2023 Information Disclosure Based on TCFD Recommendations
Reporting Period: Year ended March 31, 2023 (April 1, 2022 – March 31, 2023)

Table of Contents
1. Policy for Addressing Climate Change .................................................................................. 1
2. Keihanshin Building’s Materiality ........................................................................................ 3
3. Information Disclosure Based on the TCFD Framework ...................................................... 4(1) Governance .......................................................................................................................5(2) Strategy .............................................................................................................................7(3) Risk Management............................................................................................................12(4) Metrics and Targets .........................................................................................................14

1. Policy for Addressing Climate Change
Keihanshin Building aims to contribute to society through various corporate activities under the
corporate philosophy “To provide valuable commercial space to customers so as to contribute to thecommunity through the advancement of customers’ and our own businesses.” The Company
believes that its initiatives for solving social issues through corporate activities will contribute to
the sustainable development of society and will have a significant impact on the medium- to longterm enhancement of its corporate value. Based on this belief, the Board of Directors has set forth
the Company’s “Sustainability Policy” as follows, as the basic policy for implementing
sustainability initiatives through business activities.

Keihanshin Building’s Sustainability Policy
We will actively address environmental issues and aim to balance between a richenvironment and business activities in the future and business activities.
1. Responding to climate change
We will evaluate the impact of our business activities on climate change, a highly uncertain
phenomenon that has been occurring over many years, while striving to build internal systems,
improve efficiency of energy use, reduce greenhouse gas (GHG) emissions, and take otheractions so that we can appropriately respond to medium- to long-term changes, including thetransition to a decarbonized society as well as the physical impacts from climate change, sealevel rise, and other causes.
2. Sustainable use of resources and contribution to recycle-oriented society
We will strive to make effective use of limited resources through extending the service life ofbuildings, reducing waste, conserving water or other methods, thereby contributing to therealization of a recycle-oriented society.
We will aim for the continuous development of society as a whole in collaboration with our
stakeholders.
3. Contribution to customers
The Company aims to provide safe and comfortable commercial space that meet the needs ofthe times to support our customers’ businesses and achieve mutual growth.
4. Dialogue with shareholders and investors
We aim to solve social issues and enhance corporate value by actively engaging in dialogue
with shareholders and investors, and using the knowledge gained through such dialogue.

15. Collaboration with partner companies
We will strive to establish fair and good relations with partner companies that manage andoperate buildings, and work together with them to promote sustainability.
6. Contribution to local communities
As a real estate company fully grounded in the local community, we will work to revitalize thelocal community through efforts such as participating in events and support for cultural andartistic activities, thereby growing together with the local community.
7. Initiatives for employees (Well-being initiatives)
We strive to create a healthy, safe, and comfortable workplace where diverse employees canplay an active role. At the same time, we are committed to actively developing humanresources.
We will continue to be highly transparent by maintaining compliance and disclosing
information.
8. Supervision of initiatives for sustainable management
The Board of Directors views issues surrounding sustainability from the perspective ofimproving corporate value over the medium- to long-term and supervises the progress of
initiatives to address such issues.
9. Maintaining compliance
We will thoroughly comply with laws and regulations, conduct fair transactions, manage
information, and prevent corruption and conflict-of-interest transactions, with an aim to be acompany that is even more trusted by society through fair business operations.
10. Disclosure and communication of ESG-related information
We will disclose information on ESG to our diverse stakeholders in a timely and appropriatemanner, and respond sincerely to opinions and requests from them to promote initiatives toaddress sustainability issues.

As shown in the report by the Intergovernmental Panel on Climate Change (IPCC), the advance ofclimate change is an unequivocal scientific fact that has had an immense impact on Japan, such as
the frequent and massive natural disasters occurring as a result of extreme weather conditions.
Furthermore, there has been an increasing social demand on companies to address sustainability
issues including decarbonization and climate change, as evidenced by the Japanese government’s
October 2020 announcement of its commitment to “achieve carbon neutrality by 2050,” following
the signing of the Paris Agreement in 2015.
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In light of this situation, the Company recognizes responses to climate change as an importantmanagement issue, and has set out “Responding to climate change” as one of the items in its
Sustainability Policy.

2. Keihanshin Building’s Materiality
The Company has identified issues to be addressed with high priority as materiality from among
those of high importance, in order to continuously enhance its corporate value and realize asustainable society.
Theme

E(Environmental)

Materiality
Strengthening of resilience to climate change

Balancing between a rich

Sustainable use of resources by measures to reduce the burden

environment and business activities

on the environment

Provision of optimal space keeping

Provision of safe, secure, and comfortable space

abreast of changing external

Promotion of business in line with the changing environment

environment and times

and times
Conducting

S(Social)constructive

dialoguewithinvestors

andshareholders in line with sustainable management

Co-existence and co-prosperity with

Collaboration with partner companies with an awareness of

stakeholders

ESG issues
Co-existence and co-prosperity with local communities

Establishment of an organization

Respect for human rights, diversity, and inclusion

where diverse human resources

Improvement of human capitalachieve their potential

Financial strategy to adapt to the changing businessenvironment

G(Governance)

Reinforcement of the management

Strengthening of organizational resiliencebase that supports sustainable

Improvement of the effectiveness of the Board of Directors

management

Implementation of compliance that supports sustainable
management

The Company recognizes that responding to climate change mitigates the risk of damage to future
cash flow through the early implementation of mitigation measures against risks that may
materialize in the future, such as the tightening of energy-saving regulations and increase in the costof measures against natural disasters. From the viewpoint of revenue growth opportunities, theCompany also recognizes that it is possible to enhance market competitiveness and increase future
cash flow through efforts such as providing real estate with high environmental performance.
Based on this recognition, the Company has established “strengthening resilience to climate change”
as a materiality goal related to climate change, and is moving forward with initiatives to contributeto resolving social issues relating to climate change through its business.
33. Information Disclosure Based on the TCFD Framework
In November 2021, the Company announced its endorsement of the Task Force on Climate-related
Financial Disclosures (TCFD). Taking this opportunity, the Company is assessing the impact ofclimate change on its business, and from June 2022, has been disclosing climate change-related
information in line with the framework recommended by the TCFD.
In view of the need to enhance information disclosure on the financial impact that climate change
and other sustainability issues have on a company, which enables investors to make appropriate
investment decisions, the Company recognizes anew that initiatives to address climate change andother sustainability issues will contribute to the medium- to long-term enhancement of its corporate
value.

4

(1) Governance
The Company has established the Rules on Promoting Sustainability based on the Sustainability
Policy set forth by the Board of Directors, and is developing a system for implementing sustainability
initiatives, including addressing climate change, in accordance with these Rules.
The President serves as the Chief Sustainability Officer in charge of the execution of businessactivities based on the policy set forth by the Board of Directors, and the Executive Officer
responsible for Administration serves as the Sustainability Executive in charge of the execution ofindividual measures.
As organs for promoting sustainability initiatives, the Company has established the Sustainability
Committee to study and formulate various policies, targets, and measures, and the Sustainability
Promotion Group to develop the system and execute various measures. The Sustainability Committee
is chaired by the President and comprises members of the Sustainability Promotion Group andmembers appointed by each department.

Sustainability Promotion System

The Committee meets at least once every three months in principle and cooperates with eachdepartment cross-sectionally to work mainly on the following matters.
(1) Consider policies for addressing sustainability(2) Identify, assess, and manage risks and opportunities related to sustainability(3) Manage the progress of initiatives in order to mitigate risks and expand opportunities
related to sustainability(4) Set metrics and targets for managing the progress of sustainability initiatives
5The President, as the Chief Sustainability Officer, makes decisions on sustainability initiatives,
including the responses to climate change, while considering the deliberations and studies of eachagenda by the participants of the Sustainability Committee.
These activities by the Sustainability Committee are reported at least once a year by the Executive
Officer responsible for Administration, who is the Sustainability Executive, to the Management
Meeting and the Board of Directors. Based on these reports, the Board of Directors supervises thesustainability initiatives including the responses to climate change. As a part of efforts to ensure thatthe Board of Directors can continue fulfilling its supervisory function appropriately, climate change
and other sustainability issues are incorporated into the themes of training conducted for Directors
and Auditors every year. In addition, the Company strives to maintain and enhance the appropriate
knowledge.
Main Agenda of Meetings of the Board of Directors Concerning Sustainability Initiatives for
the Fiscal Year Ended March 2023
Month of meeting
April 2022

May 2022

June 2022
November 2022
February 2023
March 2023

Contents
Report on the status of the Company’s responses to sustainability-related provisions in Japan’s
Corporate Governance Code issued by the Tokyo Stock Exchange
Report on the status of studies about KPIs to address materiality, and the progress status for theformulation of the TCFD Report for the previous fiscal year
Resolutions on matters such as the setting of KPIs to address materiality and the publication of the
TCFD Report
Periodic verification of the Corporate Governance Guidelines
Resolution on the Human Resources Development Policy and Internal Environment Improvement
PolicyDiscussions on the results of the Board of Directors Effectiveness Evaluation Questionnaire6(2) Strategy
The Company conducts a scenario analysis at least once a year in line with the framework
recommended by the TCFD to assess the financial impact of climate change and incorporate it into
the Company’s medium- to long-term business strategies.
(1) Scope of the scenario analysis
The analysis covers the overall business activities of the Company, i.e. the leasing of office buildings,
datacenter buildings, WINS Buildings (off-track betting parlors), commercial buildings, logistics
warehouses, etc., and the accompanying building maintenance business.
(2) Main reference scenarios
The TCFD recommends explaining the resilience of the organization’s strategy based on multiple
scenarios including a 2°C or lower scenario. The main scenarios referred to by the Company are as
follows:
Item

Transition risk

Physical risk

IssuerInternational Energy
Agency (IEA)

Intergovernmental Panelon Climate Change (IPCC)

1.5℃ scenario

4℃ scenario

IEA World Energy Outlook 2022

IEA World Energy Outlook 2022

- Net Zero Emissions (NZE) by- Stated Policies Scenario

2050(STEPS)

IPCC RCP2.6

IPCC RCP8.5(3) Method of assessing financial impact
Defining the period until 2030 as the medium-term and the period until 2050 as the long-term, thefinancial impact in each time frame (impact on single-year profit and loss) was assessed on a fourpoint scale of minimal, small, medium, and large, while the likelihood for the occurrence of therespective risks and opportunities identified through the scenario analysis was rated on a three-point
scale of low, medium, and high. Preparations are currently underway for plans to disclose
information related to financial impacts by analyzing the specific values of assessments in the future.

7(4) Analysis based on the 1.5°C scenario(i) Main risks and opportunities identified in the 1.5℃ scenario
The 1.5°C scenario assumes that the Company will be strongly required to decarbonize its businesstoward achieving carbon neutrality by 2050. The following are the main risks and opportunities
identified in the 1.5°C scenario with a likelihood of occurrence of “medium” or higher.
Medium-term(~2030)Likelihoodofoccurrence

Degree offinancial
impactLikelihoodofoccurrence

Main financial impact

Degree offinancial
impactItem

Long-term(~2050)Introduction ofcarbon tax

・Increased tax burden due to the introduction of carbon tax on
GHG emissions

MinimalHigh

MinimalHigh

legislation

Strengthening ofenergy-saving
regulations

・Increased costs for upgrading facilities/demolishing buildings
in response to the illegality of leasing/trading properties withlow environmental performance

Medium

High

Large

High

Technology

Progress and spreadof renewable energy
and energy saving

・Increased capital investment and management costs due tothe introduction of renewable energy and energy-saving
technologies

Medium

High

Large

High

Increasedprocurement prices

・Hike in material procurement prices due to environmentallyfriendly procurement
・Increased construction, renovation, and repair costs due to a
decline in productivity as a result of extreme heat・Increased construction and maintenance costs due to
ZEB/ZEH compliance and more stringent energy-saving
regulations

MediumMedium

Large

High

Deterioration offinancing conditions

・Deterioration of financing conditions due to curtailing ofinvestments as a result of delays in climate change response

Small

MediumMediumHigh

Changes in tenantneeds

・Decreased rental income due to devaluation of rents and risein vacancy rates, associated with the decline in demand due
to delays in climate change response

Small

MediumMediumHigh

Criticism fromstakeholders

・Departure of tenants and growing difficulty of acquiring new
tenants due to delays in climate change response
・Increased capital costs in the event of inadequate information
disclosure

Small

MediumMediumHigh

Use of renewableenergy・Reduced tax burden due to reduction in GHG emissions

MinimalHigh

MinimalHigh

Energy-saving andmanpower-savingbuilding
management, remotecontrol・Reduced building management costs

Small

MediumMediumHigh・Differentiation from other properties through highenvironmental performance and acquisition of certification
・Increased opportunities for gaining tenants and rental
income, suppression of falling rental values

MediumMediumMediumHigh

Policies andTransition risk
MarketReputation

Efficiency of
resources

Opportunities

Products andservices

Increased demand for
occupancy ofbuildings with highenvironmental
performance

・Increased, and sustainer increase of, property prices throughhigh environmental performance and acquisition ofcertification

Increased demand fordatacenters inconjunction withadvances in DX and
GX・Capturing datacenter demand associated with advances in
DX and GX, toward improved energy efficiency for society
as a whole, and increased rental income

MediumMedium

Large

High

MarketCultivating a newinvestor base・Reduced financing costs through the diversification offunding sources, by appealing to investors that place
importance on environmental response

Small

MediumMediumHigh

Reputation

Improving brandpower bystrengthening
business resilience・Increased opportunities for gaining tenants and rental income
due to improved brand image through strengthened
environmental response, and suppression of falling rental
values・Decreased capital costs due to timely and appropriate
information disclosure

MediumMedium

Large

High

8

(ii) The Company’s initiatives based on these risks and opportunities(a) Upgrading to energy-saving equipment
With one of the objectives set as “reducing the costs of complying with more stringent energysaving regulations,” which is assumed in the 1.5°C scenario, the Company will gradually makethe change to energy-saving equipment for lighting and air-conditioning, in line with the timings
for upgrading facilities and the changeover of tenants. To date, the Company has made progressin switching to LED lighting mainly in office buildings, as well as successively upgraded toenergy-saving equipment for voltage transformer facilities and air-conditioning facilities indatacenter buildings.
By 2030, the Company plans to invest approximately 2.2 billion yen into repairing to energysaving facilities for the properties that it owns as of March 31, 2023.
(b) Acquiring environmental certification
In anticipation of even greater demand for occupancy of buildings with high environmental
performance, and in order to objectively capture the condition of buildings owned by theCompany through external evaluations while using the evaluations as reference for further
improvements and enhancements, the Company is promoting the acquisition of Green Building
Certification, such as the Comprehensive Assessment System for Built Environment Efficiency(CASBEE) certification and Building-Housing Energy-efficiency Labeling System (BELS)
certification.
Please refer to “(4) Metrics and Targets” for the Green Building Certification acquired by theCompany as of March 31, 2023.
9

(5) Analysis based on the 4°C scenario(i) Main risks and opportunities identified in the 4℃ scenario
The 4°C scenario assumes that, while not as strong as the demand for decarbonization to curb risingtemperatures in the 1.5°C scenario, the social demand for disaster prevention and mitigation will
become stronger as natural disasters intensify. The following are the main risks and opportunities
identified in the 4°C scenario with a likelihood of occurrence being “medium” or higher.

Degree offinancial
impactLikelihoodofoccurrence

Typhoons, floods,
etc.

・ Increased costs for measures against disasters,
insurance costs, and repair costs due to the increased
scale of typhoons and increased frequency of heavy
rains

Likelihoodofoccurrence

Acute

Main financial impact

Long-term(~2050)Degree offinancial
impactItem

Medium-term(~2030)MediumMedium

Large

High

・Compensation payments to tenants and tenants leaving
due to inadequate disaster measures
Physical risk

Rising sea levels

・Compensation payments, tenants leaving, and increased
costs for measures against flooding due to high tides

Small

MediumMediumHigh

Rising averagetemperatures

・Longer construction time due to declines in productivity
at construction sites as a result of extreme heat, andincreased construction costs associated therein・Increased maintenance and management, and upgrading
and repair costs, due to increased frequency of airconditioning use

Small

MediumMediumHigh

Increased demandfor datacenters inconjunction withadvances in DX andGX・ Capturing demand for disaster-resistant datacenters,
and increased rental income

MediumMedium

Large

High

Medium

High

Large

High

Medium

High

Large

High

Chronic

Products
andservices
Opportunities

Reputation

Increased demandfor occupancy ofdisaster-resistantbuildings

Improving brandpower bystrengthening
business resilience

・Differentiation from other properties through high BCP
performance
・Increased opportunities for gaining tenants and rental
income, and suppression of falling rental values
・Increased, and sustained increase of, property prices
through high BCP performance
・Increased opportunities for gaining tenants and rental
income due to improved brand image throughstrengthened BCP response, and suppression of falling
rental values
・Decreased capital costs due to timely and appropriate
information disclosure

10

(ii) The Company’s initiatives based on these risks and opportunities(a) Investing in measures against natural disasters
With one of the objectives set as “reducing the costs of damage and responding to intensifying
natural disasters,” which is assumed in the 4°C scenario, the Company is gradually installing tideprotection plates at its properties, as well as carrying out upgrading and relocation works to moveextra-high voltage transformer facilities from underground floors to upper floors. An extra-highvoltage transformer facility supplies electricity drawn from external sources to a building, andrelocating these to upper floors can mitigate the flood risks associated with the intensification ofnatural disasters.
By 2030, the Company plans to invest approximately 1.4 billion yen into measures against natural
disasters for the properties that it owns as of March 31, 2023.
(b) Collaborative training with partner companies
With the objectives of “reducing the costs of damage and responding to intensifying natural
disasters” and “expanding earnings opportunities from demand for occupancy of buildings withhigh BCP performance,” which are assumed in the 4°C scenario, regular training is conducted incollaboration with partner companies that are responsible for building management and operation,
as a part of efforts to strengthen resilience in the intangible aspect.
The actual flow of actions involved in the installation of tide protection plates in preparation forflooding and the operation of emergency power generators in preparation for power outages arecarried out in training sessions. By strengthening resilience from both the tangible and intangible
aspects, the Company strives to provide a highly reliable business space for tenant companies.
11(3) Risk Management
Risk Management System(1) Process of identifying and assessing risks and opportunities

The Executive Officer responsible for Administration, who is the Sustainability Executive, instructs
the Sustainability Promotion Group to conduct identification and assessment of sustainability-relatedrisks, including response to climate change, at least once a year.
The Sustainability Promotion Group conducts verification of factors such as the financial impact,
likelihood of occurrence, and return on investment for the respective risks and opportunities, andreports on the progress and results of their assessments to the Sustainability Committee.
The Sustainability Committee prioritizes the risks and opportunities that should be addressed firstbased on the results of the assessments regarding the financial impact and likelihood of occurrenceof the risks and opportunities identified by the Sustainability Promotion Group.
(2) Process of risk management
The President, as the Chief Sustainability Officer, designates departments or persons in charge of
responses to high-priority risks and opportunities based on the results of the deliberations by the
Sustainability Committee, and instructs departments or individuals to formulate and propose
measures to address them.
The proposed measures formulated by these designated departments or persons will, depending on
their content, be integrated with company-wide business and financial plans, then implemented,
after deliberations by the Sustainability Committee, the Risk Management Committee, theManagement Meeting, the Board of Directors, or an appropriate internal committee or other meetingbody.
Risks related to sustainability issues, including response to climate change, are also shared with the
Risk Management Committee with a view to integrating the identification, assessment, andmanagement process for sustainability risks with the overall risk identification, assessment, andmanagement processes of the Company.
12

Prioritizing responses to risks and opportunities
In assessing risks and opportunities, the highpriority risks and opportunities that should be
addressed first are identified by mapping thefinancial impact and likelihood of occurrence byeach risk and opportunity item.
As a result of this mapping process, the Company has determined that priority should be given
to reducing physical risk, and is advancing efforts toward addressing the related items.
Regarding the financial impact of physical risks in the medium-term (~ 2030), the Company
has already achieved a certain level of risk reduction by investing in countermeasures against
natural disasters.

13

(4) Metrics and Targets
The Company defines key performance indicators (KPIs), conducts monitoring, and sets targets to
reduce risks and realize opportunities in relation to addressing climate change. For the main
purposes of reducing transition risk and expanding earning opportunities, and with regard to thestatus of GHG emissions and emission basic units from the properties it owns, the Company
monitors the emissions for each Scope and, for emissions under Scope 1 and 2, has set reduction
targets and KPIs as shown below. For Scope 3, the Company will cooperate with tenants and partnercompanies to continuously reduce emissions.

Target: Reduce Scope 1 and 2 GHG emissions by 46% (compared to FY2019) by FY2030.
The Company’s GHG emissions reduction targets havebeen certified as Science Based Targets (SBT) incompliance with the standards required by the Paris
Agreement.

KPI
1.

Reduce per-unit energy consumption by 10% (compared to FY2019) by FY2030
through energy-saving efforts.
(Note) Although the Company used GHG emissions as a target for reduction under this KPI,
since GHG emissions fluctuate according to changes in emission factors, we havebeen using energy consumption per unit floor area as a target since FY2023 as anindicator to more clearly indicate the energy efficiency of properties.

2.

Use renewable energy.

3.

Raise the ratio of the area of properties with the Green Building Certification to 50%
or more by FY2030 and acquire the Green Building Certification for all newly
constructed properties in the future.

The progress of each initiative and KPI results are summarized by the Sustainability Executive atleast once a year, shared with the Sustainability Committee, and reported to the Board of Directors.

14

Progress and track record of target and KPI
The following figures may be revised due to a review of the calculation method, etc.
(1) GHG emissions
Target: Reduce Scope 1 and 2 GHG emissions by 46% (compared to FY2019) by FY2030.

Reference: Scope 3 emissions

Unit: t-CO2

Item

FY2019

Scope 3-1. Purchased goods and services
Scope 3-2. Capital goods
Scope 3-3. Fuel- and energy-related activities not included in Scope 1 and 2

FY2020

FY2021

FY2022

9,392

19,165

115,822

9,130

-

-

-

-

917

881

989

1,013

Scope 3-4. Upstream transportation and distribution

3

3

3

3

Scope 3-5. Waste generated in operations

20

20

20

20

Scope 3-6. Business travel

27

13

11

24

Scope 3-7. Employee commuting

15

15

17

17

Scope 3-8. Upstream leased assets

-

-

-

-

Scope 3-9. Downstream transportation and distribution

-

-

-

-

Scope 3-10. Processing of sold products

-

-

-

-

Scope 3-11. Use of sold products

-

-

-

-

Scope 3-12. End-of-life treatment of sold products

-

78

-

-

55,27753,371

62,79857,212

Scope 3-13. Downstream leased assets
Scope 3-14. Franchises

-

-

-

-

Scope 3-15. Investments

-

-

-

-

65,65173,546

179,660

67,419Total(Note) Scope3-2/8/9/10/11/14/15 are not included in the calculation because there are no emission source.

15

(2) Energy consumption
KPI: Reduce per-unit energy consumption by 10% (compared to FY2019) by FY2030
through energy-saving efforts.
Item
Energy consumption (MWh)FY2019FY2020

FY2021

FY2022

15,08814,373

15,653

16,102

10

11

12

12

Total target floor area (m2)

117,858

121,647

146,191

154,977

Energy consumption per unit (kWh/m2)

128.02118.15107.07103.90

Number of target properties (buildings)(Note) Figures are totals for Scope1 and 2, and do not include properties being leased as a whole building toa single tenant. Total target floor area is calculated based on the occupancy rate.

(3) Introduction of solar power generation
KPI: Use renewable energy
To reduce GHG emissions associated with energy consumption,in addition to promoting energy-saving measures, the Company
is also working to introduce power from renewable energy
sources.

Solar panels on
the Keihanshin Fuchu Building

Since FY2023, the Company has been switching to using renewable energy sources for theelectricity used in some properties. In addition to purchasing electricity from externalsources, the Company installed rooftop solar panels on the Keihanshin Fuchu Building.
The introduction of these renewable energy sources is expected to contribute to reducing
GHG emissions generated through the Company’s business activities from FY2023 onward.
(4) Ratio of the area of properties with the Green Building Certification
KPI: Raise the ratio of the area of properties with the Green Building Certification to 50% ormore by FY2030 and acquire the Green Building Certification for all newly constructed
properties in the future.
CASBEE certification(in order of acquisition)
・Keihanshin Midosuji Building: S rank
・Keihanshin Fuchu Building: S rank
・Keihanshin Yodoyabashi Building: S rank
・Keihanshin Toranomon Building: S rank
・Keihanshin Onarimon Building: S rank
・Keihanshin Yoyogi-koen Building: S rank
BELS certification
・Keihanshin OBP Building: 2 stars

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