employees in thesame office.

Hold Social Gatherings to Promote Internal Exchanges and Subsidize costs
We subsidize part of the cost of holding social gatherings and other events at the department level to support the development
within the team. In addition, in order to promote inter-departmental exchanges, we are implementing a variety of initiatives,
including social gathering (an in-house community space holding a social gathering where people can comfortably come by afterwork) and an internal event support system.

Initiatives to Promote Communication between Employee and the Company
With the aim of understanding employees’ thoughts on their career plans and their level of satisfaction with the company, MJIA
works hard to encourage active communication between employees and their managers or the Personnel Department, throughvarious forms, on both a regular and ad hoc basis.

Employee Condition Pulse Survey
Once a month, all employees ascertained of the conditions related to work, human relationships, health and conduct timely
interviews and reflect them in personnel measures.

Employee Satisfaction Survey
Once a year, the Asset Management Company conducts a compliance survey of all employees regarding its corporate culture,communication status, and employee satisfaction. The results of the survey are fed back to the President & CEO of the AssetManagement Company and are reflected in improvement activities.

59

Human Resources Department Interviews with Employees
Once a year, the Human Resources Department holds an interview with all employees regarding their career plans and motivation
towards work.
In addition to the goals established through the interviews, also set out is the goal of “creating a vibrant workplace,” which isdefined as to “embrace the diverse values of the members around and work to create a vibrant workplace,” and efforts areencouraged and evaluated in the personal appraisal.

Initiatives for Employee Health-being
To enable employees to work physically and mentally, we are taking the following measures, in addition to health examinations,stress checks, and appointment of industrial physicians based on laws and regulations, based on the idea that by giving
consideration to the health of employees, we can expect greater results in management.

Absentee rate：0.19％
Injury rate：1.48％
Lost days rate：0.00％※Fiscal FY2022

Annual Health Checkup
All employees are to receive annual physical health checkup by doctor on company cost.

Conduct Stress Check
Once a year, we conduct stress checks to encourage awareness of individual stress and prevent the occurrence of mental
problems.

Appointment of Industrial Physicians
MJIA have appointed an industrial physician to receive guidance and advice on employee health-being.

Consultation Desk
As a necessary measure for mental health, we have set up a desk outside the company, and employees can consult widely about
various concerns, and not only their business concerns.

Installation of Massage Chairs
We have installed 3 massage chairs in the company and employees can use them for refreshment at any time.

Join the Mitsubishi Estate Health Insurance Association
MJIA has joined the Mitsubishi Estate Health Insurance Association which will cover the subsidy for comprehensive medical
examination fee and vaccination costs such as Influenza.

60

Work-life Balance～Create a comfortable workplace where employee will want
to work for a long period of time〜
Initiatives for Diverse Work Styles
We endeavor to provide comfortable work environment by offering various systems to respond to changes in each
employees' lifestyles and life stages and create an employee-friendly environment and maximize their productivity.

Percentage of employees taking paid leave：73.8％(Target：90％
or greater)※Fiscal 2022

Percentage of employees returning to work after taking childcare
leave：80％※Fiscal 2022
Flextime Working System
MJIA has adopted flexible attendance hours. All employees are allowed to choose the time they start working from6:00 to 11:00 and end by 15:00 to 20:00 to work according to their convenience.
As a general rule, various internal meetings are held at core time from 11:00 to 15:00.
Annual Paid Leave
We grant 10 to 20 days of annual paid leave according to the number of years of service. In addition, we haveestablished a half-day paid holiday system and an hourly paid holiday system to enable all employees to take paid
holidays as necessary, and we are working to increase the ratio of employees taking these holidays.
Number of paid days off

Number of days

Paid leave rate

FY2022

15.3

11.3

73.8%

FY2021

17.0

11.4

67.0%

FY2020

16.1

8.8

54.6%

※The average number is shown for full-time, contract, and part-time employees※From fiscal 2021, calculated based on registered employees as of April 1
Various Leave Systems
We have implemented maturity leave, childcare leave and short-time work, nursing care leave of absence forchildren and nursing care leave of absence of family and short-time work to support the balance between life andwork for all employees.

61

Employees taking leave for

Employees working reduced hours for

Percentage of employees

childcare and nursing carechildcare and nursing care

returning to work

Male

3

0

Female

4

9

Male

2

0

Female

4

7

Male

2

0

Female4

7

FY202280.0%

FY2021100%

FY2020100%

Enhancement of Leisure
MJIA has introduced various range of programs designed to foster an environment where all employees can workwith more security and fulfillment as their lifestyles and life stages evolve.
Granting Paid Leave
All employees are given two days of free vacation as a summer vacation.
Introduced Special Incentive Leave
We provide long paid leave according to the years of service for opportunity for refreshment and self-development.
Benefit Programs
MJIA have introduced a cafeteria plan where all employees can choose from a variety of benefit programs.

Asset-building supports for all employees
The following systems have been introduced to support the asset building of all employees and to enhanceorganizational motivation over the medium to long term.
Retirement Plan for full-time employees
Employee Stock Ownership for Mitsubishi Estate
Defined Contribution Pension
Asset Formation Savings
Cumulative investment for Employees

62

Human Rights

Human Rights Initiatives
As a member of society, the Mitsubishi Estate Group is keenly aware of the importance of respect for human rights. To
fulfill our responsibility to respect the basic human rights of all stakeholders, not only those involved in Groupbusinesses, we set up the Mitsubishi Estate Group Human Rights Policy on April 1, 2018. Respect for human rights ispart of the Mitsubishi Estate Group Guidelines for Conduct, which all employees are expected to follow on a daily basis.
These Guidelines stress the importance of respect for human rights and diversity, which means that employees show
concern for human rights and the environment in the course of their business activities. The Human Rights Policy isintended to ensure that we, as a good corporation, understand that internationally mandated human rights are a bareminimum that we must go beyond, that we reaffirm the importance of supporting, protecting and respecting humanrights and that we work to respect the fundamental human rights of every single person involved in the Group'sbusinesses.

Mitsubishi Estate Group Code of Corporate Conduct (excerpt)
Respecting Human Rights and Employee Diversity
We respect human rights and believe that diversity maximizes value.
1. We respect human rights at all times.
2. We reject discrimination and harassment in any form.
3. We strive to establish a creative and competitive organization that safeguards and respects the beliefs of the individual asreflected in the diverse communities in which we work and live.
4. We foster an open corporate culture in which all employees are encouraged to speak freely.

Mitsubishi Estate Group Human Rights Policy (excerpt)
We uphold and respect international standards related to human rights. These include the International Bill of
Human Rights, which sets out the fundamental human rights possessed by all the people of the world, and theInternational Labour Organization's Declaration on Fundamental Principles and Rights at Work, which contains
requirements concerning fundamental rights in the workplace.
We help ensure that respect for human rights is actively practiced in all business activities, and that suchactivities do not infringe on the human rights of other people. If such activities nevertheless result in a violationof the human rights of others, efforts shall be made to minimize the negative impact.
We carry out human rights due diligence in order to minimize any negative impact caused by human rights
violations occurring as a result of the Group's business activities. We maintain a framework for human rights due
diligence and make improvements to the framework on an ongoing basis or if problems arise in order to improve
its efficacy.
Furthermore, in the event that the activities of a business partner or any other individual or organization affiliatedwith the Mitsubishi Estate Group directly have a negative impact on the human rights of others, even if we were
not directly involved in fostering such a negative impact, we shall endeavor to make improvements together withstakeholders to ensure respect for human rights and eliminate all violations.

63Based on our human rights policy, MJIA understands and respects human rights that are internationally proclaimed
based on our human rights policies as a minimum, and supports and respects their protection, are committed torespecting the human rights of all parties involved, including those derived from our businesses. In order to becomeaware of discrimination and to foster awareness of human rights, we conduct training on human rights, focusing on theprevention of harassment, which is also a human rights issue in the workplace.

Human Rights Training
MJIA carries out harassment training program once a year.
Send employees to Human rights enlightenment training courses （External training program：Tokyo Human Right
Awareness Liaison Group）

Whistleblowing
The Asset Management Company has established a consultation service for violations of laws and regulations,
violations of internal rules, harassment, and other matters that are contrary to broad ethical and social standards ofdecency for employees (including directors, full-time employees, contract employees, part-time employees, temporary
employees, and retired employees (Hereinafter referred to as "employees, etc." in this section) and all persons
engaged in the business of the Asset Management Company and all of employees, etc. can declare or submit
anonymously.
The President &CEO has the ultimate responsibility for the operation of the whistle-blowing system, and regularly
disseminate the significance and importance of the system to employees, etc., and thoroughly inform them of the
purpose.
The privacy of whistleblowers and consultants is strictly protected, and appropriate action is taken after confirming
and investigating the facts of the matter. If necessary, the Mitsubishi Estate Group Helpline may also be used.
If the results of the investigation reveal any misconduct, etc., the General Manager of the Compliance Department shallimmediately report it to the President & CEO, who, in the name of the President & CEO, shall immediately order the
department or employee, etc. that is committing the misconduct to cease the misconduct and promptly take corrective
and recurrence-prevention measures.
In addition, whistleblowers are legally protected by the Whistleblower Protection Act, which prohibits any
disadvantageous treatment or harassment of whistleblowers on the basis of their reporting, and we take appropriate
measures to prevent the deterioration of the working environment for whistleblowers and others, thereby striving toprotect whistleblowers and create an environment for the proper functioning of the internal reporting system.

64

Governance Initiatives

Governance Initiatives
MEL is composed of a board of directors consisting of one executive director and three supervisory directors and an
independent auditor, in addition to the general meeting of unitholders composed of its unitholders. MEL is
prohibited from employing employees in accordance with the Investment Trust Law. Therefore, there are no
employees, and asset management is entrusted to MJIA. Under the following management structure, MJIA engages
in asset management operations, such as the acquisition or transfer of real estate and the leasing of real estate.

65

Executive officers and supervisory officers

Number of people：4 people (1 executive officer, 3 supervisory
officers)
Female ratio：25％
Board of Directors meeting attendance rate (16/16 times)：100％(Note 1)
※As of August 31, 2023
(Note 1) Attendance status at board of directors meetings held during the 13th period (ending February 2023) and 14th period(ending August 2023) is stated in number and percentage.
Naoko Yanaka will be (4 times / 4 times) because Naoko Yanaka took office on May 23, 2023.

66

Status and remuneration of officers of the Investment Corporation
The remuneration for executive officers shall be up to 800,000 yen per month, and the remuneration forsupervisory officers shall be up to 300,000 yen per month, the amount determined by the board of directors.
The standards for payment of remuneration for executive officers and supervisory officers are determined by thecompany's regulations.

Title and
Name

Executive Director

Remuneration for Director（Note 1）(Fiscal period ended

Qualifications

August 31 2022 & February 28, 2023)－－

Supervisory Director
So Saito (Male)

Lawyer

2.4 million yen

Supervisory Director
Akira Fukano (Male)

Certified Public Accountant
Tax Accountant

2.4 million yen

Supervisory Director
Naoko Yanaka (Female)

Lawyer

Ken Takanashi (Male)Non-remuneration（Note 2）（Note1）Executive Director does not receive any remuneration from MEL. The amount of remuneration paid to supervisory
directors is the amount paid for the most recent one-year period.
（Note2）There was no actual payment of remuneration for Naoko Yanaka, supervisory Director in fiscal year 2022, as she waselected on May 23, 2023, by resolution at the MEL's general meeting of unitholders held on the same date.

Accounting Auditor
In addition to auditing the financial statements of MEL, if the Accounting Auditor finds the conduct of business bytheexecutive director(s) to be improper or discovers any material violation of law or the Articles, the Auditor shallreport to a supervisory directors and take other actions set forth by law.
Accounting auditor
Accounting auditor

Continuing accounting period

Ernst & Young ShinNihon LLC

From July 2016 until present

Accounting Auditor's Remuneration
Fiscal period ended February 28, 2023
(thousands of yen)Compensation based on audit attestation services

Note)32,650

Remuneration for the accounting auditor includes fees for preparation of the comfort letter for the public offering and fees
for the English language audit.

67

Regular Audits of Ethical Standards
MJIA has established the Internal Audit Department as independent department based on the Internal Audit
Regulations with the General Manager as the person in charge.
Once a year, the Internal Audit Department of MJIA conducts an internal audit, including an on-site inspection, withthe cooperation of an external audit firm. Based on the internal audit plan approved by the President & CEO andthe Board of Directors, internal audits covers all operations on a wide range of items, including the status ofcompliance and risk management practices and corporate ethics. If any problems are identified, the department incharge gets recommendations and instructions for improvement, and the results are reported to the President &CEO and the Board of Directors.

68Corporate GovernanceManagement StructureManagement Structure with Emphasis on Maximizing Unitholder ValueMEL will seek to ensure to align interest between MEL's unitholders and Mitsubishi Estate Group, and maximize
unitholder value as well as to establish and enhance a highly transparent management system.
In the event of transaction which falls under the category of transactions with interested parties, MJIA executes suchtransactions through a transparent decision-making process. In addition, transactions which exceeds a certain
standard with interested parties must be deliberated and approved by the Compliance and Risk Management
Committee. However, for transaction below a certain level, the approval of the General Manager of the ComplianceDepartment is required. Through such deliberations, we will be able to carefully examine from many points of viewand comprehensively judge whether or not to make a transaction. The Compliance and Risk Management Committee,
which is composed of outside attorney, enhances the checks and balances against conflicts of interest transactions
from the standpoint of experts. In deliberations on the acquisition and sale of properties by MEL, the Management
Committee is composed of real estate appraisers who do not have a special interest in the Mitsubishi Estate Group,
and is expected to participate in the deliberations and resolutions of MJIA from a wide range of perspectives basedon expertise and experience as experts in real estate appraisal, and to exert a check-and-balance function against thedecisions of MJIA.

Decision-Making Flow in the Case of Asset Acquisition or Sale Falling Under Related-Party
Transactions
Acquisition or sale of assets at MEL undergoes a transparent decision-making process.

（Note）An example of the decision-making flow in cases that fall under the category of transactions with interested persons, etc.
requiring approval of the board of directors of the investment corporation pursuant to Article 201-2 of the Act on Investment
Trusts and Investment Corporations.

Asset Management Structure
Asset management fee structure aligned with the unitholders' interests
To strengthen the alignment between Asset Management Company and unitholder interest, MEL introduced an asset
management fee reflecting the relative performance between MEL's investment unit price and the TSE REIT Index.

69

Asset management fee Ⅰ(AUM-linked)

Total assets as of the end of previous period x 0.2% (upper limit)

Asset management fee Ⅱ(Real estate profit-linked)

Adjusted NOI × 5.0% (upper limit)

Asset management fee Ⅲ(Unitholder interest-linked)

Asset management fee Ⅲ(Unitholder interest-linked)

Adjusted net income before tax × net income before tax per unit × 0.001% (upper
limit)
Performance against TSE REIT Index ((a) – (b)) × market capitalization (for fiscal
period of each term) × 0.1% (upper limit)（a）： Fluctuations in MEL's investment unit price (incl. dividends)（b）： Fluctuations in the TSE REIT Index (incl. dividends)

Acquisition fee

Acquisition price × 1.0% (upper limit)

Disposition fee

Disposition price × 1.0% (upper limit)

Merger fee

Appraisal value of assets to be succeeded × 1.0% (upper limit)

First J-REIT to Introduce Asset Management Fee Fully Linked to Investment Unit PerformanceSame-boat Investment by Mitsubishi Estate
Mitsubishi Estate, our sponsor holds our investment units with the aim of aligning the interests between unitholders
and the sponsor. Numbers of units (ratio) held by the sponsor as of Mar. 23, 2022 : 18,350 units (4.1%)

Cumulative Investment System
In March 2021, MEC and MJIA introduced an investment unit cumulative investment plan for all full-time employees.
70Compliance

Promotion System for Compliance
MJIA have achieved compliance through the following system.
Body
Board of Directors

Compliance and Risk
Management Committee

President & Chief Executive
Officer

Main Duty
Establish and modify the Asset Manager's compliance program and compliance manual.
Promote Compliance and Risk Management, and discuss and approve these monitoring issues.
As a general rule, this committee should be held once a month, but It should be held asnecessary.
President & CEO is responsible for establishing and implementing a compliance system as theultimate responsibility for compliance. President ＆CEO is responsible for working sincerely andtaking the lead in promoting compliance awareness among officers and employees.
The General Manager of the Compliance Department is responsible for planning, drafting,coordinating and promotion of the Asset Management Company's compliance and risk
management initiatives.

General Manager ofComplianceDepartment(Compliance
Officer)

If it is determined that problem has occurred or is deemed likely to occur from the viewpoint ofcompliance, the Company shall promptly report it to the President & CEO, who shall obtainapproval for a policy for dealing with compliance violations and measures to prevent
recurrence, and report the matter to the Compliance and Risk Management Committee.
As an independent organ of separate from other internal organs of MJIA, General Manager ofCompliance Department independently verifies the details of transactions or decisions related
to the Asset Management Business of Investment Corporation.
Under the supervision of the General Manager of Compliance Department, the ComplianceDepartment coordinates the planning, planning, coordination, and promotion of complianceactivities, and verifies the compliance status of each department.

Compliance Department

The Compliance Department checks the progress of the compliance program to the ComplianceManager of each department on a quarterly basis, and reports the results to the Board ofManagers after deliberation through the approval by the Compliance and Risk Management
Committee.

Initiatives for ComplianceAppropriate motivational framework for employees
To promote individual abilities and career development, MJIA have introduced Management by Objective System (MBO) forall employees. Compliance is included in the evaluation items in this evaluation.
MJIA regularly conduct compliance and risk management training to raise awareness of compliance among officers andemployees.

71Total no. of compliance and risk management training sessions
compliance and risk training sessions※FY2018:

April 2018- March 2019

FY2019:April 2019- March 2020

FY2020:April 2020- March 2021

FY2021:

April 2021- March 2022

FY2018FY2019FY2020

FY2021

9

11

7

9

In order to improve the specialized skills of officers and employees, MJIA support officers and employees in obtaining andmaintaining various qualifications (real estate securitization association certified masters, real estate dealers, etc.), as wellas in providing outside training to acquire a wide range of knowledge. Relevant information and the number of qualified
personnel are available on the website.
http://www.mecinvest.com/en/sustainability/employee.html

Employee Hotlines & Grievance Reporting (Confidential)
MJIA has established a consultation service for grievances, violations of laws and regulations, violations of internal rules,
harassment, and other matters that are contrary to broad ethical and social standards of decency for employees (including
directors, full-time employees, contract employees, part-time employees, temporary employees, and retired employees(Hereinafter referred to as "employees, etc." in this section) and all persons engaged in the business of MJIA and all of
employees, etc. can declare or submit anonymously.
The President &CEO has the ultimate responsibility for the operation of the whistle-blowing system, and regularly
disseminate the significance and importance of the system to employees, etc., and thoroughly inform them of the purpose.
The privacy of whistleblowers and consultants is strictly protected, and appropriate action is taken after confirming andinvestigating the facts of the matter. If necessary, the Mitsubishi Estate Group Helpline may also be used.
If the results of the investigation reveal any misconduct, etc., the General Manager of the Compliance Department shallimmediately report it to the President & CEO, who, in the name of the President & CEO, shall immediately order the
department or employee, etc. that is committing the misconduct to cease the misconduct and promptly take corrective andrecurrence-prevention measures.
In addition, whistleblowers are legally protected by the Whistleblower Protection Act, which prohibits any disadvantageous
treatment or harassment of whistleblowers on the basis of their reporting, and we take appropriate measures to prevent thedeterioration of the working environment for whistleblowers and others, thereby striving to protect whistleblowers andcreate an environment for the proper functioning of the internal reporting system.

Bribery and Anti-Corruption Policy
The Compliance Department provides consultation to employees on a daily basis, and the Compliance Risk Management
Committee monitors the status of the anti-bribery system annually, in addition to preventing misconduct through theestablishment and operation of an internal whistle-blowing system. The Compliance and Risk Management Committee also
reports the status of monitoring to the Board of Directors.
In addition, the Internal Audit Department confirms during on-site inspections that these monitoring and supervisionsystems are being properly operated in accordance with company rules and regulations.
In 2017, an assessment of the overall anti-bribery system of the Mitsubishi Estate Group was conducted by an externalorganization. By addressing the issues identified in this assessment, we are working to further enhance our anti-bribery
system.

72

Risk Management

Risk Management Structure
MJIA has established "Risk Management Regulations" in order to ensure the soundness of management by
establishing basic matters concerning risk management and appropriately managing and operating risks. The
Board of Directors oversees the development of risk management systems. The general manager of the ComplianceDepartment supervises the risk management of the entire asset management company, and the general managerof each department takes charge of risk management in each department. MEL conducts an internal audit of MJIA
once a year to verify and evaluate the appropriateness and effectiveness of the risk management system, andreports the results to MEL's Board of Directors.

73

ESG Disclosure Policy and Reporting Framework

Sustainability Report (including GRI and SASB Standards)
MEL publishes an annual Sustainability Report to introduce its ESG activities. The latest and back issues of the
Sustainability Report can be downloaded from belows.

Sustainability Report 2023

PDF

Sustainability Report 2022

PDF

Sustainability Report 2021

PDF

Information Disclosure Policy
This web site has been created to help stakeholders understand the status of initiatives of MEL and MJIA of theInvestment Corporation, regarding sustainability. We strive to fulfill stakeholder expectations with information
disclosure based on international ESG frameworks as well as requests from investors and external rating agencies
organizations.

Reporting Coverage, Period and Updating Timing
Reporting Coverage : The entire portfolio of the Investment Corporation shall be the coverage of the report and shall bereported annually in principle.
Reporting period: Update period: FY2022 (April 1, 2022 to March 31, 2023) is the reporting period, but some contents outside ofthis fiscal year are also included.
Update timing : Every June in principle

ESG inquiries
For inquiries about ESG, please contact the following:
Mitsubishi Estate Investment Advisers Co., Ltd. (Asset Management Company)
Telephone

03-3218-0030

Entry Hours

9:30 a.m. to 6:00 p.m. (excluding Saturdays, Sundays, national holidays, and New Year holidays)

74

GRI STANDARDS Content Index

Statement of use

Mitsubishi Estate Logistics REIT Investment Corporation has reported in accordance with the GRI
Standards for the period 1/April/2022 to 31/March/2023

GRI 1 used

GRI 1: Foundation 2021

Applicable GRI Sector Standard(s)None

GRI STANDARD /OTHER SOURCEDISCLOSURE

LOCATION

2-1

Organizational details

・About Us

Overview/History/Directors

Entities included in theorganization's
sustainability reporting・About Us

Overview/History/Directors

2-2

2-3

Reporting period,
frequency and contact
point

・ESG Disclosure Policy andReporting Framework

ESG Disclosure Policy and Reporting
Framework

・Environmental Initiatives(E)Environmental PerformanceURL
REASON OF OMISSION / EXPLANATION

General disclosures
GRI 2: General
Disclosures 2021

2-4

Restatements of
information

2-5

External assurance

2-6

Activities, value chain andother business
relationships

ESG Disclosure Policy and Reporting
Framework

The previous year's data for the reporting
year has been revised from the previously
disclosed data as we examined the data
accuracy.
・Environmental Initiatives(E)2-7Employees

2-8Workers who are not
employees

2-9

Governance structure andcomposition

Environmental Performance
Environmental performance data is given
assurance by a third party

・Portfolio

Portfolio List

・IR LibrarySemi-Annual Report

・Efforts for Society and
Employees(S)Promotion of Diversity & Inclusion
MEL has no employees and outsources all
asset management operations to the asset
management company(MJIA), so we
disclose theemployees of the asset
management company here・Efforts for Society and
Employees(S)Promotion of Diversity & Inclusion

・Governance Initiatives(G)Governance Initiatives

・Sustainability policy/promotion
systemCorporate Governance・About Us

Sustainability Committee

2-10

Nomination and selectionof the highest governancebody・About Us

There is no translation for articles ofincorporation of MEL

2-11

Chair of the highest
governance body・About Us

There is no translation for articles ofincorporation of MEL

75

GRI STANDARD /OTHER SOURCEDISCLOSURE

LOCATION

2-12‧Sustainability policy/promotion
systemRole of the highest
governance body inoverseeing themanagement of impacts‧Materiality‧Governance Initiatives(G)URL
REASON OF OMISSION / EXPLANATION
Stakeholder Engagement
Initiatives for Sustainability
Sustainability Policy
Sustainability Committee
Materiality
Risk Management

2-13

Delegation of responsibility ・Sustainability policy/promotion
systemfor managing impacts

2-14Role of the highest
governance body insustainability reporting

・Sustainability policy/promotion
systemSustainability Committee

2-15

Conflicts of interest

・Governance Initiatives(G)Corporate Governance

2-16

・Sustainability policy/promotion
systemSustainability Committee

Communication of criticalconcerns

2-17

Collective knowledge of the ・Sustainability policy/promotion
highest governance bodysystemSustainability Committee

2-18

Evaluation of theperformance of the highest
governance body・Governance Initiatives(G)Risk Management

2-19

Remuneration policies

・Governance Initiatives(G)Governance Initiatives

・IR LibrarySemi-Annual Report

2-20

Process to determine
remuneration

・Governance Initiatives(G)Governance Initiatives

・IR LibrarySemi-Annual Report

2-21

Annual total compensation
ratio

-

Information unavailable:
As MEL has no employees,it is impossible
to calculate the ratio of annual totalcompensation. It is not available suchinformation of MJIA at this time.

2-22

Statement on sustainable
development strategy

・Sustainability policy/promotion
systemTop Message

・Governance Initiatives(G)Risk Management

2-23

・Governance Initiatives(G)Policy commitments

Initiatives for Sustainability
Sustainability Committee

Corporate GovernanceNo critical concerns reported during thereporting period

ComplianceCorporate Governance

2-24

Embedding policy
commitments

・Sustainability policy/promotion
systemSustainability Committee

2-25

Processes to remediate
negative impacts

・Governance Initiatives(G)Compliance

Mechanisms for seeking
advice and raising concerns

・Governance Initiatives(G)Compliance

2-26

2-27

Compliance with laws andregulations-

No incidents reported during the reporting
period2-28

Membership associations

・MJIA HP＞Company Information

Company Overview (MJIA HP)

2-29

・Sustainability policy/promotion
systemStakeholder Engagement

Approach to stakeholder
engagement

2-30

Collective bargaining
agreements

Employee Hotlines & Grievance Reporting(Confidential)

・Efforts for Society and
Employees(S)Investor Relations Initiatives

It is not applicable because MJIA does nothave any employees. All employees except
managerial positions of MJIA are covered
under a collective bargaining agreement.

-

76

GRI STANDARD /OTHER SOURCEDISCLOSURE

LOCATIONURLREASON OF OMISSION / EXPLANATION

Material topics
GRI 3: Material Topics 3-1
2021
3-2

Process to determinematerial topics‧Materiality

Materiality

List of material topics‧Materiality

Materiality

・Environmental Initiatives(E)Materiality

EnergySustainability Committee

GRI 3: Material Topics
3-3
2021

Initiatives for Sustainability

Management of material
topicsCompliance
Promotion System for Compliance
Risk Management Structure

GRI 302: Energy 2016

302-1

Energy consumption within ・Environmental Initiatives(E)the organization

Environmental Performance

302-2

Energy consumption
outside of the organization

・Environmental Initiatives(E)Environmental Performance

・Environmental Initiatives(E)Environmental Performance
Includes all types of energy (electricity,
fuel or district heating and cooling) used in
the logistics properties of MEL

302-3

Energy intensity

302-4

Reduction of energy
consumption

・Environmental Initiatives(E)Environmental Performance

302-5

Reductions in energy
requirements of products
and services

・Environmental Initiatives(E)Contributions to the Environment throughOur Portfolio

・Sustainability policy/promotion
systemMateriality

Water and effluentsGRI 3: Material Topics
3-3
2021

Management of material
topics・Materiality
・Governance Initiatives(G)Sustainability Committee
Initiatives for Sustainability
Compliance
Promotion System for Compliance
Risk Management Structure

GRI 303: Water andEffluents 2018

303-2

Management of water
discharge-related impacts-

Not applicable:
The wastewater discharged from all of ourproperties does not exceed the generalwastewater standards set by thegovernment and the local government.

303-3

Water withdrawal

・Environmental Initiatives(E)Environmental Performance

303-5

Water consumption

・Environmental Initiatives(E)Environmental Performance

・Sustainability policy/promotion
systemMateriality

Emissions

GRI 3: Material Topics
3-3
2021

Management of material
topics・Materiality
・Governance Initiatives(G)Sustainability Committee
Initiatives for Sustainability
Compliance
Promotion System for Compliance
Risk Management Structure77

GRI STANDARD /OTHER SOURCEGRI 305: Emissions
2016

DISCLOSURE

305-1

305-2

305-3

Direct (Scope 1) GHG
emissions

Energy indirect (Scope 2)
GHG emissions

Other indirect (Scope 3)
GHG emissions

305-4

GHG emissions intensity

305-5

Reduction of GHG
emissions

LOCATION‧Environmental Initiatives(E)

URL
REASON OF OMISSION / EXPLANATION
Environmental Performance
Climate Change Initiatives
The calculations include only CO2‧Environmental Initiatives(E)Environmental Performance
Climate Change Initiatives
The calculations include only CO2‧Environmental Initiatives(E)Environmental Performance
Climate Change Initiatives
The calculations include only CO2・Environmental Initiatives(E)Environmental Performance
The calculations include only CO2・Environmental Initiatives(E)Environmental Performance

・Sustainability policy/promotion
systemMateriality

Waste

GRI 3: Material Topics
3-3
2021

Management of material
topics・Materiality
・Governance Initiatives(G)Sustainability Committee
Initiatives for Sustainability
Compliance
Promotion System for Compliance
Risk Management Structure

・Environmental Initiatives(E)Water Resources and Waste Reduction, etc

306-2

Management of significant
waste-related impacts

306-3

Waste generated

・Environmental Initiatives(E)Environmental Performance

306-5

Waste directed to disposal

・Environmental Initiatives(E)Environmental Performance

・Sustainability policy/promotion
systemMateriality

Contributions to the Environment throughOur Portfolio

GRI 306: Waste 2020

Employment

GRI 3: Material Topics
3-3
2021

Management of material
topics・Materiality
・Governance Initiatives(G)Sustainability Committee
Initiatives for Sustainability
Compliance
Promotion System for Compliance
Risk Management Structure

401-1
GRI 401: Employment
2016

401-3

New employee hires andemployee turnover

Parental leave

・Efforts for Society and
Employees(S)Promotion of Diversity & Inclusion

・Efforts for Society and
Employees(S)Work-life Balance～Create a comfortable workplace where
employee will want to work for a long
period of time〜

・Sustainability policy/promotion
systemMateriality

Occupational health and safety

GRI 3: Material Topics
3-3
2021

Management of material
topics・Materiality
・Governance Initiatives(G)Sustainability Committee
Initiatives for Sustainability
Compliance
Promotion System for Compliance
Risk Management Structure78

GRI STANDARD /OTHER SOURCEDISCLOSURE

GRI 403:
Occupational Healthand Safety 2018403-1

Occupational health andsafety management system403-3

Occupational healthservices

403-6

Promotion of worker health403-8

Workers covered by an‧E orts for Society andoccupational health and
Employees(S)safety management system

403-9Work-related injuries‧E orts for Society and
Employees(S)40310

Work-related ill health-

LOCATIONURLREASON OF OMISSION / EXPLANATION‧E orts for Society and
Employees(S)Employee Health and Well-being～Creating Productive and Employeefriendly Workplace～‧E orts for Society and
Employees(S)Employee Health and Well-being～Creating Productive and Employeefriendly Workplace～‧E orts for Society and
Employees(S)Employee Health and Well-being～Creating Productive and Employeefriendly Workplace～
Promotion of Diversity & Inclusion

Employee Health and Well-being～Creating Productive and Employeefriendly Workplace～
No incidents reported during the reporting
periodTraining and education
・Sustainability policy/promotion
systemGRI 3: Material Topics
3-3
2021

Management of material
topics・Materiality
・Governance Initiatives(G)Materiality
Sustainability Committee
Initiatives for Sustainability
Compliance
Promotion System for Compliance
Risk Management Structure

GRI 404: Training and
Education 2016

404-1

Average hours of training
per year per employee

・Efforts for Society and
Employees(S)Human Resource Development

・Efforts for Society and
Employees(S)Human Resource Development

404-2

Programs for upgrading
employee skills andtransition assistanceprograms

・Efforts for Society and
Employees(S)Promotion of Diversity & Inclusion

404-3

Percentage of employees
receiving regularperformance and careerdevelopment reviews

・Sustainability policy/promotion
systemMateriality

Conduct Management by Objectives (MBO)
system for all employees

Diversity and equal opportunity

GRI 3: Material Topics
3-3
2021

Management of material
topics・Materiality
・Governance Initiatives(G)Sustainability Committee
Initiatives for Sustainability
Compliance
Promotion System for Compliance
Risk Management Structure405-1

GRI 405: Diversity andEqual Opportunity
2016
405-2

Diversity of governancebodies and employees

・Efforts for Society and
Employees(S)Promotion of Diversity & Inclusion

Ratio of basic salary andremuneration of women tomen

・Efforts for Society and
Employees(S)There is no gender difference

79

GRI STANDARD /OTHER SOURCEDISCLOSURE

LOCATIONURLREASON OF OMISSION / EXPLANATION

Local communities‧Sustainability policy/promotion
systemGRI 3: Material Topics
3-3
2021

Management of material
topics‧Materiality‧Governance Initiatives(G)Materiality
Sustainability Committee
Initiatives for Sustainability
Compliance
Promotion System for Compliance
Risk Management Structure

GRI 413: Local
Communities 2016413-1

Operations with local
community engagement,
impact assessments, anddevelopment programs‧E orts for Society and
Employees(S)Contributions to Local Communities‧Sustainability policy/promotion
systemMateriality

Supplier social assessment

GRI 3: Material Topics
3-3
2021

Management of material
topics‧Materiality‧Governance Initiatives(G)Sustainability Committee
Initiatives for Sustainability
Compliance
Promotion System for Compliance
Risk Management Structure

GRI 414: SupplierSocial Assessment
2016

414-1

New suppliers that werescreened using social‧Sustainability policy/promotion
systemEstablishment of the Sustainability
Promotion Manual-

No incidents reported during the reporting
periodcriteria

414-2

Negative social impacts inthe supply chain andactions taken

Customer privacy
・Sustainability policy/promotion
systemGRI 3: Material Topics
3-3
2021

Management of material
topics・Materiality
・Governance Initiatives(G)Materiality
Sustainability Committee
Initiatives for Sustainability
Compliance
Promotion System for Compliance
Risk Management Structure

GRI 418: Customer
Privacy 2016

418-1

Substantiated complaints
concerning breaches ofcustomer privacy andlosses of customer data

No incidents reported during the reporting
period-80

SASB Standards

SASB Framework
Activity Metrics
SASB
Disclosure
Code

ACCOUNTING METRIC

Fiscal 2020

Fiscal 2021

Fiscal 2022

Unit

19

21

28

assets666,551

818,895

966,546㎡

IF-RE-000.A

Number of assets

IF-RE-000.B

Leasable floor area

IF-RE-000.C

Percentage of indirectly managed assets

21.9

19.1

38.9

%

IF-RE-000.D

Average occupancy rate

99.8

99.8

100.0

%

Fiscal 2020

Fiscal 2021

Fiscal 2022

Unit

Topic: Energy Management
SASB
Disclosure
Code

ACCOUNTING METRIC

Energy consumption data coverage as a
IF-RE-130a.1(Option)percentage of total floor area, by property
subsector

100.0

Portion of total portfolio gross floor area withpartial energy consumption data

－

100.0

－

100.0

100.0

Percentage(%)
of total floor
area
Percentage(%)
of total floor
area

IF-RE-130a.2

IF-RE-130a.3

Total energy consumed by portfolio area withdata coverage, by property subsector

39,14642,172

132,317MWh

Percentage grid electricity

93.6

93.8

90.3

%

percentage renewable

0.0

0.0

5.5

%

Like-for-like percentage change in energy
consumption for the portfolio area, byproperty subsector

-0.3

0.45

-2.7

%

65.2

Percentage(%)
of total oor
area

66.3

data coverage

81

59.7

SASB
Disclosure

ACCOUNTING METRIC

Fiscal 2020

Fiscal 2021

Fiscal 2022

Unit

Code
Percentage
IF-RE-130a.4

Percentage of eligible portfolio that has an

69.2

energy rating

80.2

80.1

(%)
of total floor
area
Percentage

Percentage of eligible portfolio that iscertified to ENERGY STAR, by property

0.0

0.0

－

subsector(%)
of total floor
area

Note: Properties in Japan are not covered by the ENERGY STAR Certification program, hense there are no
certified properties.

(Option)

IF-RE-130a.5

Percentage of eligible portfolio that has
green building certifications

72.2

84.2

85.5

Percentage(%)
of total floor
area

Description of how building energy management considerations are integrated into property investment
analysis and operational strategy(Please refer to the “Environmental Initiatives(E)” section of this report for more information)
The Mitsubishi Estate Group aim to construct the management system for environment as well as promote
the advanced initiatives to contribute to achieving a sustainable society through the protection ofenvironment by complying with environmental laws and regulations, giving consideration to theenvironment and reducing the burden on the environment.
Mitsubishi Estate Logistics REIT Investment Corporation (MEL) will aim to invest in energy-efficient facilities,
and will continue to work on environmental and energy-saving measures for our properties and improve theefficiency of energy use.
Moreover, Mitsubishi Estate Co., Ltd. , the sponsor of MEL, has been working to contribute to achieving asustainable society through the formuration of the Mitsubishi Estate Group's Sustainable Development Goals
2030 with regarding ESG as a significant management issue.

Topic: Water Management
SASB
Disclosure
Code

IF-RE-140a.1

ACCOUNTING METRIC

Fiscal 2020

Water withdrawal data coverage as apercentage of total floor area

100.0

Water withdrawal data coverage as apercentage of floor area in regions with Highor Extremely High Baseline Water Stress, byproperty subsector

0.0

Fiscal 2021

100.0

0.0

Fiscal 2022

Unit

100.0

Percentage(%)
of total floor
area－

Percentage(%)
of total floor
area

Note: At this time, there are no properties located in regions with high or extremely high baseline water
stress.

82

SASB
Disclosure

ACCOUNTING METRIC

Fiscal 2020

Fiscal 2021

Fiscal 2022

Unit

80,55084,854

82,117

㎥

0.0

0.0

－

%

Code

IF-RE-140a.2

Total water withdrawn by portfolio area withdata coverage
Percentage in regions with High or ExtremelyHigh Baseline Water Stress, by property
subsector

Note: None of the properties are located in regions with High or Extremely High Baseline Water Stress in
Aqueduct

IF-RE-140a.3

Like-for-like percentage change in water
withdrawn for portfolio area, by property
subsector-4.5

data coverage

IF-RE-140a.4

-2.34

66.3

59.7

-2.4

%

44.8

Percentage(%)
of total floor
area

Description of water management risks and discussion of strategies and practices to mitigate those risks

Topic: Management of Tenant Sustainability Impact
SASB
Disclosure
Code

IF-RE-410a.1

ACCOUNTING METRIC

Percentage of new leases that contain a cost
recovery clause for resource efficiencyrelated capital improvements, by property
subsector

Associated leased floor area

(Option)

Percentage of total leasable floor area forbuildings leased under a green leaseagreement

Fiscal 2020

Fiscal 2021

Fiscal 2022

(To be(To be(To bedisclosed)

disclosed)

disclosed)(To bedisclosed)(To bedisclosed)(To bedisclosed)

100.0

Of which, floor area percentage for buildings
leased under a green lease agreement that
contains a cost recovery clause

100.0

83

100.0

100.0

Unit

Percentage(%)
of total floor
area

㎡

100.0

Percentage(%)
of total floor
area

100.0

Percentage(%)
of total floor
area

SASB
Disclosure

ACCOUNTING METRIC

Fiscal 2020

Fiscal 2021

Fiscal 2022

74.8

65.1

44.1

Unit

Code
IF-RE-410a.2

Percentage of tenants that are separately

Percentage(%)

metered or submetered for grid electricity
consumptionof total floor
area
Percentage

Percentage of tenants that are separately
metered or submetered for water
withdrawals, by property subsector

IF-RE-410a.3

66.1

72.4

53.3

(%)
of total floor
area

Discussion of approach to measuring, incentivizing, and improving sustainability impacts of tenants
MEL and MJIA, the asset management company of MEL, are working to contribute to achieving a sustainable
environment by improving the environmental performance of our portfolio. Additionally, we recognize that it
is also important to have the understanding and cooperation of tenants who use our properties on a daily
basis. MEL and MJIA aim to collaborate for a sustainable environmental society in order to promoteawareness- raising activities for tenants, the introduction of green lease contract which enables bothbuilding owners and tenants to share the benefits and sustainability-related initiatives with our tenants.
In order to have tenants' cooperation in energy-saving activities smoothly, the environmental consideration
clauses such as waste separation, recycling recommendations, air-conditioning operation standards andidling stop are set in the property usage rules. We also have educational activities on tenants such as putting
posters on the common areas of each floor.
MEL has concluded a green lease agreement between the owner and the tenant, and is carrying out work toconvert the tenant-exclusive interior lighting to LED at the expense of MEL. Under the green lease contract,tenants can reduce electricity usage charges and maintenance costs (tube replacement costs), and theInvestment Corporation receives a certain percentage of the reduction as a green lease fee. Furthermore, inorder to promote energy-saving measures in cooperation with tenants, the Investment Corporation has
newly added green lease clauses (environmentally conscious clauses) to the fixed-term building lease
contract templates for all properties.

Topic: Climate Change Adaptation
SASB
Disclosure
Code

ACCOUNTING METRIC

IF-RE-450a.1

Area of properties located in 100-year floodzones, by property subsector

Fiscal 2020

Fiscal 2021

Fiscal 2022

Unit

15,02715,02765,329㎡

Note: Area of properties located in the 1000-year flood zone(maximum predicted area of flooding) as a
general level classification in Japan, by property subsector.

IF-RE-450a.2

Description of climate change risk exposure analysis, degree of systematic portfolio exposure, and strategies
for mitigating risks(Please refer to the “Climate Change Initiatives” section of this report for more information)

84

SFDR Sustainability-Related Disclosures

SUSTAINABILITY-RELATED DISCLOSURE
Product Name: Mitsubishi Estate Logistics REIT Investment Corporation
Legal Entity Identifier: 353800YYSGZU31ICQK38

Mitsubishi Estate Logistics REIT Investment Corporation (“MEL”) 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”). MEL does not have any employees in accordance with the prohibition on having employees
under the Act on Investment Trusts and Investment Corporations of Japan, and MEL relies on Mitsubishi Jisho
Investment Advisors, Inc. (the “Asset Management Company”) to manage and operate the properties in theportfolio. MEL and the Asset Management Company are hereinafter referred to collectively as “we,” “us” or “our”.
References to fiscal year ("FY") are to the 12 months began or beginning April 1 of the year, unless noted otherwise.

Summary
No sustainable
investment
objective

The financial products offered by us promote environmental or social characteristics,
but do not have as its objective sustainable investment.

We promote environmental or social characteristics through our sustainability
Environmental orsocialcharacteristics ofthe financial
product

initiatives.
As a member of the Mitsubishi Estate Group (the “Group”), we have integrated theGroup's sustainability goals and initiatives into our business practices, including the
Mitsubishi Group Sustainability Vision 2050 (the “Vision 2050”) and 2030 Long-Term
Management Plan (the “2030 Plan”).
The Asset Management Company has established its Sustainability Policy which sets out
the key sustainability factors to consider in our investment and asset management
decisions.
The Asset Management Company’s decision-making process involves assessment ofmaterial ESG-related risks and opportunities. We also take into account whether theInvestment
strategy

property has obtained environmental certifications and/or the likelihood that they will
be able to obtain them in the future.
In addition, we have developed a green finance framework for our debt financing (the“Green Finance Framework”) and a green equity framework for our equity financing (the“Green Equity Framework,” together with the Green Finance Framework, the“Frameworks”). Net proceeds from financing under the Frameworks may only be used tofund the acquisition of assets that meet certain green criteria or to refinance borrowings
required for acquiring such assets.

85

MEL offers financial products which promote environmental or social characteristics but
does not have sustainable investments as its objective. We call our properties that meet
Proportion ofcertain sustainability criteria “Green Buildings.” As of February 28, 2023, 88.8% of theinvestments

properties in the portfolio were Green Buildings, and 11.2% were not based on grossfloor area. We aim to increase the percentage of Green Buildings in our portfolio to 100%(excluding properties where we own only the underlying land) by FY 2030.
In order to monitor and track our properties’ performance on E/S characteristics, we relyon the following indicators: (i) certifications issued by third-party organizations, such as
the Comprehensive Assessment System for Built Environment Efficiency (“CASBEE”)

Monitoring ofcertification, the Building Energy-efficiency Labeling System (“BELS”) certification or theenvironmental or

Development Bank of Japan’s (“DBJ”) Green Building certification and other relevantsocialcharacteristics

greenhouse gas (“GHG”) emission levels, water consumption and recycling rates that we

certifications, (ii) the results of the energy consumption, solar power generation,
track. Our data on energy consumption, GHG emissions, water use and waste volume isverified by a third-party organization, Japan Audit and Certification Organization forEnvironment and Quality (“JACO”).
Our Sustainability Committee generally meets once a quarter to discuss sustainabilityrelated key issues, goals and measures to achieve those goals and to evaluate our

Methodologies

sustainability performances.
Certain matters discussed by the Sustainability Committee are then reported to and are
discussed by the Board of Directors.
The Asset Management Company uses the following data sources:
Environmental certifications. The Asset Management Company obtains relevant data
provided by established third-party organizations that issue environmental certifications
for real estate properties. Obtaining the environmental certifications issued by such
established third-party organizations helps ensure our data quality. The AssetManagement Company calculates and tracks the properties that hold suchenvironmental certifications.

Data sources andprocessing

The Asset Management Company collects relevant data from the property managers
regarding energy consumption, solar power generation and GHG emission levels in our
portfolio as well as water consumption and the recycling rate in our properties. To
ensure data quality, the Asset Management Company obtains an assurance report
regarding energy consumption, GHG emissions, water use and waste emissions from an
independent third-party organization each year.
In preparing responses to the survey of the Global Real Estate Sustainability Benchmark(“GRESB”) assessment, a consulting firm reviews the ESG-related data and supporting
materials used for the responses. The consulting firm also assists the Asset Management
Company in evaluating any room for future improvement.

Limitations tomethodologies anddata

The main limitations to methodologies and data stem from the necessity to rely on
tenants and property managers for data at the property level which presents challenges
to verify the accuracy of such data.

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Except for the data on energy consumption, GHG emissions, water use and waste
volume, there is no quality assurance or verification by third-party organizations forsuch property-level data.
Limitations to the methodologies and data are not expected to affect the attainment of
the environmental or social characteristics promoted by MEL in any material way.
Prior to our investment in a property, the Asset Management Company conducts due
diligence review, including an environmental assessment and an evaluation of risks
related to building safety, soil contamination and flooding. We make decisions on thebasis of this due diligence review, and we may reject a potential investment based on
environmental factors.
Due diligence
In addition, the Asset Management Company has established the Green Finance
Framework and the Green Equity Framework to implement sustainability practices.
Under these Frameworks, the net proceeds may only be used to fund the investment inassets that meet certain sustainability criteria or to refinance borrowings required forinvesting in such assets.
We do not generally consider investing in properties (i) that do not meet the thresholds
for soil contamination and other environmental contamination in accordance with theEngagement
policies

Soil Contamination Countermeasure Act (Act No. 53 of 2002) of Japan, as amended (the“Soil Contamination Act”) and other environmental laws and ordinances, (ii) that do notmeet the eligibility criteria under our Frameworks and (iii) that are involved in theextraction, storage, transport or manufacture of fossil fuels.

Designatedreference
benchmarkMEL has no benchmark index designated as a reference benchmark to meet the E/Scharacteristics promoted by MEL.

No sustainable investment objective
The financial products offered by MEL promote environmental or social characteristics, but do not have as its
objective sustainable investment.

Environmental or social characteristics of the financial productAs a member of the Group, which has established the Vision 2050 summarizing their awareness of environmental
and social issues to be resolved by 2050, and the 2030 Plan setting objectives and plans to resolve the issues,
based on the Vision 2050, MEL integrates the environmental and social characteristics of these objectives and goals
into our business practices, with special emphasis on the four focus areas, i) environment, ii) diversity andinclusion, iii) innovation and iv) resilience, emphasized in the 2030 Plan.
In February 2019, the Asset Management Company created and adopted a Sustainability Policy which sets out thesustainability factors for us to take into our account in our investment evaluation and execution process, including
enhancement of energy efficiency and reduction of GHG emissions, improvement in water use efficiency and waste
management, preparation for disasters and enhancement of tenant safety, creation of great work environment fordiverse group of talents, collaboration with external stakeholders, transparency of our ESG practices and keeping
current and complying with the high standards of ethics.

87The highlights of our environmental or social characteristics are as follows.

Environmental initiatives – climate change response. We implement energy-saving measures and take steps toreduce GHG emissions in our portfolio. Towards these ends, we have installed LED lighting and rooftop solar panels
in our properties along with implementation of renewable energy. Furthermore, we display posters that raiseawareness on energy-saving measures in common areas of our properties.

Environmental initiatives – water and waste management. We seek to reduce water consumption by installingdevices and appliances such as water meters, water-efficient toilets and smart irrigation systems. Moreover, we
strive to reduce waste in cooperation with tenants by promoting the “3R” (reduce, reuse and recycle) waste
programs.

Social initiatives – tenants. We endeavor to improve tenant health, safety and comfort by undertaking renovation
work in response to varying needs, and by expanding tenant support services to help serve such needs. We havebuilt restaurants and convenience stores on our premises and installed amenities such as shower rooms andmultipurpose restrooms. Our properties are also equipped with disaster-relief vending machines, secure reservescontaining food and beverage in case of emergency, and automated external defibrillators.

Social initiatives – local communities. We build and maintain good relations with local residents, governments andother community members by providing and ensuring a pleasant and safe environment. We support local
communities in the event of disasters by providing our properties as municipality-designated disaster evacuationsites. We also participate in community service activities such as community clean-up events with local residents.

Social initiatives – diversity and employee welfare. We are committed to respecting the fundamental rights anddiversity of our employees, and we endeavor to establish an environment that supports a healthy work-life balance.
To help achieve these goals, we have introduced flexible working hours, a defined contribution pension plan andvarious leave programs that are tailored to varying needs and circumstances.

Social initiatives – human resources development. The Asset Management Company develops human resources withextensive expertise and know-how by offering various training programs, on topics such as compliance, humanrights, risk management and sustainability. We also encourage employees to pursue professional qualifications thatassist them in honing their skills as real estate asset management professionals, and we subsidize the costs needed
to obtain and maintain such qualifications.

Investment strategy
MEL invests directly or indirectly through trust beneficiary interests in real estate. Therefore, due diligence(including the assessment of good governance practices) in relation to investee companies is not applicable. The
investment and due diligence policies as described below are in relation to real estate and real estate related
assets.
The Asset Management Company’s investment decision-making process involves assessment of material ESGrelated risks and opportunities to ensure that our sustainable investment strategy is properly implemented. ESGrelated risks that are assessed during this process include risks pertaining to earthquakes, flooding, soil
contamination and hazardous substances. With each acquisition opportunity, we review ESG-related due diligence
findings.
We also take into account whether the property has obtained environmental certifications and/or the likelihoodthat they will be able to obtain them in the future. In particular, we have set a target of achieving a portfolio with a
100% “Green Buildings” ratio by FY2030 and takes it into our investment decision considerations. We have defineda Green Building as a property that has received a CASBEE certification, a BELS certification or a DBJ Green
Building certification. As of August 31, 2022, 87.6% of our properties were Green Buildings based on gross floor
area. As of February 28, 2023, 88.8% of our properties were Green Buildings based on gross floor area. In the fiscal
period ended February 28, 2023, as a part of our ongoing environmental initiatives, we continued improving
environmental performance of our properties and obtaining environmental certificates at our properties byenhancing energy efficiency and utilizing renewable energy.
88

As we holistically consider various factors in our investment decisions, we may acquire properties that are not
Green Buildings in some cases. However, with respect to logistics properties, we have confirmed through due
diligence process that such properties are still ESG-conscious as we regularly acquire properties from the
Mitsubishi Estate Group which emphasizes ESG considerations in its investment strategy. When we acquire alogistics property that is not a Green Building, we implement appropriate measures to reduce the environmental
impact following acquisition.
In addition, we have developed the Green Finance Framework for loans and bonds offerings and the Green Equity
Framework for equity offerings. Under these Frameworks, the net proceeds may only be used to fund theacquisition of assets that meet certain sustainability criteria or to refinance borrowings required for acquiring such
assets

Proportion of investments
MEL offers financial products which promote environmental or social characteristics but does not have sustainable
investments as its objective. As of February 28, 2023, 88.8% of the properties in the portfolio were Green Buildings(defined above), and 11.2% were not based on gross floor area. We aim to increase the percentage of Green
Buildings in our portfolio to 100% (excluding properties where we own only the underlying land) by FY 2030.

Monitoring of environmental or social characteristics
In order to monitor and track our properties’ performance on E/S characteristics, we rely on certifications issued bythird-party organizations, such as the DBJ Green Building certification, the CASBEE certification, the BELS
certification, and other relevant certification.
In addition, we have set in place the following monitoring mechanisms.
We track energy consumption, solar power generation and GHG emission levels in our portfolio.
We track water consumption and the recycling rate in our properties.
Our data on energy consumption, GHG emissions, water use and waste volume is verified by a third-party
organization, JACO.

Methodologies
We have established our Sustainability Committee, composed of the President and Chief Executive Officer, theGeneral Manager of the Corporate Management Department, also appointed as the Sustainability Management
Officer, and the General Managers of each Department of the Asset Management Company.
Our Sustainability Committee generally meets once a quarter to discuss sustainability-related key issues, goals andvarious measures to achieve those goals and to share the progress on these goals and measures. The Committee
also evaluates the sustainability performances and share the progress on the goals they have set.
Certain matters discussed by the Sustainability Committee are then reported to, and if necessary, discussed by the
Board of Directors. The minutes of the meetings are prepared and kept at the Sustainability Management Office.

Data sources and processing
The Asset Management Company uses the following data sources:

89Environmental certifications. The Asset Management Company obtains the relevant data provided by the establishedthird-party organizations that issue environmental certifications for the properties in our portfolio. Obtaining theenvironmental certifications issued by the established third-party organizations helps ensure the data quality. The
Asset Management Company calculates and tracks the properties which hold environmental certifications.

Environmental initiatives. At the property level, the Asset Management Division of the Logistics REIT Management
Department of the Asset Management Company collects the relevant data from the property managers regarding
energy consumption, solar power generation and GHG emission levels in our portfolio as well as water consumption
and the recycling rate in our properties. To ensure data quality, the Asset Management Company obtains anassurance report regarding energy consumption, GHG emissions, water use and waste emissions from an
independent third-party organization each year.

Installation of LED lightings and solar panels. At the property level, the Asset Management Company obtains
relevant data from the property managers and solar panel management companies.

External sustainability evaluation. Before MEL submits the responses to the survey of the GRESB assessment, aconsulting firm reviews the ESG-related data and supporting materials used for the responses. The consulting firm
also assists the Asset Management Company in evaluating any room for future improvement. Engaging anestablished consulting firm helps to ensure the data quality. Also, the Asset Management Company obtains theassurance report regarding energy consumption, GHG emissions, water use and waste volume, which are used fordata in GRESB assessment, from an independent third-party organization.

Limitations to methodologies and data
The main limitations to methodologies and data stem from the necessity to rely on tenants and property managers
for data at the property level. Like many other real estate investment corporations and asset managers, we rely on
data provided by the tenants, and it presents challenges to verify the accuracy of such data. In addition, data at theproperty level provided by the tenants and property managers is generally updated on an annual basis.
Accordingly, property-specific data will therefore not always be fully up to date.
Data at the property level is compiled internally at the Asset Management Company level, and except for the dataon energy consumption, GHG emissions, water use and waste volume, there is no quality assurance or verificationby third-party organizations for such property-level data.
Limitations to the methodologies and data are not expected to affect the attainment of the environmental or social
characteristics promoted by MEL in any material way.

Due diligence
Prior to our investment in a property, the Asset Management Company conducts due diligence review, including anenvironmental assessment and an evaluation of risks related to building safety, soil contamination and flooding.
We make decisions on the basis of this due diligence review, and we may reject a potential investment based on
environmental factors.
In addition, the Asset Management Company has established a debt-based Green Finance Framework and an
equity-based Green Equity Framework. When investing in properties using proceeds from green financing
conducted under the Green Finance Framework or the Green Equity Frameworks, we do not consider properties
that do not meet the certain green-buildings certification linked eligibility and sustainability criteria specified inthese Frameworks.

Engagement policies

90

We do not generally consider investing in properties (i) that do not meet the thresholds for soil contamination andother environmental contamination in accordance with the Soil Contamination Act and other environmental laws
and ordinances, (ii) that do not meet the eligibility criteria under our Frameworks and (iii) that are involved in theextraction, storage, transport or manufacture of fossil fuels.

Designated reference benchmark
MEL has no benchmark index designated as a reference benchmark to meet the environmental or social
characteristics promoted by MEL.

REMUNERATION AND SUSTAINABILITY RISKS (SFDR ARTICLE 5 DISCLOSURE)
The Asset Management Company has a remuneration policy in place which aims to support its strategy, values andlong-term interest, including its interest in sustainability. The Asset Management Company’s remuneration policy is
consistent with the integration of sustainability risks as follows.

Remuneration system based on skill development. The Asset Management Company’s salary increase system isbased on employees’ development of their professional skills. In order to raise employees’ motivation to improvetheir work performance and develop their professional skills, the Asset Management Company also has aperformance-based bonus system in place that is based on a management by objectives model, as well as an
objective performance evaluation and promotion system.

Evaluation of employees based on ESG criteria. All employees are evaluated once a year on their ESG awareness,
including compliance and risk management awareness, and the results of this evaluation are taken into
consideration when determining salary increases.

Retirement Allowance Program. The Asset Management Company offers a defined contribution pension plan as well
as a retirement plan, with an aim to create a comfortable workplace where employees will want to work for a long
period of time. Bonuses are calculated based on sales and performance, and are determined by the AssetManagement Company’s internal rules. Bonuses take into account issues including job content, performance, andattendance. Such evaluations take into consideration the employee’s contributions and conduct with respect tosustainability efforts and compliance requirements.

INTEGRATION OF SUSTAINABILITY RISKS IN THE INVESTMENT DECISIONS,AND THE IMPACT OF SUCH RISKS ON THE RETURNS OF MEL(SFDR ARTICLE 6 DISCLOSURE)
We have established a Sustainability Committee to lead our sustainability initiatives. The Sustainability Committee
is composed of the President & CEO (Chairman), the General Manager of the Corporate Management Department,
the General Managers of each Department of the Asset Management Company, Sustainability Management Officer
and other designated persons. The Sustainability Committee deliberates key issues, goals, and measures related tosustainability. Based on the discussion, the Sustainability Committee approves which ESG initiatives and targets,
including, but not limited to, energy-saving and water-saving measures, reduction targets of energy and water
consumption and GHG emissions, waste recycling measures and targets, green building certifications, on-site
support services and facilities for our tenants, tenant and employee satisfaction surveys, and human resources
development, to prioritize for implementation, and the President & CEO has final decision-making authority on
which ESG initiatives and targets to implement.
91

Additionally, the Sustainability Management Officer periodically convenes a working group that analyzes climaterelated risks pertaining to the Asset Management Company and its designated funds. These risks are divided into“transition risks”, which are risks arising from new regulations, taxation systems, technologies and otherdevelopments that decarbonization efforts may result in, and “physical risks”, which are risks arising from climatechange, such as long-term changes in climate patterns and severe weather events such as typhoons and floods. The
Sustainability Management Officer reports the findings resulting from these analyses to the Sustainability
Committee, which help deliberate for environmental initiatives that are then made by the Sustainability
Committee.
In order to achieve sustainability in our asset management while maximizing unitholder value, we consider ESG
factors in our investment and asset management processes. As described above, we have instituted a number of
initiatives, at both the portfolio level and the property level, to promote E/S characteristics. Such initiatives
include initiative to fight climate change, initiatives to improve water and waste management and initiatives toimprove employee and tenant satisfaction.
Furthermore, we invest only in properties that have been subjected to the Asset Management Company’scomprehensive due diligence review, including an environmental assessment and an evaluation of risks related tobuilding safety, soil contamination and flooding. We make decisions on the basis of this due diligence review, andwe may reject a potential investment based on environmental factors. Additionally, the Asset Management
Company has established a debt-based Green Finance Framework and an equity-based Green Equity Framework.
When investing in properties using proceeds from green financing under the Green Finance Framework or theGreen Equity Framework, we do not consider properties that do not meet the criteria under our Green Finance
Framework or our Green Equity Framework described above.
Due to the growing interest in ESG factors among our investors and society at large, we believe that a downgrade in
our ESG ratings or any failure to acquire Green Buildings at a sufficient pace could materially adversely impact ourbusiness activities and decrease our unit price. We also recognize the impact on the cash flow of a property if its
environmental performance is inadequate, because it becomes less competitive, as a result of which the rent we
can charge and its occupancy rate may decline. We therefore take ESG factors into serious consideration wheninvesting in new properties and managing our portfolio and believe that our ongoing ESG initiatives will contributeto our sustainable growth and increased unitholders’ value, while mitigating ESG-related risks.

STATEMENT ON PRINCIPAL ADVERSE IMPACTS OF INVESTMENT DECISIONSON SUSTAINABILITY FACTORS
Jul. 28, 2023

PAI Statement

PDF（250KB）

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