PRIVATE TRANSPARENCY REPORT
2023
Sekisui House Asset Management, Ltd.
Generated 15-12-2023

About this report
PRI reporting is the largest global reporting project on responsible investment. It was developed with investors, for investors.
PRI signatories are required to report publicly on their responsible investment activities each year. In turn, they receive a number of
outputs, including a public and private Transparency Report.
The private Transparency Reports, which are produced using signatories’ reported information, support signatories to have internal
discussions about their practices. Signatories can also choose to make these available to clients, beneficiaries, and other stakeholders.
This private Transparency Report is an export of your responses to the PRI Reporting Framework during the 2023 reporting period. It
includes all responses (public and private) to core and plus indicators.
In response to signatory feedback, the PRI has not summarised your responses – the information in this document is presented exactly
as it was reported.
For each of the indicators in this document, all options that you selected are presented, including links and qualitative responses. In
some indicators, all applicable options are included for additional context.

Disclaimers
Responsible investment definitions
Within the PRI Reporting Framework Glossary, we provide definitions for key terms to guide reporting on responsible investment
practices in the Reporting Framework. These definitions may differ from those used or proposed by other authorities and regulatory
bodies due to evolving industry perspectives and changing legislative landscapes. Users of this report should be aware of thesevariations, as they may impact interpretations of the information provided.

Data accuracy
This document presents information reported directly by signatories in the 2023 reporting cycle. This information has not been auditedby the PRI or any other party acting on its behalf. While this information is believed to be reliable, no representations or warranties are
made as to the accuracy of the information presented.
The PRI has taken reasonable action to ensure that data submitted by signatories in the reporting tool is reflected in their official PRI
reports accurately. However, it is possible that small data inaccuracies and/or gaps remain, and the PRI shall not be responsible or
liable for such inaccuracies and gaps.

2

Table of Contents
ModulePage

SENIOR LEADERSHIP STATEMENT (SLS)

4

ORGANISATIONAL OVERVIEW (OO)

6

POLICY, GOVERNANCE AND STRATEGY (PGS)

16

REAL ESTATE (RE)42

CONFIDENCE-BUILDING MEASURES (CBM)56

3

SENIOR LEADERSHIP STATEMENT (SLS)SENIOR LEADERSHIP STATEMENTSENIOR LEADERSHIP STATEMENT
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

SLS 1

CORE

N/A

N/A

PUBLIC

Senior LeadershipStatement

GENERAL

Section 1. Our commitment■ Why does your organisation engage in responsible investment?
■ What is your organisation's overall approach to responsible investment, and what major responsible investmentcommitment(s) have you made?
We, Sekisui House Asset Management, Ltd.（SHAM）, aim to maximize unitholder value through the sustained growth of Sekisui
House Reit, Inc. (SHR) by developing together with all stakeholders.
We also promote initiatives to address social issues through our ESG strategies, and as a REIT that leads the way into an era of 100year lifespan, we are committed to responsible investment under a vision of “managing assets to better provide for people, society, andthe future” in pursuit of mutual sustainability between society and SHR. We have established the Sustainable Policy as an approach toresponsible investment, and have been committed to managing assets in accordance with this policy. Sustainability Policy includes thefollowing 10 items.
1. Complying with ESG-Related Laws and Regulations, 2. Responding to Climate Change, 3. Water and Resource Saving Measures, 4.
Biodiversity, 5. Comfort and Safety, 6. Contributing to Regions and Communities, 7.
Cooperating with Stakeholders, 8. Initiatives for Directors and Employees, 9. Supply Chain Management, 10. Disclosing Information andAcquiring External Certifications. We have established the Sustainability Committee, which is headed by the President & Representative
Director, in order to continuously and systematically implement initiatives based on this Sustainability Policy. We have also established asystem for achieving sustainability-related policies and targets, implementing various measures, managing progress status, and issuingnecessary instructions.
With a view to the sustainable development of SHR and sustainable society, it is essential to have guidelines for resolving issues andinitiatives through business activities.
Based on this understanding, we promote actions to achieve the tasks by identifying the materiality based on discussions at the
Sustainability Committee and setting targets for each materiality.
The Sustainability Committee meets at least once every three months in principle. Through the Committee, we assess the progress
made toward achieving our goals, measure the effectiveness of the measures taken, and discuss improvement measures on a regularbasis. In addition, SHR and SHAM have committed to ESG initiatives through endorsement of TCFD recommendations and UN Global
Compact and acquisition of SBTi validation. The approach to responsible investment in all asset classes of SHR is consistent with ESG
practices.

Section 2. Annual overview

4

■ Discuss your organisation’s progress during the reporting year on the responsible investment issue you consider most
relevant or material to your organisation or its assets.
■ Reflect on your performance with respect to your organisation’s responsible investment objectives and targets during thereporting year. Details might include, for example, outlining your single most important achievement or describing your generalprogress on topics such as the following (where applicable):• refinement of ESG analysis and incorporation• stewardship activities with investees and/or with policymakers• collaborative engagements• attainment of responsible investment certifications and/or awards
In light of environmental, social, and economic changes surrounding us, SHR and SHAM have identified material issues related to ESG(materiality) and are working to resolve them. In particular, we recognize that addressing climate change is an important issue, and in
the reporting year, we revised our mid-term target (by 2030) for GHG emissions reduction (on an intensity bases, compared to fiscal
2018) upward from a 20% reduction to a 50% reduction, and set a long-term target of achieving net zero emissions by 2050. As of
FY2023, we revised the GHG emissions unit from the intensity base to a gross base and acquired SBTi validation for the mid-termtarget. Also in the reporting year, we reduced CO2 emissions intensity by 25.0% in 2021 compared to FY2018 due to the facilities with
low impact on environment, such as LED lighting and energy-saving facilities, as well as procurement of renewable energy.
In addition, we are making progress toward net zero emissions at an accelerated pace in FY2023 through purchasing non-fossil
certificates and other measures. Furthermore, during the reporting year, we analysed the financial impact of climate change on ourbusiness (risks and opportunities) and conducted analysis of transition risk assessment of our office buildings using CRREM, as part ofour response to the TCFD recommendations. We are working to consider measures based on the results of these analyses and toenhance information disclosure by establishing a special ESG website, and are engaging with investors through the issuance of ESG
reports and IR meetings. In addition, we have identified “Invest in real estate with excellent environmental performance” as one of ourmateriality.
In response to the target of achieving 70% or more of the portfolio's green certification by the end of FY2022, 64.9% was achieved at
the end of the reporting period and 78.9% by the end of the fiscal year ending April 30, 2023, we intend to maintain 70% or more of theportfolio's green certification going forward. We are also engaging to achieve net zero emissions by introducing the "Sekisui House
Owner's Denki (Electricity),” which virtually eliminates CO₂ emissions from electricity use by switching the electricity derived fromrenewable energy sources, in addition to expanding green lease contracts from office building tenants to residential tenants, increasing
to 17.5% at the end of the fiscal year ending April 30, 2023 and thereby engaging with tenants. Additionally, during the reporting year,
we were included in the MSCI Japan ESG Select Leaders Index and were selected as a constituent of the FTSE4Good Index Series,
and its ESG initiatives have been highly evaluated, and in 2023, the Investment Corporation endorsed Advance.

Section 3. Next steps■ What specific steps has your organisation outlined to advance your commitment to responsible investment in the next two
years?
In this reporting year, we have identified key ESG issues to be considered for sustainable development, confirmed the progress of KPIs
for each of them we have set, revised as necessary, and publicized them.
Over the next two years, We will monitor the status of our efforts, evaluate the results through the Sustainability Committee, andimplement systematic improvements based on the Plan-Do-Check-Act cycle. And we will disclose the progress status and results of ourefforts against the targets using ESG report etc.
In addition, we explain the state of progress on the material issues and KPIs to investors through IR meetings etc., and reflect therequests and expectations obtained through communication in our business activities.

Section 4. Endorsement'The Senior Leadership Statement has been prepared and/or reviewed by the undersigned and reflects ourorganisation-wide commitment and approach to responsible investment'.

5

Name
Toru Abe

Position
President & Representative Director

Organisation’s Name
Sekisui House Asset Management, Ltd.

◉A'This endorsement applies only to the Senior Leadership Statement and should not be considered an endorsement of
the information reported by the above-mentioned organisation in the various modules of the Reporting Framework.
The Senior Leadership Statement serves as a general overview of the above-mentioned organisation's responsible
investment approach. The Senior Leadership Statement does not constitute advice and should not be relied upon as
such. Further, it is not a substitute for the skill, judgement and experience of any third parties, their management,
employees, advisors and/or clients when making investment and other business decisions'.
○ B

ORGANISATIONAL OVERVIEW (OO)
ORGANISATIONAL INFORMATIONREPORTING YEAR
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 1

CORE

N/A

N/A

PUBLIC

Reporting year

GENERAL

What is the year-end date of the 12-month period you have chosen to report for PRI reporting purposes?

Year-end date of the 12-month
period for PRI reporting purposes:

Date

Month

Year

31

12

2022

6

SUBSIDIARY INFORMATION
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 2

CORE

N/A

OO 2.1

PUBLIC

Subsidiary
information

GENERAL

Does your organisation have subsidiaries?
○ (A) Yes
◉ (B) NoASSETS UNDER MANAGEMENTALL ASSET CLASSES
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 4

CORE

OO 3

N/A

PUBLICAll asset classes

GENERAL

What are your total assets under management (AUM) at the end of the reporting year, as indicated in [OO 1]?
USD(A) AUM of your organisation,
including subsidiaries, andexcluding the AUM subject toexecution, advisory, custody, or
research advisory only

US$ 4,179,917,075.00(B) AUM of subsidiaries that are
PRI signatories in their own rightand excluded from thissubmission, as indicated in [OO
2.2]

US$ 0.00(C) AUM subject to execution,
advisory, custody, or researchadvisory only

US$ 0.00

7

ASSET BREAKDOWN
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 5

CORE

OO 3

Multiple
indicators

PUBLICAsset
breakdown

GENERAL

Provide a percentage breakdown of your total AUM at the end of the reporting year as indicated in [OO 1].
(1) Percentage of Internally managed AUM(2) Percentage of Externally managed AUM(A) Listed equity

0%0%(B) Fixed income

0%0%(C) Private equity

0%0%(D) Real estate

100%

0%

(E) Infrastructure0%0%(F) Hedge funds

0%0%(G) Forestry0%0%(H) Farmland

0%0%(I) Other0%0%(J) Off-balance sheet

0%

0%

8

ASSET BREAKDOWN: INTERNALLY MANAGED REAL ESTATE
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 5.3 RE

CORE

OO 5

N/A

PUBLIC

Asset breakdown:Internally managed
real estate

GENERAL

Provide a further breakdown of your internally managed real estate AUM.
(A) Retail0%(B) Office

48.1%(C) Industrial

0%(D) Residential

48.8%(E) Hotel

3.1%(F) Lodging, leisure and recreation

0%(G) Education

0%(H) Technology or science0%(I) Healthcare0%(J) Mixed use

0%(K) Other0%

9GEOGRAPHICAL BREAKDOWN
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 7

CORE

Multiple, seeguidance

N/A

PUBLIC

Geographicalbreakdown

GENERAL

How much of your AUM in each asset class is invested in emerging markets and developing economies?
AUM in Emerging Markets and Developing Economies(G) Real estate(1) 0%STEWARDSHIPSTEWARDSHIP
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 8

CORE

Multiple, seeguidance

Multiple
indicators

PUBLIC

Stewardship

GENERAL

Does your organisation conduct stewardship activities, excluding (proxy) voting, for any of your assets?
(6) Real estate(A) Yes, through internal staff☑

(B) Yes, through service providers☑

(C) Yes, through externalmanagers☐(D) We do not conduct
stewardship○10ESG INCORPORATIONINTERNALLY MANAGED ASSETS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 11

CORE

Multiple, seeguidance

Multiple
indicators

PUBLICInternallymanaged assets

1

For each internally managed asset class, does your organisation incorporate ESG factors into your investment
decisions?
(1) Yes, we incorporate ESG factors into ourinvestment decisions(2) No, we do not incorporate ESG factors into
our investment decisions◉○(J) Real estate

ESG/SUSTAINABILITY FUNDS AND PRODUCTSLABELLING AND MARKETING
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 18

CORE

OO 11–14

OO 18.1

PUBLIC

Labelling andmarketing1

Do you explicitly market any of your products and/or funds as ESG and/or sustainable?
◉ (A) Yes, we market products and/or funds as ESG and/or sustainable
Provide the percentage of AUM that your ESG and/or sustainability-marketed products or funds represent:
100%○ (B) No, we do not offer products or funds explicitly marketed as ESG and/or sustainable○ (C) Not applicable; we do not offer products or funds

11IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 18.1

CORE

OO 18

OO 18.2

PUBLIC

Labelling andmarketing1

Do any of your ESG and/or sustainability-marketed products and/or funds hold formal ESG and/or RI certification(s) orlabel(s) awarded by a third party?
◉ (A) Yes, our ESG and/or sustainability-marketed products and/or funds hold formal labels or certifications
Provide the percentage of AUM that your labelled and/or certified products and/or funds represent:
100%○ (B) No, our ESG and/or sustainability-marketed products and/or funds do not hold formal labels or certifications
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 18.2

CORE

OO 18.1

N/A

PUBLIC

Labelling andmarketing1

Which ESG/RI certifications or labels do you hold?
☐ (A) Commodity type label (e.g. BCI)
☑ (B) GRESB☐ (C) Austrian Ecolabel (UZ49)☐ (D) B Corporation☐ (E) BREEAM☐ (F) CBI Climate Bonds Standard☐ (G) DDV-Nachhaltigkeitskodex-ESG-Strategie☐ (H) DDV-Nachhaltigkeitskodex-ESG-Impact☐ (I) EU Ecolabel☐ (J) EU Green Bond Standard☐ (K) Febelfin label (Belgium)☐ (L) Finansol☐ (M) FNG-Siegel Ecolabel (Germany, Austria and Switzerland)☐ (N) Greenfin label (France)☐ (O) Grüner Pfandbrief☑ (P) ICMA Green Bond Principles☐ (Q) ICMA Social Bonds Principles☐ (R) ICMA Sustainability Bonds Principles☐ (S) ICMA Sustainability-linked Bonds Principles☐ (T) Kein Verstoß gegen Atomwaffensperrvertrag☐ (U) Le label ISR (French government SRI label)☐ (V) Luxflag Climate Finance☐ (W) Luxflag Environment☐ (X) Luxflag ESG☐ (Y) Luxflag Green Bond
☐ (Z) Luxflag Microfinance☐ (AA) Luxflag Sustainable Insurance Products☐ (AB) National stewardship code
☐ (AC) Nordic Swan Ecolabel☐ (AD) Other SRI label based on EUROSIF SRI Transparency Code (e.g. Novethic)12☐ (AE) People’s Bank of China green bond guidelines☐ (AF) RIAA (Australia)☐ (AG) Towards Sustainability label (Belgium)☑ (AH) Other
Specify:
DBJ Green Building Certification, CASBEE for Real Estate and CASBEE Wellness Office Certification.

SUMMARY OF REPORTING REQUIREMENTS
SUMMARY OF REPORTING REQUIREMENTS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 21

CORE

Multiple
indicators

Multiple
indicators

PUBLIC

Summary ofreportingrequirements

GENERAL

The following table shows which modules are mandatory or voluntary to report on in the separate PRI asset classmodules. Where a module is voluntary, indicate if you wish to report on it.
(1) Mandatory to report(pre-filled based on
previous responses)(2.1) Voluntary to report.
Yes, I want to opt-in toreporting on the module(2.2) Voluntary to report.
No, I want to opt-out ofreporting on the module

Policy, Governance and Strategy

◉

○

○

Confidence Building Measures

◉

○

○

(J) Real estate

◉

○

○

Applicable modules

13

OTHER ASSET BREAKDOWNSREAL ESTATE: BUILDING TYPE
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 24

CORE

OO 21

RE 1, RE 9 10

PUBLICReal estate:
Building type

GENERAL

What is the building type of your physical real estate assets?
☑ (A) Standing investments☐ (B) New construction☐ (C) Major renovation

REAL ESTATE: OWNERSHIP LEVEL
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 25

CORE

OO 21

N/A

PUBLICReal estate:
Ownership level

GENERAL

What is the percentage breakdown of your physical real estate assets by the level of ownership?
☑ (A) A majority stake (more than 50%)
Select from the list:○ (1) >0 to 10%○ (2) >10 to 50%○ (3) >50 to 75%◉ (4) >75%
☐ (B) A significant minority stake (between 10–50%)☐ (C) A limited minority stake (less than 10%)

14

REAL ESTATE: MANAGEMENT TYPE
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 26

CORE

OO 21

RE 1, RE 6–8,
RE 13

PUBLICReal estate:
Management type

GENERAL

Who manages your physical real estate assets?
☑ (A) Direct management by our organisation☑ (B) Third-party property managers that our organisation appoints☐ (C) Other investors or their third-party property managers☑ (D) Tenant(s) with operational control

SUBMISSION INFORMATIONREPORT DISCLOSURE
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

OO 32

CORE

OO 3, OO 31

N/A

PUBLIC

Report disclosure

GENERAL

How would you like to disclose the detailed percentage figures you reported throughout the Reporting Framework?
◉ (A) Publish as absolute numbers○ (B) Publish as ranges

15

POLICY, GOVERNANCE AND STRATEGY (PGS)
POLICYRESPONSIBLE INVESTMENT POLICY ELEMENTS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 1

CORE

OO 8, OO 9Multiple
indicators

PUBLIC

Responsible
investment policy
elements

1, 2Which elements are covered in your formal responsible investment policy(ies)?
☑ (A) Overall approach to responsible investment☑ (B) Guidelines on environmental factors☑ (C) Guidelines on social factors☑ (D) Guidelines on governance factors☑ (E) Guidelines on sustainability outcomes☑ (F) Guidelines tailored to the specific asset class(es) we hold
☐ (G) Guidelines on exclusions☑ (H) Guidelines on managing conflicts of interest related to responsible investment☑ (I) Stewardship: Guidelines on engagement with investees☐ (J) Stewardship: Guidelines on overall political engagement☑ (K) Stewardship: Guidelines on engagement with other key stakeholders☐ (M) Other responsible investment elements not listed here
○ (N) Our organisation does not have a formal responsible investment policy and/or our policy(ies) do not cover any responsible
investment elements
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 2

CORE

PGS 1

Multiple, seeguidance

PUBLIC

Responsible
investment policy
elements

1

Does your formal responsible investment policy(ies) include specific guidelines on systematic sustainability issues?
☑ (A) Specific guidelines on climate change (may be part of guidelines on environmental factors)☑ (B) Specific guidelines on human rights (may be part of guidelines on social factors)☑ (C) Specific guidelines on other systematic sustainability issues
Specify:
The Sustainability Policy which Sekisui House Asset Management, Ltd. established includes "Complying with ESG-Related Laws
and Regulations", "Water and Resource Saving Measures", "Biodiversity" and "Initiatives for Directors and Employees". We strive tocontribute to the realization of a sustainable society and increase corporate value by complying with and implementing the policy.

○ (D) Our formal responsible investment policy(ies) does not include guidelines on systematic sustainability issues

16IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 3

CORE

PGS 1, PGS 2

N/APUBLIC

Responsible
investment policy
elements

6

Which elements of your formal responsible investment policy(ies) are publicly available?
☑ (A) Overall approach to responsible investment
Add link:
https://sekisuihouse-reit.co.jp/en/esg/policy/sustainability-management.html☑ (B) Guidelines on environmental factors
Add link:
https://sekisuihouse-reit.co.jp/en/esg/policy/sustainability-management.html☑ (C) Guidelines on social factors
Add link:
https://sekisuihouse-reit.co.jp/en/esg/policy/sustainability-management.html☑ (D) Guidelines on governance factors
Add link:
https://sekisuihouse-reit.co.jp/en/esg/policy/sustainability-management.html☑ (E) Guidelines on sustainability outcomes
Add link:
https://sekisuihouse-reit.co.jp/en/esg/policy/sustainability-management.html☑ (F) Specific guidelines on climate change (may be part of guidelines on environmental factors)
Add link:
https://sekisuihouse-reit.co.jp/en/esg/environmental/consideration-performance.html☑ (G) Specific guidelines on human rights (may be part of guidelines on social factors)
Add link:
https://www.sekisuihouse.co.jp/library/english/company/info/philosophy/Sekisui_House_Group_Human_Rights_Policy.pdf☑ (H) Specific guidelines on other systematic sustainability issues
Add link:
https://sekisuihouse-reit.co.jp/en/esg/policy/sustainability-management.html☑ (I) Guidelines tailored to the specific asset class(es) we hold
Add link:
http://sekisuihouse-reit.co.jp/en/features/investment.html☑ (K) Guidelines on managing conflicts of interest related to responsible investment
Add link:
https://sekisuihouse-am.co.jp/en/policy/☑ (L) Stewardship: Guidelines on engagement with investees

17Add link:
https://sekisuihouse-reit.co.jp/en/esg/policy/sustainability-management.html☑ (N) Stewardship: Guidelines on engagement with other key stakeholders
Add link:
https://sekisuihouse-reit.co.jp/en/esg/policy/sustainability-management.html○ (Q) No elements of our formal responsible investment policy(ies) are publicly available
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 4

PLUS

PGS 1

N/A

PUBLIC

Responsible
investment policy
elements

1–6

Does your formal responsible investment policy(ies) identify a link between your responsible investment activities andyour fiduciary duties or equivalent obligations?
◉ (A) Yes
Elaborate:
In accordance with the Sustainability Policy and Customer-Oriented Business Operation Policy established by Sekisui House AssetManagement, Ltd., we strive to ensure compliance and properly manage the risk of conflicts of interest in the best interests of
Sekisui House Reit, Inc. and its unitholders.

○ (B) No
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 5

CORE

PGS 1

N/A

PUBLIC

Responsible
investment policy
elements

2

Which elements are covered in your organisation’s policy(ies) or guidelines on stewardship?
☑ (A) Overall stewardship objectives☑ (B) Prioritisation of specific ESG factors to be advanced via stewardship activities☑ (C) Criteria used by our organisation to prioritise the investees, policy makers, key stakeholders, or other entities on
which to focus our stewardship efforts☑ (D) How different stewardship tools and activities are used across the organisation☐ (E) Approach to escalation in stewardship☑ (F) Approach to collaboration in stewardship☑ (G) Conflicts of interest related to stewardship☑ (H) How stewardship efforts and results are communicated across the organisation to feed into investment decisionmaking and vice versa☐ (I) Other○ (J) None of the above elements is captured in our policy(ies) or guidelines on stewardship18

RESPONSIBLE INVESTMENT POLICY COVERAGE
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 8

CORE

PGS 1

N/A

PUBLIC

Responsible
investment policy
coverage1

What percentage of your total AUM is covered by the below elements of your responsible investment policy(ies)?
Combined AUM coverage of all policy elements(A) Overall approach toresponsible investment(B) Guidelines on environmental
factors(C) Guidelines on social factors(D) Guidelines on governancefactors(7) 100%

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 9

CORE

PGS 2

N/A

PUBLIC

Responsible
investment policy
coverage1

What proportion of your AUM is covered by your formal policies or guidelines on climate change, human rights, or othersystematic sustainability issues?
AUM coverage(A) Specific guidelines on climatechange(1) for all of our AUM(B) Specific guidelines on humanrights(1) for all of our AUM

19

(C) Specific guidelines on othersystematic sustainability issues(1) for all of our AUM

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 10CORE

OO 8, OO 9,
PGS 1

N/A

PUBLIC

Responsible
investment policy
coverage2

Per asset class, what percentage of your AUM is covered by your policy(ies) or guidelines on stewardship with investees?
☑ (D) Real estate(1) Percentage of AUM covered○ (1) >0% to 10%○ (2) >10% to 20%○ (3) >20% to 30%○ (4) >30% to 40%○ (5) >40% to 50%○ (6) >50% to 60%○ (7) >60% to 70%○ (8) >70% to 80%○ (9) >80% to 90%○ (10) >90% to <100%◉ (11) 100%

GOVERNANCE
ROLES AND RESPONSIBILITIESIndicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 11CORE

N/A

Multiple
indicators

PUBLIC

Roles and
responsibilities

1

Which senior level body(ies) or role(s) in your organisation have formal oversight over and accountability for responsible
investment?
☑ (A) Board members, trustees, or equivalent☐ (B) Senior executive-level staff, or equivalent☐ (C) Investment committee, or equivalent☐ (D) Head of department, or equivalent○ (E) None of the above bodies and roles have oversight over and accountability for responsible investment

20

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 11.1

CORE

PGS 1, PGS 2,
PGS 11

N/A

PUBLIC

Roles and
responsibilities

1, 2

Does your organisation's senior level body(ies) or role(s) have formal oversight over and accountability for the elements
covered in your responsible investment policy(ies)?
(1) Board members, trustees, or equivalent(A) Overall approach toresponsible investment☑

(B) Guidelines on environmental,social and/or governance factors☑

(C) Guidelines on sustainability
outcomes☑

(D) Specific guidelines on climatechange (may be part of guidelines
on environmental factors)☑

(E) Specific guidelines on humanrights (may be part of guidelines
on social factors)☑

(F) Specific guidelines on othersystematic sustainability issues☑

(G) Guidelines tailored to thespecific asset class(es) we hold☑

(I) Guidelines on managing
conflicts of interest related toresponsible investment☑

(J) Stewardship: Guidelines on
engagement with investees☑

21(L) Stewardship: Guidelines on
engagement with other key
stakeholders☑

(N) This role has no formal
oversight over and accountability
for any of the above elements
covered in our responsible
investment policy(ies)○Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 11.2

CORE

N/A

N/A

PUBLIC

Roles and
responsibilities

1–6

Does your organisation have governance processes or structures to ensure that your overall political engagement isaligned with your commitment to the principles of PRI, including any political engagement conducted by third parties on
your behalf?
○ (A) Yes
○ (B) No◉ (C) Not applicable, our organisation does not conduct any form of political engagement directly or through any third
parties
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 12

CORE

N/A

N/A

PUBLIC

Roles and
responsibilities

1

In your organisation, which internal or external roles are responsible for implementing your approach to responsible
investment?
☑ (A) Internal role(s)Specify:Director, in charge of ESG Promotion Department, Director, in charge of Investor Relations Department and Finance Department,
Director, General Manager of Investment Operations Division, and Heads of all Departments.

☐ (B) External investment managers, service providers, or other external partners or suppliers○ (C) We do not have any internal or external roles with responsibility for implementing responsible investment

22

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 13

CORE

PGS 11

N/A

PUBLIC

Roles and
responsibilities

1

Does your organisation use responsible investment KPIs to evaluate the performance of your board members, trustees,or equivalent?
◉ (A) Yes, we use responsible investment KPIs to evaluate the performance of our board members, trustees, or
equivalent
Describe: (Voluntary)
Sekisui House Asset Management, Ltd. uses the degree of achievement of KPIs related to ESG, such as addressing climate change
by reducing GHG emissions, etc. and implementing the human rights policies of the Sekisui House Group, in the performance
evaluation of President & Representative Director and the Director, in charge of ESG Promotion Department.

○ (B) No, we do not use responsible investment KPIs to evaluate the performance of our board members, trustees, or equivalent
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 15

PLUS

PGS 11

N/A

PUBLIC

Roles and
responsibilities

1

What responsible investment competencies do you regularly include in the training of senior-level body(ies) or role(s) inyour organisation?
(1) Board members, trustees or equivalent(A) Specific competence in climatechange mitigation and adaptation☑

(B) Specific competence ininvestors’ responsibility to respecthuman rights☑

(C) Specific competence in othersystematic sustainability issues☐

23

(D) The regular training of thissenior leadership role does notinclude any of the above
responsible investmentcompetencies○

EXTERNAL REPORTING AND DISCLOSURES
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 16

CORE

N/A

N/A

PUBLIC

External reportingand disclosures

6

What elements are included in your regular reporting to clients and/or beneficiaries for the majority of your AUM?
☑ (A) Any changes in policies related to responsible investment☑ (B) Any changes in governance or oversight related to responsible investment☑ (C) Stewardship-related commitments☑ (D) Progress towards stewardship-related commitments☑ (E) Climate–related commitments☑ (F) Progress towards climate–related commitments☑ (G) Human rights–related commitments☐ (H) Progress towards human rights–related commitments☑ (I) Commitments to other systematic sustainability issues☐ (J) Progress towards commitments on other systematic sustainability issues○ (K) We do not include any of these elements in our regular reporting to clients and/or beneficiaries for the majority of our AUM
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 17

CORE

N/A

N/A

PUBLIC

External reportingand disclosures

6

During the reporting year, did your organisation publicly disclose climate-related information in line with the Task Forceon Climate-Related Financial Disclosures' (TCFD) recommendations?
☑ (A) Yes, including all governance-related recommended disclosures☑ (B) Yes, including all strategy-related recommended disclosures☑ (C) Yes, including all risk management–related recommended disclosures☑ (D) Yes, including all applicable metrics and targets-related recommended disclosures○ (E) None of the above
Add link(s):https://sekisuihouse-reit.co.jp/en/esg/environmental/tcfd.html

24

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 18

PLUS

N/A

N/A

PUBLIC

External reportingand disclosures

6

During the reporting year, to which international responsible investment standards, frameworks, or regulations did yourorganisation report?
☑ (A) Disclosures against the European Union's Sustainable Finance Disclosure Regulation (SFDR)
Link to example of public disclosures
https://sekisuihouse-reit.co.jp/en/esg/library/sfdr-sustainability-related-disclosure.html☐ (B) Disclosures against the European Union's Taxonomy☐ (C) Disclosures against the CFA's ESG Disclosures Standard☐ (D) Disclosures against other international standards, frameworks or regulations☐ (E) Disclosures against other international standards, frameworks or regulations☐ (F) Disclosures against other international standards, frameworks or regulations☐ (G) Disclosures against other international standards, frameworks or regulations
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 19

CORE

N/A

N/A

PUBLIC

External reportingand disclosures

6

During the reporting year, did your organisation publicly disclose its membership in and support for trade associations,
think tanks or similar bodies that conduct any form of political engagement?
◉ (A) Yes, we publicly disclosed our membership in and support for trade associations, think tanks, or similar bodies
that conduct any form of political engagement
Add link(s):https://sekisuihouse-am.co.jp/en/company/○ (B) No, we did not publicly disclose our membership in and support for trade associations, think tanks, or similar bodies that
conduct any form of political engagement○ (C) Not applicable, we were not members in or supporters of any trade associations, think tanks, or similar bodies that conduct
any form of political engagement during the reporting year

25

STRATEGYCAPITAL ALLOCATION
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 20

CORE

N/A

N/A

PUBLIC

Capital allocation

1

Which elements do your organisation-level exclusions cover?
☐ (A) Exclusions based on our organisation's values or beliefs regarding particular sectors, products or services☐ (B) Exclusions based on our organisation's values or beliefs regarding particular regions or countries☑ (C) Exclusions based on minimum standards of business practice aligned with international norms such as the OECD
Guidelines for Multinational Enterprises, the International Bill of Human Rights, UN Security Council sanctions or the UN
Global Compact☐ (D) Exclusions based on our organisation’s climate change commitments☐ (E) Other elements○ (F) Not applicable; our organisation does not have any organisation-level exclusions
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 21

CORE

N/A

N/A

PUBLIC

Capital allocation

1

How does your responsible investment approach influence your strategic asset allocation process?
☑ (A) We incorporate ESG factors into our assessment of expected asset class risks and returns
Select from dropdown list:○ (1) for all of our AUM subject to strategic asset allocation◉ (2) for a majority of our AUM subject to strategic asset allocation○ (3) for a minority of our AUM subject to strategic asset allocation☑ (B) We incorporate climate change–related risks and opportunities into our assessment of expected asset class risks
and returns
Select from dropdown list:◉ (1) for all of our AUM subject to strategic asset allocation○ (2) for a majority of our AUM subject to strategic asset allocation○ (3) for a minority of our AUM subject to strategic asset allocation☐ (C) We incorporate human rights–related risks and opportunities into our assessment of expected asset class risks and returns☐ (D) We incorporate risks and opportunities related to other systematic sustainability issues into our assessment of expectedasset class risks and returns○ (E) We do not incorporate ESG factors, climate change, human rights or other systematic sustainability issues into ourassessment of expected asset class risks and returns○ (F) Not applicable; we do not have a strategic asset allocation process

26

STEWARDSHIP: OVERALL STEWARDSHIP STRATEGY
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 22CORE

OO 8, OO 9N/A

PUBLIC

Stewardship: Overall
stewardship strategy

2

For the majority of AUM within each asset class, which of the following best describes your primary stewardshipobjective?
(4) Real estate(A) Maximise our portfolio-levelrisk-adjusted returns. In doing so,
we seek to address any risks tooverall portfolio performancecaused by individual investees’
contribution to systematicsustainability issues.

◉(B) Maximise our individual
investments’ risk-adjusted returns.
In doing so, we do not seek toaddress any risks to overall
portfolio performance caused byindividual investees’ contribution tosystematic sustainability issues.

○

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 25

PLUS

OO 5, OO 8,
OO 9

N/A

PRIVATE

Stewardship: Overall
stewardship strategy

2

Rank the channels that are most important for your organisation in achieving its stewardship objectives.
☑ (A) Internal resources, e.g. stewardship team, investment team, ESG team, or staff
Select from the list:◉1○ 5☑ (B) External investment managers, third-party operators and/or external property managers, if applicable27

Select from the list:◉2○ 5☑ (C) External paid specialist stewardship services (e.g. engagement overlay services or, in private markets,sustainability consultants) excluding investment managers, real assets third-party operators, or external property
managers
Select from the list:◉3○ 5☐ (D) Informal or unstructured collaborations with investors or other entities☑ (E) Formal collaborative engagements, e.g. PRI-coordinated collaborative engagements, Climate Action 100+, or
similar
Select from the list:◉4○ 5○ (F) We do not use any of these channels
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 26

PLUS

OO 8, OO 9,
PGS 1

N/A

PRIVATE

Stewardship: Overall
stewardship strategy

2

How does your organisation ensure that its policy on stewardship is implemented by the external service providers towhich you have delegated stewardship activities?
☑ (A) Example(s) of measures taken when selecting external service providers:
We have established company selection criteria in its “Property Management Company Selection and Management Criteria” and “Building
Management Company Selection and Management Criteria”, which include consideration of sustainability initiatives.

☐ (B) Example(s) of measures taken when designing engagement mandates and/or consultancy agreements for external service
providers:☑ (C) Example(s) of measures taken when monitoring the stewardship activities of external service providers:
We stipulate in its “Property Management Company Selection and Management Criteria” and “Building Management Company Selection
and Management Criteria” that it monitors the performance of the property management company and building management company it
outsources to, and gives instructions for improvement if the monitoring results show that the work is not up to a certain criteria.

28

STEWARDSHIP: ENGAGEMENT WITH POLICY MAKERS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 39CORE

OO 8, OO 9

PGS 39.1,
PGS 39.2

PUBLIC

Stewardship:
Engagement with
policy makers

2

Did your organisation, or the external investment managers or service providers acting on your behalf, engage with policy
makers as part of your responsible investment approach during the reporting year?
☐ (A) Yes, we engaged with policy makers directly☑ (B) Yes, we engaged with policy makers through the leadership of or active participation in working groups orcollaborative initiatives, including via the PRI☑ (C) Yes, we were members of, supported, or were in another way affiliated with third party organisations, including
trade associations and non-profit organisations, that engage with policy makers, excluding the PRI○ (D) We did not engage with policy makers directly or indirectly during the reporting year beyond our membership in the PRI
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 39.1

CORE

PGS 39N/A

PUBLIC

Stewardship:
Engagement with
policy makers

2During the reporting year, what methods did you, or the external investment managers or service providers acting on yourbehalf, use to engage with policy makers as part of your responsible investment approach?
☑ (A) We participated in 'sign-on' letters☐ (B) We responded to policy consultations☑ (C) We provided technical input via government- or regulator-backed working groups
Describe:
Information was provided to the Association for Real Estate Securitization, Japan on "Disclosure of Environmental Impact Reduction
Effects" and "Formulation of Policy on Biodiversity" as examples of ESG initiatives of Sekisui House Reit, Inc., which we have been
entrusted to manage.

☐ (D) We engaged policy makers on our own initiative☐ (E) Other methods

29

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 39.2

CORE

PGS 39N/A

PUBLIC

Stewardship:
Engagement with
policy makers

2During the reporting year, did your organisation publicly disclose details of your engagement with policy makers
conducted as part of your responsible investment approach, including through external investment managers or service
providers?
☐ (A) We publicly disclosed all our policy positions☐ (B) We publicly disclosed details of our engagements with policy makers◉ (C) No, we did not publicly disclose details of our engagement with policy makers conducted as part of our
responsible investment approach during the reporting year
Explain why:
We are exploring opportunities for initiatives such as disclosure of engagement with policy makers.

STEWARDSHIP: EXAMPLES
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 40PLUS

OO 8, OO 9N/APRIVATE

Stewardship:
Examples2

Provide examples of stewardship activities that you conducted individually or collaboratively during the reporting yearthat contributed to desired changes in the investees, policy makers or other entities with which you interacted.
(A) Example 1:
Title of stewardship activity:
Implementation of CO2 emission reduction promotion meetings.

(1) Led by○ (1) Internally led◉ (2) External service provider led○ (3) Led by an external investment manager, real assets third-party operator and/or external property manager(2) Primary focus of stewardship activity☑ (1) Environmental factors☐ (2) Social factors☐ (3) Governance factors(3) Asset class(es)☐ (1) Listed equity☐ (2) Fixed income☐ (3) Private equity☑ (4) Real estate☐ (5) Infrastructure☐ (6) Hedge funds☐ (7) Forestry☐ (8) Farmland☐ (9) Other30

(4) Description of the activity and what was achieved. For collaborative activities, provide detail on your individual contribution.
In cooperation with the property management company, a CO2 emission reduction promotion meeting was held regularly at one ofthe office buildings owned, where actual CO2 emission values were monitored, CO2 emission reduction measures were discussed,
and the status of implementation was checked.

(B) Example 2:
Title of stewardship activity:(1) Led by○ (1) Internally led○ (2) External service provider led○ (3) Led by an external investment manager, real assets third-party operator and/or external property manager(2) Primary focus of stewardship activity☐ (1) Environmental factors☐ (2) Social factors☐ (3) Governance factors(3) Asset class(es)☐ (1) Listed equity☐ (2) Fixed income☐ (3) Private equity☐ (4) Real estate☐ (5) Infrastructure☐ (6) Hedge funds☐ (7) Forestry☐ (8) Farmland☐ (9) Other(4) Description of the activity and what was achieved. For collaborative activities, provide detail on your individual contribution.
(C) Example 3:
Title of stewardship activity:(1) Led by○ (1) Internally led○ (2) External service provider led○ (3) Led by an external investment manager, real assets third-party operator and/or external property manager(2) Primary focus of stewardship activity☐ (1) Environmental factors☐ (2) Social factors☐ (3) Governance factors(3) Asset class(es)☐ (1) Listed equity☐ (2) Fixed income☐ (3) Private equity☐ (4) Real estate☐ (5) Infrastructure☐ (6) Hedge funds☐ (7) Forestry☐ (8) Farmland☐ (9) Other31

(4) Description of the activity and what was achieved. For collaborative activities, provide detail on your individual contribution.
(D) Example 4:
Title of stewardship activity:(1) Led by○ (1) Internally led○ (2) External service provider led○ (3) Led by an external investment manager, real assets third-party operator and/or external property manager(2) Primary focus of stewardship activity☐ (1) Environmental factors☐ (2) Social factors☐ (3) Governance factors(3) Asset class(es)☐ (1) Listed equity☐ (2) Fixed income☐ (3) Private equity☐ (4) Real estate☐ (5) Infrastructure☐ (6) Hedge funds☐ (7) Forestry☐ (8) Farmland☐ (9) Other(4) Description of the activity and what was achieved. For collaborative activities, provide detail on your individual contribution.
(E) Example 5:
Title of stewardship activity:(1) Led by○ (1) Internally led○ (2) External service provider led○ (3) Led by an external investment manager, real assets third-party operator and/or external property manager(2) Primary focus of stewardship activity☐ (1) Environmental factors☐ (2) Social factors☐ (3) Governance factors(3) Asset class(es)☐ (1) Listed equity☐ (2) Fixed income☐ (3) Private equity☐ (4) Real estate☐ (5) Infrastructure☐ (6) Hedge funds☐ (7) Forestry☐ (8) Farmland☐ (9) Other(4) Description of the activity and what was achieved. For collaborative activities, provide detail on your individual contribution.

32

CLIMATE CHANGE
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 41

CORE

N/A

PGS 41.1

PUBLICClimate change

General

Has your organisation identified climate-related risks and opportunities affecting your investments?
☑ (A) Yes, within our standard planning horizon
Specify the risks and opportunities identified and your relevant standard planning horizon:
We have identified the financial impact of the following risks and opportunities through 2030 for properties owned by Sekisui House
REIT, Inc.
Risks: (1) increase in tax burdens corresponding to GHG emissions due to the introduction of carbon tax and the associatedincrease in operating costs, (2) increase in property renovation costs as energy regulations are tightened, (3) increase in solar
power generation equipment installation costs, (4) rising financing costs due to perceived inadequacy of response to climatechange, (5) decreased competitiveness and rent income due to poor environmental performance of owned residential properties, (6)reduced rents due to inability to operate businesses due to flood damage caused by typhoons and torrential rains, etc., (7) decline inasset value of owned properties due to flooding damage caused by rise in sea level, (8) increase in electricity charges due toincreased air conditioning operation due to the normalization of extreme weather
Opportunities: (1) reduction in electricity charges by improving the environmental performance of owned properties, and 2) increasein operation of and rent from of properties with outstanding environmental performance☑ (B) Yes, beyond our standard planning horizon
Specify the risks and opportunities identified and your relevant standard planning horizon:
We have identified the financial impact of the following risks and opportunities through 2050 for properties owned by Sekisui House
REIT, Inc.
Risks: (1) increase in tax burdens corresponding to GHG emissions due to the introduction of carbon tax and the associatedincrease in operating costs, (2) increase in property renovation costs as energy regulations are tightened, (3) increase in solar
power generation equipment installation costs, (4) rising financing costs due to perceived inadequacy of response to climatechange, (5) decreased competitiveness and rent income due to poor environmental performance of owned residential properties, (6)reduced rents due to inability to operate businesses due to flood damage caused by typhoons and torrential rains, etc., (7) decline inasset value of owned properties due to flooding damage caused by rise in sea level, (8) increase in electricity charges due toincreased air conditioning operation due to the normalization of extreme weather
Opportunities:(1) reduction in electricity charges by improving the environmental performance of owned properties, and (2) increasein operation of and rent from of properties with outstanding environmental performance○ (C) No, we have not identified climate-related risks and/or opportunities affecting our investments
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 41.1

CORE

PGS 41

N/A

PUBLICClimate change

General

Does your organisation integrate climate-related risks and opportunities affecting your investments in its overall
investment strategy, financial planning and (if relevant) products?
◉ (A) Yes, our overall investment strategy, financial planning and (if relevant) products integrate climate-related risks
and opportunities

33Describe how climate-related risks and opportunities have affected or are expected to affect your investment strategy, financial
planning and (if relevant) products:
The climate-related risks that we recognize are the transition risks that the value of less energy-efficient buildings will decrease in
the future and financing costs will increase due to perceived inadequacy of response to climate change, and the physical risk, suchas damage to buildings from a disaster caused by climate change. In response to these risks, we are seeking to better attract
tenants and maintain and improve reputation by improving the resilience of high-energy efficiency properties and properties that canwithstand disasters, and we see such differentiation as an opportunity. Specifically, as part of its investment strategy, we have set
KPIs as materiality of maintaining a green certification ratio of 70% or more in the portfolio of Sekisui House REIT, Inc., we
managed. In addition, as part of the financial plan, we are promoting fund procurement through green finance in order to further
promote ESG-conscious real estate investment management and strengthen the financial base.
In addition, we are introducing LED lighting in common areas of the properties and electricity derived from renewable energy
sources. We are formulating a risk management plan for each business year, consisting of an annual policy and priority risks to beaddressed, and monitors the progress of the risk management plan, including climate-related risks, at the semi-annual risk
management meeting and reports its contents to the Board of Directors. Furthermore, climate-related risks and opportunities arecontinuously identified, evaluated, and updated its measures by our Sustainability Committee. In addition, our investment policy
includes a priority investment in "prime properties," which means that we will make a comprehensive judgment after focusing on andanalyzing the following six investment focus points: (a) economic area, (b) convenience, (c) functionality/livability, (d) environmental
consideration, (e) business continuity plan/safety, and (f) brand, which are the factors that tenants look for in real estate as a "bases
for sustainable living" or tenant companies look for in real estate as a "sustainable bases of operation ". Climate-related risks andopportunities are reflected in these decisions.

○ (B) No, our organisation has not yet integrated climate-related risks and opportunities into its investment strategy, financial
planning and (if relevant) products
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 43

CORE

N/A

N/A

PUBLICClimate change

General

Has your organisation assessed the resilience of its investment strategy in different climate scenarios, including one inwhich the average temperature rise is held to below 2 degrees Celsius (preferably to 1.5 degrees Celsius) above preindustrial levels?
☐ (A) Yes, using the Inevitable Policy Response Forecast Policy Scenario (FPS) or Required Policy Scenario (RPS)☐ (B) Yes, using the One Earth Climate Model scenario☑ (C) Yes, using the International Energy Agency (IEA) Net Zero scenario☑ (D) Yes, using other scenarios
Specify:
IPCC Fifth Assessment Report RCP2.6 (1.5℃ scenario)○ (E) No, we have not assessed the resilience of our investment strategy in different climate scenarios, including one that holds
temperature rise to below 2 degrees

34

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 44

CORE

N/A

N/A

PUBLICClimate change

General

Does your organisation have a process to identify, assess, and manage the climate-related risks (potentially) affecting
your investments?
☑ (A) Yes, we have a process to identify and assess climate-related risks(1) Describe your process
We have established the Climate Change Framework to identify and evaluate "climate change-related risks" to which we areexposed in managing assets of Sekisui House REIT, Inc., and to promote initiatives for climate change mitigation and adaptation toaddress the identified and evaluated risks. The identification and assessment of risks shall be captured by classifying them into"transition risks" and "physical risks," and "physical risks" shall be examined by classifying them into "acute" and "chronic," andanalyzed using short-, medium-, and long-term time horizons. Transition risks and physical risks related to climate change, and key
issues related to climate change mitigation and adaptation shall be examined by the Sustainability Committee, which shall develop
action plans, review implementation measures, and confirm performance. These are reported to the President & Representative
Director, who is the Chief Sustainability Officer, the Board of Directors, and the Chief Manager of Internal Control Promotion
Department , who is responsible for overall risk management of the Company.

(2) Describe how this process is integrated into your overall risk management
In Sekisui House Asset Management, Ltd., overall risk management is conducted at the Risk Management Meeting, which is held
semi-annually and composed of all full-time directors and heads of all department, and the identification and assessment of climaterelated risk is incorporated as part of the overall risk management. In overall risk management, the amount of residual risk for items
that include climate change-related risks and opportunities is grasped from the two axes of impact and probability, and strategies
and specific measures are examined as risk controls for these residual risks, and efforts are promoted to reduce risks.

☑ (B) Yes, we have a process to manage climate-related risks(1) Describe your process
We shall establish the Climate Change Framework and promote initiatives related to management of and resilience to climatechange risk/opportunity, respectively, as part of its overall risk management process, which shall be disclosed internally andexternally. The results of these initiatives shall be regularly reviewed, and climate change-related risks and opportunities shall be
continuously identified and assessed by the Sustainability Committee, and the assessment shall be updated as deemed necessary
by the President & Representative Director, who is the Chief Sustainability Officer. GHG emissions are monitored to track andmanage transition risks, and hazard maps are periodically checked to track and manage physical risks.

(2) Describe how this process is integrated into your overall risk management
Comprehensive risk management is conducted at the Risk Management Meeting, which is held semi-annually and is composed of
all full-time directors and heads of all departments, and the identification and assessment of climate-related risk are incorporated aspart of the comprehensive risk management. The Risk Management Meeting promotes efforts to reduce risks in accordance with therisk management plan, including climate-related risks, monitors the progress of such efforts, and reports the monitoring results to theBoard of Directors.

○ (C) No, we do not have any processes to identify, assess, or manage the climate-related risks affecting our investments

35

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 45

CORE

N/A

N/A

PUBLICClimate change

GeneralDuring the reporting year, which of the following climate risk metrics or variables affecting your investments did yourorganisation use and disclose?
☑ (A) Exposure to physical risk
(1) Indicate whether this metric or variable was used and disclosed, including the methodology○ (1) Metric or variable used
◉ (2) Metric or variable used and disclosed○ (3) Metric or variable used and disclosed, including methodology(2) Provide link to the disclosed metric or variable, including the methodology followed, as applicable
https://sekisuihouse-reit.co.jp/en/esg/environmental/tcfd.html☑ (B) Exposure to transition risk
(1) Indicate whether this metric or variable was used and disclosed, including the methodology○ (1) Metric or variable used
◉ (2) Metric or variable used and disclosed○ (3) Metric or variable used and disclosed, including methodology(2) Provide link to the disclosed metric or variable, including the methodology followed, as applicable
https://sekisuihouse-reit.co.jp/en/esg/environmental/tcfd.html☐ (C) Internal carbon price☑ (D) Total carbon emissions(1) Indicate whether this metric or variable was used and disclosed, including the methodology○ (1) Metric or variable used
◉ (2) Metric or variable used and disclosed○ (3) Metric or variable used and disclosed, including methodology(2) Provide link to the disclosed metric or variable, including the methodology followed, as applicable
https://sekisuihouse-reit.co.jp/en/esg/environmental/tcfd.html☑ (E) Weighted average carbon intensity(1) Indicate whether this metric or variable was used and disclosed, including the methodology○ (1) Metric or variable used
◉ (2) Metric or variable used and disclosed○ (3) Metric or variable used and disclosed, including methodology(2) Provide link to the disclosed metric or variable, including the methodology followed, as applicable
https://sekisuihouse-reit.co.jp/en/esg/environmental/tcfd.html☑ (F) Avoided emissions(1) Indicate whether this metric or variable was used and disclosed, including the methodology○ (1) Metric or variable used
◉ (2) Metric or variable used and disclosed○ (3) Metric or variable used and disclosed, including methodology

36

(2) Provide link to the disclosed metric or variable, including the methodology followed, as applicable
https://sekisuihouse-reit.co.jp/en/esg/environmental/consideration-performance.html☐ (G) Implied Temperature Rise (ITR)☐ (H) Non-ITR measure of portfolio alignment with UNFCCC Paris Agreement goals☑ (I) Proportion of assets or other business activities aligned with climate-related opportunities(1) Indicate whether this metric or variable was used and disclosed, including the methodology○ (1) Metric or variable used
○ (2) Metric or variable used and disclosed◉ (3) Metric or variable used and disclosed, including methodology(2) Provide link to the disclosed metric or variable, including the methodology followed, as applicable
https://sekisuihouse-reit.co.jp/en/esg/sustainability-finance/green-finance.html☐ (J) Other metrics or variables○ (K) Our organisation did not use or disclose any climate risk metrics or variables affecting our investments during the reportingyear
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 46

CORE

N/A

N/A

PUBLICClimate change

GeneralDuring the reporting year, did your organisation disclose its Scope 1, Scope 2, and/or Scope 3 greenhouse gas
emissions?
☑ (A) Scope 1 emissions(1) Indicate whether this metric was disclosed, including the methodology◉ (1) Metric disclosed○ (2) Metric and methodology disclosed(2) Provide links to the disclosed metric and methodology, as applicable
https://sekisuihouse-reit.co.jp/en/esg/library/data.html☑ (B) Scope 2 emissions(1) Indicate whether this metric was disclosed, including the methodology◉ (1) Metric disclosed○ (2) Metric and methodology disclosed(2) Provide links to the disclosed metric and methodology, as applicable
https://sekisuihouse-reit.co.jp/en/esg/library/data.html☑ (C) Scope 3 emissions (including financed emissions)(1) Indicate whether this metric was disclosed, including the methodology◉ (1) Metric disclosed○ (2) Metric and methodology disclosed(2) Provide links to the disclosed metric and methodology, as applicable
https://sekisuihouse-reit.co.jp/en/esg/library/data.html○ (D) Our organisation did not disclose its Scope 1, Scope 2, or Scope 3 greenhouse gas emissions during the reporting year

37

SUSTAINABILITY OUTCOMES
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 47CORE

N/A

Multiple
indicators

PUBLIC

Sustainability
outcomes1, 2

Has your organisation identified the intended and unintended sustainability outcomes connected to its investment
activities?
◉ (A) Yes, we have identified one or more specific sustainability outcomes connected to our investment activities○ (B) No, we have not yet identified the sustainability outcomes connected to any of our investment activities
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 47.1

CORE

PGS 47

N/A

PUBLIC

Sustainability
outcomes

1, 2Which widely recognised frameworks has your organisation used to identify the intended and unintended sustainability
outcomes connected to its investment activities?
☑ (A) The UN Sustainable Development Goals (SDGs) and targets☑ (B) The UNFCCC Paris Agreement☑ (C) The UN Guiding Principles on Business and Human Rights (UNGPs)☐ (D) OECD frameworks: OECD Guidelines for Multinational Enterprises and Guidance on Responsible Business Conduct for
Institutional Investors☑ (E) The EU Taxonomy☐ (F) Other relevant taxonomies☑ (G) The International Bill of Human Rights☑ (H) The International Labour Organization’s Declaration on Fundamental Principles and Rights at Work and the eightcore conventions☐ (I) The Convention on Biological Diversity☑ (J) Other international framework(s)Specify:
SBTi, GRI, SASB

☐ (K) Other regional framework(s)☑ (L) Other sectoral/issue-specific framework(s)Specify:
GRESB○ (M) Our organisation did not use any widely recognised frameworks to identify the intended and unintended sustainability
outcomes connected to its investment activities

38

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 47.2

CORE

PGS 47

PGS 48

PUBLIC

Sustainability
outcomes

1, 2What are the primary methods that your organisation has used to determine the most important intended and unintended
sustainability outcomes connected to its investment activities?
☑ (A) Identify sustainability outcomes that are closely linked to our core investment activities☑ (B) Consult with key clients and/or beneficiaries to align with their priorities☑ (C) Assess which actual or potential negative outcomes for people are most severe based on their scale, scope, andirremediable character☐ (D) Identify sustainability outcomes that are closely linked to systematic sustainability issues☑ (E) Analyse the input from different stakeholders (e.g. affected communities, civil society, trade unions or similar)☐ (F) Understand the geographical relevance of specific sustainability outcome objectives☐ (G) Other method○ (H) We have not yet determined the most important sustainability outcomes connected to our investment activities
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 48

CORE

PGS 47.2

PGS 48.1,
SO 1

PUBLIC

Sustainability
outcomes1, 2

Has your organisation taken action on any specific sustainability outcomes connected to its investment activities,
including to prevent and mitigate actual and potential negative outcomes?
◉ (A) Yes, we have taken action on some of the specific sustainability outcomes connected to our investment activities○ (B) No, we have not yet taken action on any specific sustainability outcomes connected to our investment activities
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 48.1

PLUS

PGS 48N/A

PRIVATE

Sustainability
outcomes

1, 2

Why has your organisation taken action on specific sustainability outcomes connected to its investment activities?
☑ (A) We believe that taking action on sustainability outcomes is relevant to our financial risks and returns over both
short- and long-term horizons☐ (B) We believe that taking action on sustainability outcomes, although not yet relevant to our financial risks and returns, will
become so over a long-time horizon☐ (C) We have been requested to do so by our clients and/or beneficiaries39☑ (D) We want to prepare for and respond to legal and regulatory developments that are increasingly addressing
sustainability outcomes☐ (E) We want to protect our reputation, particularly in the event of negative sustainability outcomes connected to investments☑ (F) We want to enhance our social licence-to-operate (i.e. the trust of beneficiaries, clients, and other stakeholders)☑ (G) We believe that taking action on sustainability outcomes in parallel to financial return goals has merit in its own
right☐ (H) OtherHUMAN RIGHTS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 49PLUS

PGS 47

PGS 49.1

PUBLIC

Human rights

1, 2

During the reporting year, what steps did your organisation take to identify and take action on the actual and potentiallynegative outcomes for people connected to your investment activities?
☑ (A) We assessed the human rights context of our potential and/or existing investments and projected how this could
connect our organisation to negative human rights outcomes
Explain how these activities were conducted:
We gauge employee satisfaction using an annual governance awareness survey of all Sekisui House Group employees andconduct stress checks for all employees. In addition, we regularly conduct tenant satisfaction surveys.

☑ (B) We assessed whether individuals at risk or already affected might be at heightened risk of harm
Explain how these activities were conducted:
We conduct a “Well-Being Survey” for all employees at least once a year. An “ESG Dialogue” has been held in light of changes
since the last survey.

☑ (C) We consulted with individuals and groups who were at risk or already affected, their representatives and/or otherrelevant stakeholders such as human rights experts
Explain how these activities were conducted:
The Sekisui House Group, including us, has incorporated the process of human rights due diligence into our business activities andemployed a PDCA cycle in initiatives. Relevant departments and group-companies are responsible for the due diligence for humanrights issue, obtaining information through dialogue with stakeholders and information and advice provided by experts and humanrights groups, and implementing relevant measures.

☑ (D) We took other steps to assess and manage the actual and potentially negative outcomes for people connected toour investment activities
Specify:
As a member of Sekisui House Group, we have conducted three hours of Human Relations training for all directors and employees
every year as part of the human rights due diligence process, analyse trends in governance awareness survey scores. Human rights
issues are assessed by the Risk Management Committee and awareness-raising policies are formulated.

Explain how these activities were conducted:○ (E) We did not identify and take action on the actual and potentially negative outcomes for people connected to any of ourinvestment activities during the reporting year

40IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 49.1

PLUS

PGS 49N/A

PRIVATE

Human rights

1, 2

During the reporting year, which stakeholder groups did your organisation include when identifying and taking action on
the actual and potentially negative outcomes for people connected to your investment activities?
☑ (A) Workers
Sector(s) for which each stakeholder group was included☐ (1) Energy☐ (2) Materials☐ (3) Industrials☑ (4) Consumer discretionary☐ (5) Consumer staples☐ (6) Healthcare☐ (7) Finance☐ (8) Information technology☐ (9) Communication services☐ (10) Utilities☐ (11) Real estate☑ (B) Communities
Sector(s) for which each stakeholder group was included☐ (1) Energy☐ (2) Materials☐ (3) Industrials☐ (4) Consumer discretionary☐ (5) Consumer staples☐ (6) Healthcare☐ (7) Finance☐ (8) Information technology☐ (9) Communication services☑ (10) Utilities☐ (11) Real estate☐ (C) Customers and end-users☐ (D) Other stakeholder groups
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

PGS 49.2

PLUS

PGS 47N/A

PRIVATE

Human rights

1, 2

During the reporting year, what information sources did your organisation use to identify the actual and potentiallynegative outcomes for people connected to its investment activities?
☐ (A) Corporate disclosures☑ (B) Media reports

41

Provide further detail on how your organisation used these information sources:
JTUC Rengo Research Institute for Advancement of Living Standards, “JD8：Japan Decent Work 8 Index”, ARES, Real Estate
Securitization Journal☑ (C) Reports and other information from NGOs and human rights institutions
Provide further detail on how your organisation used these information sources:
Ministry of Economy, Trade and Industry (METI) "Report of the Study Group on Improvement of Sustainable Corporate Value andHuman Capital" (also called ITO Report for Human Capital Management),
Ministry of Health, Labour and Welfare, “Guideline for Equal Pay for Equal Work”☐ (D) Country reports, for example, by multilateral institutions, e.g. OECD, World Bank☑ (E) Data provider scores or benchmarks
Provide further detail on how your organisation used these information sources:
MSCI, DJSI

☐ (F) Human rights violation alerts☐ (G) Sell-side research☐ (H) Investor networks or other investors☐ (I) Information provided directly by affected stakeholders or their representatives☐ (J) Social media analysis☐ (K) OtherREAL ESTATE (RE)POLICYINVESTMENT GUIDELINES
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 1

CORE

OO 21, OO 24,
OO 26

N/A

PUBLIC

Investment
guidelines

1 to 6

What real estate–specific ESG guidelines are currently covered in your organisation's responsible investment policy(ies)?
☐ (A) Guidelines on our ESG approach to real estate depending on use (e.g. retail and education) and geography☑ (D) Guidelines on our ESG approach to standing real estate investments☑ (E) Guidelines on pre-investment screening☑ (F) Guidelines on our approach to ESG integration into short-term or 100-day plans (or equivalent)☑ (G) Guidelines on our approach to ESG integration into long-term value creation efforts☑ (H) Guidelines on our approach to ESG reporting☑ (J) Guidelines on our engagement approach related to tenants☐ (K) Guidelines on our engagement approach related to construction contractors○ (L) Our responsible investment policy(ies) does not cover real estate–specific ESG guidelines

42

FUNDRAISINGCOMMITMENTS TO INVESTORS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 2

CORE

OO 21

N/A

PUBLIC

Commitments toinvestors

1, 4

For all of the funds that you closed during the reporting year, what type of formal responsible investment commitments
did you make in Limited Partnership Agreements (LPAs), side letters, or other constitutive fund documents?
○ (A) We incorporated responsible investment commitments in LPAs (or equivalent) as a standard default procedure○ (B) We added responsible investment commitments in LPAs (or equivalent) upon a client's request○ (C) We added responsible investment commitments in side letters upon a client's request○ (D) We did not make any formal responsible investment commitments for the relevant reporting year
◉ (E) Not applicable; we have not raised funds in the last five years

PRE-INVESTMENT
MATERIALITY ANALYSIS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 3

CORE

OO 21

RE 3.1

PUBLIC

Materiality analysis

1

During the reporting year, how did you conduct ESG materiality analysis for your potential real estate investments?
◉ (A) We assessed ESG materiality for each property, as each case is unique
Select from dropdown list:◉ (1) for all of our potential real estate investments○ (2) for a majority of our potential real estate investments○ (3) for a minority of our potential real estate investments○ (B) We performed a mix of property level and property type or category level ESG materiality analysis○ (C) We assessed ESG materiality at the property type or category level only
○ (D) We did not conduct ESG materiality analysis for our potential real estate investments
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 3.1

CORE

RE 3

N/A

PUBLIC

Materiality analysis

143During the reporting year, what tools, standards and data did you use in your ESG materiality analysis of potential realestate investments?
☑ (A) We used GRI standards to inform our real estate ESG materiality analysis☑ (B) We used SASB standards to inform our real estate ESG materiality analysis☑ (C) We used the UN Sustainable Development Goals (SDGs) to inform our real estate ESG materiality analysis☐ (D) We used GRESB Materiality Assessment (RC7) or similar to inform our real estate ESG materiality analysis☑ (E) We used climate disclosures, such as the TCFD recommendations or other climate risk and/or exposure analysis
tools, to inform our real estate ESG materiality analysis☑ (F) We used the UN Guiding Principles on Business and Human Rights (UNGPs) to inform our real estate ESG
materiality analysis☑ (G) We used geopolitical and macro-economic considerations in our real estate ESG materiality analysis☑ (H) We used green building certifications to inform our real estate ESG materiality analysis☑ (I) We engaged with the existing owners and/or managers (or developers for new properties) to inform our real estate
ESG materiality analysis☑ (J) Other
Specify:
The material issues list was compiled with reference to the assessments of the global evaluation organizations, and the evaluation
was narrowed down from the viewpoint of the degree of impact and importance for stakeholders, as well as for SHR and SHAM.

DUE DILIGENCE
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 4

CORE

OO 21

N/A

PUBLICDue diligence1

During the reporting year, how did material ESG factors influence your selection of real estate investments?
☑ (A) Material ESG factors were used to identify risks
Select from dropdown list:◉ (1) for all of our potential real estate investments○ (2) for a majority of our potential real estate investments○ (3) for a minority of our potential real estate investments☑ (B) Material ESG factors were discussed by the investment committee (or equivalent)
Select from dropdown list:◉ (1) for all of our potential real estate investments○ (2) for a majority of our potential real estate investments○ (3) for a minority of our potential real estate investments☑ (C) Material ESG factors were used to identify remedial actions for our 100-day plans (or equivalent)
Select from dropdown list:◉ (1) for all of our potential real estate investments○ (2) for a majority of our potential real estate investments○ (3) for a minority of our potential real estate investments☑ (D) Material ESG factors were used to identify opportunities for value creation
Select from dropdown list:◉ (1) for all of our potential real estate investments○ (2) for a majority of our potential real estate investments○ (3) for a minority of our potential real estate investments44☑ (E) Material ESG factors informed our decision to abandon potential investments in the due diligence phase in cases
where ESG risks were considered too high to mitigate
Select from dropdown list:◉ (1) for all of our potential real estate investments○ (2) for a majority of our potential real estate investments○ (3) for a minority of our potential real estate investments☑ (F) Material ESG factors impacted investments in terms of the price offered and/or paid
Select from dropdown list:◉ (1) for all of our potential real estate investments○ (2) for a majority of our potential real estate investments○ (3) for a minority of our potential real estate investments○ (G) Material ESG factors did not influence the selection of our real estate investments
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 5

CORE

OO 21

N/A

PUBLICDue diligence

1

Once material ESG factors have been identified, what processes do you use to conduct due diligence on these factors forpotential real estate investments?
☑ (A) We conduct a high-level or desktop review against an ESG checklist for initial red flags
Select from dropdown list:◉ (1) for all of our potential real estate investments○ (2) for a majority of our potential real estate investments○ (3) for a minority of our potential real estate investments☐ (B) We send detailed ESG questionnaires to target properties☑ (C) We hire third-party consultants to do technical due diligence on specific material ESG factors
Select from dropdown list:◉ (1) for all of our potential real estate investments○ (2) for a majority of our potential real estate investments○ (3) for a minority of our potential real estate investments☑ (D) We conduct site visits
Select from dropdown list:◉ (1) for all of our potential real estate investments○ (2) for a majority of our potential real estate investments○ (3) for a minority of our potential real estate investments☑ (E) We conduct in-depth interviews with management and/or personnel
Select from dropdown list:◉ (1) for all of our potential real estate investments○ (2) for a majority of our potential real estate investments○ (3) for a minority of our potential real estate investments☑ (F) We conduct detailed external stakeholder analysis and/or engagement
Select from dropdown list:◉ (1) for all of our potential real estate investments○ (2) for a majority of our potential real estate investments○ (3) for a minority of our potential real estate investments45

☑ (G) We incorporate ESG due diligence findings in all of our relevant investment process documentation in the samemanner as for other key due diligence, e.g. commercial, accounting and legal
Select from dropdown list:◉ (1) for all of our potential real estate investments○ (2) for a majority of our potential real estate investments○ (3) for a minority of our potential real estate investments☑ (H) Our investment committee (or an equivalent decision-making body) is ultimately responsible for ensuring all ESG
due diligence is completed in the same manner as for other key due diligence, e.g. commercial, accounting and legal
Select from dropdown list:◉ (1) for all of our potential real estate investments○ (2) for a majority of our potential real estate investments○ (3) for a minority of our potential real estate investments☐ (I) Other○ (J) We do not conduct due diligence on material ESG factors for potential real estate investments

SELECTION, APPOINTMENT AND MONITORING OF THIRD-PARTY PROPERTYMANAGERSSELECTION PROCESS OF THIRD-PARTY PROPERTY MANAGERS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 6

CORE

OO 21, OO 26

N/A

PUBLIC

Selection process ofthird-party property
managers

1, 4During the reporting year, how did you include material ESG factors in all of your selections of third-party property
managers?
☑ (A) We requested information from potential third-party property managers on their overall approach to material ESG
factors☑ (B) We requested track records and examples from potential third-party property managers on their management ofmaterial ESG factors☑ (C) We requested information from potential third-party property managers on their engagement process(es) withstakeholders☑ (D) We requested documentation from potential third-party property managers on their responsible procurement
practices, including responsibilities, approach and incentives☑ (E) We requested the assessment of current and planned availability and aggregation of metering data from potential
third-party property managers☑ (F) Other
Specify:
ESG-related items are included in our regular property management company assessment.

○ (G) We did not include material ESG factors in our selection of third-party property managers

46

APPOINTMENT PROCESS OF THIRD-PARTY PROPERTY MANAGERS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 7

CORE

OO 21, OO 26

N/A

PUBLIC

Appointment processof third-party
property managers

1, 4

How did you include material ESG factors when appointing your current third-party property managers?
☑ (A) We set dedicated ESG procedures in all relevant property management phases
Select from dropdown list:◉ (1) for all of our third-party property managers○ (2) for a majority of our third-party property managers○ (3) for a minority of our third-party property managers☑ (B) We set clear ESG reporting requirements
Select from dropdown list:◉ (1) for all of our third-party property managers○ (2) for a majority of our third-party property managers○ (3) for a minority of our third-party property managers☐ (C) We set clear targets on material ESG factors☐ (D) We set incentives related to targets on material ESG factors☑ (E) We included responsible investment clauses in property management contracts
Select from dropdown list:◉ (1) for all of our third-party property managers○ (2) for a majority of our third-party property managers○ (3) for a minority of our third-party property managers☐ (F) Other○ (G) We did not include material ESG factors in the appointment of third-party property managers

MONITORING PROCESS OF THIRD-PARTY PROPERTY MANAGERS
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 8

CORE

OO 21, OO 26

N/A

PUBLIC

Monitoring processof third-party
property managers

1, 4

How do you include material ESG factors when monitoring current third-party property managers?
☑ (A) We monitor the performance of quantitative and/or qualitative targets on material environmental factors
Select from dropdown list:◉ (1) for all of our third-party property managers○ (2) for a majority of our third-party property managers○ (3) for a minority of our third-party property managers☑ (B) We monitor the performance of quantitative and/or qualitative targets on material social factors

47

Select from dropdown list:◉ (1) for all of our third-party property managers○ (2) for a majority of our third-party property managers○ (3) for a minority of our third-party property managers☑ (C) We monitor the performance of quantitative and/or qualitative targets on material governance factors
Select from dropdown list:◉ (1) for all of our third-party property managers○ (2) for a majority of our third-party property managers○ (3) for a minority of our third-party property managers☑ (D) We monitor progress reports on engagement with tenants
Select from dropdown list:◉ (1) for all of our third-party property managers○ (2) for a majority of our third-party property managers○ (3) for a minority of our third-party property managers☑ (E) We require formal reporting at least yearly
Select from dropdown list:◉ (1) for all of our third-party property managers○ (2) for a majority of our third-party property managers○ (3) for a minority of our third-party property managers☑ (F) We have discussions about material ESG factors with all relevant stakeholders at least yearly
Select from dropdown list:◉ (1) for all of our third-party property managers○ (2) for a majority of our third-party property managers○ (3) for a minority of our third-party property managers☐ (G) We conduct a performance review of third-party property managers against targets on material ESG factors and/or afinancial incentive structure linked to material ESG factors☑ (H) We have internal or external parties conduct site visits at least yearly
Select from dropdown list:◉ (1) for all of our third-party property managers○ (2) for a majority of our third-party property managers○ (3) for a minority of our third-party property managers☐ (I) Other○ (J) We do not include material ESG factors in the monitoring of third-party property managers

POST-INVESTMENT

48

MONITORING
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 11

CORE

OO 21

RE 11.1

PUBLIC

Monitoring

1

During the reporting year, did you track one or more KPIs on material ESG factors across your real estate investments?
☑ (A) Yes, we tracked KPIs on environmental factors
Percentage of real estate assets this applies to:○ (1) >0 to 10%○ (2) >10 to 50%○ (3) >50 to 75%◉ (4) >75 to 95%○ (5) >95%
☑ (B) Yes, we tracked KPIs on social factors
Percentage of real estate assets this applies to:○ (1) >0 to 10%○ (2) >10 to 50%○ (3) >50 to 75%○ (4) >75 to 95%◉ (5) >95%
☑ (C) Yes, we tracked KPIs on governance factors
Percentage of real estate assets this applies to:○ (1) >0 to 10%○ (2) >10 to 50%○ (3) >50 to 75%○ (4) >75 to 95%◉ (5) >95%
○ (D) We did not track KPIs on material ESG factors across our real estate investments
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 11.1

PLUS

RE 11

N/A

PUBLIC

Monitoring

1

Provide examples of KPIs on material ESG factors you tracked across your real estate investments during the reporting
year.
(A) ESG KPI #1
Acquired the performance data of owned properties and monitored the progress associated with the KPI, which reduce 42% of Scope 1
and Scope 2 emissions of portfolio compared to FY 2021 (medium term target by FY 2030).

(B) ESG KPI #2
Periodic assessment of earthquake risk and flood damage risk and the implementation of measures to reduce such risks.

49

(C) ESG KPI #3
Strengthen risk management system and conducting risk management meeting twice a year. In addition, identified risks, monitored andidentified areas for improvement with regard to the management of owned properties through the meetings.

(D) ESG KPI #4(E) ESG KPI #5(F) ESG KPI #6(G) ESG KPI #7(H) ESG KPI #8(I) ESG KPI #9(J) ESG KPI #10
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 12

CORE

OO 21

N/A

PUBLIC

Monitoring

1

During the reporting year, what ESG building performance data did you collect for your real estate assets?
☑ (A) Energy consumption
Select from dropdown list:○ (1) for all of our real estate assets◉ (2) for a majority of our real estate assets○ (3) for a minority of our real estate assets☑ (B) Water consumption
Select from dropdown list:○ (1) for all of our real estate assets◉ (2) for a majority of our real estate assets○ (3) for a minority of our real estate assets☑ (C) Waste production
Select from dropdown list:○ (1) for all of our real estate assets○ (2) for a majority of our real estate assets◉ (3) for a minority of our real estate assets☐ (D) Other○ (E) We did not collect ESG building performance data for our real estate assets
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 13

CORE

OO 21, OO 26

RE 13.1

PUBLIC

Monitoring

1, 2

50

What processes do you have in place to support meeting your targets on material ESG factors for your real estate
investments?
☑ (A) We use operational-level benchmarks to assess and analyse the performance of assets against sector
performance
Select from dropdown list:◉ (1) for all of our real estate assets○ (2) for a majority of our real estate assets○ (3) for a minority of our real estate assets☐ (B) We implement certified environmental and social management systems across our portfolio☑ (C) We make sufficient budget available to ensure that the systems and procedures needed are established
Select from dropdown list:◉ (1) for all of our real estate assets○ (2) for a majority of our real estate assets○ (3) for a minority of our real estate assets☑ (D) We hire external verification services to audit performance, systems, and procedures
Select from dropdown list:○ (1) for all of our real estate assets◉ (2) for a majority of our real estate assets○ (3) for a minority of our real estate assets☑ (E) We collaborate and engage with our third-party property managers and/or tenants to develop action plans
Select from dropdown list:◉ (1) for all of our real estate assets○ (2) for a majority of our real estate assets○ (3) for a minority of our real estate assets☑ (F) We develop minimum health and safety standards
Select from dropdown list:◉ (1) for all of our real estate assets○ (2) for a majority of our real estate assets○ (3) for a minority of our real estate assets☐ (G) We conduct ongoing engagement with all key stakeholders, e.g. local communities, NGOs, governments, and end-users☐ (H) Other○ (I) We do not have processes in place to help meet our targets on material ESG factors for our real estate investments
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 13.1

PLUS

RE 13

N/A

PUBLIC

Monitoring

1, 2

Describe up to two processes you put in place during the reporting year to support meeting your targets on material ESG
factors.
(A) Process one
Risks and opportunities for the properties are identified and extracted in line with the TCFD recommendations, in addition to using the
GRESB assessment as a benchmark, and the financial impact amount is calculated as a quantitative assessment. We promote ESG
initiatives, such as developing and implementing measures to address potential significant ESG factors.

(B) Process two51

As a key ESG factor, we have set medium and long term GHG emission reduction targets and obtained SBTi validation for the GHG
emissions reduction target for the medium term target. In addition, progress on emission reduction initiatives is managed and reviewed.

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 14

CORE

OO 21

N/A

PUBLIC

Monitoring

1, 2

Post-investment, how do you manage material ESG risks and ESG opportunities to create value during the holding
period?
☑ (A) We develop property-specific ESG action plans based on pre-investment research, due diligence and materiality
findings
Select from dropdown list:◉ (1) for all of our real estate investments○ (2) for a majority of our real estate investments○ (3) for a minority of our real estate investments☑ (B) We adjust our ESG action plans based on performance monitoring findings at least yearly
Select from dropdown list:◉ (1) for all of our real estate investments○ (2) for a majority of our real estate investments○ (3) for a minority of our real estate investments☑ (C) We, or the external advisors that we hire, support our real estate investments with specific ESG value-creation
opportunities
Select from dropdown list:◉ (1) for all of our real estate investments○ (2) for a majority of our real estate investments○ (3) for a minority of our real estate investments☐ (D) Other○ (E) We do not manage material ESG risks and opportunities post-investment
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 15

PLUS

OO 21

N/A

PUBLIC

Monitoring

1, 2

Describe how you ensure that material ESG risks are adequately addressed in the real estate investments where you holda minority stake.
We have no properties owned in a minority stake. However, even in properties owned as co-ownership, we work with property managementcompanies and building management companies to ensure a common understanding of ESG.

52

IndicatorType of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 16

PLUS

OO 21

N/A

PUBLIC

Monitoring

1, 2

Describe how your ESG action plans are currently defined, implemented and monitored throughout the investment period.
We fulfil its responsibility towards the mutual sustainable growth of society and SHR by (i) identifying issues, (ii) prioritizing issues, (iii)
identifying and approving materialities at the Sustainability Committee, and (iv) cycling through the steps of progress reviews on the actions
implemented.
With the aim of strengthening the sustainability promotion system, the Sustainability Committee is composed of the President &Representative Director as Chief Sustainability Officer, the Director in charge of ESG promotion Department as Chief Sustainability
Operator, all full-time directors, the compliance officer, and all heads of departments of SHAM. This Committee sets targets and develops
the system to promote sustainability.
Matters deliberated by the Committee are approved and/or instructed, and various actions are taken based on them. The progress of
initiatives is reported at least once every three months to the Committee, and reports are also made to the Board of Directors of SHR and
the Board of Directors of SHAM as appropriate. The Committee was held seven times in the reporting year. With the Committee at the core,
SHR and SHAM will work together to implement sustainability initiatives across the organization and contribute to the resolution of social
issues.

Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 17

CORE

OO 21

N/A

PUBLIC

Monitoring

1

What proportion of your real estate assets has obtained a green or sustainable building certification?
○ (A) All of our real estate assets have obtained a green or sustainable building certification◉ (B) A majority of our real estate assets have obtained a green or sustainable building certification○ (C) A minority of our real estate assets have obtained a green or sustainable building certification○ (D) None of our real estate assets have obtained a green or sustainable building certification

STAKEHOLDER ENGAGEMENT
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 18

CORE

OO 21

N/A

PUBLIC

Stakeholder
engagement

1, 2

How does your third-party property manager(s) engage with tenants?
☑ (A) They engage with real estate tenants on energy, water consumption and/or waste production
Select from dropdown list:○ (1) for all of our buildings or properties◉ (2) for a majority of our buildings or properties○ (3) for a minority of our buildings or properties53☑ (B) They engage with real estate tenants by organising tenant events focused on increasing sustainability awareness,
ESG training and guidance
Select from dropdown list:○ (1) for all of our buildings or properties○ (2) for a majority of our buildings or properties◉ (3) for a minority of our buildings or properties☑ (C) They engage with real estate tenants by offering green leases
Select from dropdown list:○ (1) for all of our buildings or properties○ (2) for a majority of our buildings or properties◉ (3) for a minority of our buildings or properties☑ (D) They engage with real estate tenants by identifying collaboration opportunities that support targets related tomaterial ESG factors
Select from dropdown list:○ (1) for all of our buildings or properties○ (2) for a majority of our buildings or properties◉ (3) for a minority of our buildings or properties☑ (E) They engage with real estate tenants by offering shared financial benefits from equipment upgrades
Select from dropdown list:○ (1) for all of our buildings or properties○ (2) for a majority of our buildings or properties◉ (3) for a minority of our buildings or properties☑ (F) Other
Specify:
Imprementation of satisfaction surverys for tenants

Select from dropdown list:○ (1) for all of our buildings or properties◉ (2) for a majority of our buildings or properties○ (3) for a minority of our buildings or properties○ (G) Our third-party property manager(s) do not engage with tenants
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 19

PLUS

OO 21

N/A

PUBLIC

Stakeholder
engagement

1, 2

During the reporting year, how did you or the organisations operating on your behalf engage with the local community
above and beyond what is required by relevant regulations for asset design, use and/or repurposing?
In addition to opening the entrances, ground floor lobbies, building sites, and conference rooms of our properties to the public for use as
event spaces, we have introduced share bikes and food trucks in some properties so that they can be used not only by tenants but also by
local residents. We also have introduced disaster relief vending machines that can be used by anyone in the event of a disaster.
Furthermore, we clean up the area around our office building and take other initiatives to contribute to the creation of liveliness and vitality inthe area and to the revitalisation of the local community.

54

EXIT
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 20

CORE

OO 21

N/A

PUBLICExit

4, 6

During the reporting year, what responsible investment information was shared with potential buyers of real estate
investments?
☑ (A) Our firm's high-level commitment to responsible investment, e.g. that we are a PRI signatory
Select from dropdown list:◉ (1) for all of our real estate investments○ (2) for a majority of our real estate investments○ (3) for a minority of our real estate investments☑ (B) A description of what industry and asset class standards our firm aligns with, e.g. TCFD or GRESB
Select from dropdown list:◉ (1) for all of our real estate investments○ (2) for a majority of our real estate investments○ (3) for a minority of our real estate investments☑ (C) Our firm's responsible investment policy (at minimum, a summary of key aspects and firm-specific approach)Select from dropdown list:◉ (1) for all of our real estate investments○ (2) for a majority of our real estate investments○ (3) for a minority of our real estate investments☑ (D) Our firm's ESG risk assessment methodology (topics covered in-house and/or with external support)
Select from dropdown list:◉ (1) for all of our real estate investments○ (2) for a majority of our real estate investments○ (3) for a minority of our real estate investments☑ (E) The outcome of our latest ESG risk assessment of the property(s)Select from dropdown list:◉ (1) for all of our real estate investments○ (2) for a majority of our real estate investments○ (3) for a minority of our real estate investments☑ (F) Key ESG performance data on the property(s) being soldSelect from dropdown list:◉ (1) for all of our real estate investments○ (2) for a majority of our real estate investments○ (3) for a minority of our real estate investments☐ (G) Other○ (H) No responsible investment information was shared with potential buyers of real estate investments during the reportingyear○ (I) Not applicable; we had no sales process (or control over the sales process) during the reporting year

55

DISCLOSURE OF ESG PORTFOLIO INFORMATION
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

RE 21

CORE

OO 21

N/A

PUBLIC

Disclosure of ESG
portfolio information

6

During the reporting year, how did you report on your targets on material ESG factors and related data to your investors?
☑ (A) We reported through a publicly disclosed sustainability report☑ (B) We reported in aggregate through formal reporting to investors☑ (C) We reported at the property level through formal reporting to investors☐ (D) We reported through a limited partners advisory committee (or equivalent)☑ (E) We reported at digital or physical events or meetings with investors☐ (F) We had a process in place to ensure that serious ESG incidents were reported☑ (G) Other
Specify:
Individual deliberate was made to investors who received questions via e-mail, etc.

○ (H) We did not report our targets on material ESG factors and related data to our investors during the reporting year

CONFIDENCE-BUILDING MEASURES (CBM)
CONFIDENCE-BUILDING MEASURESAPPROACH TO CONFIDENCE-BUILDING MEASURES
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

CBM 1

CORE

N/A

Multiple
indicators

PUBLICApproach toconfidence-building
measures6

How did your organisation verify the information submitted in your PRI report this reporting year?
☑ (A) We conducted independent third-party assurance of selected processes and/or data related to the responsible
investment processes reported in our PRI report, which resulted in a formal assurance conclusion☐ (B) We conducted a third-party readiness review and are making changes to our internal controls or governance processes tobe able to conduct independent third-party assurance next year
☐ (C) We conducted an internal audit of selected processes and/or data related to the responsible investment processes
reported in our PRI report☑ (D) Our board, trustees (or equivalent), senior executive-level staff (or equivalent), and/or investment committee (orequivalent) signed off on our PRI report☐ (E) We conducted an external ESG audit of our holdings to verify that our funds comply with our responsible investment policy56☐ (F) We conducted an external ESG audit of our holdings as part of risk management, engagement identification or investment
decision-making☑ (G) Our responses in selected sections and/or the entirety of our PRI report were internally reviewed before
submission to the PRI○ (H) We did not verify the information submitted in our PRI report this reporting year

THIRD-PARTY EXTERNAL ASSURANCE
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

CBM 2

CORE

OO 21, CBM 1

N/A

PUBLIC

Third-party external
assurance

6

For which responsible investment processes and/or data did your organisation conduct third-party external assurance?
☐ (A) Policy, governance and strategy☑ (F) Real estate
Select from dropdown list:○ (1) Data assured○ (2) Processes assured◉ (3) Processes and data assured
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

CBM 3

PLUS

CBM 1

N/A

PUBLIC

Third-party external
assurance

6

Provide details of the third-party external assurance process regarding the information submitted in your PRI report.
(1) Description of the third-party external assurance process
Sekisui House Reit, Inc. obtained a verification opinion dated 28 November 2022 from SGS Japan Inc. (SGS) on Scope 1, 2 and 3
emission, energy consumption, amount of water usage and waste generation in the properties it owns. (Excluding properties that were
disposed during the period and areas where data is difficult to ascertain, such as where tenants have management authority.) The
Verification Opinion has been assured at a limited assurance level in accordance with the ISO 14064-3: 2019 and the SGS verification
protocol.
The verification was carried out in accordance with the GHG Emissions Calculation and Reporting Manual (ver. 4.8) and the Criteria of
Verification, including 1) interview to the person in charge, 2) verification of the calculation system through review to documents, 3) onsite verification and voucher checks, and 4) analysis and questions at the data aggregation site.
We obtained a verification report from Japan Quality Assurance Organization (JQA) on 20 June 2023 for social performance data*.

57

(*)Percentage of female managers, Take-up rate for male childcare leave, average monthly work hours per person, annual paid leave
take-up rate, annual internal training participation rate, number of annual external training courses attended per person, and "Sekisui
House Matching Program" participation rate.
The verification report is guaranteed at a limited assurance level in accordance with “ISAE3000” and the verification procedures of JQA.
The verification was carried out by checking the boundary of the calculation, the calculation scenario, the calculation system and thecalculation rules, and by cross-checking the calculation results against evidence.

(2) Assurance standard(s) used by the third-party assurance provider☐ (A) PAS 7341:2020☑ (B) ISAE 3000 and national standards based on this☐ (C) Dutch Standard 3810N (Assurance engagements regarding sustainability reports)☐ (D) RevR6 (Assurance of Sustainability)☐ (E) IDW AsS 821 (Assurance Standard for the Audit or Review of Reports on Sustainability Issues)☐ (F) Accountability AA1000 Assurance Standard (AA1000AS)☐ (G) IFC performance standards☐ (H) SSAE 18 and SOC 1☐ (I) Other national auditing/assurance standard with guidance on sustainability; specify:☐ (J) Invest Europe Handbook of Professional Standards☐ (K) ISAE 3402 Assurance Reports on Controls at a Service Organisation☐ (L) AAF 01/20☐ (M) AAF 01/06 Stewardship Supplement☐ (N) ISO 26000 Social Responsibility☐ (O) ISO 14065:2020 General principles and requirements for bodies validating and verifying environmental information☐ (P) ASAE 3410 Assurance Engagements on Greenhouse Gas Statements☐ (Q) PCAF
☐ (R) NGER audit framework (National Greenhouse and Energy Reporting)☐ (S) Auditor’s proprietary assurance framework for assuring RI-related information☑ (T) Other greenhouse gas emissions assurance standard; specify:
ISO14064-3：2019(3) Third-party external assurance provider's report that contains the assurance conclusion
https://reporting.unpri.org/file/4FF038E5-7BF9-4F13-9D1F-3AE23279DA3E/
https://reporting.unpri.org/file/7728998E-7D8A-440E-B166-9F2CC841EE65/
https://sekisuihouse-reit.co.jp/en/esg/library/data.html

58

INTERNAL REVIEW
Indicator

Type of indicator

Dependent on

Gateway toDisclosure

Subsection

PRI Principle

CBM 6

CORE

CBM 1

N/A

PUBLICInternal review

6

Who in your organisation reviewed the responses submitted in your PRI report this year?
☐ (A) Board, trustees, or equivalent☑ (B) Senior executive-level staff, investment committee, head of department, or equivalent
Sections of PRI report reviewed◉ (1) the entire report○ (2) selected sections of the report○ (C) None of the above internal roles reviewed selected sections or the entirety of the responses submitted in our PRI report
this year59