Sustainability Report 2024
March 2024

Contents
Message from the president .............................................................................................................................. 3
Initiatives for Sustainability
Our Mission and Vision .................................................................................................................................... 5
Sustainability Promotion Structure................................................................................................................... 7
Material Issues.................................................................................................................................................. 8
Sustainability Policies ..................................................................................................................................... 10
Stakeholder Engagement ................................................................................................................................ 11
Contribution to a Sustainable Environment
Sustainability Policies -Contribution to a sustainable environment-............................................................... 13
Environmental Policies and External Ratings ................................................................................................. 13
Reduction of Energy Consumption and CO2 Emissions (Climate Change Initiatives) ................................... 17
Reduction of Water Consumption and Waste Materials ................................................................................. 23
Collaboration with Tenants for Environmental Initiatives .............................................................................. 25
Biodiversity .................................................................................................................................................... 26
Our Commitment to a Diverse Society
Sustainability Policies -Our commitment to a diverse society- ....................................................................... 27
Providing Properties with Environmental and Social Considerations ........................................................................ 27
Improving Resilience ...................................................................................................................................... 32
Initiatives for an Aging Society with Fewer Children ...................................................................................... 34
Stakeholder Engagement
Sustainable Policies -Stakeholder engagement- .............................................................................................. 35
Stakeholder Engagement ................................................................................................................................ 35
Continuous Improvement of Customer Satisfaction ....................................................................................... 35
Community Engagement ................................................................................................................................ 37
Managing Conflicts of Interests ...................................................................................................................... 40
Attractive Working Environment
Sustainability Policies -Attractive working environment- ............................................................................... 41
Recruiting, Employee Retention and Career Advancement ............................................................................ 41
Health and Wellbeing of Employees ............................................................................................................... 47
Diversity and Equal Opportunities ................................................................................................................. 52

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Responsible Organization
Sustainability Policies -Responsible organization-.......................................................................................... 55
Compliance .................................................................................................................................................... 55
Risk Management........................................................................................................................................... 61
Commitment to Responsible Investments ...................................................................................................... 65

Relevant Data (Environment) ........................................................................................................................ 67
Relevant Data (Social) ................................................................................................................................... 67
Relevant Data (Stakeholder) .......................................................................................................................... 67
Relevant Data (Employment)......................................................................................................................... 68
Relevant Data (System Use, etc.) ................................................................................................................... 69
Relevant Data (Governance) .......................................................................................................................... 70

GRI Content Index ......................................................................................................................................... 71

Editorial Policy
The purpose of this publication is to provide all Kenedix stakeholders with information about the sustainability
policies and activities of the Kenedix Group. We hope this information gives you a better understanding of ourcommitment and goals involving sustainability.

Publication Date

Main group companies
Kenedix Real Estate Fund Management, Inc.
Kenedix Investment Partners, Inc.
Kenedix Property Design, Inc.
Kenedix Engineering, Inc.
Kenedix Green Energy, Inc.
Bit Realty, Inc.
Kenedix Asia Pte. Ltd.

March 2024
(As a general rule, to be revised every March)

Period Covered by This Report
January 1, 2023 to December 31, 2023
Some information concerns activities prior to 2023.

Scope of Reporting

Guideline Used for Reference

Kenedix, Inc. and main group companies(excluding special purpose companies and certain
other companies)

GRI（Global Reporting Initiative）「GRI Standards」

Department in Charge of Production
Public Relations & Sustainability Department,
Kenedix, Inc.
E-mail：kdx_prs@kenedix.com

2Message from the President

Dedicated to both sustained growth and social responsibility
Kenedix has been a source of a diverse array of opportunities for investors since the start of operations in 1995.
Today, we manage more than ¥3.3 trillion of assets under management. Operations encompass many asset
categories and include numerous funds. We manage listed REIT specializing in sectors such as office buildings,
residential properties, retail facilities, logistics facilities and healthcare facilities. Asset management also includes
a private REIT that own large office buildings and other properties and many private funds.
We manage real estate that is used by an enormous number of tenants as well as visitors, customers and others.
Overseeing this real estate requires working closely with many investors and property management companies.
In addition, we manage properties while fulfilling our obligations to the communities where they are located andto the environment. The breadth and scale of our activities means that we must maintain sound relationships withmany types of stakeholders. We are well aware of the responsibilities associated with the significant social andenvironmental effects of our real estate asset management operations.
Based on this understanding of the various ways that real estate affects our stakeholders, our goal is to achievesustained growth while meeting our social responsibility by realizing the full potential of real estate.

Build a stronger infrastructure for achieving both sustained
growth and social responsibility
To reinforce activities involving sustainability, including ESG (environment, society, governance), we haveestablished the Public Relations & sustainability Department (former Corporate Communications Office) in April
2018 as a department responsible solely for these activities. With this office playing a central role, the entire
Kenedix Group increases its various activities for more progress concerning sustainability.

Material issues and sustainability policies
To examine issues that would have material impact on both our business operations and society, Kenedix held
discussions with relevant departments, group companies, external professionals and other stakeholders. As aresult, the Board of Directors have established the final material issue selections. All issues are critical with regard
to our real estate operations as well as the sustainability of the Kenedix Group. For these issues, we establishedfive key areas: contribution to a sustainable environment, commitment to a diverse society, stakeholder
engagement, attractive working environment, and responsible organization. By focusing on these themes, we are3committed to contributing to sustainability and the achievement of the Sustainable Development Goals (SDGs).
In addition, we have set Sustainability Policies, which covers all ESG issues, to create guidelines for all
sustainability initiatives. Adhering to this new policy, the Kenedix Group conducts unified activities that target
the material issues.

Promotion of information disclosure
We have been working to enhance information disclosure related to sustainability since the establishment of thespecialized department in 2018. The four REITs where Kenedix is the main sponsor, etc. have been engaged invarious sustainability initiatives since before, and by comprehensively summarizing such initiatives of the groupon website and sustainability report, we will be working to make our stakeholders understand our efforts.

To our stakeholders
Stakeholder engagement is one of the key areas of the Kenedix Group. We consider continuous engagement withall stakeholders with whom we interact in conjunction with the properties and funds we manage is essential andare ambitious to become a real estate asset management company that is committed to responsible investment.
We sincerely ask for your continued support.

Taisuke Miyajima, President & CEO, Kenedix, Inc.

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Initiatives for Sustainability
Our Mission and Vision
Mission Statement
Kenedix is dedicated to realizing the full potential of real estate
In pursuit not only of increasing assets under management and realizing short-term investment yields, Kenedix,
Inc. assesses real estate locations and property characteristics as it seeks to combine optimal asset management
strategies, timing and financial approaches based on investorsʼ needs, maintaining a strong conviction toward
asset management that “realize the full potential of real estate.”
The Company has formulated a mission statement that elucidates its commitment to real estate value creation:“Kenedix is dedicated to realizing the full potential of real estate.”

Corporate Mission

5

Long-term Vision
Kenedix Vision 2025: Delivering Growth via the Kenedix Model

Goals for 2025: AUM of ¥4 trillion, Kenedix Group market cap of ¥2 trillion and an ROE of 15%* The Kenedix Group market cap includes the market value of REITs where Kenedix serves as the main sponsor.

Kenedix Model
Kenedix does not own real estate directly. Properties are held by funds that are established and managed by the
Kenedix Group.
Asset Management Business

Kenedix constantly provides client investors with high-grade investment opportunities and does
not own real estate itself
Kenedix creates funds that match the needs of each client. By managing these assets in a manner ideally suited toeach property category, Kenedix performs asset management with a high level of transparency.

Real Estate Related Business

Kenedix manages and operates real estate with the goal of increasing the value of funds managed
by Kenedix group
Kenedix increases the value of the funds managed by Kenedix group through providing highly specialized realestate management that takes advantage of scale and real estate operation as an operator.

Real Estate Investment Business

Kenedix co-invests with client investors in funds managed by Kenedix Group companies
Through making co-investments in the fund managed by Kenedix group, Kenedix share the risk/return with client
investors and seeks to maximize the return of the funds together with client investors.

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Initiatives for Sustainability
Sustainability Promotion Structure
The Public Relations & Sustainability Department, which is supervised directly by the President & CEO, is
responsible solely for sustainability activities. This department has a full-time manager as the head of thedepartment and performs the centralized oversight of all types of sustainability programs at the Kenedix Group.
As to sustainability related activities for REITs, the initiatives for sustainability are promoted under the leadershipof the Sustainability Committee established in KFM. The Sustainability Committee is composed of the president& CEO (Chief Sustainability Officer), who is the chairperson of the Sustainability Committee, and department
managers of each REIT Division and others.
The Sustainability Committee gathers, analyzes, and examines the policies and targets, activity plans and various
initiatives, matters related to risk management, and other important matters related to sustainability or ESG for
REITs and KFM, and shares them with related parties, with the aim of promoting initiatives for sustainability and
ESG-related matters. The committee meets in principle, every 3 months, and the content reviewed is also reported
to KFM’s Board of Directors with an independent external member, and to REIT’s Board of Directors withindependent supervisory directors.

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Material Issues
Kenedix has established material issues in order to identify subjects that are critical for achieving sustained growthof the Kenedix Group along with stakeholders and society. We are committed to find solutions to these issues
both in business and society by making initiatives that reflect the opportunities and risks associated with eachissue. Furthermore, we intend to contribute to achieving the SDGs by carrying measures for our materiality.

Process of defining material issues

8Initiatives for Sustainability
Material issues of the Kenedix GroupKey areas

Applicable SDGs

Material issues

Contribution to a
Sustainable
Environment

Commitment to a
Diverse Society

Reduction of energy consumption and CO2
emissions

Reduction of water consumption and wastematerials

Collaboration with tenants for environmental
initiatives

Providing properties with environmental andsocial considerations

Improving resilience/climate adaptation



Initiatives for an aging society with fewer
childrenContinuous improvement of customer
satisfactionCommunity engagement

Managing conflicts of interests



Recruiting, employee retention and careeradvancement



Health and wellbeing of employees

Diversity and equal opportunitiesComplianceRisk managementCommitment to responsible investments

Stakeholder
Engagement

Attractive Working
Environment

Responsible
Organization9

Sustainability Policies
As material issues are defined, we have set Sustainability Policies to cover ESG issues comprehensively. The
Kenedix Group adheres to the Sustainability Policies as the basis for unified initiatives towards the material issues.
Key areas
Contribution to a
Sustainable
Environment

Sustainability policies
Improving the environmental performance of the properties we manage is one of oursocial missions. We will lower the environmental impact and make contribution toenvironmental sustainability by constantly reducing the negative environmental impactof these properties, such as energy consumption, CO2 emissions, water consumption
and the generation of waste materials. We also have activities for the proper
management of hazardous substances and reduction in their use.

Commitment to a

We contribute to the diversity of society while taking into account the social impact ofDiverse Society

our properties. We are committed to maintaining safety, confidence, good health,

Stakeholder

We manage our properties as a responsible real estate asset management company by

comfort and diversity regarding our tenants and the communities where we operate.

Engagement

stressing the importance of engagement with our stakeholders such as investors, tenants,

Attractive

We aim to maintain an attractive working environment by implementing measures for

Working
Environment
Responsible
Organization

business partners, communities and property management companies.

employees' health and wellbeing and for diversity and equal opportunities. To enable
employees to realize their full potential, we will provide a variety of training programs
and other educational opportunities.
We have sound compliance and risk management activities in all of our businessactivities. We are committed to the principle of responsible property investments by a
responsible organization by aligning our operations with global ESG initiatives andactively disclosing ESG information.

10

Initiatives for Sustainability
Stakeholder Engagement
Investments in properties that we make as part of our real estate asset management operations create relationships
and obligations concerning a broad spectrum of stakeholders. This is why stakeholder engagement is one of our
key areas. Constant interaction with stakeholders is essential for establishing sound relationships. We arededicated to using these relationships for even better asset management activities that can in turn help makesociety better.

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Stakeholders

Customers ofproperties we manage(tenants of officebuildings and retailfacilities, residents ofresidential properties
and healthcare facilities
and others)

Client investors offunds we manage(REIT investors, private
fund investors andothers)Business partners(property managers of
portfolio properties
and others)

Communities(communities where
portfolio properties arelocated and theirresidents)

Employees

Our policy for engagement
Our priority is to provide a comfortableenvironment with safety and confidence sothat we can ascertain the various needs ofstakeholders and heighten customer
satisfaction. We do this by building stronglines for frequent communications,performing customer satisfaction surveys,
improving convenience for stakeholders andusing other measures.
<Listed REITs>
There are frequent institutional investor
meetings as well as earnings announcement
information meetings for securities analysts
and information meetings for individual
investors. We also use questionnaires andother methods for direct communications
with investors.
<Private REIT and private funds>
We use frequent meetings with institutional
investors to give them a thoroughunderstanding of our funds. For directconversations, we ask these investors to tell
us about requests, suggestions and any othermatters.
Periodic meetings and other activities areused to give investors information about
portfolio properties, a fund's current
performance and any important issues.
Furthermore, we assess the performance ofproperty management companies
periodically and announce the results alongwith items that require improvements.
We use portfolio properties in many ways tocontribute to the vitality and convenience of
their surrounding areas. For example, weoffer a property's common and open space
for a variety of activities on a temporary
basis. At some locations, our properties areused to increase greenery in a neighborhoodin order to create a better environment.
We hold personnel performance and goal
discussions with employees regularly to learn
their individual needs and other information
about requests, goals and other subjects. Our
people receive support for education, and we
improve the working environment which
provide programs for childcare, elderly
parent care and other family requirements.

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Major engagement channels
Frequent exchanges of ideas by using
property management companies, customer
satisfaction surveys, use of digital signage tosupply information, collaboration withtenants for environmental initiatives andother activities.
Frequent meetings, earnings announcement
information meetings for securities analysts,
information meetings for individual investors,
general unitholder meetings and meetings toreport fund performance, various investor
surveys, strict measures to prevent conflicts ofinterest and other activities.

Frequent meetings, asset management withstrict measures to prevent conflicts of interest
and other activities.

Periodic meetings, feedback on assessments
of property management companies andother activities.

Cooperation with communities by allowing
the temporary use of properties (bicycle
sharing site, disaster evacuation site, earlyvoting location or other use), improvement ofreal estate environment to contribute todevelopment of communities where ourproperties are located (planting vegetation,
Satoyama project or other uses), and otherforms of cooperation.
Semiannual personnel performance and goal
discussions with feedback, more education
assistance to support recruiting, retention andskill development, working style reforms,
support for health management, and theupgrade of the Rules of Employment toinclude support for child or elderly parent
care, and other types of benefits and support.

Contribution to a Sustainable Environment
Sustainability Policies -Contribution to a sustainable environmentImproving the environmental performance of the properties we manage is one of our social missions. We will
lower the environmental impact and make contribution to environmental sustainability by constantly reducing
the negative environmental impact of these properties, such as energy consumption, CO2 emissions, water
consumption and the generation of waste materials. We also have activities for the proper management of
hazardous substances and reduction in their use.

Environmental Policies and External Ratings
Environmental policies
The officers and employees of Kenedix Real Estate Fund Management, Inc. ("KFM") will undertake investment
management operations in accordance with the following environmental policies. KFM supports the international
goals set forth in the Paris Agreement and is committed to continuously make efforts to mitigation and adaptionof climate change. We also endeavor to contribute to the shift towards a circular economy by using resources
efficiently.
1．Compliance with Environmental Laws and Regulations
KFM will promote environment-friendly investment management operations by adhering toenvironmental laws and regulations.
2．Promotion of Energy Conservation Measures
KFM will systematically advance energy conservation measures at our managed properties, maintaining astrong awareness of the importance of natural and energy resources.
3．Reduction of Environmental Burden
KFM will undertake initiatives to reduce GHG (Greenhouse gas), water consumption and waste emissions
as well as promote recycling at its managed properties, understanding its commitment to alleviating its
environmental burden. In addition, KFM will take sufficient care when handling harmful substances andenvironmental pollutants.
4．Challenge to achieve net zero GHG emissions
To achieve Net Zero, KFM has established long-term targets for reducing GHG emissions of its REITs
and will work internally and externally.
5．Disclosure of Environmental Information
KFM will work to disclose necessary information to a variety of concerned parties, including investors,
tenants and business partners, in such areas as its environmental policies and measures.
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6．Environmental Education
KFM will take steps to improve the environmental consciousness of its officers and employees throughinternal education.

Certifications
Each REIT will continue to advance environmental and energy conservation measures as well as efficient energy
use for their portfolio and proactively acquired the following certifications and assessment to promote initiatives
for sustainability.
Overview of Environmental certifications
 Overview of environmental certifications(KDX Realty Investment Corporation)(as of December 31, 2023)

Number ofcertifiedproperties

Certified floor area(m2)

Ratio (%) (2)Environmental certified building (1)1041,350,511.33

58.9

CASBEE Certifications

68769,931.48

33.6

BELS Certification

8

123,598.73

5.4

DBJ Green Building certification

44

648,860.20

28.3

ResReal certification

3

35,601.23

1.6

Note 1: If a property has multiple environmental certifications, it is counted as one property.
Note 2: The ratio of each floor area to the total floor area of properties owned by KDXR (2,294,498.68 m2, calculated on a
pro-rata basis of ownership ratio for compartmentalized ownership).

 Overview of environmental certifications and evaluations(Kenedix Private Investment Corporation)(as of December 31, 2023)

Number ofproperties

Floor area (m2)

Ratio (%) (2)Green certified building (1)5138,937.52

37.9

Certification for CASBEE for Real Estate

4

91,372.82

24.9

DBJ Green Building Certification

1

47,564.70

13.0

Note:

The ratio is the percentage of certified floor area to the gross floor area of properties owned by KPI (calculated ona pro-rata basis of ownership ratio for compartmentalized ownership).

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Contribution to a Sustainable Environment
CASBEE Certification
CASBEE (Comprehensive Assessment System for Built Environment Efficiency) isan evaluation system provided by the Institute for Building Environment and Energy
Conservation (IBEC), to assess and evaluate the environmental performance ofbuildings, developed under the auspices of the Ministry of Land, Infrastructure,
Transport and Tourism. The system rates the overall environmental performance ofbuildings from two perspectives; the evaluation of the environmental quality andperformance of buildings themselves and the external environmental impact ofbuildings. CASBEE Certifications are based on a five-scale system (“Rank S(excellent),” “Rank A (very good),” “Rank B+ (good),” “Rank B- (slightly inferior)”and “Rank C (inferior)”) for buildings that have been completed for more than one
year.
> For more details concerning CASBEE Certification

BELS Certification
BELS (Building-Housing Energy-efficiency Labeling System) is the third-party
certification system to rate houses and buildings in accordance with duty to makeeffort to label energy saving performance in the Act on Improving of Energy
Consumption Performance for Architectural Structures. Houses and buildings areevaluated based on the value of BEI (Building Energy Index) derived from the primaryenergy consumption based on the building energy consumption performancestandard set by the government. The evaluation result is represented by a number ofstars (one star “★” to five stars “★★★★★”).
KDX Realty Investment Corporation was the first J-REIT to acquire this certificationin 2014.
> For more details concerning BELS Certification

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DBJ Green Building Certification
DBJ Green Building Certification Program was launched by Development Bank ofJapan Inc. (DBJ) in April 2011 to support real estate that meets environmental andsocial considerations.
The program evaluates and certifies real estate with environmental and social
considerations, taking into account each property's environmental features andmeasures taken for various stakeholders, such as disaster and community-conscious
measures.
Furthermore, there are 5 levels, “five stars”, “four stars”, “three stars”, “two stars”,“one star” as the certification ranks.
KDX Realty Investment Corporation was the first J-REIT to acquire this certificationin 2011.
> For more details concerning the DBJ Green Building Certification

ResReal Real Estate Resilience Certification
ResReal, is the first certification program in Japan to evaluate the “Robustness (location
and building)”, “Redundancy”, “Readiness” and “Substitutability” of properties toquantify and visualize the resilience (strength, flexibility, resilience and resistance) ofreal estate against natural disasters, certified by the Japan Real Estate Institute.
ResReal Flood Damage Edition quantifies the resilience of the subject property to flood
damage on a 100-point scale, with five grade ranging from Platinum (extremely
resilient) to Standard (generally resilient) depending on the score.
KDX

Realty Investment Corporation was the first J-REIT to acquire this certificationin 2023.
> For more details concerning ResReal Certification

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Contribution to a Sustainable Environment
Reduction of Energy Consumption and CO2 Emissions(Climate Change Initiatives)
Basic views
Global warming, as the main factor for a climate change, has been the primal topic at international meetings so
far and in 2015 Paris Agreement has adopted a new framework in 18 years since Kyoto Protocol. In this agreement,
one of the goals is to keep the increase in global average temperature to well below 2℃, preferably to 1.5℃,
compared to pre-industrial levels. In addition, at COP26 in 2021, the Glasgow Climate Pact was agreed that the
1.5℃ target remains in sight and scales up action on dealing with climate impacts., Each Investment Corporationand the Asset Manager recognize that mitigation and adaption of climate change, and introduction of renewableenergy is the most important issue for our business activities and properties under management.
Reduction of energy consumption and CO2 emissions is one of our material issues. We are making a contribution
to environmental sustainability by using our business activities and property management operations forcontinuously cutting energy consumption and CO2 emissions in order to lower our environmental impact.

Support for TCFD recommendations
Kenedix Real Estate Fund Management, Inc.
expressed support for the recommendations of the
Task Force on Climate-related Financial Disclosures(“TCFD”) and also joined the TCFD consortium, a group of domestic companies that support TCFD
recommendations in October 2021.
TCFD is an international initiative established by the Financial Stability Board (“FSB”) at the request of the G20
for the purpose of discussing the disclosures of Climate-related financial information and the responses byfinancial institutions. TCFD publishes recommendations for companies to disclose their governance, strategy,
risk management, and metrics and targets for Climate-related risk and opportunities.
Also, TCFD Consortium is a group of companies andfinancial institutions that support the TCFD
recommendations. The consortium was establishedwith a view to further discussion on effective
corporate disclosures of Climate-related informationand initiatives to link disclosed information toappropriate investment decisions on the part of financial institutions and other organizations.
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KDX Realty Investment Corporation, Kenedix Private Investment Corporation, and Kenedix Real Estate FundManagement, Inc. will work to expand information disclosure based on TCFD and continue to actively promote
ESG (Environment, Social and Governance) initiatives based on “Sustainability Policies” established by the AssetManagement Company.

Metrics and Targets
Each of two REITs where Kenedix is the main sponsor has set GHG emission reduction goal (KPI) as follows inorder to actively promote the reduction of environmental impact and contribute to sustainability of environment
through the mid- to long-term reduction of GHG emission in our portfolio.

•

KDX Realty Investment Corporation•

Kenedix Private Investment Corporation (only in Japanese)

Reduction of Environmental Burden
Kenedix will address the issue of climate change through the reduction of energy consumption and CO2 emissionsof the properties under management. Although the range of efforts differs depending on the use of the properties
under management, the management period of the funds, investors, etc., each Investment Corporation has taken
various approaches.
Initiatives by KDX Realty Investment Corporation
 Installation of LED Lightings
We promote to convert lightings in common
area, tenant area, etc. and emergency lights(including emergency guide lights) to LED
to actively promote reduction of electricity
consumption.
We will continue to convert lightings in tenant area by promoting Green Lease based on discussions with tenants
in a planned way as well as in common area.

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Contribution to a Sustainable Environment
 Solar panel installation
We installed solar panels at our properties to decrease GHG emissions.

Unics Ina

Kawamachi Yahagi Mall

Tenri Distribution Center

Monenosato Mall

Apita Terrace Yokohama Tsunashima

Yumemachi Narashinodai Mall Remote surveillance of road heating
We have installed remote surveillance systems for snow melting equipment at
three properties in Sapporo. Remote surveillance has significantly reduced thecost of fuel for keeping outdoor areas free of snow.
 Installing Secure Lockers for Deliveries
Secure lockers for parcels eliminate the need for delivery companies to return toa property when a resident is not home the first time. This reduces transportation
GHG emissions and wasted working time for drivers.

Initiatives by Kenedix Private Investment Corporation
 Installation of LED lights
Kenedix Private Investment Corporation (KPI) uses LED lights to reduce bulb
replacement expenses and conserve energy. KPI also reduces its environmental
impact by reducing greenhouse gases.

19 The 8th Yokohama Global Warming Prevention Award
The Yokohama Global Warming Prevention Award is awarded to companies thathave achieved outstanding results in terms of significant reductions of GHG
emissions in the Yokohama City Global Warming Prevention Plan System. The
eighth annual award was given to six of the 310 applicants who submitted theirreports in 2021. G.K. YMM Investment has submitted the report as arepresentative of the building and was awarded as one of the six awardees.
G.K. YMM Investment is a core fund SPC, for which

our group company isentrusted asset management, and invests in a portion of the shares in the
Mitsubishijuko Yokohama Building. The Mitsubishijuko Yokohama Building has
been jointly managed since 2018 by KDX Realty Investment Corporation, Kenedix Private REIT Investment
Corporation and G.K. YMM Investment.

Education to employees on green building
We provide annual sustainability training by external specialist to improve awareness and knowledge onsustainability for our employees.

Green finance
Kenedix, Inc., KDX Realty Investment Corporation and Kenedix Private Investment Corporation want tocontribute to the development of the domestic market using green finance. The green finance enables morecommitted efforts to improve sustainability and further contribution to development of the domestic market byfinancing opportunities to the universe of investors who take active stance towards ESG investment.
What is a Green Finance?
Finance through green bonds and green loans by companies, local governments, or other organizations to raise
funds for domestic and overseas green projects, which is a project contributing to environmental solution, arecalled green finance. As main characteristics of green finance, proceeds are allocated exclusively to green projects,
and are tracked and managed in a reliable manner, ensuring transparency by reporting after the implementationof the finance.

Switching to renewable energy sources for electricity
Kenedix has established a fund, which it also manages, that invests in solar and other renewable energy projects
in Japan that generate electricity. Our asset management services for this fund are backed by our many years ofexperience involving private funds, the arrangement of financing and other activities.

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Contribution to a Sustainable Environment
2020

2021

2022

2023

Number of renewable energy power plants*

23

23

34

47

Output of renewable energy facilities (MW)*

155.7

155.7

161.4

170.4

(Note) The number of renewable energy power plants and output of renewable energy facilities at the Kenedix renewable energy
fund are as of the end of each year and include locations that are operating or under development by Kenedix Investment
Partners, Inc.

100% Renewable-energization of Group REITs
As part of our decarbonization management, we established Kenedix Green Energy, Inc. (KGE), a wholly owned
subsidiary of Kenedix, Inc., on June 5, 2023, with the aim of contributing to the reduction of CO2 emissions byswitching to 100% renewable energy for the electricity consumed by the properties managed by Kenedix groupin order to achieve the carbon neutrality of Kenedix group. KGE’s main business is service provider of retailelectricity business as stipulated in the Electricity Business Act, and its current goal is to convert to 100%
renewable energy for the electricity consumed by the properties owned by our group REITs by the end of FY2025.
KGE will develop power generators, procure stable renewable energy electricity by concluding long-term Power
Purchase Agreements (PPA), propose switching to renewable energy electricity for the properties owned by ourgroup REITs, and provide renewable energy electricity through licensed retail suppliers.
By promoting this business, KGE will contribute to the realization of GHG emission reduction target of “NetZero” for the Group REITs, as well as to the Kenedix Group’s key material issue of “Contributing to a Sustainable
Environment.”(Note) PPA is the abbreviations for the Power Purchase Agreement. PPA is contract in which corporations, such as companies
and local governments, purchase the electricity derived from renewable energy sources.

21

Installation of solar power generation system on the roof of “Kolet,” single-family
properties for rent
Kenedix has installed solar power generation system on the roof of “Kolet,” single-family properties for rent
operated by Kenedix, together with TEPCO Energy Partners, Inc. (“TEPCO EP”) and PinT, Inc. (“PinT”), andstarted operating a scheme to directly supply renewable energy-derived electricity using an on-site PPA/TPO*
model in which power generators install power generation facilities on the premises of customers.
Under the Scheme, TEPCO EP will build a solar power generation system on the roof of the “Kolet” and operate
the power generation business. For home use by “Kolet” residents, power from renewable energy will be supplied
directly from solar power generation systems, and surplus power exceeding the demand from “Kolet” residents
will be sold through commercial systems.
PinT has been commissioned by TEPCO EP to provide electricity billing services for the in-house use of “Kolet”
residents. PinT will provide a unified operation service of the electricity supply scheme in the “Kolet” business by
establishing billing structure for “Kolet” residents together with the virtually renewable energy 100% that thecompany has already supplied to all “Kolet” homes.

(Note) PPA/TPO is a system whereby a solar power generation company collects its own funds or investors to set up a solar
power plant, and then concludes a Power Purchase Agreement (PPA) with a user who wants to purchase electricity
from renewable energy.

22

Contribution to a Sustainable Environment
Reduction of Water Consumption and Waste Materials
Basic views
Although there is no imminent water supply crisis in Japan, climate change and population growth threaten theviability of water supplies worldwide. We recognize that ensuring water sources is critical to our business as wellconsidering the steady increase in global water consumption.
Progress concerning the proper treatment of waste materials and the effective use of natural resources in Japan iscontinuing as people become increasingly aware of the importance of 3R (reduce, reuse and recycle) activities.
Japan is focusing more and more on recycling resources as much as possible rather than mass consumption. Due
to growing limitations on natural resources worldwide, there is a need for even more qualitative initiatives to go
along with quantitative measures for lowering the volume of waste materials.
As an organization that provides asset management services for many types of properties which are used as a place
to work or live, Kenedix has significant obligations to use a diverse array of activities for using real estate to cut
water consumption and the generation of waste materials.
The reduction of water consumption and waste materials is one of our material issues. We are constantly seeking
ways to use our business activities and properties to cut water use and the amount of waste materials produced.
We are also lowering our environmental impact and contributing to environmental sustainability by properly
managing hazardous substances and eliminating their use wherever possible.

Initiatives to reduce water consumption
Water Conservation Initiatives
We are working to reduce water consumption by introducing toilets with water-saving functions and installing
rainwater tanks in our properties.
Rain garden at Yokohama Connect Square
Kenedix has promoted a large-scale development project in the 37th districtof the Yokohama Minato Mirai Central District in collaboration with partnercompanies. In this project, rainwater is first stored during rainfall andgradually infiltrated to recharge groundwater. The landscape changes withthe weather and seasons.

23

Initiatives for reduction of waste materials
Waste material reduction and sorting
By cooperating with property management companies used for portfolio properties, we contact tenants of officebuildings, retail facilities, residential properties and other properties to urge them to reduce the amount of wastematerials and dispose of items properly for each category of waste materials.

Proper measures for hazardous substances, soil contamination and other materials
requiring special handling
Before acquiring a property and in conjunction with other transactions, we thoroughly examine properties byreceiving an engineering report that covers the building's structure and facilities, including environmental items.
We also receive an earthquake probable maximum loss assessment, a soil contamination survey and otherinformation. These activities ensure that the building complies with laws and regulations.
The engineering report includes a confirmation that a building is free of asbestos, PCBs and fluorocarbons. If any
hazardous substances are discovered, appropriate actions are taken, such as by establishing counter-measures,
managing or disposing of these substances, in accordance with laws and regulations.
If a property we plan to acquire has soil contamination, we make the investment only after the completion of soil
contamination counter-measures.
Brownfield Development at Yokohama Connect Square
Kenedix has completed a large-scale development project in the 37th
district of Yokohama Minato Mirai Central District in collaboration with
our partner companies. For this project, we are contributing approximately
1 billion yen to take appropriate measures to deal with soil contaminationsuch as removal of contaminated soil and installation of water shielding
walls, etc.

24

Contribution to a Sustainable Environment
Collaboration with Tenants for Environmental Initiatives
Basic views
As we are continuously making effort to realize sustainable environment, we think it is crucial to cooperate with
our tenants who constantly use our properties. We are aiming to cooperate by taking initiatives to raise awarenessand promoting green lease that allow both owner and tenant to share economic merit to achieve sustainable
environment.
Collaboration with environmental initiatives is one of our material issues. We have been making contribution
through promoting tenant cooperation and cooperating with other stakeholders such as property managementcompanies who actually manage the building and employees of Kenedix Group who manage the properties.

Initiatives for collaboration with tenant
Green Lease
KDX Realty Investment Corporation and Kenedix Private Investment Corporation conducted LED lighting
installation works for a part of a tenant office space at the expense of them based on the agreement. A certain
ratio of the highly reduced amount of electricity charges and maintenance costs (costs for exchanging fluorescentbulbs) has been paid from the tenants in return as Green Lease fee.
What is a Green Lease?
It is an agreement specifying that building owners and tenants shall cooperate with each other to reduce
environmental burden. The agreement contains provisions to facilitate renovation toward more environmentallyfriendly office buildings by reducing building owners’ investment burden through sharing the economic merits
generated as a result of energy-saving renovation works among building owners and tenants. It also contains anagreement to streamline operations for energy saving, water saving and enhancing indoor conditions.
Introducing green lease with clause for environmental cooperation
KDX Realty Investment Corporation and Kenedix Private Investment Corporation have promoted including
clause to cooperate to improve environmental performance of the property, comfort and productivity of tenant
into its based contract.
Cooperation with property management companies
KDX Realty Investment Corporation and Kenedix Real Estate Fund Management, Inc. are engaging with property
management companies to share their vision, policies of sustainability and when making contract with a new
tenant, property management companies explain these ideas to tenants to achieve their cooperation.

25

Biodiversity
Basic views
Protecting biodiversity and using real estate projects to create urban areas are normally conflicting activities thatinvolve trade-offs. Kenedix has a commitment to managing real estate while giving substantial considerations forprotecting biodiversity, which is critical to combating climate change. Biodiversity also plays a key role in thecreation of pleasant environments for the tenants and residents of our buildings as well as everyone living in thesurrounding areas.

Promotion of greening
We plant bushes, flowering
plants and other greening atbuilding entrances, open areasof building sites, rooftops andotherlocations.

Rooftopgreening at retail facilities

KDX Residence Togoshi(greenery adds value to the entrance)

MONA Shin-Urayasu(Rooftop)creates a relaxing space for people and has the added benefit of preventing the reflection of sunshine, which helps
hold down summer heat in large cities.

Consideration for Biodiversity
Birdbath at Yokohama Connect Square
Yokohama Connect Square, which Kenedix was engaged in the development and which
was completed in January 2023, has birdbaths that serve as watering and bathing areas forwild birds.
ABINC certification
Hibiya Parkfront, which is where our head office is located, has received ABINC
certification (urban/SC version) from the Association for Business Innovation in Harmony
with Nature and Community (ABINC). This building, which we developed as a joint
venture, was received this recognition due to its measures to protect biodiversity.

26

Our Commitment to a Diverse Society
Sustainability Policies -Our commitment to a diverse societyWe contribute to the diversity of society while taking into account the social impact of our properties. We arecommitted to maintaining safety, confidence, good health, comfort and diversity regarding our tenants and thecommunities where we operate.

Providing Properties with Environmental and Social Considerations
Basic views
Providing properties with environmental and social considerations is one of our material issues. Through ourinvestments in many types of properties, we are making a contribution to lowering the overall environmental
impact of society, providing greater convenience and achieving other forms of progress.

Investments in various types of properties through REITs
The two REITs where Kenedix is the main sponsor provide investment management in a diverse range of targeted
sectors. The operations of each one reflects the characteristics of its respective market sector, resulting in highly
transparent asset management.
REITs are based on the premise that real estate will be owned and operated for a long-term. Therefore, investment
and property management activities take into account environmental and social issues. Adopting this stanceenables these REITs to help invigorate communities, provide greater convenience, supply pleasant and productive
workplaces, and create safe and secure places to live.

Investments in flexible / mixed use properties
Kenedix invests in large, multi-purpose properties through funds and other schemes. KDX Realty Investment
Corporation and Kenedix Private Investment Corporation also invest in large, multi-purpose properties such as“office buildings and residential properties designed to meet the needs of retail tenants on lower floors,”“properties with multi-uses, such as stores and medical clinics, that are directly linked to a railway station.” Byutilizing areas of our building sites set aside for public use and providing properties for a broad range ofapplications, we contribute to tenants and residents of our buildings as well as everyone living in the surrounding
area.

27

Flexible and agile response to existing buildings
Expertise acquired since the start of real estate securitization in Japan enables us to recognize the potential valueof existing buildings we acquired in the real estate market and produce the greatest possible value by taking
flexible and agile actions.

Urban redevelopment projects
Kenedix Inc. takes part in urban redevelopment projects through its real estate development funds and otherschemes.
Cooperation with Re-Seed
We are participating in a hotel redevelopment project in the Roppongi district of Tokyo andwill operate the property after its completion. This is a joint project with Real Estate
Sustainability & Energy Efficiency Diffusion Organization (Re-Seed), which promotes theconstruction of high-quality buildings that can withstand earthquakes and areenvironmentally responsible. The previous building was replaced by a quality structure withoutstanding environmental and other characteristics. This project uses a sophisticatedbusiness structure. We received certification under the Real Estate Specified Joint Enterprise
Act and are using a special business scheme designated by this act.
Reuse of underground piles
At Kenedix redevelopment projects in central Tokyo, the foundation piles of previous
buildings have been reused in order to eliminate the cost of removal and replacement as wellas the need to dispose of these piles. After a confirmation of their safety and structural
integrity, existing piles have been used for the redevelopment of the Shinsei Bank head officesite in Hibiya, hotel redevelopment projects in Roppongi and Ginza, and other projects.

Urban redevelopment of aging condominium through condominium site sale program and real estate
securitization scheme.
The number of aging condominiums and the shortage of manpower for
management associations is expected to increase significantly. There areurgent needs to restrain deterioration, optimize the management andmaintenance of condominiums in order to prevent harm to the surroundingarea, and strengthen efforts to revitalize condominiums that are aging anddifficult to maintain and repair.

28

Our Commitment to a Diverse Society
Kenedix has developed an office building after the dismantlement of the 50-year-old condominium with former
earthquake-resistant standards in front of Kichijoji Station by utilizing "condominium site sale program" basedon the Act on Facilitation of Reconstruction of Condominiums and real estate securitization scheme. This is thefirst Project in Japan utilizing a real estate securitization scheme to form a fund for the acquisition of the Existing
Building. The project was made possible by procuring a non-recourse loan for the project to resolve cost issues
and by inviting quality investor.

On-site expansion of existing properties
KDX Realty Investment Corporation has expanded a recycle store building at
Roseo Mito, two restaurant buildings at Unix Ina, and a restaurant building anda lounge building. KRR strives to enhance the value of properties through urban
redevelopment.

Investment in the Maebashi CCRC project properties
The concept of CCRC (Continuing Care Retirement Community) originallyoriginated in the United States, but the Japanese version of CCRC was devised
to extend healthy life expectancy in Japan as well as to improve the environment
as a regional revitalization.
Kenedix Private Investment Corporation owns a commercial facility located inlocal city that is promoting CCRC business. The area includes multigeneration
apartments, nursing homes with nursing care, kindergarten, and bakery café & community spaces in the parks.
An organization that works to enhance the attractiveness of the surrounding area has been formed. Kenedix
Private Investment Corporation, in cooperation with the tenants and other members of the organization to foster
a community of diverse people and generations, promotes to increase the attractiveness of the region and createa related population.

Social finance
KDX Realty Investment Corporation further enhances initiatives for sustainability through the issuance of bonds
and borrowing, which are limited use that make a high degree of contribution to society, andalso aims tocontribute to the development of the domestic social finance market by providing investment opportunities toand collaborating with financial institutions who are proactively conducting ESG investment and financing. In
December 2019, Kenedix Residential Next Investment Corporation issued the J-REIT’s first social bonds withtotal amount of 2 billion yen.
29

What is a Social Bond?
Social bond refers to bonds for which the entire amount of the procured funds is allocated only to initial partial or
full investment into new or existing eligible social projects or reflecting and is complaint with the four corerequirements of the social bond principles (use of procured funds, evaluation and selection process of project,management of procured funds and reporting.)

Providing investment opportunities through real estate crowdfunding
We have developed the real estate crowdfunding business “bitREALTY”
since January 2019 to provide more people with opportunity to invest in
unlisted real estate investment funds, which were previously limited tosome institutional investors. We have provided a new era service thatallows to invest in various real estate investment funds via the internet. We
have organized various funds for hotel, residential properties, logistics
facility, healthcare facilities, childcare facilities and retail facility, and havecompleted a total of 8.5 billion yen in offerings so far.

Providing investment opportunities through real estate security tokens
In August 2021, Kenedix implemented Public Real Estate Security Token
Offering (Real Estate STO) for the first time in Japan to issue digital
securities for the purpose of procuring funds. Real estate security tokens(Real Estate ST) have both of the characteristics of real estate such as"visibility" and "stability" and the benefits of financial instruments such as"smaller-lot" and "liquidity." These are convenient real estate investment
methods that can be invested by way of existing securities companies'
investment accounts, and we consider them to be new investment productsthat can meet diverse investment needs of a wide range of investors.
Opportunities to investment in large real estate
As its third offering, in August 2022, Kenedix implemented the largest Real
Estate STO in Japan at that time, backed by a logistics property with anasset size of ¥14,600 million and the offering has won an award in the assetbacked token category at the TADS Awards 2022.
In addition, in August 2023, Kenedix implemented larger Real Estate STO
than that, backed by a tower condominium with an asset size of \30,000
million.

30

Our Commitment to a Diverse Society
Opportunities to investment in secondary market via ODX
As its ninth offering, in December 2023, Kenedix implemented the Real Estate STO, backed by a hotel with anasset size of ¥8,900 million. The Real Estate ST is one of the first security in START, new trading system operated
by Osaka Digital Exchange Co. Ltd, (ODX) for distribution of security tokens, to begin trading.

31Improving Resilience
Basic views
Improving resilience/climate adaption is one of our material issues. We have been making various initiatives toprepared for emergency situations in our properties for the safety and security of tenants’ employees, visitors andlocal communities.

Improving resilience for disaster
Emergency kit box in elevator
KDX Realty Investment Corporation has been placing boxes of emergency
kit in the elevators in case of disaster and machine trouble.

Distribution of emergency action manual handbook
KDX Realty Investment Corporation published a pocket-sized, portable
emergency action manual handbook and distributed to tenants for
emergencies including major earthquakes. The handbook contains various
helpful information in an emergency such as response to major earthquakes,
emergency relief activities and how to use AED.
Disaster response vending machineSome properties owned by Kenedix Residential Next Investment
Corporation have disaster relief vending machines and SDGs promotion
vending machines.
In the event of a power outage due to disaster, etc., beverages in the vending
machines can be provided free of charge as relief beverages.

Verification of earthquake resistance
Before acquiring a property and in conjunction with other transactions, Kenedix receives an engineering reportthat covers the building, various equipment, environmental properties and other items. We use this report toconfirm the building's resistance to earthquakes. If a building does not meet the standards, we complete thepurchase only after the completion of seismic reinforcement work.

32

Our Commitment to a Diverse Society
We also receive a probable maximum loss report prior to acquiring a building. This allows us to determine themaximum risk exposure associated with an earthquake.

33

Initiatives for an Aging Society with Fewer Children
Basic views
Japan's population has been declining since 2008 as the country's population becomes older and the number ofchildren falls. As the already large number of older people continues to climb, the shortage of healthcare facilities
will become an even more serious problem. On the other hand, we also recognize that the wait-listed children forchildcare facilities in urban areas due to women’s advancement in society and lack of nursery teachers is also asocial issue.
Initiatives for an aging society with fewer children are one of our material issues. We invest in residential facilities
with healthcare and childcare facilities, healthcare facilities and using other activities to meet the needs of Japan's
aging population.

Management of healthcare facilities
KDX Realty Investment Corporation has invested in healthcare facilities in order to help meet the growing
demand for healthcare by purchasing and operating these facilities.
Healthcare investments cover a variety of business sectors. Acquisitions include feebased homes for the elderly and serviced housing for the elderly as well as investments
in senior living intermediate nursing home, which is a first for a J-REIT.
KDX Realty Investment Corporation is dedicated to growing along with the operatorsof properties it owns by providing the best solutions for their business and facility
management issues and other needs. KDX Realty Investment Corporation fully understands the philosophy,business operations and other characteristics of these partners. Operators of properties fully understand KDX
Realty Investment Corporation's investment philosophy, management policies and other guidelines. This mutual
understanding results in business partner relationships that go well beyond the conventional boundaries of ties
between a building owner and a tenant.

Commitment to barrier-free access
Office buildings, shopping centers and other real estate at the Kenedix Group have facilities for easy accessibility
for everyone regardless of physical limitations.

34

Stakeholder Engagement
Sustainable Policies -Stakeholder engagementWe manage our properties as a responsible real estate asset management company by stressing the importance ofengagement with our stakeholders such as investors, tenants, business partners, communities and property
management companies.

Stakeholder Engagement
Basic views
The stakeholders of Kenedix are the customers of properties we manage, the client investors of funds we manage,
business partners, communities, employees, and other investors. Constant interaction with stakeholders isessential for establishing sound relationships. We are dedicated to using these relationships for even better asset
management activities that can in turn help make society better.
Stakeholder Engagement

Continuous Improvement of Customer Satisfaction
Basic views
The continuous improvement of customer satisfaction is one of our material issues. One key customer category
is the tenants and residents of the properties we manage. We are also dedicated to increasing the satisfaction of
Kenedix private fund, private REIT and listed REIT investors. Most important to achieving customer satisfaction
are the quality of the properties we acquire and the performance of our funds. We work closely with property
management companies and other business partners in order to improve property quality and fund returns.

Portfolio property customer satisfaction
Tenant satisfaction survey
Satisfaction survey for tenants in office building, i.e. the person in charge of general affairs and employees, aboutbuilding facilities and operational services, which is undertaken by a third party is conducted in every two years
as a general rule. Consecutive survey enables us to capture the tenant needs and quickly respond by renewal of
facilities or implement refurbishment and receive strong intention to stay in the same building from tenants.

35

Fund customer satisfaction
We hold regular meetings with the broad range of institutional investors all over Japan and overseas that havefunds managed by Kenedix group. Direct engagement with these investors give them a better understanding of
our funds and allow us to hear suggestions, requests and other thoughts of these investors.
The listed REIT, KDX Realty Investment Corporation, hold earnings announcement information meetings forsecurities analysts in each fiscal period. These REITs also participate in information meetings for individual
investors as needed in order to maintain direct lines of communication with these investors.

Engagement with business partners
To properly share information such as the status of properties and improvements, we meet on a regular basis withthe property and building management companies that oversee our real estate holdings. When there is a natural
disaster or other emergency, we use our close ties with these companies for quickly determining building damage
and performing on-site management.
Each REIT periodically evaluates the performance of the property management companies they use and holddiscussions about their performance. This creates an appropriate level of pressure on both parties to do their bestat all times. With no obligations or restrictions involving affiliations with other companies or groups, Kenedix has
the flexibility to make investments and manage every property in the best possible way.
Topics: Unified asset and property management by the Kenedix group
Kenedix Real Estate Fund Management, Inc. and Kenedix Property Design, Inc. provide unified asset
management and property management services to KDX Realty Investment Corporation and Kenedix Private
Investment Corporation. Using this coordinated framework creates a sound base for providing high-quality officeservices that precisely match the needs of tenants while taking actions aimed at improving the profitability andvalue of portfolio properties.
Kenedix Property Design, Inc. established Kenedix Engineering, Inc. for the purpose of providing high-quality
total management services by handling renovation and construction projects at managed properties. Adding thiscompany gives Kenedix Property Design the ability to cover a broad range of property management activities
extending from know-how to building facilities.

Contact for formal grievance complaint
Kenedix provides convenient channels for customers to submit complaints and consultations and is committed toresolving every issue in a speedy and suitable manner that earns the understanding of customers.
Complaints and Appeals
36

Stakeholder Engagement
Community Engagement
Basic views
We have identified “Community engagement” as material topic and taking various unique initiatives to makepositive contribution to the local communities.

Community engagement through managed properties
Local events at our properties
KDX Realty Investment Corporation is making efforts to enliven local communities by holding communityparticipating events at its properties.

Roseo Festival(Roseo Mito)

Summer Festival(Unicus Ina)

Kamisato Farmers Market(Unicus Kamisato)

Support for the activities of Japan for UNHCRKDX Realty Investment Corporation has been supporting Japan for UNHCR,
which is the official contact point in Japan on behalf of UNHCR, a refugee
support organization of United Nations, by providing common areas of its
properties as locations for fund-raising activities to support refugees, showing
their advertising video on the digital signages of our properties both for free.
The letter of appreciation was given by Japan for UNHCR to KDX Realty
Investment Corporation.

SDGs event at our property
As part of its community contribution activities, KDX Realty Investment
Corporation held an event to create a Christmas tree using local tenryu cedar
trees at one of its property, Sun Street Hamakita. This event not only increased
the interest towards local forestry industry, but also contributed to raisingawareness to SDGs.
37

UNHCR’s campaign

Initiatives for art project
Kenedix Private Investment Corporation offers open space of its office building
free of charge as a place to exhibit artworks for community-sponsored art events,
providing workers and residents in the neighborhood with a place to relax andhave fun.

Community engagement by Kenedix group
Community participation activities
 Collaboration with local communities
KDX Realty Investment Corporation entered into agreements with Yoshikawa
City, Ina Town, Konosu City and Ashikaga City under which a part of Unicus
Yoshikawa, Unicus Ina, Unicus Konosu and Ashiko Town Ashikaga, respectively,
can be used as a temporary shelter at times of emergency.

Education and academic support activities
 High school student work experience
We provided work experience opportunities for high school students. In addition
to the tour of our office, they learned about the structure of real estate, real estate
funds, and the current status of women’s empowerment.

J-REIT study session for university students
We have provided opportunities for J-REIT study session for university students
to learn basic knowledge about J-REITs and structures of real estate funds.

38

Stakeholder Engagement
Culture, art and sports support activities
 Sponsorship of Hibiya Music Festival
The Hibiya Music Festival is a “borderless music festival that anyone can join for
free,” held at Hibiya Park where is a central park in Tokyo. We co-sponsor the
Hibiya Music Festival, which is held in the Hibiya Park next to our office.

 Donations and sponsorship for sports
We sponsor the Japan Rowing Championships and Japan Ice Hockey
Championships, etc.

International exchange activities Support for the Mindanao Children's Library
The Kenedix Group donates supplies to the Mindanao Children’s Libraryin the Philippines on a regular basis. Employees of group companies
donate shoes, apparel, stationery supplies and other items that they nolonger need. Children who receive these recycled items send a message ofthanks to Kenedix every year.

Reconstruction support activities Matching donations
In the event of a disaster such as earthquake, heavy rain or typhoon, etc.,
Kenedix conducts a matching donation program to support reconstruction
activities. With this program, Kenedix adds a certain amount to every
donation that employees made to an eligible disaster relief charity.

39

Managing Conflicts of Interests
Basic views
The real estate operations of Kenedix encompass a broad spectrum of stakeholders as well as a large number andvariety of properties owned by various investment funds. The immense scale of these activities creates the risk of
conflicts of interest. Preventing this problem requires managing assets while exercising care to prevent conflicts
involving transactions between Kenedix funds and other activities.
Managing conflicts of interests is one of our material issues. The Kenedix Compliance Manual has policies for
specific measures aimed at preventing these conflicts and protecting the assets of the Kenedix Group. We havecompliance and other training programs for reinforcing the commitment of employees to prevent conflicts ofinterests.
Compliance40

Attractive Working Environment
Sustainability Policies -Attractive working environmentWe aim to maintain an attractive working environment by implementing measures for employees' health andwellbeing and for diversity and equal opportunities. To enable employees to realize their full potential, we will
provide a variety of training programs and other educational opportunities.

Recruiting, Employee Retention and Career Advancement
Basic views
Recruiting, employee retention and career advancement is one of our material issues. Kenedix Group is promoting
initiatives to develop capabilities of employees by providing trainings and educational programs to maximize
individual productivity. Employees receive the opportunities to discuss whether they are satisfied with their jobs
and their career plans twice a year, which are used to improve the efficiency of the operation and distribution of
personnel at the most desirable place.

Workforce diversity and stability
As a relatively new business sector, the real estate asset management industry developed by bringing together
specialists with experience in many areas of the real estate and finance sectors in its early days. Kenedix takes overand utilizes the know-how, expertise, philosophies, and human networks cultivated by the Kenedix Group.
Furthermore, Kenedix continues to recruit new employees so that it can secure appropriate human resources in atimely manner in accordance with business conditions and environmental changes. In addition, we have been
recruiting new university graduates continuously since 2005.
Moreover, to forecast hiring needs and proactively develop new pools of talent, Kenedix has adopted a referral
recruitment strategy (an employee placement system whereby current officers and employees are encouraged torecommend personnel suited to the Kenedix Group, such as acquaintances and friends) in February 2021 inaddition to regular new graduate recruitment and mid-career recruitment.
By securing various human resources, Kenedix promotes sustainability management as a real estate asset
management company.
Kenedix Group have never conducted lay-offs or other employment adjustment since their establishment in 1995.

41

Total benefits package
Kenedix Group strives to create a comfortable working environment through various benefit programs for all of
its employees (including contract and part-time employees).
Programs
Human

Training program

Resource

Scope

Contents

All

Allows employees to take various training courses

employees

required for their job level

Development

Subsidizes the registration, maintenance, and renewal
Subsidy for
qualificationacquisitionAllemployees

costs of recommended and supported qualifications infull. In addition, separate incentive payments areprovided for the acquisition of certain recommended
qualifications

Childcare

Maternity leave,and Nursing

childcare leave andchild nursing leave
Subsidy forchildcaretransportation
Nursing care leaveNon-statutory
nursing care leavesystem

SupportDiverseWorking
Style

for

All
employees

Leave and absence to care for children

All

Subsidy for transportation to daycare centers, etc. for

employees

employees who care for multiple preschool children

All

Leave and absence to care for a family member in need

employeesof nursing careAllemployees

Leave to care for a family member in need of nursing
care for a period exceeding one year in combination withnursing care leave
In addition to nursing care leave, a total of 10 days ofSpecial nursing care

All

leave

employees

Shorter working

All

Allows employees to shorten their working hours for thehour

employees

purpose of childcare or nursing care

Flexible working

All

hours

employees

Remote work
Annual paid leave inexcess of statutory
requirements
Consecutive leave

Refreshment leave

paid special leave for nursing care is granted for each
person requiring nursing care.

Allows employees to flexibly choose their start and end
times

for their workday

according to personal

convenienceAll

Allows employees to work from home or in a sharedemployees

office, etc. for greater flexibility in working styleAll

20 days of paid leave at a flat rate (monthly rate for theemployees

first year of employment)All

In addition to regular annual paid leave, employees are

employees

granted consecutive leave

Regularemployees

Refreshment leave is granted every 10 years ofcontinuous service, and a commemorative service
reward is provided to those who take the leave.
42

Attractive Working Environment

Hourly paid leaveAll
employees

Allows employees to take annual paid leave, childnursing care leave, and nursing care leave in one-hour
increments

Human resource development system
At Kenedix, Inc., originally hired employees as new graduates are assigned to one-month entry training and thenrotate several times in six years to make them grow up to human resources that have broad insight. Furthermore,
to continuously improve the operational skills of employees, the company provides external seminars that are
structured for specific job categories, such as managers, mid-level employees and new employees.

Examples of human resource development programs by position and level

Employee talent development training percentage
2020

2021

2022

2023

32.2%

93.4%

82.9%

83.6%

(Note) In 2020, the figure declined sharply due to the COVID-19 pandemic. The figure rebounded in 2021 by utilizing online
training.

Training cost per employee
2020

2021

2022

2023

30,944 yen

59,606 yen

65,933 yen

65,393 yen(Note) Calculated for employees directly employed by Kenedix, Inc.

43

Training programs
Job-specific skill development training program
Kenedix provides seminars arranged by a third party for specific job categories, such as managers, mid-level
employees and new employees to give them opportunities to acquire the skills required at each level.
Self-development program
Kenedix provides opportunities to all of its employees to attend seminars and trainings arranged by third parties
to acquire specialist knowledge or skills required for their jobs.
English language training
Kenedix provides English language training by teachers from educational institutions to employees who apply forthese classes. Students participate in discussions every week. An online-speaking program is also available so
employees can utilize this opportunity with more flexibility.
Study abroad program
Kenedix provides opportunities to obtain a broad range of knowledge, personal connections and international
viewpoints by sending employees to study in oversea graduate schools where they acquire skills to become thenext generation of management.

Encouragement to obtain professional certifications
To keep the status of leading company with professionals that provide high quality services, it is encouraged for
its employees to obtain various certifications to develop capability and career and improve organizational power.
All the executives and employees, including contract employees, are eligible to receive full subsidies forregistration, maintenance, and renewal costs of recommended or supported certifications, with the aim ofpromoting skill development and career formation of employees who are the future leaders of the company andimproving the vitality of the organization. In addition, additional incentives are provided for the acquisition ofcertain recommended certifications to promote the acquisition thereof by executives and employees.
Qualified individuals(as of December 31, 2023)
Real estate notaries

194

Tax accountants

2

ARES certified masters

89

Chartered members of the Securities Analysts
Association of Japan

16

Certified real estate consulting masters

23

Administrative scriveners

4

Certified building administrators

27

Judicial scriveners

1

Licensed senior architects

14

Administrative managers

11

Real estate appraisers

9

Condominium property managers

944

Attractive Working Environment
Certified public accountants (Japan)

4

Loan operations managers

15

Certified public accountants (United States)

4

Attorneys

4(Note) Calculated for employees directly employed by Kenedix, Inc.

 Persons Eligible for Subsidy
All executives and employees, including contract employees Detail of Subsidy
All registration, maintenance and renewal costs for recommended and supported qualifications
Separate incentive payments for acquisition of certain recommended qualifications.

Internal job announcement
Kenedix Group has internal job application program to provide its employees with the opportunity to demonstrate
the best of their ability and to exploit human resource within the company. Employees are allowed to apply forthe jobs they wish and design their own career.

Evaluation system to encourage employees' career development
Employees performance is evaluated through objectives management evaluations. Managers interview individuals
to discuss their performance and career opportunities at the beginning, half year and end of the fiscal year.
At the fiscal year end, all employees undergo an evaluation of achievement of contribution responsibility. The
supervisor evaluates the performance of each employee in terms of their contribution responsibilities and thedegree to which they have achieved them, and the results are fed back to the employee after reflecting theassessment results of the Personnel Evaluation Committee.

Engagement survey
We conduct regular engagement surveys every year as a measure to make the Kenedix Group a rewarding place
to work and a company of choice for our employees. By measuring employee satisfaction, we are working tostrengthen engagement by continuously examining improvement measures to realize an attractive workplace.
Based on the results of the survey, we take organizational issues seriously, analyze them, and respond to them.
2022

2023

Engagement rating

BBB

A

Engagement score

55.4

59.3

45

Investment Unit Ownership Program (ESOP)
We have introduced investment unit ownership program (ESOP) for KDX Realty Investment Corporation for theemployees and senior executive officers.
The purpose of the introduction of the program is to promote welfare benefits by providing opportunities toacquire the Kenedix group REIT’s investment units and facilitating their wealth building as well as to enhanceunitholder value over the medium-to long-term by promoting further alignment of interests with Kenedix group
REIT’s unitholders. In addition, the program allows for the purchase of investment units through payroll
deductions and provides a 10% incentive on the purchase amount.

46

Attractive Working Environment
Health and Wellbeing of Employees
Basic views
The health and wellbeing of employees is one of our material issues. We have been promoting initiatives tomaintain work / life balance, provide working environment that is pleasant and advantageous in soft and hard to
maximize employee's ability. In addition, the company has prepared the non-salary benefits for all of its employees
to reflect a variety of personal needs.

Work style reform
We have been improving its working environment by encouraging employees to take paid holiday, reducing
overtime work and introducing various internal rules to allow flexible work style.
Paid vacation in excess of statutory requirements
20 days of paid vacation are granted to all employees after their second year of employment (the first year of
employment, the number of days is granted according to the length of employment)
Promoting the use of paid vacation days
On top of annual paid leave, we have a program that allows employees to take consecutive days off. Department
managers encourage the people they supervise to go on an extended vacation and to use all of their annual leave.
In addition, in the year following the attainment of 10, 20 or 30 years of continuous service as a regular employee,
refreshment leave is granted, which is added to the number of consecutive days off, and a rewards forcommemoration of service is provided to those who take refreshment leave.
Hourly paid leave
We have an hourly paid leave system that allows employees to choose a flexible working style. Annual paid leave,sick/injured childcare leave and elderly parent care extended leave can all be taken in one-hour increments.
Flexible working hours
All employees can choose different start and end times for their workday except a core-time from 10 a.m. to 3 p.m.
to enhance their working arrangements.
Remote work
All employees can work from home or in a shared office for their greater flexibility in working style.
Initiatives to reduce overtime work
Managers in each department are monitoring working hours and in their team and adjusting workloads of
employees to minimize overtime. If an employee has worked more than certain hours, a check-up by doctor shall47

be arranged upon employee's request, reported to the Health Committee.

Health and wellbeing
We have been endorsing health management to support health of employees and preparing comfortable working
environment through establishing rules as follows.
Health committee
Kenedix has established health committee and organized monthly meeting to discuss and take measures topromote health and prevent disorder for its employees. Also, the committee sends email every month to all
employees on relevant topics to enlighten them on health and wellbeing.
Annual physical check-up
All employees including contract employees are to receive annual physical health checkup by doctor on company
cost.
Mental health care
All employees have access to counseling service provided by the company where employees are allowed to reportany personal issues or issues regarding the company to external counselors, in order to raise their mental literacy.
Newsletter with relevant topics on mental health is sent every month to notify of this service.
In addition, the company provides annual stress check to all employees including contract employees to prevent
illness of which result are provided to each employee and, if necessary, checkup by doctor is arranged.
Diverse working styles
We make the working environment more flexible and provide a variety of working styles and options to suit eachindividual.

48

Attractive Working Environment
Positive working environment for workers
We are located at “Hibiya Parkfront”, the building we participated in its development. The transportation of thebuilding is excellent since it is directly connected to 2 metro stations, Kasumigaseki and Uchisaiwaicho, throughthe neighboring building. Taking advantage of its rare location near Hibiya Park, abundant trees are planted
inside and outside the building under the concept of an "office in the park". In addition, by providing services andfacilities to support office workers, the building has become an ideal office where "people can feel nature and work
comfortably".
 Introduction of an Activity-Based Workplace (ABW)
We have redesigned our head office to realize a new way of working by adopting an Activity-Based Workplace(ABW), in which employees can choose where they work according to the nature of their work, without fixedseating.
The “activity-based type,” which has been attracting attention in Japan following Europe, the U.S., and Asia, is a
development of the free-address type, with the same features of a designated workplace shared by all employees
without fixed seating, but with a variety of seating and space arrangements, allowing employees to choose anenvironment that suits their working style and work content. Since Kenedix group handles highly confidential
information such as client asset management and personal information, it clearly separates the space for eachgroup company and the space shared by the entire company, and adopts ABW for the company-wide shared space,
while introducing a flextime system to support diverse employee work styles.

Open table seats

BOX seats

Standing desk

Open-air seating for casual chit-chat Box seating for four persons enables It can improve excessive sitting andand lunch time.
casual meeting.
change posture to amplify health andimprove concentration.

49

Café counter

Booth

High concentration area

Freshly ground coffee is served, and Users can use the facility for telephone Employees can work alone in a quiet andemployees can stand around and talk in calls or web conference on alone, calm environment to improve their worka café-like atmosphere.
without worrying about surrounding efficiency.
eyes and sounds.

 Harmonization with the nature of Hibiya Park
In order to harmonize with Hibiya Park, thelandscape was developed for greening with over
100 plants and trees. Trees and plants are also
placed inside the building to achieve park-like
comfortable space in the building.
1F Entrance hall

21F Sky garden

 Hibiya Centrium unified with landscape in Hibiya ParkTo protect biodiversity, over 100 kinds of trees and plants were selected after
thorough examination of landscape in Hibiya Park. The area has become theoasis for tenants and workers from the nearby office.

Hibiya Centrium

Use of workcations
We started the operation of PerkUP Karuizawa as a base for team building and other activities in a scenic area ofJapan far from big cities.

50

Attractive Working Environment
Other initiatives
Employees meeting
Employees meetings, both online and off-site, are held to promote interaction among group employees. All
employees of the Kenedix group participate in the meetings and share various topics such as messages from thepresident, introductions of each department, and awards for projects implemented during the fiscal year in orderto promote friendship.
Proposal Project
We have implemented a project to solicit a variety of proposals that will contribute to the achievement of the Midterm Management Plan, positive working and contribution to society from all employees of Kenedix group.
Winners are selected through employee voting, and those proposals deemed desirable to be promoted as a project
are promoted toward realization with resources, etc., provided by the company.
“Kolet,” the newly built single-family properties for rent, was commercialized through this proposal project. In
addition, various initiatives are underway to contribute to positive working and contribution to society, such asgroup exchange party, measures to improve the rate of paid leave used, the introduction of office music and theprovision of donated study session to universities and other organizations.
Support for group activities outside of work
Kenedix subsidizes for group activities such as futsal or golf, which help employees make personal connections
beyond his/her job scope.
Certification of health & productivity management outstanding organizations
Through the implementation of various initiatives related to healthmanagement, etc., we have been certified as a “health & productivity
management outstanding organization 2024 (large enterprise category)”
by Nippon Kenko Kaigi, which recognizes organizations that practice
excellent health & productivity management.
Thecertifiedhealth&productivity

management

outstandingorganizations recognition program is a program that recognizes large corporations, small and medium-sizedcompanies, and other corporations that practice particularly excellent health management as "organizations thatthink about employee health management from a managerial perspective and engage in it strategically," based on
initiatives that meet local health issues and health promotion initiatives promoted by Nippon Kenko Kaigi.

51

Diversity and Equal Opportunities
Basic views
Kenedix has established diversity and equal opportunities as one of its material issues. We promote various
initiatives related to diversity, equity & inclusion. Also, we welcome diversity regarding race, religion, creed,gender, age, sexual orientation, disabilities and nationality and respect the rights of individuals. We are dedicatedto operating workplaces where all people at the Kenedix Group can realize their full potential.

Respect for human rights, prevention of all forms of discrimination and harassment
The Kenedix Compliance Manual clearly states that we will respect human rights and reject all forms of
discrimination and harassment. There are compliance and other training programs to be certain that everyone at
the Kenedix Group understands and observes these standards. We recognize the ILO (International Labor
Organization) declaration on fundamental principles and rights at work, including the elimination of
discrimination, prohibition of forced labor, prohibition of child labor, freedom of association, and the right tocollective bargaining, as important social issues, and we are also working to prevent overwork and pay wages thatexceed the minimum wage. In addition, we are thoroughly prohibiting harassment, and we provide training for all
officers and employees on how to deal with harassment.

Promotion of women employeesʼ activities
We believe that it is important to revitalize the workplace through the participation of a diverse range of employees.
In addition, from the perspective of effectively utilizing human resources to cope with the future decline in theworking-age population, we are particularly promoting the activities of women. In order for women to realize theirfull potential, we have established a workplace environment that is easy for women to work in, as well as systems
to support childbirth and childcare, and we aim to become a company where women and their families can play
an even more active role.
Topics: Women's Activity Promotion ProjectAs a result of an internal proposal project, we have established a new project team for the promotion of women's
activities across the Group. This project conducted a company-wide questionnaire on women's activities tosummarize the issues and future measures to be taken by the company, and conducted training for all employees,
executives, managers, and female employees on diversity to foster understanding of diversity in the company. In
addition, based on these trainings and other activities, the Kenedix Group executives formulated the "Kenedix
Declaration of Conduct for the Promotion of Female Advancement and Improvement of the Workplace
Environment.
52

Attractive Working Environment
In January 2024, this project team was re-launched as the diversity promotion project team, and is now engaged
in various activities with a greater emphasis on diversity.
Kenedix Declaration of Conduct for the Promotion of Women Advancement and Improvement of the Workplace
Environment
Each and every one of our employees is the source of Kenedix’s corporate value. We respect the abilities of all
employees and aim to create a workplace environment where they can work with peace of mind.
1) We will create a workplace where all employees, regardless of gender, occupation, or age, can improve theirskills and fully demonstrate their individual abilities.
2) We will create a workplace where employees can respect each other and freely and openly exchange opinions
regardless of hierarchy, departments, age, or gender.
3) We will provide opportunities for motivated women employees to gain a wide range of work experience.
General business owner action plan based on the law for the promotion of women's activity
In order to create an employment environment in which all employees, regardless of gender, can improve theirskills and fully demonstrate their individual abilities, we have established the following action plan.
 Targets
1) Increase the percentage of female employees in management positions to at least 15% by the end of 2025,with a view to achieving 20% by the end of 2030.
2) Continue to have 100% of female employees take childcare leave, and increase the number of male employees
taking childcare leave.
 Initiatives
1) Training and career support for female employees
・Promotion of measures through the Women's Activity Promotion Project2) Creation of a workplace environment for flexible and efficient work and leave styles
・Introduce a permanent telework system
・Promote flexible and efficient work styles by use of PerkUP Karuizawa, shared offices, etc.
・Promote the use of various types of leave, including annual paid leave3) Establishment and dissemination of an environment that facilitates the use of childcare leave
・Promote internal awareness of childcare-related programs
・Gathering information on case studies of other companies, etc.

53

Employment system for seniors
From the perspective of revitalizing the workplace through the participation of diverse employees and effectively
utilizing human resources in response to the future decline in the working-age population, we have established asystem for rehiring employees who have reached retirement age of 60 until the age of 65, we expect that theknowledge and expertise of our senior employees, who have been at the forefront of the real estate asset
management industry since its dawn, will be passed on to the organization.

Support for employees through their life event
We have prepared various programs to support employees to work through their life event such as having children
or nursing elderly.
Childbirth and childcare
We have a number of programs for women during a pregnancy, such as time off for medical check-ups, working
hours that avoid times when trains are most crowded, and days off for good health. At childbirth and afterward,
we provide time off for women and their husbands.
Employees can receive time off for the care of a baby or when a preschool age child is sick or requires other care.
We also offer flexible working time so employees can care for family members. For example, employees can limit
overtime and late-night assignments, reduce working hours, or use staggered hours. There is also a subsidy for
expenses for child-related transportation needs before and after work and a discounted babysitter service.
Nursing elderly
Employees taking care of an elderly parent or other relative can use extra days off or extended leave. We also limit
overtime and late-night assignments, reduce working hours, or use staggered hours so that an individual can fulfill
family responsibilities. Support for nursing care goes beyond requirements by providing more than the legally
mandated time off and special days off to care for an elderly parent or other relative.

54

Responsible Organization

Sustainability Policies -Responsible organizationWe ensure compliance and sound risk management in our entire business activities. We are committed toresponsible property investment by a responsible organization by aligning with global ESG initiatives andproactively disclosing ESG information.

Compliance
Basic views
Strict compliance with laws, regulations and other guidelines is positioned as a vital element of the managementof Kenedix based on the awareness that compliance problems are a significant risk regarding business operations.
We have a responsibility to use business operations to create the types of value that meet social requirements. We
have extensive and constant compliance programs in order to achieve qualitative and quantitative improvementsof the value of our business operations.
By implementing a rigorous compliance program, we are determined to contribute to economic and social
advancement and, as a result, earn the admiration of investors and the trust of the public.
Compliance is one of our material issues and the entire group has a strong commitment to compliance.

Compliance system
A Compliance Officer who reports directly to the president of Kenedix is responsible for the establishment andoperation of a compliance program. There is also a Corporate Compliance Committee for discussing matters
involving compliance at Kenedix (except items involving business operations) and reaching decisions about
specific actions. In addition, there is a Business Compliance Committee for discussions and approvals of matters
involving compliance concerning business operations of Kenedix. Corporate Compliance Committee is composedof full-time directors, senior executive officers, and the Compliance Officer. The Business Compliance Committee
consists of the director in charge of compliance, Compliance Officer, and outside committee members.
The Compliance Officer performs the following activities.
1.

Proposals for rules and other items and their implementation
Proposals, and subsequent implementation of, for rules and other items associated with compliance55

activities, including the Compliance Manual, Compliance Program and other guidelines for the proper
conduct of executives and employees
2.

Guidance and training
Periodic compliance guidance and training activities for executives and employees

3.

Confirmation of the status of compliance
Activities to confirm that compliance programs are functioning properly

4.

Handling of problems
When there is an incident involving financial instruments or any other problem related to compliance,
the Compliance Officer immediately performs an investigation to determine what happened. Afterusing this information to determine the cause, the Compliance Officer implements preventive
measures and, as needed, submits a report to regulatory authorities and takes other actions.

Compliance manual
The Kenedix Compliance Manual gives executives and employees specific guidelines for what they should doconcerning compliance activities. The manual explains corporate compliance programs and laws and regulations
that must be understood and observed when conducting business operations. In addition, members of the Regal& Compliance Department use this manual to hold seminars in order so that everyone has a sound complianceunderstanding and commitment.
When a compliance problem occurs, executives and employees have a duty to submit a report containing the basic
sequence of events. This includes the discovery of a violation of the Compliance Manual rules and guidelines or
behavior that creates a compliance problem as well as the receipt of information from a customer or other source
about a compliance problem. If it is not possible to submit this type of report for some reason, the whistleblowing
system can be used.
Compliance as a company•

Compliance as a company Respect for human rights, refusal to allow
discrimination, harassment, etc.

•

No conflicts of interest and the protection of corporate assets•

Strict oversight of giving or receiving gifts, including meals andentertainment, involving customers•

Proper management of confidential information (personal
information)•

No insider trading•

Rejection of anti-social forces•

Resolution of complaints•

Proper handling of clerical errors, etc.

56

Responsible Organization
Compliance program
Kenedix has a compliance program for the purpose of providing a specific action plan for compliance. As a rule,
Kenedix establishes a compliance program every six months and uses the program to provide compliance guidance
and training activities for employees.

Corporate ethics policy
Kenedix has the following Corporate ethics policy.

•

We will contribute to the advancement of society as a responsible corporate citizen.

•

We will maintain sincere relationships with all customers and business partners in the spirit of fair play.

•

We will contribute to society in many ways, and operate in a manner that benefits investors.

•

We will use our skills as real estate professionals to be a source of highly appealing products and services.

•

We will provide the greatest possible protection and convenience for users of financial services.

Rejection of anti-social forces
Kenedix has prepared a Manual for Blocking Relationships with Anti-social Forces and Ensuring Appropriate
Business Transactions. To reject relationships of any kind with anti-social forces, Kenedix has a resolute stancefor refusing to deal with criminal and other anti-social forces.
Kenedix confirms that buyers and sellers of properties, tenants, business partners, and other transaction
counterparties are not anti-social forces. In addition, Kenedix requires all contracts to include provisions forrefusing to deal with anti-social forces and performing confirmations in accordance with the Act on Preventionof Transfer of Criminal Proceeds when conducting transactions. Consequently, Kenedix takes concrete actions
for the purpose of preventing relationships with anti-social forces. In addition, the Kenedix Compliance Manual
has specific policies concerning anti-social forces. Compliance and other training programs give employees athorough understanding of these policies.

Measures against money laundering and terrorist financing
Kenedix has prepared a Manual for Blocking Relationships with Anti-social Forces and Ensuring Appropriate
Business Transactions and properly performs confirmations in accordance with the Act on Prevention of Transfer
of Criminal Proceeds when conducting transactions. These activities are used to confirm the identities oftransaction counterparties as well as their attributes, business activities and purpose of the transaction. Risk
identification, evaluation and reduction measures are implemented from the perspective of the risk-based
approach specified in the Guidelines Concerning Money Laundering and Financing of Terrorism of the Financial
Services Agency.
57

Anti-bribery and anti-corruption policy
Strict compliance with laws, regulations and other guidelines is positioned as a vital element of the managementof Kenedix based on the awareness that compliance problems are significant risks regarding business operations.
Kenedix strives to prevent corruption by establishing specific policies on “Prohibition of bribery,” “Prohibition ofembezzlement, fraud, theft, and other criminal acts” and “Prohibition of insider trading” in our “Employment
Regulations” and “Compliance Manual.” Any violation of these policies will be subject to disciplinary action inaccordance with the “Employment Regulations.”
Furthermore, compliance awareness is raised by regular training on a wide range of legal and compliance issues
through compliance training for new employees and for all officers and employees (including temporary
employees.)
In fiscal year 2023, there were no cases of “Incidents related to fraud or corruption,” “Dismissals or termination
related to fraud or corruption,” “Costs of fines, penalties, or settlements related to fraud or corruption” in the
Kenedix group. Moreover, there were no record of political contributions.
Entertainment/hospitality and prohibition of bribery
Kenedix has set rules such as “Prohibition of entertaining clients and giving gifts to public service officials,”“Prohibition of requesting entertaining clients and giving gifts from business partners beyond a reasonable range,”and “Prior approval when providing entertaining clients or giving gifts.”
Kenedix is committed to prevent the corruption in accordance with the National Public Service Ethics Law, theNational Public Service Ethics Code and regulations.
Kenedix regularly verifies that each entertainment and hospitality is properly conducted by internal rules, and therecords of such activities are kept and monitored. The operation of these anti-corruption & bribery rules is subject
to internal audit.
Due Diligence on new business partners and brokers
Kenedix conducts due diligence by checking the anti-social forces and information management systems for the“transactions with new business partners and brokers, others.” In addition, the Compliance Manual stipulates therule of “prohibition of bribery, others at the time of selecting business partners, others.”
Response to violation occurrence
Employees are required to report to the department head or the compliance officer when one discovers acompliance problem such as bribery, or receives a suggestion from others of existence of a compliance problem,
or is concerned regarding possible compliance violation. If the compliance officer deems it necessary incompliance with various laws, regulations and rules, the compliance officer reports to the President & CEO, thecompliance committee, the board of directors, and appropriate action will be taken.
58Responsible Organization
The employees (including directors, regular employees, contract employees, temporary employees, part-time
employees, dispatched employees and workers stationed within our company on subcontracting, those who havemade a report within one year from leaving the company) may also utilize the whistleblowing system, which allows
anonymous reporting.

Whistleblowing system
Kenedix has a whistleblowing system for the prevention and rapid discovery of incidents caused by violations oflaws and regulations and other improper conduct, the improvement of self-cleansing processes, the control ofreputational risk exposure, and the retention of public trust. Our whistle-blowing policy applies to all theemployees including directors, full-time employee, elderly employee, contact employee, part-time employee,
assigned / temporary employee from the other company, and former employee left within 1 year of thetermination date.
Reporting, investigation and disciplinary processes
If violation of law (including internal company policies) occurs or could occur and if the matter has not beensatisfactorily resolved by ordinary procedures, the company accepts reports, declarations, and consultations frominternal and external contacts. Anonymous reporting is also accepted.
The person in charge of handling whistleblowing shall conduct fair and impartial investigation. The respondent
will be provided with the opportunity to present a defense and the fair hearing is held with relevant persons incompliance with the obligation of confidentiality.
The person in charge of handling whistleblowing reports all results from investigations to the director in chargeof compliance and the president, as well as to the board of directors and the council of corporate auditors,
including the results of notifications to the whistleblower. The head of the department to which the accused
belongs take appropriate action such as immediate order to stop action in violation of law.
Based on the report, disciplinary action and all the other appropriate measures to correct such as criminal
prosecution, claims for damages or measures to prevent recurrence shall be taken.
Internal channel 1(for all legal, personnel and labor problems)Internal channel 2(for improper behavior by directors and other executives)

Compliance Officer

External channel (for all categories of problems)External attorney

Full-time corporate auditors

Prohibition of unfair treatment
Whistleblowers and those who cooperate with them, as well as those who cooperate with investigations based on
the reports, are subject to protection under the whistleblowing system and the Whistleblower Protection Act, andany unfair treatment against the whistleblower are prohibited.
59

Managing conflicts of interests
Managing conflicts of interest is one of our material issues. The Compliance Manual has specific policies for theprevention of these conflicts and protection of the company's assets. Compliance and other training programs
give employees a thorough understanding of conflicts of interest and how to prevent them. In addition, we have
Related Party Transaction Rules that include processes for making decisions, basic views concerning thesetransactions and other guidelines. The objective is to prevent transactions between Kenedix and related parties(executives, major shareholders and others) and between these related parties from being detrimental toshareholder value.
Business compliance committee
The role of the Business Compliance Committee is separate from that of the Corporate Compliance Committee,
which discusses matters involving compliance and reaches decisions. Discussing and making decisions involving
business that contribute to revenue now or may contribute in the future is this committee's responsibility. These
activities concern how business operations are conducted and how these businesses perform transactions withcustomers. The Business Compliance Committee ensures that business operations use extreme care to avoid
conflicts of interest between different stakeholder categories.
Proper information management among group companies
Kenedix Group provides asset management services for a large number of investment corporations and funds onbehalf of investors. Kenedix has signed a memorandum with Kenedix Real Estate Fund Management, Inc. and theinvestment corporations managed by this company and with Kenedix Investment Partners, Inc. concerning theprovision of real estate and other information by Kenedix. The proper provision of information by Kenedix andgroup companies along with the determination of the types of support supplied by the Kenedix Group (anddisclosure of this information) ensures the transparency and suitability of the operations of funds and other similar
entities.
Rule concerning conflicts of interest among REITs
Since Kenedix Real Estate Fund Management, Inc. manages multiple REITs, it has established a pipeline
committee and adopted internal guidelines in order to prevent the improper allocation of acquisition
opportunities as well as prohibition of concurrent serve as several general managers of REIT management
departments, and thus, managing conflicts of interests among the REITs.
By managing these rules appropriately and smoothly, it strives to implement appropriate measures for conflictsof interest, such as preventing arbitrary distribution of real estate sales information and preventing conflicts ofinterest among the investment corporation managed by the asset management company.

60Responsible Organization
Risk Management
Basic views
Kenedix manages risk in accordance with its Risk Management Rules, which define risk factors as potential
problems that could be detrimental to corporate value with respect to business processes or be an impediment tothe ability to achieve sustained growth.
Risk management is one of the material issues of Kenedix. There are many activities for the proper oversight andcontrol of risk factors.

Risk management system
In order to ensure sound management and to contribute to the protection and improvement of corporate value,
Kenedix has prepared Risk Management Regulations, which stipulate policies, divisions and methods of risk
management.
Risks to be managed are defined as potential factors that may damage corporate value or hinder sustainable growthin the process of business execution, and are classified into four categories: compliance risk, business country risk,
financial risk and reputation risk.
The President & CEO is the chief risk management officer, and the General Administration & Human Resources
Department is the risk management division, which is responsible for the development of the risk management
system, overseeing company-wide risk management and providing advice and guidance to each division in thedevelopment, operation and reporting of its risk management system.
Each division implements risk management individually, and the head of each department has the necessary
authority and responsibility for the development, operation, reporting of its risk management system.
The head of each department shall report the status of risk management managed by the department to the risk
management division for each fiscal year. The risk management division shall report to the chief risk management
officer for each fiscal year a summary of the reports from each department on a company-wide basis.
Regardless of the timing of the reports from each department, the risk management division may, if it deems
necessary, check the status of risk management of each department voluntarily, and if, as a result of such check,it determines that risk management is insufficient, the risk management division may instruct each department
to correct or improve the situation.
The Internal Audit Department performs audits to confirm that risk management activities of the General
Administration and Human Resources Department comply with the Risk Management Rules.
61

Crisis and disaster response system
Kenedix has Crisis Management Rules and Disaster Response Rules for natural disasters, incidents, accidents andother problems that have a major impact on business activities or society overall and are detrimental to corporate
value. The General Administration and Human Resources Department is responsible for crisis management anddisaster response activities. This department establishes an emergency response headquarters to take actions asneeded when problem occurs.
In accordance with the Kenedix Group Business Continuity Plan, disaster response drills are held periodically,
there are measures in place to resume business operations quickly following a disaster or other problem, and othermeasures to be prepared for a crisis.
We periodically reexamine this plan and make revisions as needed.
Kenedix also uses the following measures to be prepared for a disaster.
1.

Storage of disaster response kits with food, water and other supplies for executives and employees atbusiness sites

2.

A safety confirmation system for quickly determining the status of executives and employees after adisaster3.

Back-up servers in several locations to protect data

Information security
Information security measures at Kenedix are based on an Information Management Policy that includes thefollowing measures and is constantly seeking ways to improve security. These activities reflect the understandingthat protecting and properly managing information, whether on paper of electronic media, is a key social
responsibility.
1.

Kenedix obtains information as needed for business operations and by using legal and fair methods.

2.

Kenedix protects information from unauthorized access, loss, theft, damage, alteration, leaks, improper use
and other problems.

3.

Kenedix has established rules and other guidelines based on the Information Management Policy andprescribed methods for handling information. In addition, the duties and responsibilities of executives andemployees regarding information are clearly defined.

4.

When the handling of information is outsourced, Kenedix confirms that companies used for outsourcing
have an information management system that is equivalent to its own system.
62

Responsible Organization5.

Kenedix constantly reexamines and makes improvements as needed to its information management
framework.

Kenedix has an Information Security Officer for the oversight of information security. This officer is an executive
who supervises departments that perform information system operations and who has responsibilities andauthority for the handling of information in all business units of Kenedix.
Kenedix executives and employees receive training as needed concerning the proper handling and protection of
information. Audits of these activities are performed by designated auditors. In addition, Kenedix has a manual
concerning the use of mobile devices, personal smartphones, social media, and other devices and media and uses
other activities to ensure that employees manage information strictly in accordance with all rules and guidelines.
Protection of personal information
The Kenedix Compliance Manual contains specific policies for the proper management of confidential
information (personal information). Kenedix also has a Personal Information Procedures Manual and conducts
compliance and other training programs for employees to be certain that everyone has a strong commitment toprotecting personal information.
For the protection and proper management of personal information, Kenedix has a Personal Information
Protection Policy, Personal Information Protection Rules, Rules for Handling Specific Personal Information, andother rules and guidelines.
Privacy Policy
Information security
The Kenedix IT System Security Rules specifies the minimum level of measures that employees and others mustuse for the proper use of information and operation of IT systems. The objectives are preventing leaks, damage,losses and other problems involving information, operating IT systems properly, and minimizing any losses orother damage caused by some accidents.
Responding to cyber incident
Kenedix has prepared the Cyber Incident Response Standards and provided a system and procedures forresponding to various incidents (including system downtime, malfunction, inadequacy, malware infection,
information leakage, unauthorized use, etc.; hereinafter referred to as "Cyber Incident") where cyber security
risks are manifested or realized in the cyber security field such as information security-related accidents and cyberattacks. The following is the response system and procedures for cyber incidents.
the General Administration and Human Resources Department

is designed as lead department for information

systems, and oversees and manages operations related to cyber incident response. In addition, Kenedix has
prepared cyber incident response procedures, and under the response system according to the cyber incident level,63

we strive to minimize damage in the event of cyber incidents, and to restore damaged operations quickly andefficiently.

64Responsible Organization
Commitment to Responsible Investments
Basic views
A commitment to responsible investments is one of the Kenedix material issues. We are committed to building astronger infrastructure for achieving both sustained growth and social responsibility.

Signing on to the PRI
The PRI is a set of principles established for the financial industry in2006 under the leadership of the United Nations Secretary-General of
the time, Kofi Annan. PRI comprises six principles.
The PRI encourages the incorporation of ESG issues (Environment,
Social and Governance) into investment decision-making processes,with the aim to help companies enhance long-term investment
performance and better fulfill their fiduciary duty.
Kenedix has signed on to the PRI and is ambitious to become a real estate asset management company that commit
responsible investment through the practice of PRI.

Signing on to the PFA21
The PFA21 (Principles for Financial Action for the 21st Century) has
been established by drafting committee with participation of various
financial institutions in October 2011 as the action guidelines offinancial institutions who seek to fulfill their responsibilities and roles
required for the formation of a sustainable society. Signing financial
institutions will implement initiatives based on the seven principles asmuch as possible based on their own businesses. It has been positioned
as a starting point to collaborate without being restricted by business categories, scale or region.
Kenedix, Inc. and Kenedix Real Estate Fund Management, Inc., which is the asset management company for listed
REITs and a private REIT, have signed on to the PFA 21 and are ambitious to become a real estate asset
management company that commits to responsible investment through the practice of the PFA21.

65

GRESB membership
GRESB (Global Real Estate Sustainability Benchmark) is an annual benchmark system for assessing
environmental, social and governance performance in the real estate sector. Many institutional investors use
GRESB assessments when selecting investment targets and for engagement with companies where they havemade investments.
KDX Realty Investment Corporation was the first J-REIT to participate in the "GRESB Real Estate Assessment"
in 2011, an annual benchmarking assessment for real estate companies and funds. Since then, we have been
awarded "Green Star" for 12 consecutive years by achieving high performance both in "Management Component,"
which evaluates policies and organizational structures for ESG promotion, and the "Performance Component,"
which assesses environmental performance and tenant engagement at properties owned. In the 2023 GRESB Real
Estate Assessment, KDX Realty Investment Corporation earned the highest evaluation of “5 Stars” for second
consecutive year. Moreover, KDX Realty Investment Corporation has received “A” rating, the highest level of
ESG-related information disclosure.
Also, Kenedix Private Investment Corporation has been awarded "Green Star" and earned the evaluation of “3stars.”KDX Realty Investment Corporation

Kenedix Private Investment Corporation

Kenedix group's investment in group REITs
Kenedix holds a portion of the investment units of three listed REITs and a private REIT managed by Kenedix
Real Estate Fund Management, Inc. This aligns Kenedix group’s interest with unitholders’ interests of each REIT.

66

Relevant Data
Relevant Data (Environment)
2020

2021

2022

2023

Number of renewable energy power plants*

23

23

34

47

Output of renewable energy facilities (MW)*

155.7

155.7

161.4

170.4

0

0

0

0

Violations of environmental laws and regulations
and environmental accidents(Note) The number of renewable energy power plants and output of renewable energy facilities at the Kenedix renewable energy
fund are as of the end of each year and include locations that are operating or under development by Kenedix Investment
Partners, Inc.

Relevant Data (Social)
2020
Number of healthcare properties managed by
Kenedix Group REITs
AUM of healthcare properties managed by
Kenedix Group REITs (millions of yen)

2021

2022

2023

24

28

37

39

54,12861,61073,381

82,417

2020

2021

2022

2023

Relevant Data (Stakeholder)
ROE

8.6%

67

9.7%

10.2%

11.3%

Relevant Data (Employment)
2020

2021

2022

2023

72（41.5）81（42.0）78（42.4）

93（42.8）

Men (average age)54（40.3）

63（40.9）58（41.3）

72（41.8）

Women (average age)18（45.0）18（46.0）20（45.5）21（46.1）

25.0%

22.2%

25.6%

22.6%

347

351

367

381

7.1

6.9

6.9

6.6

Men

6.5

6.1

6.4

5.8

Women

8.9

9.9

8.4

9.1

36.9%

62.3%

31.3%

56.9%

Number of employees(average age)

※1

Pct. of females in employees
Number of employees [consolidated]
Average number of consecutive years at
the Kenedix Group※1

Difference((Women–Men) / Men)
Number of newly hired employees※2

15

30

44

55

(3/12)(5/25)(3/41)(4/51)(new graduate hires / mid-career hires)(3/9)(5/18)(2/23)(3/37)(new graduate hires / mid-career hires)

(0/3)

(0/7)

(1/18)(1/14)(new graduate hires / mid-career hires)

Men

Women

Pct. of women in newly hired

employees

12
3

20.0%

23
7

23.3%

25
19

43.2%

40
15

27.3%

(0%/25.0%)(0%/28.0%)(33.3%/43.9%)(25.0%/27.5%)

21

27

25

29

Men

20

24

22

26

Women

2

3

3

3

9.5%

11.1%

12.0%

10.3%

9

7

7

7

Men

8

7

7

7

Women

1

0

0

0

11.1%

0%

0%

0%

(new graduate hires / mid-career hires)

Number of managers※1

Pct. of female managers
Number of directors※1

Pct. of female directors*1 Calculated for employees belong to Kenedix, Inc.
*2 Calculated for employees directly employed by Kenedix, Inc.

68

Relevant Data
Relevant Data (System Use, etc.)
2020
Number of employees using childbirth leave

2021

2022

2023

2

5

4

2

(0/2)

(0/5)

(0/4)

(0/2)

8

8

9

7

(Men / Women)

(2/6)

(0/8)

(2/7)

(1/6)

Pct. of employees returning to work after

100%

87.5%

100%

100%

※2

(Men / Women)
Number of employees using childcare leave※2

childcare leave※2 (Men / Women)(-/100%)

Number of employees using shortened working

1

0

1

0

(0/1)

(0/0)

(0/1)

(0/0)

6

9

8

9

(3/3)

(3/6)

(3/5)

(3/6)

1

0

0

0

(0/1)

(0/0)

(0/0)

(0/0)

0

0

0

0

(0/0)

(0/0)

(0/0)

(0/0)

3

1

0

0

(0/3)

(0/1)

(0/0)

(0/0)

0

0

0

0

(0/0)

(0/0)

(0/0)

(0/0)

2

1

1

1

(1/1)

(1/0)

(1/0)

(1/0)

10.4

9.4

10.6

11.7

58.6%

56.6%

67.4%

71.9%

14.3

18.1

22.7

23.3

\30,944\59,606\65,933\65,393

100%

100%

100%

100%

0

0

0

0

hours for childcare※2 (Men / Women)

Number of employees using staggered working
hours for childcare※2 (Men / Women)

Number of employees using sick/injured
childcare leave※2 (Men / Women)

Number of employees using elderly parent careextended leave※2(Men / Women)

Number of employees using elderly parent caresingle-day leave※2(Men / Women)

Number of employees using shortened working
hours to care for an elderly parent※2 (Men /Women)

Number of employees using staggered working
hours to care for an elderly parent※2 (Men /Women)

Average number of days of paid leave used※1
Pct. of paid leave used※1
Overtime hours, per month, per person※1

Training expense per employee(-/87.5%) (100%/100%) (100%/100%)

Pct. of employees receiving a health check-up※2
Number of work-related fatalities※2*1 Calculated for employees belong to Kenedix, Inc.
*2 Calculated for employees directly employed by Kenedix, Inc.

69

Relevant Data (Governance)
2020
Term of directors

2021

2022

2023

1yr

1yr

1yr

1yr

Directors

9

7

7

7

Men

8

7

7

7

Women

1

0

0

0

Pct. of female directors

11.1%

0%

0%

0%

Average age of directors

57.8

56.6

56.0

58.4

4.3yrs

3.0yrs

3.9yrs

4.9yrsNumber of Board of Directors meetings※1

25

9

13

17

Average attendance of board meetings※1

97.4%

98.4%

95.2%

96.6%

5

4

4

4

Men

4

4

4

4

Women

1

0

0

0

20.0%

0%

0%

0%

118

321

455

208

Average years since election

Corporate auditors

Pct. of female corporate auditors
Total number of compliance training
programs conducted※2*1 Since there was a change in the organizational structure in March 2021 due to the delisting, the number of Board of
Directors Meetings and Average attendance of board meetings in 2021 are the figures for the period from March 30, 2021
to December 31, 2021.
*2 As some of the training was held via web-based training, the total number of participants is described after 2020.

70

GRI Content Index
GRI Content Index
Statement of use

Kenedix, Inc. has reported the information cited in this GRI content index for the period(January 1, 2023 through December 31, 2023) with reference to the GRI Standards.

GRI 1 used

GRI 1: Foundation 2021

Universal Standards*: Core topics defined in the GRI Standards.
GRI standard

Disclosure

Location

GRI 2：General disclosures 2021
1. The organization and its reporting practices
Company Profile
2-1

Our Business

Organizational details

Kenedix GroupOur Mission and Vision

2-2

Entities included in the organization’s

Editorial Policy

sustainability reporting

2-3

Reporting period, frequency and contact

2-4

Restatements of information

2-5

External assurance

point

Editorial Policy
N/A
There are no external assurances as ofthe publication date

2. Activities and workers
2-6

Activities, value chain and other business
relationships

Stakeholder Engagement

2-7

Employees

Relevant Data (Employment)

2-8Workers who are not employees-

3. Governance
Organization
2-9

Governance structure and composition

Management teamSustainability Promotion Structure

2-10
2-11

Nomination and selection of the highest
governance body
Chair of the highest governance body-71

GRI standard
2-12
2-13
2-14

Disclosure

LocationRole of the highest governance body in overseeing
the management of impacts
Delegation of responsibility for managing impacts
Role of the highest governance body insustainability reporting

Sustainability Promotion Structure
Sustainability Promotion Structure
Sustainability Promotion Structure

2-15

Conflicts of interest

Managing Conflicts of Interests

2-16

Communication of critical concerns

Whistleblowing system

2-17
2-18

Collective knowledge of the highest governancebody
Evaluation of the performance of the highest
governance body

-

2-19

Remuneration policies

-

2-20

Process to determine remuneration

-

2-21

Annual total compensation ratio-

4. Strategy, policies and practices
2-22Statement on sustainable development strategy

Message from the President
Our Mission and Vision

2-23

Policy commitments

Diversity and Equal Opportunities
Compliance
Diversity and Equal Opportunities

2-24

Embedding policy commitments

2-25

Processes to remediate negative impacts-

Mechanisms for seeking advice and raising

Complaints and Appeals

concerns

Whistleblowing system

2-26

ComplianceContribution to a Sustainable
2-27

Compliance with laws and regulations

Environment
Compliance

2-28

Membership associations

Company Profile

5. Stakeholder engagement
2-29

Approach to stakeholder engagement

Stakeholder Engagement

2-30

Collective bargaining agreements-

GRI 3: Material Topics 2021
1. Guidance to determine material topics
2. Disclosures on material topics

72

GRI Content Index
GRI standard
3-1

Disclosure

Location

Process to determine material topics

Material Issues
Sustainability Policies
Managing Conflicts of Interests
Reduction of Energy Consumption and
CO2 Emissions
Reduction of Water Consumption and

3-2

Waste Materials

List of material topics

Health and Wellbeing of Employees
Recruiting, Employee Retention andCareer Advancement
Diversity and Equal Opportunities
Community Engagement
Improving Resilience/Climate Adaption

103-3

Management of material topics

Sustainability Promotion Structure

Economic Standards
GRI standard

Disclosure

Location

GRI 201: Economic Performance 2016
201-1
201-2
201-3
201-4

Direct economic value generated and distributed
Financial implications and other risks andopportunities due to climate change
Defined benefit plan obligations and otherretirement plans
Financial assistance received from government

Financial Highlights-

GRI 205: Anti-corruption 2016
205-1
205-2
205-3

Operations assessed for risks related to-corruption
Communication and training about anticorruption policies and procedures
Confirmed incidents of corruption and actions
taken

73

Anti-bribery and anti-corruption policy-

Environmental Standards
GRI standard

Disclosure

Location

GRI 302: Energy 2016
302-1

Energy consumption within the organization

Preparing for disclosure in future

302-2

Energy consumption outside of the organization

Preparing for disclosure in future

302-3

Energy intensity

Preparing for disclosure in future

302-4

Reduction of energy consumption

-

302-5

Reductions in energy requirements of products
and services-

GRI 303: Water 2018
303-1

Interactions with water as a shared resource

-

303-2

Management of water discharge-related impacts

-

303-3

Water withdrawal

-

303-4

Water discharge

-

303-5

Water consumption

Preparing for disclosure in future

GRI 304: Biodiversity 2016
Operational sites owned, leased, managed in, or
304-1

adjacent to, protected areas and areas of highBiodiversity

biodiversity value outside protected areas
304-2
304-3

Significant impacts of activities, products, andservices on biodiversity
Habitats protected or restored

Biodiversity

GRI 305: Emissions 2016
305-1

Direct (Scope 1) GHG emissions

Preparing for disclosure in future

305-2

Energy indirect (Scope 2) GHG emissions

Preparing for disclosure in future305-3

Other indirect (Scope 3) GHG emissions

-

305-4

GHG emissions intensity

Preparing for disclosure in future

305-5

Reduction of GHG emissions-

GRI 306: Waste 2020
306-1

Waste generation and significant waste-related
impacts-

306-2

Management of significant waste-related impacts

-

306-3

Waste generated

Preparing for disclosure in future

306-4

Waste diverted from disposal

74

GRI Content Index
GRI standard
306-5

Disclosure

Location

Waste directed to disposal-

GRI 307: Environmental Compliance 2016
307-1

Non-compliance with environmental laws andThere are no violations within the reporting

regulations

periodSocial Standards
GRI standard

Disclosure

Location

GRI 401: Employment 2016
401-1

New employee hires and employee turnover

Relevant Data (Employment)

Benefits provided to full-time employees that are
401-2

not provided to temporary or part-time-

employees
Support for employees through their life
401-3

Parental leave

event
Relevant Data (System Use, etc.)

GRI 403: Occupational Health and Safety 2018
403-1
403-2
403-3
403-4
403-5
403-6

Occupational health and safety management
systemHazard identification, risk assessment, andincident investigation
Occupational health services-

Worker participation, consultation, andcommunication on occupational health and safety
Worker training on occupational health andsafetyPromotion of worker health-Prevention and mitigation of occupational health403-7

and safety impacts directly linked by business-

relationships
403-8

Workers covered by an occupational health andsafety management system

-

403-9

Work-related injuries

Relevant Data (System Use, etc.)

403-10Work-related ill health-75

GRI standard

Disclosure

Location

GRI 404: Training and Education 2016
404-1
404-2

404-3

Average hours of training per year per employee-

Programs for upgrading employee skills andTraining programs

transition assistance programs

Employment system for seniors

Percentage of employees receiving regularperformance and career development reviews

Human resource development system
Evaluation system to support employees'
career development

GRI 405: Diversity and Equal Opportunity 2016
405-1
405-2

Diversity of governance bodies and employees
Ratio of basic salary and remuneration of women
to menDiversity and Equal Opportunities
Relevant Data (Employment)-

GRI 413: Local Communities 2016
413-1
413-2

Operations with local community engagement,
impact assessments, and development programs
Operations with significant actual and potential
negative impacts on local communities

Community Engagement-

GRI 416: Customer Health and Safety 2016
416-1
416-2

Assessment of the health and safety impacts ofproduct and service categories
Incidents of non-compliance concerning thehealth and safety impacts of products and services

Improving resilience for disaster-

GRI 418: Customer Privacy 2016
418-1

Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data

76

Privacy Policy