Disclosures Based on TCFD Recommendations
November 25, 2022
Ichigo(Updated on August 30, 2024)

TCFD

2AGENDA

01

Governance03

Ichigo Governance Structure

Risk Management
Risk Management Structure

Senior Management andCommittee Roles

02

Strategy
Scenario Analysis Process
Scenario Analysis Steps
Significant Climate-Related
Risks and Opportunities
Notable Risks and Opportunities
Financial Impact andIchigo’s Response

04

Metrics and Targets
Low-Carbon
Transition Roadmap

3

Governance

Ichigo has made sustainability a key business and social priority as a responsible corporate
citizen and Ichigo’s Code of Corporate Ethics, set by the Board of Directors, establishes thatIchigo will work to preserve our shared global environment and reduce the environmental
impact of its operations. Ichigo’s Board of Directors oversees the Company’s business topromote sustainability based on the Ichigo Sustainability Policy and to further reduce Ichigo’senvironmental impact.
Ichigo has established the ReGeneration Group, directly under the CEO and with the CEO and
Executive Vice President/COO as its leaders, to drive activities across the entire Ichigo group
aimed at addressing environmental issues. The ReGeneration Group takes on a cross-sectionalrole to work collaboratively with key subsidiaries to reduce Ichigo group’s CO2 gas emissions.

IchigoGovernance
Structure

Compliance Committee

Key Subsidiaries

Management Committee

DivisionsExecutive Vice
President/COO

ReGeneration Group(Reports directly toCEO)

Sustainability Meeting

Stakeholders

Nominating/ Audit/
Compensation
Committees

Internal Audit

CEOChairman

Board of Directors

Led by the ReGeneration Group, theSustainability Meeting is held quarterlyto monitor climate change-related risks,
identify & assess opportunities, monitorenergy & water consumption and waste
output, set the company’s sustainability
policy and targets, and plan specificmeasures. The content of thesemeetings are reported to the CEO andthe Board of Directors.

AGM

Sustainability Meeting■ Ichigo Governance Structure to Promote Sustainability Initiatives Including Climate Change

4Governance

The Ichigo Group Will Work Towards Addressing Climate Change
Issues as a Sustainable Infrastructure Company
Ichigo has made addressing climate change a key business priority, and has established theReGeneration Group, directly under the CEO and with the CEO and Executive Vice President/COO
as its leaders, to drive environmental activities across the entire Ichigo group. Sustainability
Meetings are held quarterly to discuss measures aimed at addressing climate change and tomonitor progress. Pursuant to “Initiatives to Fight Climate Change” stipulated in Ichigo’s Internal
Control Systems, the CEO reports progress to the Board of Directors upon receiving updates fromthe COO and the ReGeneration Group.

SeniorManagementand Committee
Roles

Board of Directors
The Board oversees management, andresolves on the company’s climate-related
initiatives and supervises the execution
thereof.

CEOThe CEO is responsible for the executionof Ichigo’s climate-related initiatives andfor reporting progress, in coordination with
the COO and the ReGeneration Group, tothe Board of Directors.

Executive Vice President/COO
The Executive Vice President/COO assists
the CEO in overseeing the ReGeneration
Group.

ReGeneration GroupThe ReGeneration Group is responsible
for Ichigo’s group-wide environmental
initiatives and takes on the role of leading
the Sustainability Meetings.

Sustainability Meeting
Sustainability Meetings are held quarterly
to monitor climate change-related risks,
identify & assess opportunities, monitorenergy & water and waste output, set thecompany’s sustainability policy and targets,and plan specific climate-related measures.

5Strategy

Ichigo Conducts Analysis Under Two Scenarios
Ichigo evaluates the financial and business impacts, and the resilience of Ichigo’s strategies
with respect to climate-related risks and opportunities under the following two scenarios set for2030. The steps of the scenario analysis are outlined on the next page.

Scenario

Scenario
Analysis
Process

2℃ or Lower
Scenario

4℃ Scenario

Overview

A scenario under which policies andregulations supporting the realization of alow-carbon society are implemented, andthe increase in global average temperatureis less than 2℃ vs pre-industrial-revolution
levels. Although transition risk is high,physical risk is lower than the 4℃ scenario.

A scenario assuming that publicly
disclosed targets, such as countryspecific targets under the Paris
Agreement, will be met, but no newpolicies or regulations are implemented,
and global CO₂ emissions continue torise. Although transition risk is low,
physical risk is high.

References• IEA World Energy

Outlook 2020 Sustainable DevelopmentScenario• IPCC RCP2.6• IEA World Energy

Outlook 2020 - StatedPolicies Scenario• IPCC RCP8.5

6Strategy

1

Identify important climate-related risks and opportunities, andset parameters• Identify climate-related risks and opportunities• Assess significant risks and opportunities• Set parameters related to significant risks and opportunities

2

Set climate-related scenarios• Identify most relevant scenarios from among existing scenarios based on

Scenario
Analysis
Stepsinformation from Step 1• Set climate-related scenarios (social images)

3

Evaluate financial impacts under each scenario• Analyze the financial impacts under each scenario set under Step 2 based on

Ichigo conducts its scenario
analysis based on these steps.

the significant climate-related risks and opportunities and associatedparameters identified under Step 1

4

Evaluate the resilience of Ichigo’s strategies with respect toclimate-related risks and opportunities, and determine furtheractions• Evaluate the resilience of Ichigo’s strategies with respect to climate-related risksand opportunities• Determine further actions

7

Strategy

Ichigo Categorizes Operations Into Two Businesses andIdentifies Detailed Risks and Opportunities for Each
Ichigo categorized its three business segments – Sustainable Real Estate, Clean Energy,and Asset Management – into the two categories of Sustainable Real Estate and Clean
Energy and analyzed climate-related risks and opportunities for each category. The risksand opportunities for the Asset Management* business have been identified on a per
asset basis and are included in the analysis of the two categories. Detailed risks andopportunities were identified based on discussing business environments and specificbusiness characteristics with respective departments, and then assessing their relevance,
both quantitative and qualitative, to Ichigo and its stakeholders.

Important ClimateRelated Risks andOpportunities*Ichigo’s Asset Managementbusiness manages two J-REITs,
Ichigo Office and Ichigo Hotel, alisted solar power producer,
Ichigo Green, and private equity
real estate funds for institutional
investors.

Sustainable
Real Estate(SRE)
BusinessRisks
Opportunities

Clean Energy(CE)
BusinessRisks
Opportunities

Notable Risks & Opportunities
Strategy

NotableRisks andOpportunities

Identified risks and opportunities
based on the most significant
impact to Ichigo
Fully leased assets for which
Ichigo holds no management
rights, real estate for sale, andassets managed under private
equity funds are excluded

Physical Risk

Transition Risk

TypeSRECE

Details

Increase in costs associated with new regulations such as carbon taxes,
and higher operating and construction material costs
Increase in new plant construction costs, operation costs (reinforcement
costs for existing power plants), and fuel costs (biomass)

PolicyandLegal●Technology●

Relative decrease in value of assets without energy efficient equipment

Acute

●

●

Increase in building damage and business suspension risk due toincreased severity of wind and flood damage
Earnings deterioration and higher repair costs caused by increased
severity of natural disasters

Chronic●●

Decrease in rent and value of assets located in areas subject to higher
flood risk resulting from rises in sea levels

Resource
Efficiency●●

Increase in value of real estate assets with long useful lives and thatflexibly respond to efficiency, environmental certifications, and tenant
needs■特定した機会Resource
EfficiencyOpportunities

8Energy Source●

Decrease in operating costs due to renewable energy and energy efficienttechnology (Assumption: Decreases in renewable energy prices andenergy consumption)●Products&Services
Markets●Markets●

Cost reduction and revenue increase due to increased power generation
efficiency as a result of technological advancements in power generation
facilities such as solar panels, batteries, and power transmission
equipment●

Increase in earnings due to diversification of services (changes inregulations, higher demand) as a result of increase in renewable energydemand●

Increase in financing opportunities, business opportunities, andgovernment incentives by receiving high ESG evaluations fromstakeholders
Increase in asset value from higher investments into cities and regions that
may be alternatives to cities impacted by a rise in sea levels

Resilience of Ichigo’s Response to the Risks and Opportunities
Assumed for 2030
Strategy

FinancialImpacts andIchigo’sResponse
Business/Financial Impact
Assessment
Ichigo determines thequantitative and qualitative
financial impacts(low/medium/high) of eachscenario based on internal
discussions. Ichigo will continue
to update its analysis based on
regular reviews of new external
and internal factors as well asother quantitative data.

Physical Risk

Transition Risk

TypeOpportunities

9Details

Financial
ImpactSRE

Policyand
Legal

Increase in costs associated with new
regulations such as carbon taxes, and higher
operating and construction material costs

Low●

Technology

Relative decrease in value of assets without
energy efficient facilities

Low●AcuteIncrease in building damages and risk ofbusiness suspension due to increased
severity and frequency of natural disasters

MediumChronic

Decrease in rent and value of assets locatedin flood risk areas due to sea level rise

Resource
Efficiency

CE

Ichigo’s Response/Resilience●Control costs as a result of greenhouse gas
emission reductions due to meeting RE100 target
by 2025 and implementing energy efficiency
measures
Develop new development plans in line with policy
trends (CE business)
Convert all lights to LED lights and install energy
efficient facilities by 2030 to maintain asset value

●

●Low

Develop mid- to long-term repair plans for allassets, reflect repair expenses in annual budgets,and implement appropriate preventativemeasures

Low●●Develop flood contingency plan, conduct annual
inspections, and consider flood risk when
acquiring new assets

Increase in value of real estate assets withlong useful lives and that flexibly respond toefficiency, environmental certifications, andtenant needs

Low●Resource
Efficiency

Cost reduction and revenue increase due toincreased power generation efficiency as aresult of technological advancements inpower generation facilities such as solar
panels, batteries, and power transmission
equipment

Low

EnergySourceDecrease in operating costs due torenewable energy and energy efficienttechnology (Assumption: Decreases inrenewable energy prices and energy use)

Low

Products&Services

Increase in earnings due to diversification ofservices (changes in regulations, higher
demand) as a result of increase in renewableenergy demand

Low

Markets

Increase in financing opportunities, business
opportunities, and government incentives byreceiving high ESG evaluations fromstakeholders

Medium●Markets

Increase in asset value from higher
investments into cities and regions that may
be alternatives to cities impacted by a rise insea levels

Low●

Develop plan to obtain environmental
certifications for all assets, and work to deliver onplan (2040)●

Increase in earnings due to the use of newtechnologies

Strategically source renewable energy to meet
RE100 target by 2025●●

New development of solar power plants for self
consumption, use of renewable energy after theend of FIT●

Sign UN Global Impact, join RE100, set 2025
targetDrive asset value by continuing to capture new
business opportunities and supply electricity togroup assets (CE business)
Review investment and operation policies for newand existing assets located in alternate cities andareas

10Risk Management

Ichigo is Working Towards Realizing a Low-Carbon Society via the Following Initiatives
Ichigo manages all possibilities of unexpected losses at Ichigo and any of its subsidiaries in line with the ISO 31000 risk management guidelines.
Ichigo has set risk management rules and has established a risk management structure that spans the entire group.
The Statutory Executive Officer (Corporate Operations) is responsible for risk management, and reports to the Audit Committee and the Board of Directors theresults of the Risk Management Group’s bi-annual assessment and analysis of major risks identified by each Group Head with respect to new businesses andprojects. Risks related to climate change are included in the scope of monitored risks, and the Risk Management Group and the ReGeneration Group manage
these risks. As a result of this risk management structure, Ichigo is able to identify climate change risks, conduct annual risk reviews, and implement measures toaddress risks that impact Ichigo’s business.

Climate-RelatedRisk Management Structure
IchigoBoard ofDirectors

AuditCommittee

Head of Corporate
Operations DivisionRisk ManagementGroupIchigo Subsidiaries
Board of Directors

Roles of Management and Committees
Board of Directors
Ichigo’s Board of Directors oversees the activities of Statutory Executive Officers pursuant to laws and regulations,
the Articles of Incorporation, shareholder meeting resolutions, Ichigo’s corporate mission, Board rules, Ichigo’s
Code of Corporate Ethics, and Ichigo’s Code of Conduct
Audit Committee
Audit the execution of duties by Statutory Executive Officers
Statutory Executive Officer (Corporate Operations)
Conduct periodic risk assessment and analysis for each subsidiary, and report to Ichigo’s Audit Committee andBoard of Directors
Board of Directors of Each Ichigo Subsidiary
Conduct periodic risk assessment and analysis for each subsidiary, and report to each subsidiary’s Board ofDirectors
Group Heads of Each Ichigo Subsidiary
Assess and analyze risks, and report results to the President and Board of Directors of each subsidiaryGroup HeadRisk ManagementGroupRisk Management Group
Conduct bi-annual transition risk assessments for each subsidiary by identifying short- and long-term climaterelated risks specific to each company, inclusive of its value chain

Ichigo GHG Emissions and Renewable Energy Forecasts

Metrics and Targets■Scope 1 ■Scope 2 (Cooling)

In line with this mission, Ichigo joined RE100, a
global initiative to accelerate the transition ofelectricity used by businesses to 100% renewableenergy.
Ichigo has committed to sourcing 100% renewableelectricity across all of its operations by 2025. By
achieving its RE100 target, Ichigo will reduce its
Scope 2 greenhouse gas emissions.
Ichigo will reduce the environmental impact of its
operations by making its assets more energy
efficient and climate positive.
Ichigo’s Science Based Targets (“SBT”),
greenhouse gas reduction targets set bycompanies in line with the Paris Agreement goals,
have been certified by the SBT Initiative in May
2025. Ichigo commits to reduce absolute Scope 1and 2, and Scope 3 GHG emissions 70% and25%, respectively, by FY2030 from a FY2022
base year.

Renewable Energy Sourced

80,000140,000

60,000100,000

40,000

Achieve
RE100
Target60,00010,00020,00000

Renewable Energy Sourced (MWH)

Ichigo is a Japanese sustainable infrastructurecompany dedicated to making the world moresustainable. In keeping with its Ichigo 2030 vision,
Ichigo is expanding the scope of its real estate andclean energy businesses to further contribute to asustainable society and grow long-term value forits shareholders.

■ Scope 2 (Electricity)

Renewable Energy Consumption (Electricity)

Ichigo is committed to achieving its
RE100 target by 2025
Greenhouse Gas Emissions (t-co₂)

11

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Ichigo’s RE100 progress: renewable energy
ratio of 92% as of May 31, 2024.

92％
Updated on August 30, 2024

(Note 1) The decrease in Scope 1 and 2 emissions due to Covid is expected to normalize in 2023.
(Note 2) Scope 1 and Scope 2 (electricity) are forecast to decline by 1% p.a. from energy efficiency
measures.
(Note 3) Scope 2 (cooling) is not forecast to decline.
(Note 4) Forecasts do not reflect changes in emissions due to asset sales and acquisitions.

12Metrics and Targets

Ichigo is Working Towards Realizing a Low-Carbon Society via theFollowing Initiatives

2025

Achieve RE100 Target

Ichigo is aiming to source 100% renewableenergy across all of its operations, including
Ichigo Office (8975) and Ichigo Hotel (3463)*RE100=Renewable Energy 100％
A global initiative bringing together the world’s
most influential businesses committed to100% renewable energy.

Low-Carbon
Transition
Roadmap2012

Launched Clean Energy
Business

Ichigo established Ichigo ECO Energy topromote an environmentally friendly clean
energy business, making productive use ofidle land to develop solar and wind power
plants across the country. Ichigo ECO Energy
and Ichigo Green (9282) ’s solar and wind
power plants have a total output of 188.2MW
as of August 31, 2024. New plants are indevelopment, and Ichigo will continue to work
towards reducing greenhouse gas emissions.

2050

Become Climate Positive

Ichigo is aiming to reduce 100% of its Scope 1and 2 emissions by 2050.
Climate Positive = Ichigo’s reduction ofgreenhouse gas emissions, including
electricity consumption, exceeds its emissions.
Ichigo will work towards a positiveenvironmental impact via improving energy
efficiency and renewable energy generation.

2035

Begin Sourcing
Renewable Energy From
Ichigo Power Plants

Starting in 2033 when some of its renewableenergy plants will reach the end of their FIT
contracts, Ichigo will aim to leverage theseplants as a source of renewable energy for its
operations.