Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Work Style Reform
• Employee Well-being
• Environmental Conservation
• Sustainable Office Design

Environmental Achievements

• Relocation of head office resulted in 20% reduction in floor area, doubled shared space area, 50% reduction in number of conference rooms, 70% reduction in number of cabinets; All power used in the head office is covered by renewable green power; 32.2% reduction in electricity used in a small-medium sized office after relocation; Use of LED lighting reduces electricity consumption; Use of natural wood for floors and walls; Support for reconstruction through the use of office furniture made of wood from disaster-stricken areas

Social Achievements

• Relocation of head office promoted work style reform, leading to improved employee satisfaction (90% satisfied with facilities, 89% with increased interaction, 88% believing corporate culture will change, 86% believing office environment helps generate new ideas); Adoption of free-address work environment, paperless office, and flexible working arrangements; Introduction of power nap program, interval work system, and fitness program; Abolishing dress codes and respecting autonomy; Introduction of flex-time working hours; Provision of a cafe area and rest area; 80% employee satisfaction with free-address work environment; 93% improvement in awareness of staying organized; 85% satisfied with workspace; 91% satisfied with free healthy drinks at cafe area

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Global environmental issues and population growth exceeding the Earth's capacity; Climate change effects such as rising temperatures and intensifying natural disasters; Diversification of working styles and mobility of human resources; Increasing demand for flexible workspaces; Rapid growth of co-working spaces and shared office spaces; Growing awareness of ESG

Mitigation Strategies

• Relocation of head office to promote work style reforms and develop the office business; Adoption of free-address work environment, paperless office, and flexible working arrangements; Introduction of various spatial designs for different work styles; Use of renewable energy sources; Introduction of flex-time working hours; Consideration for employee wellness (physical and mental well-being); Use of natural wood for floors and walls; Use of LED Lighting; Use of eco-conscious furniture and lighting; Energy-saving mode on office equipment; Appropriately adjusting room temperature; Water conservation measures; Paper conservation measures; Waste reduction initiatives; Promoting public transportation for commuting

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Consideration of life cycle costs and environmental impact when procuring materials; Use of certified materials such as FSC; Priority given to materials extracted and produced in local regions; Choosing office supplies with less environmental impact

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Conservation
• Biodiversity
• Tenant Well-being
• Workforce Diversity
• Governance
• Stakeholder Engagement

Environmental Achievements

• Reduced CO2 emissions by 71.02% (vs FY2019)
• Reduced water intensity by 23.38% (vs FY2019)
• 76.3% of portfolio green certified
• Achieved CDP Climate Change “A List” in 2022
• Switched to renewable electricity at properties of 100% operational control as of September 2022
• Acquired four ZEB Certifications in 2022

Social Achievements

• Implemented Sustainability Program for Tenants, including Sustainability Guides and satisfaction surveys
• ESG seminars for stakeholders
• 100% employee participation in performance reviews
• 100% return and retention rate for employees 12 months after taking childcare leave

Governance Achievements

• Received 5 Stars rating in the 2023 GRESB Real Estate Assessment
• Achieved ISS ESG Corporate Rating Prime status in March 2020
• Selected as a constituent of the MSCI Japan ESG Select Leaders Index in 2022
• Implemented sustainability-linked loans (SLLs)

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical and transition risks)
• Potential for stranded assets due to stricter emission regulations
• Flood risks due to increasing typhoons and heavy rains

Mitigation Strategies

• Set ambitious CO2 emission reduction targets (80% by FY2030, net-zero by FY2050) approved by SBTi
• Joined RE100, aiming for 100% renewable energy by 2050
• Implemented “hard” and “soft” measures to address natural disasters
• Utilizing CRREM to assess stranded asset risk
• Investing in energy-efficient renovations and ZEBs
• Utilizing green finance (sustainability-linked loans and green bonds)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Flooding
• Heatwaves

Transition Risks

• Stricter emission regulations
• Carbon taxes
• Changes in tenant demands

Opportunities

• Green finance
• Increased demand for energy-efficient buildings
• Rent premiums for green-certified properties

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD Recommendations

Certifications: ZEB Certification, DBJ Green Building certifications, CASBEE certifications, BELS certification

Third-party Assurance: Ernst & Young ShinNihon LLC (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

Not disclosed

Awards & Recognition

• CDP Climate Change “A List”
• GRESB 5 Stars rating

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Conservation
• Tenant Engagement
• Employee Well-being
• Governance

Environmental Achievements

• Reduced CO2 emissions by 75.25% (vs FY2019)
• Reduced CO2 intensity by 75.49% (vs FY2019)
• Increased renewable energy rate to 79.7% (FY2023)
• Achieved 76.4% green building certification coverage
• Waste recycling rate of 55.3%

Social Achievements

• Conducted employee satisfaction surveys with 100% response rate
• Implemented a fully flextime system
• Introduced various employee benefit programs
• Improved tenant satisfaction through building renovations

Governance Achievements

• Established a Sustainability Committee
• Implemented a robust risk management system
• Established a compliance system with a three-lines model
• Received “Prime Status” in the ISS ESG Corporate Rating

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical and transition risks)
• Maintaining high tenant satisfaction
• Ensuring data accuracy in environmental reporting

Mitigation Strategies

• Set ambitious CO2 reduction targets (80% by 2030, net-zero by 2050)
• Implemented various environmental measures (energy-efficient renovations, renewable energy)
• Introduced internal carbon pricing
• Collaborated with tenants on sustainability initiatives (green leases)
• Improved data accuracy through EMS and third-party assurance

Supply Chain Management

Supplier Audits: Annual evaluation of property management companies

Responsible Procurement

• Green Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Flooding
• Heatwaves

Transition Risks

• Increased carbon taxes
• Stringent emission regulations
• Shifting tenant demands

Opportunities

• Green finance
• Increased demand for energy-efficient buildings
• Rent premiums for green-certified properties

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD Recommendations

Certifications: CASBEE, DBJ Green Building, BELS

Third-party Assurance: Ernst & Young ShinNihon LLC (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

Not disclosed

Awards & Recognition

• GRESB 4 Stars and Green Star
• CDP Climate Change Program A-
• ISS ESG Corporate Rating Prime Status
• Incentive Prize at the Heat Pump & Thermal Storage Technology Center of Japan Awards