Ichigo
Sustainability
ReportMarch 2024

Make The World
More Sustainable© Ichigo Inc. All rights reserved.

Table of Contents
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Senior Management Message – Chairman Scott Callon
Senior Management Message – President Takuma Hasegawa
Ichigo Code of Corporate Ethics
Ichigo Sustainability Policy
Ichigo Governance Structure
Third-Party Assessments & Initiatives
Sustainable Financing
Ichigo 2030
• Driving Long-Term Growth as a Sustainable Infrastructure
Company• Management Targets (KPIs)
Sustainable Business Management – Sustainable Real Estate• Ichigo's Sustainable Real Estate• Extending Useful Life of Real Estate Beyond 100 Years• Retail Asset Value-Add• Revitalizing a Hotel to Thrive Another 50 Years
Sustainable Business Management – Clean Energy• Partnerships with Local Communities Across Japan - Clean
Energy Production• One of the Largest Solar Power Plants in the Kanto Region• Sustainable Energy Supports Local Community Vibrancy
Sustainable Business Management – Asset Management• Economic Revitalization via Real Estate Investment• First & Only J-REITs with No Fixed Fee, Performance FeeOnly Asset Management Structure• Ichigo Investment Advisors’ Sustainability Policy
Ichigo ESG – Environmental• Producing Safe & Clean Energy• Making Productive Use of Idle Land to Produce Clean Energy& Contribute to Local Communities• First REAFF-Approved Power Plant in Kanto Region• Reduction of Energy Consumption & Net Zero Initiatives

4
5
6
7
8
9
10

• Third-Party Assessment of GHG Emissions

22

11• Ichigo Sustainability Promotion Code of Conduct

23• Setting Greenhouse Gas Emission & Resource
Consumption Reduction Targets• Disaster Recovery

24• Rapid Disaster Response Leveraging IT• Protecting the Environment via IT

25• Socially-Contributing Activities–

12

Ichigo ESG – Social

26• Supporting Human Rights, Children with Illnesses, &People with Disabilities

27• Supporting Students• Supply Chain

13
14
15

28

• Value Chain• Respect for Human Rights

29• Mental Health Care & Harassment Prevention Guidelines• Ichigo HR Policy

16• Employment Options for Different Lifestyles• Employee Health Initiatives

17

31• Safety Initiatives• Ichigo University for Employee Education

18

32• Promoting Internal Start-Ups
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19
20
21

30

Ichigo ESG – Governance33• Roles of the Board, Board Evaluation

34• Compliance & Whistleblower System

35• Integrity, Honesty, & Fairness–• Risk Management

36

Appendix – Reference Data

37

Senior Management Message

Chairman Scott Callon
Ichigo is a Japanese sustainable infrastructure company dedicated to making theworld more sustainable. Ichigo believes companies exist to serve society and iscommitted to contributing to a sustainable society while growing long-term value
for its shareholders.
Ichigo’s Sustainable Real Estate business preserves and improves real estate,
lengthening buildings’ useful lives beyond 100 years. In our Clean Energy
business, Ichigo operates 64 solar and wind power plants across Japangenerating 188MW of renewable energy. Given the severe impacts of global
climate change, we are continuing to expand our production of clean energy,
including green biomass using locally-sourced Japanese feedstocks.
This Sustainability Report outlines Ichigo’s commitment to serving society,including by participating in global initiatives such as the United Nations Global
Compact and RE100.
Ichigo will continue its work to expand its ESG initiatives and make the world
more sustainable.

4

Senior Management Message

President Takuma Hasegawa
Ichigo’s corporate mission is to Make The World More Sustainable. As a memberof Japanese society, Ichigo is dedicated to fulfilling its mission in the spirit of Ichigo
Ichie, an ancient Japanese proverb meaning “One lifetime, one encounter.”
Ichigo believes that companies exist to serve society and continually explores how
Ichigo can best serve society by leveraging its distinctive capabilities and knowhow.
Serving society is at the heart of our business activities. Ichigo’s Sustainable Real
Estate business works to preserve and improve existing real estate, and its Clean
Energy contributes towards Japan’s energy self-sufficiency.
All of us at Ichigo are committed to making the world more sustainable via sociallymeaningful business activities.

5

Ichigo Code of Corporate Ethics
The Ichigo Code of Corporate Ethics is a code of conduct and set of fundamental values that we share at
Ichigo. The Code is at the heart of our daily activities and behavior. Ichigo’s Board of Directors reviews theeffectiveness of this Code regularly and makes revisions, as appropriate.
1. Respect Human Rights
We respect and support human rights globally and work to prevent and eliminate any and all discrimination and infringement of human rights. We protect and support therights of children and contribute to creating a prosperous future for them.
2. Build Trust
We fully recognize our social responsibilities and work to earn trust from society through sound business operations and a strong, shared ethic of self-responsibility.
3. Respect Clients and Business Partners
We recognize that we exist based upon the satisfaction and trust of our clients and strive to provide the best products and services tailored to our clients and business
partners' needs.
4. Respect Local Communities
We respect and listen to local communities and value their diversity and distinctive strengths, histories, and traditions. We work hand-in-hand with communities to address
their needs, support their ongoing vibrancy, and contribute to building strong communities for future generations.
5.

Respect Employees

We strive to maintain and enhance our corporate vitality and respect the character and diverse personalities of our employees. We are committed to a work environmentthat ensures fair treatment for all. We comply with Japan’s minimum wage laws and protect the livelihoods of our employees.
6.

Preserve the Environment

We preserve our shared global environment and support a more sustainable society by working to decrease our environmental impacts, prevent pollution, reduce energy
and resource consumption, and support biodiversity.
7.

Manage Transparently and Prudently

We maintain appropriate and balanced relationships with our clients and stakeholders, and disclose management information in a fair and timely manner. We focus ontransparent and prudent corporate management and efficient operations.
8.

Strict Compliance

We strictly comply with all applicable laws and regulations, rules, and social mores, internal rules, and act fairly and faithfully to fulfill our social responsibilities.
9.

Combat Anti-Social Forces

We firmly act against anti-social forces which threaten social order and security.

6

Ichigo Sustainability Policy
Ichigo has made sustainability a key business and social priority. Ichigo works pro-actively to promotesustainability and has established the Ichigo Sustainability Policy to further reduce Ichigo’s environmental
impact and support sustainable growth.
1.

Harmony with the Environment and Resource Recycling

Ichigo will accurately assess the impact of the Group's operations on the global environment and work proactively to minimize environmental
impact by extending the useful life of its assets, continuously conserving water, and reducing and recycling waste.
2. Responding to Climate Changes and Transitioning to Net Zero Carbon Society
In executing its businesses, Ichigo seeks to promote responses to climate changes and realize a net carbon zero society by continuously
lowering its energy consumption and GHG emission, using renewable energy, and improving the resilience of its assets.
3.

Regulatory and Environmental Compliance

Ichigo complies with all environmental laws and regulations and Ichigo’s own independently-established environmental rules, and establishes
its environment management structure. Ichigo also carefully monitors and complies with all applicable changes in laws and regulations.
4.

Training and Awareness, and Collaboration with Stakeholders

Ichigo enhances inhouse education on sustainability and promotes understanding of its Sustainability Policy and works to increasesustainability awareness among all Ichigo employees. Ichigo promotes the understanding and cooperation by its various stakeholders
regarding this Policy and work together to promote sustainability.
5.

Sustainability Performance Communication and Disclosure

Ichigo communicates this Sustainability Policy and Ichigo’s sustainability initiatives to society at large. Ichigo also works to obtain certifications
for its sustainability activities on an ongoing basis.
6.

Sustainable Procurement

In executing its businesses, Ichigo promotes sustainable procurement by proactively adopting environmentally-friendly construction methods
and materials, energy-saving energy and resource-saving equipment. When selecting its subcontractors, Ichigo takes into consideration theirsustainability initiatives.
7.

Fostering Diversified and Inclusive Organization

Ichigo respects human rights and strives to foster an organization and culture in which diverse employees can work as they wish anddemonstrate their full potential, regardless of race, belief, religion, color, nationality, age, gender, sexual orientation, gender identity, physicaldisability, social status, etc. Ichigo also establishes the comfortable work environment that takes into consideration health and comfort, andrealizes the success and well-being of each and every employee, thereby leading to the growth of the organization.
8.

Biodiversity and Ecosystem Preservation

Through greening of grounds, rooftops, and walls and planting mainly native species, Ichigo contributes to the preservation of biodiversity andecosystems.
7

Ichigo Governance Structure
Ichigo has made sustainability a key business and social priority as a responsible corporate citizen.
Ichigo’s President has oversight over Ichigo’s sustainability initiatives pursuant to the Ichigo Code of Corporate Ethics and Ichigo Sustainability Policy set
by the Board of Directors.

Ichigo Governance Structure
Ichigo(as of April 1, 2024)

Key Subsidiaries

AGM
Nominating Committee

Ichigo Investment Advisors

Management
Committee

Board of Directors

Ichigo Estate

Audit Committee
ReportCompensation
Committee
Compliance Committee

Ichigo Owners
ReGeneration

Chairman/President

DX Acceleration

Internal Audit

Ichigo Marche
ReportMiyako City

ReportCentroIchigo Animation
OneFive Hotels

Sustainable
Infrastructure
Business
Corporate
Operations

Ichigo ECO Energy

Hotel Business

Sustainable
Engineering

Ichigo Si
Collinear

FinanceCommunications

8

Third-Party Assessments & Initiatives
CDP 2023 Climate Change Assessment• CDP 2023 Climate Change Assessment
A List• CDP Supplier Engagement Rating (SER)
A Score, Supplier Engagement Leader• CDP Water Security AssessmentA-

GRESB Real Estate Assessment
Ichigo Office (8975) was awarded a Green Star designation
for the seventh year in a row, recognized for its ESG-related
policies and organizational setup (the “Management
Component”), and the environmental performance of its
assets as well as tenant engagement (the “Performance
Component”).

Ichigo will continue to assess and reduce current energy consumption, andOther Environmental Certifications

work towards protecting our environment via our businesses.

With its deep experience in real estate value-add, Ichigo works to increase thesafety and functionality of buildings, while reducing energy use and

TCFD Disclosures
Ichigo provides disclosures on governance, strategy, risk management, andmetrics and targets in line with the TCFD (Task Force on Climate-Related
Financial Disclosures) framework.

environmental impact to create a more sustainable society.
・ CASBEE

16 Assets

・ BELS

7 Assets(as of February 29, 2024)

・ DBJ Green Building 2 Assets
・ Tokyo Low-Carbon Small and Medium-Sized Model Buildings 9 Assets

RE100
100% Renewable Electricity by 2025
* Includes all Ichigo, Ichigo Office (8975), & Ichigo Hotel (3463) assets.

UN Global Compact
Ichigo is a participant of the UN Global Compact andsupports the Ten Principles regarding human rights,
labor, environment, and anti-corruption.
9

Sustainable Financing
Expansion of ESG Financing by Promoting ESG throughCore Businesses
Ichigo borrowed funds via Sumitomo Mitsui Banking Corporation’s ESG/SDGs
syndicated loan program based on the United Nations Principles for Positive
Impact Finance with the use of funds unspecified. Ichigo is the first Japanesereal estate company to borrow funds via this program. Ichigo has successfully
expanded ESG loans in recognition of its excellent ESG initiatives andinformation disclosure, as well as its high willingness to contribute to theachievement of the SDGs through its businesses. The Positive Impact
Finance-based loans from various financial institutions account for 33% of totalborrowings.
The UN Principles for Positive Impact Finance is a financial framework established by theUnited Nations Environment Program Finance Initiative (“UNEP FI” ) in January 2017 as aprinciple for financial institutions to fund businesses that contribute to achieving the SDGs. It
is comprised of four principles: Definition, Frameworks, Transparency, and Assessment, anddefines a structure for financing aimed to mitigate the negative impacts and systematicallyand sustainably increase the positive impacts of a borrowing company’s activities.

ESG Loans as % of Total Borrowings

ESG Loans(JPY billion)(JPY billion)■ ESG loans (including green bonds)■ Remaining ESG commitment line (as of FY24/2 Q3-end)(as of FY24/2 Q3-end)■ ESG loans (including green bonds)■ Remaining ESG commitment line
■ Other corporate loans & bonds(excludes short-term loans)

48.5

1,37
4

136.3

ESG Loans

33%

17.7

Total ESG Loans(Cumulative)

JPY 87.8B

30.8

19.5

17.7
2.9

8.2

8.6

FY20/2 FY21/2 FY22/2 FY23/2 FY24/2
Q3

10

Ichigo 2030
Driving Long-Term Growth as a Sustainable Infrastructure Company
As a sustainable infrastructure company, Ichigo is growing and expanding its core real estate and clean energy capabilities into new areas. In doing so,
Ichigo will generate new earnings streams and opportunities to serve clients while seeking to create a more sustainable society.
Ichigo has moved beyond the traditional view of real estate as simply physical buildings and land to one in which Ichigo more broadly provides key
infrastructure that is fundamental to people’s lives. Ichigo first expanded beyond real estate in 2012, when it began developing solar power, offering
sustainable energy to support a cleaner and safer Japan and world. Ichigo 2030 takes this strategy forward by expanding the scope of Ichigo’s real estateand clean energy businesses into other types of infrastructure that contribute to creating richer, more fulfilling lives for the people of Japan.
Ichigo is now working to merge the physical infrastructure of daily life – offices, homes, hotels – with the networks and data-driven possibilities of thedigital world in order to offer more enriching experiences to its clients, tenants, and other stakeholders. While continuing to grow Ichigo’s existing
businesses, Ichigo is increasing investments in new technologies and talent and developing new partnerships with other companies who share oursustainability vision.

11

Ichigo 2030
Management Targets (KPIs)
Ichigo 2030 is Ichigo’s long-term vision, spanning the 11-year period fromHigh Earnings Stability

FY20/2 to FY30/2, that aims to drive significantly higher long-term growthfor its shareholders.
In Ichigo 2030, Ichigo will work to grow both earnings and earnings stability,
expanding beyond real estate to generate new earnings streams that areless sensitive to changes in real estate market conditions.
The KPIs set forth in Ichigo 2030 are as follows:High Capital Productivity■ FY20/2~FY30/2 Average ROE>15%・ Increase long-term ROE by driving higher capital productivity andearnings stability■ FY30/2 Stock Earnings Ratio >60%
・ Increase Stock Earnings Ratio from FY19/2’s 53% to 60%
・ Increase and diversify Flow Earnings to reduce weighting of profits
from Sustainable Real Estate sales

Shareholder Return Policy■ Progressive Dividend Policy
・ Ichigo’s progressive dividend policy underscores its commitment todriving continued organic earnings and dividend growth forshareholders. Under this policy, the previous year’s dividend becomes・ Grow long-term EPS as key driver of shareholder value

the floor for the current year’s dividend. The dividend will be raised (or■ FY20/2~FY30/2 Continuous JPX-Nikkei-400 Index Inclusion

kept flat) but not cut, providing shareholders downside protection.

・ Targeting continues inclusion for the entire Ichigo 2030 period (11 years).

High Cash Flow Generation■ Continuous Economic Operating Cash Flow* > Net Income Throughout
the Ichigo 2030 period
・ Ichigo’s robust cash flows fund both growth investments and shareholder
returns, so growing these cash flows is an important business priority■ DOE (Dividend on Equity) > 3%
・ A DOE policy pays dividends based upon shareholder equity, which ismore stable than annual earnings which can be volatile, resulting in
greater stability and visibility of dividends for shareholders■ Flexible Deployment of Share Buybacks
・ A policy to flexibly conduct share buybacks to optimize Ichigo’s capital
structure and drive shareholder value* Economic Operating Cash Flow = Cash Flows from Operations +/- any changes in Real
Estate and Power Plants for Sale

12

Sustainable Business Management – Sustainable Real Estate
Ichigo's Sustainable Real Estate
Our Sustainable Real Estate business adds value to existing buildings by drawing upon our real estate technologies and expertise. Ichigo minimizes resources used
to improve real estate, contributing to building a more sustainable society. Ichigo will build on its long-standing commitment to sustainability by developing newtechnologies to extend the lives of buildings and other social infrastructure 100 years and beyond.
Ichigo has a long track record of acquiring prime location mid-size assets and improving them as high-function real estate to extend their useful lives by conducting
seismic reinforcements, improving their occupancy, and upgrading the assets to respond to diversifying needs.
Ichigo views real estate as key infrastructure that is fundamental to creating richer, more fulfilling lives for tenants and local communities. Ichigo works to serve broadclient needs and deliver first-in-class and best-in-class solutions to drive significant value for clients and society across a diverse set of infrastructures. Being one ofmany is not enough. Ichigo needs to lead.

13

Sustainable Business Management – Sustainable Real Estate
Extending Useful Life of Real Estate Beyond 100 Years
Ichigo is working to develop open platform construction technologies that can help extend the useful life of real estate beyond 100 years. Towards
this end Ichigo examines all of its assets to take record of the condition of equipment and develop tailored renovation plans that also aim to reduce
environmental impact.
With appropriate measures taken many buildings in the US and Europe retain or grow their value even after c. 100 years, while in Japan theprevailing model has been to scrap and rebuild buildings after c. 40 years. This leads to significant waste and wasteful demand for raw materials andenergy in the construction process. In addition to this Japan faces a significant social problem because of its aging infrastructure. Ichigo is committed
to helping solve these social problems.

Traditional Real Estate

Ichigo’s Sustainable Real Estate

Demolish

Preserve & Create Value

Sustainable
Real Estate

Scrap

Increase Quality ofTenant Services

Renovate& Repair

Increase Tenant Satisfaction

Improve aesthetics and comfort
Seismic reinforcements
Regulatory compliance
Increase energy efficiency

14

Sustainable Business Management – Sustainable Real Estate
Retail Asset Value-Add

Revitalizing a Hotel to Thrive Another 50 Years

Ichigo conducted value-add work on a retail building (B1/3F) it acquired in

Ichigo acquired a 40-year-old hotel in Shinjuku, that by Japanese practicea prime location in Daikanyama (Shibuya).

would have been target for a scrap and rebuild, and conducted value-add
work to re-brand and re-open it as a lifestyle hotel capable of serving

Ichigo rectified an extended exterior staircase that was not compliant withguests for a further 50 years.

regulations and removed an internal staircase thereby increasing rentablefloor space by 12%, and making for a more tenant-friendly floor layout.
Ichigo also renovated the exterior and improved the building’s visibility.
On the back of this value-add work, Ichigo successfully raised rent byplace where the diverse lifestyles of guests and locals can intersect, inline with Ichigo’s core value of diversity.
Value-add work consisted of seismic reinforcement and a full renovation

25%.

BeforeTHE KNOT TOKYO Shinjuku was designed with the concept of creating a

Converted stairway andhall to usable spaceof plumbing systems and HVAC systems. The two-story open atriumfeatures a café, restaurant, lounge, and lobby, and is designed towelcome not only guests staying at the hotel but also locals.
THE KNOT TOKYO Shinjuku

After

15

Sustainable Business Management – Clean Energy
Partnerships with Local Communities Across Japan - Clean
Energy Production
Ichigo ECO Energy, Ichigo’s subsidiary, makes effective use of idle land acrossTotal Operating Power Plants
64 Plants c. 188MW
Plants owned by Ichigo (2337)
158.8MW
Plants owned by Ichigo Green (9282) 29.4MW(All developed by Ichigo)

Japan to generate solar and wind power, contributing to making local communities
and the world safer and cleaner via its clean energy business.
Our clean energy business contributes to a more sustainable society by contributing
to Japan’s energy self-sufficiency. We work together with the local community tocreate a win-win situation, and also contribute to job creation and economic
revitalization of communities.

FY24/2 Results■ Annual Power Generation■ Annual CO2 Reduction

228,739,150 kWh (See p.39 for details)
101,217,992 kg CO2(See p.39 for details)
Ichigo’s First Wind Power Plant
Ichigo Yonezawa Itaya ECO Power Plant

Okinawa
Hokkaido
KyushuTohokuShikoku

Chugoku
Kanto
Kansai
Chubu
Ichigo Showamura Ogose ECO Power Plant
16

Sustainable Business Management – Clean Energy
One of the Largest Solar Power Plants
in the Kanto Region
Ichigo Showamura Ogose ECO Power Plant
Ichigo built one of Kanto Region’s largest solar power plants in a Gunma
village that was seeking ways to make better use of idle land. Located in
Showamura in northern Gunma prefecture, the plant generates clean
energy reflecting local residents’ requests to build a facility that
contributes to environmentally safe power generation.

Sustainable Energy Supports Local
Community Vibrancy
Ichigo Kasaoka Takumicho ECO Power Plant
Kasaoka City’s desire to support local resident livelihood while
contributing to the prevention of global warming and Ichigo’s mission ofbuilding a sustainable society came together to build a solar power planton idle, reclaimed land. Solar power generation now forms a corecomponent of Kasaoka City’s Environmental Plan, with Ichigo there to
support its success.

No. of panels 166,716
Panel output c. 43.34MW
Provides power for 15,300 households

Built on idle land with an area 18X greater than Tokyo Dome, the land lease income toShowamura helps to support the welfare of its residents

No. of panels 4,224
Panel output
c. 1.11MW
Provides power for 370 households

Began solar power generation in March 2016 making use of idle, reclaimed land

Ichigo installed electrical outlets anda charging station that can be used during a
blackout.

17

Sustainable Business Management – Asset Management
Economic Revitalization via Real Estate Investment

Ichigo Sustainability Policy

Ichigo manages two J-REITs (Ichigo Office: 8975, Ichigo Hotel: 3463) andTo protect the earth that we all share, Ichigo Investment Advisors believes

a listed solar power producer (Ichigo Green: 9282), manages private realthat working on behalf of the environment and society is a fundamental

estate funds for institutional investors, and offers Ichigo Residencesocial responsibility, and a way to support sustainable growth. Ichigo

Tokens for individual investors and business owners.

Investment Advisors has thus made environmental sustainability a key

Ichigo draws upon its value-add capabilities to develop reliable financial
instruments for individual investors. Ichigo seeks to offer return stability
and growth potential from a long-term perspective by not only responding

priority and has established the following Environmental Sustainability
Policy to actively work to reduce Ichigo’s environmental impact andsupport environmentally-positive outcomes.

to market needs but also pursuing to promote environmentally sound

1. Harmony With the Environment and Recycling

initiatives.

2. Addressing Climate Change and Shift to Low-Carbon Society
3. Regulatory and Environmental ComplianceFirst & Only J-REITs with No Fixed Fee,
Performance-Fee Only Asset Management
Structure
Ichigo Office (8975) and Ichigo Hotel (3463) are the only J-REITs with a

4. Training, Awareness, and Cooperation With Stakeholders
5. Sustainability Performance Communication and Disclosure
6. Sustainable Procurement
7. Building a Diverse, Inclusive Organization
8. Biodiversity and Ecosystem Preservation

no fixed fee, performance-fee only asset management structure. The
performance-linked fee structure fully aligns REIT earnings withshareholder value creation and is aimed to support proactive, dynamic vs.
static management of the REIT assets on behalf of shareholders.
Ichigo will continue to offer reliable financial instruments for investors andwork to drive greater value for shareholders.

Ichigo Office Sustainable Value-Add Case: Ichigo Nogizaka Building
Received Tokyo Low-Carbon Small and Medium-Sized Model Buildings Building Certification(Rank: A2)
18

Environmental
Ichigo works to reduce its environmental
impacts and help preserve our shared global
environment

19

Environmental
Producing Safe & Clean Energy
Ichigo develops and operates solar and wind power plants across Japan that supply clean energy,
contribute to Japan's energy self sufficiency, and bring productive use to idle land.
Our Clean Energy business contributes to a more sustainable society by contributing to Japan’s

235.2(In-Pipeline)

energy self-sufficiency.

4.9
Ichigo Plants Panel Output
Ichigo Green (9282) Plants Panel Output
Ichigo In-Pipeline Plants Panel Output

169.1(+13％)

Ichigo In-Pipeline Green Biomass Panel Output

136.3(+21％)

Total
Panel Output
(MW)

101.8
(+88％)

174.2
(+3％)

188.2
(+8％)

188.2
(–)

42.1

Business Growth Drivers
Green Biomass

150.0(+10％)

Biomass power generation using domestic
feedstocks via partnerships with local
governments and communities

113.1(+11％)
158.8

Contribute to solving environmental issues
via domestic forest conservation forest
revitalization by using only domestic
feedstocks
In-Pipeline: 5 Plants, 4.9MW

Non-FIT Solar Power
54.2
Solar power generation for third-party
companies and households

25.8

29.4

FY17/2

FY18/2Meeting increasing renewable energy
demand, strengthen our contribution todomestic environmental issues
In-Pipeline: 9 Plants 42.1MW

FY19/2

FY20/2

FY21/2

FY22/2

FY23/2

FY24/2

FY25/2

FY26/2~20

Environmental
Making Productive Use of Idle Land to Produce
Clean Energy & Contribute to Communities

First REAFF-Approved Power Plant in Kanto
RegionIchigo makes effective use of idle land across Japan to generate solar

Ichigo operates three solar power plants on c. 50,000m2 of land in Toride

and wind power, working in close partnership with local communities not

City (Ibaraki), built pursuant to the Act on Promotion of Power Generation

only to produce safe and clean energy but also to help support theof Renewable Energy Harmonized with Sound Development of

economic vibrancy of these communities.

Agriculture, Forestry, and Fisheries (“REAFF Law”).

.

Productive use of idle land such as soil deposit sites and abandoned
farmland can help local communities garner tax revenue and land lease
income. Plant operation and maintenance also helps to create jobs andsupport local employment, all of which contribute to the local economy.

The purpose of the REAFF Law is to make necessary arrangements forappropriate land use, promoting both the sound development of local
agriculture, forestry, and fisheries and renewable energy generation thatis harmonized with the growth of regional industries, which will thus
contribute to revitalizing rural villages.

The builds of Ichigo’s solar power plants are optimized to local climate
and topography to maximize power production efficiency and minimize
losses from any natural disaster. For example, in Hokkaido where snow isheavy, high mounting racks are used and panel inclinations are set at 30
degrees (vs. 10 degrees in other areas) to avoid and displace snow
coverage. Ichigo’s plants are monitored 24-7 via a real-time monitoring
system that detects any failures at the panel level, therefore enabling
immediate response.
Ichigo Engaru Higashimachi ECO Power Plant (Hokkaido)

Working closely with land owners, the Chairman of the Shimotakai
Regional Development Association, and the Toride City Agricultural
Committee, Ichigo obtained approval to build Kanto's first REAFFapproved solar power plant on Type 1 farmland, which generally is
restricted for being used for such projects.
Every year Ichigo donates a portion of power generation revenue to
Toride City, used to support its local agriculture.

Ichigo Toride Shimotakai Kita
ECO Power Plant

Ichigo Toride Shimotakai Nishi
ECO Power Plant

21

Environmental
Reduction of Energy Consumption &Net Zero Initiatives■ Commitment to Preserve the Environment•

Ichigo’s Code of Corporate Ethics sets forth that Ichigo will work topreserve our shared global environment and reduce theenvironmental impact of its operations. Ichigo’s President (CEO) istasked with oversight over Ichigo’s climate actions.

Third-Party Assessment of GHG Emissions
Ichigo has hired the Japan Quality Assurance Organization (JQA), a thirdparty inspector, to assess the total amount of GHG (greenhouse gas)emissions across the Ichigo group from the 2020 fiscal year (March 1, 2020 ~February 28, 2021) in order to help identify and prioritize targets for reduction.

■ Energy Consumption* Assessment

JQA confirmed the accuracy and compliance of Ichigo’s calculation of its
Scope 1, Scope 2, and Scope 3 GHG emissions, as well as its renewable andnon-renewable energy consumption.

•

Use of Smart Meters and Building Management Systems (BMS)

Scope 1: Direct emissions from Ichigo*Comprises energy consumption (electricity, gas, and other fuels),
water consumption, and waste volume

Scope 2: Indirect emissions from the use of purchased electricity/heat/steam
Scope 3: Indirect emissions other than Scope 1 & 2■ Reduction of Energy Consumption•

Ichigo is conducting renovations at its assets for improved energy
efficiency such as installing LED lighting and equipment to reduce
HVAC power consumption.

•

Ichigo has executed green leases for some of its buildings, underwhich Ichigo works with tenants to improve the energy efficiency andreduce the environmental impact of the buildings, and plans toincrease the number of green leases.

Ichigo RE Target
Sourcing 100% Renewable Electricity
Across Its Operations by 2025
Ichigo is committed to sourcing 100% renewable energy across all Ichigo,
Ichigo Office (8975), and Ichigo Hotel (3463) assets by 2025.

22

Environmental
Ichigo Sustainability Promotion Code of Conduct

Setting Greenhouse Gas Emission & Resource
Consumption Reduction Targets

Ichigo has established the following guidelines for the development of its
sustainability policies.

Targeting the 100% tracking of its greenhouse gas emissions andresource consumption, Ichigo has established short-term and long-term
reduction targets at its office and managed assets.

•

Article 3: Internal Structure•

Article 4: Sustainability Meetings•

Article 5: Employee Training & Awareness•

Article 6: Annual Employee Evaluations•

Article 7: Stakeholder Engagement•

Article 8: Identifying Key Information•

Article 9: Sustainability Disclosures■ Led by CEO Who is Responsible for Ichigo’s Sustainability
Initiatives•

The ReGeneration Group, which directly reports to the CEO, theChief Sustainability Officer, and is overseen by the COO, is
responsible for the execution of Ichigo’s group-wide sustainability
initiatives.

•

Led by the ReGeneration Group, Sustainability Meetings are held atleast once every three months to discuss measures aimed ataddressing climate change and monitor progress, and the CEOreports the progress to the Board of Directors. The Sustainability
Policy is reviewed at least once a year.

* Energy and greenhouse gas reduction base year: FY20/2,
Long-term target: FY30/2■ Ichigo Energy Consumption Monitoring Policy•■ Ichigo Greenhouse Gas Emission Reduction Policy•

Short-term target (Scope 1+2): 4.2% annual reduction at Ichigo’s
offices and assets starting from the base year, (Scope 3): 2.5%
annual reduction•

Long-term target (Scope 1+2): 50% reduction at Ichigo’s offices andassets by FY30/2 vs. the base year

■ Ichigo Water Consumption Monitoring Policy (Base Year: FY22/2)•■ Policy Development Based on Ichigo’s Sustainability Policy
To address important environmental issues including greenhouse gas
emission reductions and energy efficiency, Ichigo has developed the
Ichigo EMS Manual and other policies (to the right) and targets. Thesetargets are reviewed in line with the progress of Ichigo’s initiatives, basedon the above structure.

Ichigo’s short-term target is a 1% annual reduction in energy
consumption at all assets starting from the base year, and its longterm target is a 10% reduction in annual energy consumption at all
assets by FY30/2

Ichigo’s short-term target is a1% annual reduction in water
consumption at its offices and assets starting from the base year, andits long-term target is a 10% reduction at its offices and assets by
FY30/2■ Ichigo Waste Monitoring Policy (Base Year: FY22/2)•

Ichigo’s short-term target is a 1% annual reduction in waste at its
offices and assets starting from the base year, and its long-termtarget is a 10% reduction at its offices and assets by FY30/2(stipulated April 19, 2023)
23

Environmental
Disaster Recovery

Rapid Disaster Response Leveraging IT■ Business Continuity Guidelines & Planning•

Recent heavy rains due to global warming and major earthquakes
across Japan have increased the risk of physical damage to Ichigo
owned and managed real estate assets.

•

It is Ichigo’s responsibility as a sustainable infrastructure company
operating c. 350 real estate and power plants to recognize this risk
and prepare to rapidly respond to any disaster. Towards this end,
Ichigo developed Susport®, a real-time reporting system that alerts
Ichigo employees about an occurrence of a natural disasters and thecondition of Ichigo assets thereafter.

•

Susport allows for the quick identification of assets subject to thedisaster and provides a chronological history of the condition of each
asset, thus allowing for appropriate personnel to be rapidly deployed
to the affected area to help minimize any damages.

•

Ichigo also works to make prompt disclosures with respect todisasters pursuant to its internal rules on disclosures. Timely
disclosures of the conditions of its assets in affected areas helps toprovide peace of mind for our tenants, shareholders, local residents,
and all other stakeholders.

•Ichigo has in place Internal Rules for Crisis Management andBusiness Continuity, a Business Continuity Plan (BCP), and an
Emergency Response Plan, and has appointed a BCP Officer
responsible for handling situations of crisis.

•

The BCP Officer works together with relevant divisions to accurately
and objectively assess the situation and makes reports directly to
Ichigo’s President.

•

Ichigo’s President can call for a crisis management team to beformed and the President shall serve as the head of the team.

■ Prompt On-Site Disaster Response
At times of disasters, Ichigo collaborates with Property Managementcompanies and Building Management companies to preserve its assets
and ensure the safety of its tenants, local residents, and all otherstakeholders.
Shortly after the Kumamoto Earthquake occurred in 2016, a team of
Ichigo engineers and architects arrived on site to help with safetymeasures and to deliver essential goods to local residents.

24

Environmental
Protecting the Environment via IT

Socially-Contributing Activities••

The revolution in IT and networks that has transformed industries
globally has also reached real estate, creating opportunities forwhich its assets are located, working together to improve theradical improvements in doing business. To invest in the potentiallycommunity and prevent damages from natural disasters.

enormous growth opportunities from this technological change anddrive significantly higher long-term growth for its shareholders, Ichigo•

to the safety and security of local residents.

company.
One example is the deployment of an online system to process
employee expense reimbursements. With increasing numbers of
employees traveling to tenant sites and working outside the office

We believe that partnering in activities like street cleanups, snow
plowing, neighborhood watches, and planting greenery contribute

will pursue the use of IT to grow as a sustainable infrastructure•

Ichigo actively participates in activities in the local communities in•

Ichigo’s value-add work is planned and implemented upon close
communication with both tenants and local residents with the intent
of catering to their diverse needs.

because of the Covid pandemic, the ability to process expenses
online is not only a significant boost to productivity but also helps toreduce GHG emissions by reducing consumption of paper.
•

The introduction of an online expense reimbursement system has
resulted in cutting back the use of 150,000 sheets of paper per year,
which amounts to a c. 200kg reduction in annual GHG emissions.
Even for a 300-employee company like ours, measures like thesecan make a difference in preserving our globally shared environment.

25

SocialIchigo believes companies exist to serve
society and is committed to contributing toa sustainable society via its businessactivities

26

SocialSupporting Human Rights, Children with
Illnesses, & People with Disabilities
Ichigo is a Member of the United Nations Global Compact
 Eliminate all forms of forced and compulsory labor Abolish child labor and respect children’s rights

Supporting Students
Supporting Middle School and High School Students
Support the activities of middle school and high school students that work
to solve social problems via events and games aimed at developing a
sense of respect and care for each other.

Ichigo Donates to NPOs, Supports People with Disabilities &Children With Cancer

Supporting Student Investment Clubs

 Donated a portion of its issuance fees, related to a CSR bond for smart

 Participated in an IR presentation contest pairing companies with

agriculture business, to the University of Miyazaki Faculty of Medicine’s

university investment clubs that conduct research on the companies andProgram for Children

prepare an IR presentation

 Support groups for job placement and the livelihood of people withdisabilities often find it difficult to locate office space. As a real estate Ichigo management/employees were interviewed by students and also
advised on creating presentation materials and its delivery

owner and operator, Ichigo helps such groups to find office space.
 Donated JPY 46.4 million to support Ishikawa Earthquake relief efforts(FY24/2)

Internships for College Students
 Provided opportunities for college students to experience “A Day at

Supporting Artists With Disabilities (Paralym Art Gold Partner)
Supporting Paralym Art as a Gold Partner sponsor.
Paralym Art supports artists with disabilities in achieving

Ichigo,” such as accompanying employees to inspect real estate assets
and participating in company meetings
 Conducted in-depth discussions leading to a deeper mutual
understanding

their goals and becoming financially independent without
relying on social security programs via corporate andindividual sponsorships.
“Hiromi Miyake”
Kenji Ino

Ichigo teamed with Keio University
students at an IR presentation contest
in February 2019. The students won
the Special Jury Award and interned at
Ichigo.
27

SocialSupply Chain

Value Chain

Ichigo believes that companies exist to serve society.

Ichigo's smart agriculture business supports Japan’s long-term growth

Respecting and promoting communities – Ichigo supports local
residents in revitalizing local communities and creating long-term
valueStrengthening Partnerships with Partner Companies

Supporting Growth & Competitiveness of Agriculture Build and rent out smart
greenhouses to help farmers
increase production and adapt toEstablished Ichigo Wakei-Kai association in June 2015 to instill andrefine Ichigo’s property management standards with partner property
management companies

climate change Minimize farmers’ financial burden
by eliminating rent during■ The term “Wakei” comes from a phrase used in tea ceremony, Wakei
Seijaku, describing the sincere efforts of the tea master and guests tomake each other feel at ease and show mutual respectproduction and receive variable rent in line with shipment volumes
Driving Earnings for Agriculture Industry via Expanded Distribution■ Ichigo and partner companies jointly work to improve building
maintenance management and increase tenant satisfaction■ Ichigo strategically drives awareness of ESG initiatives amongst partnercompanies

 Leverage Ichigo’s network to
support distribution and sales
 Support online sales

Tenant Satisfaction Surveys for All Tenants
Under our hands-on approach, Ichigo aims to understand andrespond to tenant needs

Revitalizing Communities &Creating Employment Opportunities■ Conduct regular tenant satisfaction surveys to understand their needs

 Support sales of food products adding value to local produce■ Survey extended to all tenant employees, if necessary

 Help raise farmer income
 Secure local employment
28

SocialRespect for Human Rights

Mental Health Care &Harassment Prevention Guidelines

Eliminate Discrimination

Training & Stress Check Implementation Rules

Ichigo eliminates all forms of discrimination in all matters involving•

employees’ mental healthpotential and current employees including employment, training, andpromotions, and does not discriminate based on race, beliefs, religion,

Ichigo conducts an annual employee stress check to monitor•

Ichigo provides opportunities for employees to speak to counselors,

skin color, nationality, age, gender, sexual orientation, sexual identity, or

doctors, and internal/external resources based on results of the stressdisabilities.

checksWork Environment•

Ichigo follows relevant laws and regulations to ensure employee safety.

•

Ichigo maintains a safe, productive work environment free of
discrimination and harassment. All verbal and physical forms of•environments based on stress check results
Harassment Prevention Guidelines•

discrimination and harassment based on sex, race, religion, or beliefs
are strictly prohibited.

If deemed necessary, Ichigo implements improvements in work

Ichigo has clear harassment prevention guidelines, including
procedures to deal with people that breach these guidelines•

Ichigo strictly prohibits sexual harassment, power harassment,harassment related to pregnancy, giving birth, and parental leave, andremaining silent about incidents of harassment

Ichigo works tocreate abundant
opportunities forour employees•

Ichigo provides internal/external resources dedicated to resolving any
incident of harassment while taking utmost care to protect the rights ofthe victim.

29

SocialIchigo HR Policy

Employment Options for Different Lifestyles

Ichigo respects employees and believes the success of
its businesses drives long-term happiness for all of society■ Child Care Leave
Childcare leave is available for employees with children aged 2 years andyounger, and for employees with special circumstances until children turn 3
years oldCore Values■ Professionalism
We are dedicated to developing and maintaining strong relationships withour clients. We value integrity, honesty, and fairness, and are committed
to achieving and maintaining excellence in serving our clients.
■ Entrepreneurial Spirit & Diversity
Creativity and innovation are at the core of our business. We work day-in
and day-out to improve our client service capabilities.
■ Teamwork
We stress teamwork to support an outstanding client experience. We arefocused on building a strong, long-term organization with committed
professionals who value teamwork.

Respecting Employee Rights
Ichigo has eliminated executive offices to facilitate employee
communication with directors and executive officers. Ichigo respects
employees’ rights to express their opinions, either directly or through amajority-elected employee representative that is responsible for leading
negotiations of a labor management agreement pursuant to Article 36 of
the Labor Standards Act and gathering employee opinions, as necessary.

Compensation Policy
The Compensation Committee decides on the base salary, bonus, andother compensation of Directors and Executive Officers.
Ichigo decides on employees’ salaries and bonuses based on individual
performance and evaluations, regardless of gender, age, and nationality.

■ Paid Leave for Childcare
Employees with children in elementary school or younger can take up to 10
days of paid leave to care for their children when they are sick or injured■ Temporary Leave/Paid Leave for Nursing Care
Temporary Leave and paid leave is available for employees taking care offamily■ Extra Vacation Days
In addition to paid vacation days, Ichigo offers 5 extra vacation (99.4% of
employees consumed these extra days in FY23/2)■ Shortened Workday, Flextime, & Remote Work
Employees have the options to shorten workdays or shift work hours
subject to approval regardless of the reason■ Retirement Age Set at 70
Retirement age is set at 70, and employees are offered the opportunity tocontinue working for a prescribed period.

Ichigo is a company comprisingprofessionals with different backgrounds,
aiming to provide an environment full ofopportunities and encouraging employees
to take on new challenges with anentrepreneurial spirit. The three corevalues represent our dedication to ourwork and motivation driving our work.

Senior Executive Managing
Director & Statutory Executive
Officer (Corporate Operations)
President, Ichigo University
Eri Murai

30Social
Employee Health Initiatives

Safety Initiatives

Employee Health Initiatives to Support Employee Satisfaction

Internal Rules on Health and Safety Management Applied AcrossAll Group Employees Robust periodic health check-ups that exceed legal requirements andsupport for re-examination fees Reduce overtime••

 Established internal rules on health and safety management in line with
the Labor Standards Act, Industrial Safety and Health Act, and otherapplicable laws and regulations to prevent workplace disasters andAverage overtime work: FY21/2 10.7 hours; FY22/2 11.7 hours;

disease, ensure employee health and safety, and provide for a

FY23/2 11.6 hours

comfortable work environment

Monitor overtime work, offer professional counseling, and raiseawareness via management training Annual mental health training and mental health check・Offered to all employees Encourage use of vacation days Offer Ichigo University courses on health・ Courses on improving lifestyles, office yoga, etc.
 Improve work environment and accommodate flexible work
arrangements

 Overseen by Health and Safety Manager, Safety Manager, HealthManager, a physician, and employees with health and safety experience Health and Safety Management Committee meets at least once a month,including periodic regular meetings and emergency meetings convened
to discuss urgent matters.
Building Management Policies& Guidelines Applied Across All
Ichigo Owned & Managed Assets
 Improve building safety and management working together with partnercompanies (PM/BM) Conduct semi-annual building inspections with partner companies(PM/BM) and follow-up discussions

 Promote employee group activities•

Golf, running, soccer,and flower arrangement clubs

 Ensure tenant safety via an emergency contact system and establish
procedures to handle accidents and disasters
 Ensure strict adherence to laws and regulations across all partnercompanies (PM/BM)

31

SocialIchigo University for Employee Education

Promoting Internal Start-Ups

Ichigo established Ichigo University in May 2013 to support the ongoing

Internal start-ups are assessed both from their potential for profit

learning of Ichigo employees.

contribution and their ability to serve society via a sustainable business

Courses are taught by employees and external professionals who are
specialists in their respective fields. Employees are welcome to takecourses not directly related to assigned work, thus promoting the learningof a broad array of new knowledge and skills.

model designed to solve social problems. Ichigo supports internal startups with the creation of their businesses proposals and financial
projections in the spirit of being a company full of opportunities for its
employees and to help serve society through its businesses.

Ichigo University also serves as a forum where all employees can share

Ichigo’s Clean Energy business and Ichigo Owners business both started

their knowledge and exchange views, and has become a popular learning

as internal start-ups. Clean Energy has since grown to be a core businessplatform among employees.

and Ichigo Owners continues to offer valuable real estate products andCourses are available online, with over 1,000 course participants annually.
■ Example of Past Courses

consulting services that have performed strongly despite Covid.
As part of its focus on asset-light and IT businesses, Ichigo developed
PROPERA, an AI-based hotel revenue management system, to help

Real Estate/Construction, Tax/Accounting, ESG Investing, Information

solve issues faced by hotels and enhance their competitiveness in orderTechnology, Lectures by Independent Directors

to maximize earnings and increase productivity.

32

Governance
Ichigo conducts its businesses with integrity
and fairness, the foundation of which is its
global best-practice corporate governance33

Governance
Ichigo adopted the Company with Three Committees (Nominating, Audit, Compensation) governancestructure in May 2006 to ensure robust supervision of management, agile business execution, and effective,
transparent, and ethical business operations.
All Directors on Ichigo’s Board of Directors are aware of their fiduciary responsibility towards shareholders
and work collaboratively and appropriately with other stakeholders to ensure sustained value creation forshareholders.
Roles of the Board
The Board examines and resolves on matters stipulated by law and regulation, set in Ichigo’s Articles of Incorporation, defined in internal rules pertaining
to the Board, and presented to the Board as an agenda item. All other decision matters are delegated to Ichigo’s Statutory Executive Officers in order toestablish sound governance through a clear separation between business execution and the supervision thereof.
All Statutory Executive Officers are expected to efficiently make decisions and lead employees within their delegated areas of responsibility. To this end,
Ichigo has established internal rules that clearly define the specific roles, responsibilities, and authority of decision-making groups and persons such thateach business case is appropriately reviewed and decided upon by the relevant group and effectively executed.
Board Evaluation
Ichigo’s Board consists of nine Directors, of which a majority (five Directors) are Independent Directors. Board evaluations are conducted by having each
Director assess the Board along the criteria shown below, with aggregate survey results collectively reviewed by the Board.
(1) Board Composition(2) Board Operation(3) Board Effectiveness(4) Board Support Resources(5) Engagement With Shareholders and Stakeholders(6) Board Operation Under Covid(7) SDGs and Sustainability Initiatives
In order to ensure the objectivity of the Board evaluation, Ichigo receives advice from JMA Research Institute, Inc., a third-party consultant, with respect toits evaluation process. Based upon such evaluation, the Board confirmed that its deliberation and decision-making processes are effective, leveraging theknowledge and experience of each Director, and that the Board is appropriately overseeing management in line with Japan’s Corporate Governance Code.
34

GovernanceCompliance & Whistleblower System

Integrity, Honesty, & Fairness

Rigorous Compliance and Risk Management Framework

Ichigo is a Member of the UN Global Compact

Annual compliance training and submission of written pledge‒ Maintain a sound work environment by preventing all types ofharassments‒ Preempt potential problems through regular compliance surveys and thewhistleblower system‒ Periodic training on key topics such as prevention of insider trading‒ Established a rotation rule within Ichigo to eliminate conflicts of intereststhat may arise with respect to preferential transactions‒ Identify and manage transactions that pose a conflict of interest‒ Established a policy to prevent any dealings with anti-social forces‒ Promote self-corrective measures via self-inspections and an issue
reporting system
Whistleblower System (Compliance Hotline)
A Whistleblower System Independent of Reporting Lines
All Ichigo officers and employees are required to escalate any questionableact, whether they are directly involved or not. Reporting includes acts ofclients, tenants, and service providers, and any matter raised by suchparties.
Reporting can be made to any of the Compliance Committee, Audit
Committee, Executive Officers, Directors, and a designated external legal
counsel.
Protecting the Anonymity of Whistleblowers
The anonymity of whistleblowers will be protected and measures will betaken to ensure that reporters suffer no disadvantageous treatment as aresult of their reporting. Furthermore, whistleblowers will be notified about
investigation results and any remediation measures with respect to thematter reported.

 We work against all forms of corruption, including extortion and bribery.
 We will work towards a more transparent global economy.
Fair Business Conduct (Article 18 of Ichigo’s Code of Conduct)‒ We adhere to laws and regulations to maintain honest and fairrelationships with our clients, stakeholders, competitors, and authorities.
‒ We ensure transparency of our business conduct by confirming
transactions and agreements against relevant laws and regulations andensuring the presence of sound economic rationale.
‒ We will not disadvantage counterparties by taking advantage ofconfidential information, concealment, abuse and misrepresentation ofcritical facts, and unfair business practices.
Prohibited Matters (Article 26 of Ichigo’s Code of Conduct)‒ Ichigo prohibits any personal provision of moneys and goods or any
other monetary benefits and entertainment to business counterparties.
‒ Ichigo prohibits any personal borrowing and lending of money withbusiness counterparties‒ Ichigo prohibits any gifts and entertainment to civil servants anddeemed civil servants.
‒ Ichigo prohibits receipt of gifts and entertainment from counterparties
deemed inappropriate or suffering poor business conditions.
Political Activities and Contributions (Article 34 of Ichigo’s Code of
Conduct)‒ Officers and employees participating in political activities must do soduring their own time and strictly on an individual basis.
‒ Officers and employees participating in political activities are prohibitedfrom using any Ichigo facility and equipment for such activities.

35

GovernanceRisk Management
Ichigo manages all elements of risk across its group under the ISO 31000 international standard.
In order to establish a risk management framework across its group, Ichigo has designated the Statutory Executive Officer in charge of Corporate Operations to be
the head of risk management. Both projects under existing operations and new business development are risk assessed semi-annually and reported by thedesignated head of risk management to the Audit Committee and the Board of Directors. The Board of Directors regularly evaluates the effectiveness of the risk
management process.
The frequency and impact of various risks are assessed and categorized into areas including climate change, labor issues, health and safety, extortion and bribery,
insider trading, and anti-social forces.
Exogenous Risks

・ Real estate & financial market conditions
・ Changes in relevant laws and regulations
・ Natural disasters & climate change

・ Reputation risks arising from social criticism andneighborhood disputes
・ Accidents, terrorist attacks

Counterparty Risks

・Consignees (credit concerns, quality concerns,
inadequate management, etc.)
・Tenants and clients (delays or defaults of rent payment,
dealings with anti-social forces, etc.）

・ Excessive concentration of business・ Direct/indirect losses arising from dealings with anti-social
forcesAsset-Specific Risks

・ Inadequate rights, defective construction, aging of buildings, ・ Contractual flaws, inadequate registrations, failure toclose deals, settlement failures, prolonged development
inappropriate use of asset, etc.
periods, and accidents
・ Departure of tenants and prolonged vacancies.

Operational Risks

・ Mistakes and fraud of operational and accounting procedures・ Breach of contract and information leaks
・ Insider trading and inadequate control of insider
・ Inadequate record keeping
information
・ Liquidity risk
・IT-related
problems
・ Legal/regulatory breaches and conflicts of interests

People & Organizational Risks

Other Risks

・ Recruitment and HR evaluation
・ Health problems resulting from overwork
・ Inadequate HR support and insufficient training

・ Inadequate governance structure and internal controls
・ Direct/indirect losses arising from poor decision-making

・ Other specific risks
36

Appendix

37

Reference: Environmental (1)GHG Emissions(t-CO2)
Scope

FY20/2(Base Year)

FY21/2

FY22/2

FY23/2vs. Base Year

Scope 1

11,149

6,763

7,719

8,234

-26.1%

Scope 2 (Market Standard)

64,65852,68147,083

18,175-71.9%

75,80759,44454,802

26,409-65.2%

C1 Purchased Goods/Services

6,294

11,86010,454

13,170109.2%

C2 Capital Goods

39,50952,59632,80520,703-47.6%

C3 Fuel- and Energy- Related Activities

12,538

10,531

10,525

10,821-13.7%

C4 Upstream Transport and Delivery

118

138

150

143

21.2%

C5 Waste Generated by Operations

1,167

1,236

868

1,126

-3.5%

C6 Business Travel

30

28

56

69

130.0%

C7 Employee Commuting

57

56

107

128

124.6%

C8 Leased Assets (Upstream)

–

–

–

–

–

C9 Downstream Transport and Delivery

–

–

–

–

–

C10 Processing of Sold Products

–

–

–

–

–

128,025

46,014

15,86810,453-91.8%

787

426

430

841

6.9%

1,656

1,495

1,140

1,066

-35.6%

C14 Franchises

–

–

–

–

–

C15 Investments

–

–

–

–

–

Subtotal (Scope 3)

190,186

124,384

72,40858,525-69.2%

Total

265,994

183,829

127,21184,935-68.1%

Subtotal (Scope 1 + 2)

C11 Use of Sold Products
C12 End-of-Life Treatment of Sold Products
C13 Leased Assets (Downstream)

Includes Ichigo-owned and managed assets (excluding residential assets and Centro assets) as well as Ichigo’s rented offices in Tokyo and Osaka, taking into consideration businesscharacteristics and size. "–" indicates out of scope of the calculations.

38

Reference: Environmental (2)(t-CO2)GHG Emissions by Asset TypeFY20/2(Base Year)
Scope 1

FY21/2

FY22/2

FY23/2vs. Base Year

11,149

6,763

7,719

8,234

-26.1%

951,727

984,517

978,1211,001,820

5.3%

Office

780

658

614

715

-8.3%

Retail

854

669

558

635

-25.6%

Hotel

9,514

5,435

6,546

6,880

-27.7%

Other

–

–

–

3

–

Scope 2 (Market Standard)

64,65852,68147,083

18,175-71.9%

Total Floor Area (m2)

951,727

984,517

978,1211,001,820

5.3%

Office35,78430,14623,4353,188-91.1%

Retail

14,966

10,578

9,438

4,199

-71.9%

Hotel

13,07011,175

13,425

9,985-23.6%

Residential

125

57

28

8

-93.6%

Power Plants

653

673

706

741

13.4%

Other

57

50

49

52

-8.4%

Total Floor Area (m2)

GHG Emissions of Ichigo Assets
FY20/2(Base Year)
Scope 1+2 Emissions (t-CO2)

75,750FY21/2

FY22/259,394

vs. Base Year

FY23/254,75326,354-65.2%

Renewable Energy Transition Target: Achieve RE100 by 2025
FY20/2% of Renewable Energy Used by Ichigo Businesses

FY21/20%

FY22/20%

FY23/212%2025 Target
67%

100%

39

Reference: Environmental (3)Renewable Energy Power Generation (Actual)

Renewable Energy Power Generation (kWh)FY20/2

FY21/2

FY22/2

FY23/2

FY24/2

147,296,453

175,581,824

208,861,776

222,927,029

228,739,150

FY20/2

FY21/2

FY22/2

FY23/2

FY24/2

115,884.001

137,848.769

Total of Ichigo and Ichigo Green Power Plants

GHG Reduction (Actual)

GHG Reduction via Clean Energy Business(t-CO2)

97,215.656

98,647.576

101,217,992

Ichigo revised the CO2 emission factors per 1kWh generated by each electric power company used in the GHG reduction calculations for the Clean Energy business in FY23/2.

40

Reference: Environmental (4)Energy Consumption（GJ）
FY20/2(Base Year)

Energy Consumption

FY21/2

FY22/2

FY23/2vs. Base Year

1,533,333

1,298,454

1,301,915

1,330,155-13.3%

1.60

1.37

1.33

1.33

-16.9%

City Gas

191,075

111,996

126,151

139,593-26.9%LP Gas

346

512

287

268

-22.5%

Heavy Oil

27,673

19,202

20,37721,459-22.5%

Electricity

1,250,933

1,104,560

1,101,308

1,112,987-11.0%

Warm Water

15,33922,00419,994

20,58934.2%

Cold Water

47,96840,18333,79835,260-26.5%

Energy Intensity (GJ/m2)
Consumption per Energy Source

Data for Ichigo’s headquarter office and branch offices, as well as Ichigo-owned and managed assets. Energy use at Ichigo’s headquarter office and branch offices is c.0.1% of
total energy use.

41

Reference: Environmental (5)Environmental Certifications
FY20/2
Total Certified Assets (No. of Assets)

FY21/2

FY22/2

FY23/2

FY24/2

8

12

22

24

30

7.2%

9.1%

21.8%

22.3%

24.4%

Total Floor Area of All Assets (m2)949,905

982,694976,299

999,997

1,021,361

Total Certified Floor Area (m2)

68,17089,843

212,556

223,484

248,820

6

10

13

14

16

50,72572,398162,057

167,360

178,500

2

2

3

3

7

17,444

17,44418,922

18,922

41,278

Certified Assets (No. of Assets)

–

–

2

2

2

Certified Floor Area (m2)––

10,471

10,471

10,471

Certified Assets (No. of Assets)

–

–

5

8

9

Certified Floor Area (m2)––

29,53047,88751,188% Certified Assets (Based on Floor Area)

CASBEE
Certified Assets (No. of Assets)
Certified Floor Area (m2)
BELS
Certified Assets (No. of Assets)
Certified Floor Area (m2)
DBJ Green Building Certification

Tokyo Low-Carbon Small and Medium-Sized Model
Buildings

Data for Ichigo-owned and managed assets

42Reference: Environmental (6)Environmental Pollution/Resources
FY22/2(Base Year)

FY21/2

FY23/2vs. Base Year

Waste (t)

3,891

3,592

4,454

24.0%

General Waste (t)

2,841

3,019

3,671

21.6%

Industrial Waste (t)

1,050

573

783

36.6%

Hazardous Waste (t)

–

–

–

–

Recycled Hazardous Waste (t)

–

–

–

–

% of Offices With EMAS Certifications Including ISO14001

–

–

–

–

Product & System Development Includes LCA

–

–

–

–

Number of Violations of Environmental Pollution Laws and Regulations

–

–

–

–

Environmental-Related Fines and Charges During the Fiscal Year

–

–

–

–

Data for Ichigo-owned and managed assets

43Reference: Environmental (7)Water Consumption and Emissions
FY22/2(Base Year)

FY21/2
Water Consumption by Source (thousand m3）

FY23/2vs. Base Year

865

979

1,074

9.7%

External Water Supply (thousand m3)

714

827

913

10.4%

Groundwater (Well Water) (thousand m3)

114

119

126

5.8%

Recycled Water (thousand m3)

31

26

29

13.2%

Rain Water (thousand m3)

3

6

4

-26.5%

Emissions by Drainage Type (thousand m3)

865

970

1,020

5.1%

Public Sewage System (thousand m3)

829

931

988

6.2%

Rivers (thousand m3)

35

39

32

-19.5%

Costs Associated with Water-Related Risks
FY22/2(Base Year)

FY21/2
Facility Investments to Control Water-Related Risks (JPY)FY23/2vs. Base Year

331,711,000

131,807,000

341,200,533

158.9%

Costs Associated with Water-Related Risks–

247,056,000

457,368,000

85.1%

Number of Violations of Laws and Regulations Regarding Water Quality
and Quantity

–

–

–

–

Ichigo operates its businesses only in Japan and does not operate in regions with water-related risks according to the World Resources Institute (WRI)’s Aqueduct.

・なお、過去5年における・なお、過去5年における44

Reference: Social (1)Human Resources
FY19/2
Total (Note 1)

FY20/2

FY21/2

FY22/2

FY23/2

201

209

205

196

202

Male

120

128

126

122

123

Female

81

81

79

74

79

59.7 : 40.3

61.2：38.8

61.5 : 38.5

62.2 : 37.8

60.9 : 39.1

4

2

4

7

9

2.0%

0.9%

1.9%

3.4%

4.3%

Mid-Career

26

15

17

5

16

New Graduates

1

–

4

–

1

42 years 1 month

43 years 1 month

43 years 1 month

44 years 2 months

44 years 6 monthsMale

45 years 3 months

46 years 1 months

45 years 7 months

46 years 3 months

46 years 9 months

Female37 years 4 months

38 years 4 months

39 years 0 months

40 years 8 months

41 years

20-29

13.4%

10.5%

9.8%

10.2%

9.4%

30-39

31.3%

30.1%

29.8%

23.5%

24.3%

40-49

34.3%

36.4%

37.1%

37.2%

35.1%

50-59

13.4%

15.3%

17.1%

21.4%

22.3%

60 & over

7.5%

7.7%

6.3%

7.7%

8.9%

5.7 years

6.2 years

6.5 years

7.5 years

7.8 yearsMale

5.6 years

6.1 years

6.1 years

6.8 years

7.0 years

Female5.7 years

6.5 years

7.3 years

8.5 years

8.9 years

Turnover Rate (Note 1)

–

4.0%

8.6%

7.3%

8.7%

Average Salary (Note 1)

JPY 9.348M

JPY 9.553M

JPY 8.649M

JPY 9.042M

JPY 9.828M

Proportion (Male : Female)
Temporary Employees
Percentage

Average Age

By Age Group（%）

Average Tenure(Note 1) Includes Ichigo employees seconded to Ichigo consolidated subsidiaries

45Reference: Social (2)Diversity
FY19/2
Executives (Note 1)

FY20/2

FY21/2

FY22/2

FY23/2

42

41

34

35

35

Male Executives (Note 1)

40

39

31

32

31

Female Executives (Note 1)

2

2

3

3

4

4.8%

4.9%

8.8%

8.6%

11.4%

Employees in Management Positions (Note 2)

68

70

80

73

67

Male Employees in Management Positions(Note 2)

50

53

59

54

51

Female Employees in Management Positions(Note 2)

18

17

21

19

16

26.5%

24.3%

26.3%

26.0%

23.9%

0%

0.47%

0.46%

0.48%

0.49%

9

9

9

9

10

Male Directors (Standalone Basis)

8

7

7

7

7

Female Directors (Standalone Basis)

1

2

2

2

3

11.1%

22.2%

22.2%

22.2%

30.0%

13

14

12

14

11

Male Officers (Standalone Basis)

12

13

11

13

10

Female Officers (Standalone Basis)

1

1

1

1

1

7.7%

7.1%

8.3%

7.1%

9.1%

% of Female Executives% of Female Employees in Management
Positions% of Employees With Disabilities
Directors (Standalone Basis)% of Female Directors
Officers (Standalone Basis)% of Female Officers
Includes Ichigo employees seconded to Ichigo consolidated subsidiaries(Note 1) Total number of Directors, Executive Officers, and Auditors(Note 2) Number of department heads and managers

Community
FY19/2
Donations (JPY)3,098,000

FY20/2748,500

FY21/2490,000

FY22/2
18,289,200

FY23/2
17,100,000
46Reference: Social (3)Work Standards & Practices
FY19/2Average Number of Vacation Days Used
(Note 1)

FY20/2

FY21/2

FY22/2

FY23/2

16.6

14.9

10.7

13.1

11.7

Vacation Day Usage (Note 1)

73.2%

70.0%

50.5%

59.7%

61.1%

Extra Vacation Day Usage (Note 2)

100%

97.8%

100%

99.4%

99.4%

Monthly Overtime (Hours)

12.5

13.0

10.7

11.7

11.6

Female Employees Taking Maternity Leave

–

5

14

17

13

% of Eligible Female Employees Taking
Maternity Leave

–

100%

100%

100%

100%

Male Employees Taking Maternity Leave

–

–

–

2

2

% of Eligible Male Employees Taking
Maternity Leave

–

–

–

40.0%

50.0%

100%

100%

100%

100%

100%

–

100%

100%

100%

100%

Return Rate of Employees Taking Maternity Leave
Employee Engagement Survey Response Rate

(Note 1) Includes headquarter and branch offices(Note 2) Extra vacation days, provided in addition to legally required vacation days, are 5 days taken consecutively
Includes Ichigo employees seconded to Ichigo consolidated subsidiaries. "–" indicates out of scope of the calculations.

Health & Safety
FY19/2

FY20/2

FY21/2

FY22/2

FY23/2

Number of Health & Safety Committee Meetings

12

12

12

12

12

% of Employees Getting Annual Health Checks

100%

99.5%

100%

100%

99.5%

% of Employees Taking Annual Stress Checks

90.4%

92.2%

91.4%

94.4%

93.5%

% of Employees Taking Mental Health Training

–

–

–

99.0%

96.1%

Includes Ichigo employees seconded to Ichigo consolidated subsidiaries. "–" indicates out of scope of the calculations.
There have not been any work-related deaths or accidents of full-time or part-time employees during the past 5 years.

47

Reference: Governance (1)Executives (Standalone)
FY19/2

FY20/2

FY21/2

FY22/2

FY23/2

Directors

9

9

9

9

10

Independent Directors

6

5

5

5

6

Female Independent Directors

1

2

2

2

3

Number of Board of Directors Meetings

10

10

9

11

9

Director Compensation (Amount Paid/Number of Recipients)

JPY 202M / 2

JPY 254M / 3

JPY 215M / 3

JPY 217M / 3

JPY 253M / 3

Independent Director Compensation(Amount Paid/Number of Recipients)

JPY 63M / 6

JPY 56M / 6

JPY 51M / 5

JPY 49M / 5

JPY 54M / 6% of Independent Directors on the Audit Committee (Comprising
Only Independent Directors)

100%

100%

100%

100%

100%

Audit Fees Paid to Auditor (Exceeds Prior Year Non-Audit Fees)

JPY 86M

JPY 85M

JPY 96M

JPY 93M

JPY 93M

–

–

–

–

–

67%

67%

67%

67%

Non-Audit Fees Paid to Auditor% of Independent Directors with Financial Expertise on the Audit
Committee

67%

Board/Committee Meeting Attendance (Standalone)(FY23/2)

Nominating
Committee Meeting

Compensation
Committee Meeting

Audit
Committee Meeting

Compliance
Committee Meeting

9 (96.3%)

5 (100%)6 (100%)18 (100%)

2 (100%)Scott Callon

100%

100%

100%

100%

Takuma Hasegawa

100%

100%

100%

100%

Minoru Ishihara

100%

Eri Murai

88.8%

Tetsuya Fujita (Independent)

100%

100%

100%

100%

Noriko Kawate (Independent)

100%

100%

100%

100%

Yukio Suzuki (Independent)

100%

Masatoshi Matsuzaki (Independent)

100%

Nobuhide Nakaido (Independent)

88.8%

Amina Sugimoto (Independent)

85.7%

Board Meeting
Number of Meetings (Attendance)

100%
100%

100%
100%

100%

48

Reference: Governance (2)Compliance/Risk Management
FY19/2

FY20/2

FY21/2

FY22/2

FY23/2

Political Contributions

–

–

–

–

–

Number of Employees Penalized or Dismissed Due to Breach ofAnti-Corruption Policies

–

–

–

–

–

Fines & Settlement Costs Associated with Corruption

–

–

–

–

–

99.8% (2)

100% (2)

99.6% (2)

99.4% (2)

100% (2)Compliance Violations

–

–

–

–

–

Code of Conduct/Ethical Standards Violations

–

–

–

–

–

Human Rights Violations/Harassment

–

–

–

–

–

Compliance Violation Appeals & Reports

–

–

–

–

–

ESG-Related Fines/Settlement Reserve

–

–

–

–

–

Reports of Discrimination

–

–

–

–

–

Corruption/Bribery-Related Fines(Amount/Number of Cases)

–

–

–

–

–

Personal Information/Privacy-Related Violations

–

–

–

–

–

Conflict of Interest Cases

–

–

–

–

–

Money Laundering/Insider Trading Cases

–

–

–

–

–

% of Employees Participating in Compliance Training (Number ofTraining Sessions)49

These materials were prepared to explain Ichigo’s businesses and are not for the purpose of soliciting investment in marketable securities
issued by Ichigo. Ichigo does not guarantee the accuracy of the figures, information, estimates, or other statements included herein, andaccepts no responsibility for damages or losses arising through the use of the figures, information, estimates, or other statements contained
herein.
These materials are based upon information available as of the publication date, and may contain forward-looking statements pertaining to
Ichigo’s expectations, targets, plans, and strategies. Such forward-looking statements are not facts, but are the result of management’s
judgment based on information currently available. Actual operating results or developments concerning Ichigo may differ substantially fromthose indicated by forward-looking statements. The information enclosed is subject to revision without prior notice.
This document is a translation. If there is any discrepancy between the original Japanese version and this English translation, the original
Japanese version shall prevail.

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Contact:
Ichigo (TSE First Section 2337)
Investor Relations
TEL: +81-3-3502-4818
E-mail： ir@ichigo.gr.jp
www.ichigo.gr.jp/en50Make The World
More Sustainable

Ichigo Yonezawa Itaya ECO Power Plant