Sustainability Policy

Based on the recognition that efforts and initiatives on the Environment, Society, and Governance (ESG) in our asset management operations contribute to increasing the value of assets under management and bolstering our competitive edge in the medium to long term, in compliance with the management philosophy and perspective of the sustainability policy of the Mitsui & Co., Group to which we belong, we set forth the following as our Sustainability Policy and implement efforts and initiatives on sustainability through our business activities.

• 01

  Response to Climate Change and Resilience

  Based on the understanding that response to climate change issues is one of the key challenges under property investment management, we strive to assess and identify the risks and opportunities associated with investment real estate under management appropriately.
  Further, through managing those risks and opportunities, we also work on ensuring the ability and system (resilience) to respond to medium- to long-term changes in the environment/society and events, including disasters, properly.

• 02

  Realization of Circular Economy Through Environmental Management of Portfolio

  We identify and manage the impact on the environment associated with property investment through the internal environmental management system properly. Besides thorough compliance with environmental laws and regulations, through efforts on reducing greenhouse gas emissions, using resources and energy efficiently, saving water and using sustainable water, cutting the amount of waste, or disposing of it appropriately, we manage environmental risks and explore opportunities to create added value concurrently, thereby realizing a circular economy that aims to make economic growth and environmental load reduction compatible.

• 03

  Confidence-building and Collaboration with Stakeholders

  By building favorable relations through opportunities for dialogue with outside stakeholders, including tenants of investment properties under management, local communities, property management firms or operators, and suppliers, we collaborate in addressing environmental or social challenges while striving to operate the business efficiently, increase tenant satisfaction, and contribute to the development of the local community.

• 04

  Initiatives for Employees

  We provide employees with opportunities for education and capacity development to enhance their professional knowledge and abilities as well as knowledge and understanding of sustainability and ESG.
  Further, by helping them create a healthy, safe and comfortable work environment and promote work-life balance, we ensure that all officers and employees can exercise their full potential.

• 05

  Respect of Human Rights and Compliance

  In compliance with international human rights law and the Mitsui & Co., Group’s human rights policy, we put in place the system to identify, assess, prevent, and relieve the negative impact on human rights, such as forced labor, child labor, discrimination, harassment or inhumane treatment, and respect basic human rights and fundamental rights for workers.
  Additionally, we continuously bolster the compliance system to ensure compliance with laws and regulations, fair trade, proper management of information, and prevention of corruption or conflicts of interest, thereby engaging in fair business activities.

• 06

  Disclosure of ESG Information and Securing of Transparency

  To ensure mutual trust between diverse stakeholders, we disclose information about ESG timely, properly, proactively, and continuously while promoting efforts in the context of outside industry standards/norms, such as environmental certification related to real estate, and international initiatives on ESG as well.

Materiality (Material Issues)

Mitsui & Co., Realty Management and the investment corporations that entrust Mitsui & Co., Realty Management with asset management have identified the sustainability-related issues deserving high priority as “Materiality” (material issues), based on their business content, the expectations of stakeholders, and other factors, and have been working to tackle these issues.

Identified Materiality

Related SDGs	Items	Policies/details
Environment (E)
	Resource saving/resource recycling Response to climate change Acquiring environmental accreditation	Carry out appropriate management of GHG emissions (intensity) and water usage (intensity) at owned properties, and promote emission reductions Aim to encourage efficient use of resources (including water) and proper disposal or recycling of waste materials Promote acquisition of environmental accreditation, such as Green Building certification
Society (S)
	Increasing employees’ wellness and developing their skills Engagement with tenants Contributing to local communities	Provide employees with opportunities for ongoing skills development and improve their abilities; increase satisfaction levels among employees by building healthy, safe, and comfortable workplace environments and supporting work-life balance management Accelerate engagement with tenants in collaboration with PM companies and other parties, and work together to implement environmentally-friendly measures through owned properties; coexist with local society and promote activities loved by communities through measures focusing on the sustainability of owned properties
Governance (G)
	Developing governance systems Ensuring compliance	Set up and appropriately manage committees whose members include external experts, and promote sustainability measures in line with PDCA cycles; carry out appropriate risk management by removing conflicts of interests in transactions with stakeholders and through other measures Remain strongly aware that compliance is the foundation of Mitsui & Co., Realty Management’s management platform, and ensure compliance among officers and employees of the company

Process for Identifying Materiality

Sustainability Promotion System

To formulate regulations for the sustainability promotion system and implement the Sustainability Policy, we have the following internal system in place:

Annual Action Plan

(1) To promote sustainability, we formulate an annual action plan as a concrete execution plan.

(2) An annual action plan is formulated and deliberated by the Sustainability Promotion Meeting, determined by the final decision-maker, and executed by Chief Sustainability Officer.

(3) The Sustainability Promotion Meeting checks the progress /achievement of an annual action plan, and the final decision-maker conducts an annual review.

Participation in Global Initiatives

Endorsement of the TCFD (Task Force on Climate-related Financial Disclosures) Recommendations

Signing of the Principles for Responsible Investment (PRI)