November 17, 2021
Sumitomo Realty & Development Co.,Ltd.

Sumitomo Realty’s Green Power Plan
Decarbonizing Office Electricity
A first in the industry to offer separate implementation plans to individual tenants!
Sumitomo Realty & Development Co., Ltd. (headquarters: Shinjuku-ku, Tokyo; President: Kojun
Nishima) is pleased to announce that it has established a system for offering optimal green powerplans that meet the needs of each tenant company in the office buildings it operates, and beganoffering the Sumitomo Realty’s Green Power Plan to over 1,000 of our tenants on Tuesday,
November 16, 2021.
To date, we have been developing properties that boast high environmental performance, actively
promoting energy saving initiatives by leveraging the benefits of our direct in-house building
management following construction completion, and achieving certification as an S-class business forenergy saving initiatives for four consecutive years. In response to the need to step up
decarbonization efforts in office buildings to achieve carbon neutrality by 2050, we have preparedgreen power plans that can be introduced for each individual tenant rather than by building inorder to meet the needs of each of our multiple tenant companies and proactively decarbonize
their offices together.
We will fully support ESG management of tenantcompanies by leveraging the experience we have gained from
exploring and implementing methods for introducing green
power, including the plan that we have developed together withseveral tenant companies under the Decarbonization LeadProject Agreement concluded with TEPCO Energy Partner, Inc.
The Leading Tenant Action Guidelines formulated by theMinistry of the Environment to promote the decarbonization ofleased buildings, which is more difficult to achieve compared tothat of company-owned buildings, also places energy saving inbuildings and the use of renewable energy at the core of theguidelines. Through our initiative, which is in line with theguidelines, we will contribute to addressing the priority
decarbonization issues set forth by the Japanese government.
Ratio of owned/leased buildings forheadquarters of listed companies
located in Tokyo’s 23 wards

Annual natural energy power contracted by companies
Unit: million kW

20Approx.

imageSource: Bloomberg NEF

65xover 10 years

15Owned105Leased
0

Source: Compiled based on the CBRE website<https://www.cbrepropertysearch.jp/article/office_buy_or_rent-vol1/>
Note: Data as of September 2013, covering 1,720 listed companies
in Tokyo's 23 wards

Leading Tenant Action Guidelines
The Leading Tenant Action Guidelines are a program launched by the Ministry of the Environment in October
2021 to promote the decarbonization of leased buildings, etc. The aim of the program is to promote thedecarbonization of leased buildings, etc. by soliciting and publicizing companies and local governments that
support the guidelines summarizing the decarbonization efforts of tenant companies, and conveying the needs oftenant companies to building owners.
Leading Tenant Action Guidelines Website:：http://www.env.go.jp/earth/zeb/tenant/index.html

Sumitomo Realty’s Green Power Plan is unique in that it goes beyond the conventional effectively
green power scheme involving non-fossil fuel energy certificates, addressing the diversifying
decarbonization needs of tenant companies by enabling them to select the most appropriate green
power plan from among several methods we have developed together with tenant companies andTEPCO EP. These methods include utilizing effectively green power generated at power plants owned
by tenant companies and raw green power with additionality from newly built renewable power plants.

3 Plans and Their Advantages
Plan 1

Non-fossil fuel energy certificate

POINT : Achieve decarbonization
with no hassle
Tenantcompany

Standard existing power plant

Plan 2

Non-fossil fuel energy certificate
Treated as green power usage

Green power from a tenant-owned
power plant

Our office building

POINT : Use self-generated
power
Tenantcompany

Tenant-owned power plant

Plan 3

Non-fossil fuel energy certificate
Treated as green power usage

Raw green power*¹ from newly-built
power plant

Our office building

Advanced decarbonization
POINT : on par with Europe and theUSTenantcompany

Newly-built power plantaccording to the contract

Raw green power
Use actual green power*However, this uses the standard power grid.

Our office building

Raw green power with “additionality”*²*1. Raw green power refers to green power considered as being directly supplied from the power plant via general-usepower grids; the generation and consumption of raw green power are matched in 30-minute units.
*2. Green power with additionality refers to green power obtained by developing new renewable power sources such as
new solar power plants, and therefore directly contributing to raising Japan’s total renewable power generation capacity. In
recent years, additionality has been considered a requirement for high-value renewable electricity and used byenvironmentally advanced companies in Europe and the US as a standard for selecting green power.
*There are some limitations to companies that can introduce the plans.

【Contribution to SDGs】
The initiatives related to this release contribute to thefollowing SDGs’ objectives:
Goal 7 AFFORDABLE AND CLEAN ENERGY
Goal 13 CLIMATE ACTION
Goal 17 PARTNERSHIPS FOR THE GOALS

<Reference>

Fuyo General Lease Co., Ltd.
Plan 2 Green power from a tenant-owned power plant
First in Japan: Introduced effectively green power in April 2021 to power leased office space
utilizing company-owned solar power plant

Background: Utilizing a company-owned power plant and also contributing greatly to the local
community through decarbonization
The Fuyo General Lease Group developed and operates a solar power plant in Namie Town in Fukushima
Prefecture, collaborating with the town, which declared itself a zero-carbon city last year. As utilizing theenvironmental value from the power plant, which is a symbol of recovery following the Great East Japan
Earthquake 10 years ago, is expected to boost visibility of the local government and further contribute to thelocal community by attracting renewable and new energy businesses, the group requested to decarbonize thepower consumed at the office areas of the group headquarters by using certificates from the power plant,
which led to the conclusion of the first effectively green power introduction scheme in Japan.
The Fuyo General Lease Group had previously declared its commitment to RE100, aiming for 100%
renewable energy by 2050 and 50% renewable energy by 2030, but with the establishment of this scheme,
the group has set a new goal of achieving 100% renewable energy ahead of schedule by 2030, as well asachieving carbon neutrality at the same time.
(News Release) Facilitating the Use of RE100 Compliant Electricity in a Tenant’s Office SpaceThe first initiative in Japan to install substantial renewable energy in a leased space occupying only part of an office building, using thetenant’s own solar power plant in Namie town in Fukushima, recovering from the Great East Japan Earthquake
https://english.sumitomo-rd.co.jp/sites/default/files/2021-11/20210309_EN_release_facilitating_RE100_use.pdf

SEGA SAMMY HOLDINGS INC.
Plan 3 Raw green power*¹ from newly-built power plant
First in Japan: Resolved to introduce raw green power with additionality to leased officespace in October 2021Background: Achieving advanced decarbonization that directly contributes to expanding Japan'srenewable power supply
The SEGA SAMMY Group aims for sustainable management centered on the keywords of Environment,
Empathy, Edge and Economics, and has achieved substantial energy savings in the past.
In office buildings with multiple tenants, introducing effectively green power using non-fossil fuel energy
certificates is common, and it was generally considered difficult to achieve advanced decarbonization involving
the construction of new power plants that directly contribute to expanding Japan’s renewable power supply.
However, as a leading environmentally-conscious company, the SEGA SAMMY Group requested to introduce
raw green power with additionality to the office areas of the group headquarters to further protect theenvironment and reduce CO₂ emissions, which resulted in the first green power introduction scheme in Japan.
(News Release) Decarbonizing the SEGA SAMMY Group Headquarters with Raw green power from Newly EstablishedPower Plants-First in Japan to adopt the “Sunlight Premium” plan for environmentally advanced companies
https://english.sumitomo-rd.co.jp/sites/default/files/2022-02/20211020_EN_release_Sunlight_Premium.pdf