Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Acquisition of five solar power plants contributing to reduced carbon emissions

Social Achievements

• Contribution to regional revitalization through investment in renewable energy projects

Governance Achievements

• Obtained approval from the board of directors for transactions with related parties

Climate Goals & Targets

Environmental Challenges

• Business risks, market conditions, economic conditions, demand fluctuations, risks related to specific customers (electricity companies and power generators), liquidity risks, regulatory changes, risks related to joint investors, and other potential risks.
• Boundary issues with neighboring land for some properties
• Unresolved land ownership issues for some properties

Mitigation Strategies

• Appropriate risk management in accordance with the company's risk management policy
• Negotiations with local governments to resolve land ownership issues

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Renewable Energy
• Environmental Conservation
• Regional Revitalization

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Risks related to the Fixed Price Feed-in Tariff (FIT) system, including changes or abolition of the system, changes in purchase conditions upon renewal or amendment of power purchase agreements, termination of connection contracts, output control, and changes in procurement prices or periods.
• Risks related to the operators and lessees, including financial deterioration, bankruptcy, and termination of lease agreements.
• Risks related to O&M contractors, EPC contractors, and manufacturers, including insufficient human and financial resources, conflicts of interest, and loss of effectiveness of rights.
• Risks related to the trust beneficiary rights, including liquidity risks, bankruptcy of the trustee, breach of trust, and quasi-common ownership.
• Risks related to the tax system, including maintaining conduit status, tax burdens affecting dividend payments, and tax audits.

Mitigation Strategies

• Implementing risk management measures to mitigate the above challenges, including due diligence, insurance, and financial strategies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Weather related risks impacting power generation

Transition Risks

• Changes in FIT system, regulations, and market conditions

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001:2015 (Aihime Head Office & Factory)

Third-party Assurance: Taiyo Limited Liability Auditor Corporation

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Renewable Energy
• Carbon Neutral
• Community Development

Environmental Achievements

• Not disclosed

Social Achievements

• Contribution to regional community activation through investment in renewable energy facilities.
• Advantech Group's 'Ito Project' for sustainable community development in Saijo City, Ehime Prefecture.

Governance Achievements

• Obtained a long-term issuer rating of A- with a stable outlook from Japan Credit Rating Agency (JCR) in February 2021.

Climate Goals & Targets

Environmental Challenges

• Early rainy season in Kyushu region.
• Higher-than-expected output control requests.
• Theft of electrical cables at TI Kanuma solar power plant.
• Repair of a water conduit at TI Kirishima solar power plant.

Mitigation Strategies

• Conservative control of sales and general administrative expenses.
• Insurance coverage for repair costs.
• Implementation of a remote control system in July 2021 to reduce the number of output control days at TI Kirishima.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Early rainy season

Transition Risks

• Output control requests

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Investments in renewable energy contribute to these goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by approximately 29,042 tons (6th and 7th periods)
• Developed environmentally friendly solar power generation facilities that minimize land impact

Social Achievements

• Investment in Lukuzentakata Shimin Energy Co., Ltd. and Usuki Energy Co., Ltd. contributing to local community development
• Contribution to regional revitalization through the "Ito Project" in Saijo City, Ehime Prefecture
• Proposal of disaster prevention solutions that simultaneously achieve regional resilience and decarbonization

Governance Achievements

• Implementation of a compliance program to foster and improve employee compliance awareness
• Ensuring effective oversight through the full attendance of external members/directors in investment corporation board meetings, board of directors meetings, investment committees, and compliance committees

Climate Goals & Targets

Environmental Challenges

• The earliest-ever onset of the rainy season in southern Kyushu in recorded history, resulting in unexpected output control
• Unplanned repairs due to cable theft (TI Kanuma) and repair of a water conduit (TI Kirishima)

Mitigation Strategies

• Received insurance money of 29 million yen (extraordinary income) for the unplanned repairs
• Completed the introduction of a remote control system in July 2021, transitioning to treatment as an "online operator." This is expected to reduce the number of future output control days.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Security
• Regional Revitalization
• Environmental Conservation

Environmental Achievements

• Participated in 'RE Action' to use 100% renewable energy for group operations.
• Implemented disaster prevention solutions combining regional resilience and decarbonization in various locations (e.g., Ito Project in Saijo City, Ehime Prefecture).

Social Achievements

• Contribution to regional revitalization through investment in local energy companies (e.g., Usuki Energy Co., Ltd., Rikuchū Takata Shimin Energy Co., Ltd.).
• Focus on energy self-sufficiency and sustainable town development through energy conservation (ZEB buildings and energy-saving equipment).

Governance Achievements

• Implemented new security systems to prevent cable theft in the Kanto area.
• Strengthened disaster prevention measures and response protocols.

Climate Goals & Targets

Environmental Challenges

• Cable theft incidents at TI Utsunomiya and TI Ryugasaki solar power plants.
• Fire accident at TI Kirishima solar power plant.
• Adverse weather conditions affecting performance.

Mitigation Strategies

• Implemented new security systems to prevent cable theft.
• Full insurance coverage for losses from theft and fire incidents.
• Swift emergency response and collaboration with stakeholders.
• Thorough cost management.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Green Finance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Green Bond Principles 2021, Green Bond Guidelines 2020, Green Loan Principles 2021, Green Loan and Sustainability-Linked Loan Guidelines 2020

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Security
• Regional Community Activation
• Environmental Conservation

Environmental Achievements

• Investment and operation based on renewable energy power generation facilities contribute to greenhouse gas reduction.

Social Achievements

• Contribution to regional community activation.

Governance Achievements

• Obtained Green1 (F) rating from Japan Credit Rating Agency (JCR) for its Green Finance Framework.

Climate Goals & Targets

Environmental Challenges

• Cable theft incidents at TI Ryugasaki solar power plant (fully compensated by insurance).
• Uncertain economic outlook due to the impact of the COVID-19 pandemic, the war in Ukraine, and rising resource prices.

Mitigation Strategies

• Implemented new security systems at three solar power plants in the Hokuriku area to prevent recurrence of cable theft incidents.
• Careful selection of acquisition properties based on meteorological agency criteria to prepare for disasters.
• Insurance contracts to secure minimum guaranteed rent payments.

Supply Chain Management

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used:

Certifications:

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• CO2排出抑制
• 再生可能エネルギー発電の普及
• 地域に根差したまちづくり
• 地域防災
• 法令遵守
• 健全な意思決定フロー
• 顧客本位の業務運営

Environmental Achievements

• 第8期・第9期CO2排出抑制 約18,554 t-CO2/kWh
• 再生可能エネルギー発電設備へ重点投資
• 環境負荷の少ない太陽光発電設備の開発（アドバンテック、TI矢吹）
• RE Action（再エネ100宣言）参加

Social Achievements

• 「グリーンライフ・ポイント」推進事業への参加
• 地産地消型エネルギーの導入（陸前高田しみんエネルギー㈱、うすきエネルギー㈱への出資）
• 愛媛県西条市における「糸プロジェクト」を通じた地域創生に関する実証実験

Governance Achievements

• コンプライアンス・プログラムの履践による社員のコンプライアンス意識の醸成・向上
• 投資法人役員会、取締役会、投資委員会、コンプライアンス委員会における外部委員・外部役員に関し、全会全員出席により牽制作用の働く会議体運営を実現
• 顧客本位の業務運営に関する原則を採択し、お客様本位の業務運営に関する方針を策定・公表

Climate Goals & Targets

Environmental Challenges

• ケーブル盗難による発電停止
• 出力制御
• 大規模点検の実施時期ズレ

Mitigation Strategies

• 計画していた大規模点検の実施時期ズレ分を補正
• 運営コストの効率化
• オンライン出力制御システムの導入（TI新見、TI岡山、TI愛南、TI宮古）
• 対象エリアの他の発電所についてもオンライン出力制御システムの導入を検討予定

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: グリーンファイナンス・フレームワーク

Environmental Metrics

ESG Focus Areas

• 再生可能エネルギー発電設備への重点投資
• CO2排出抑制
• 再生可能エネルギー発電の普及
• 地域に根差したまちづくり
• 地域防災
• 法令遵守
• 健全な意思決定フロー

Environmental Achievements

• 第9期・第10期CO2排出抑制 約29,195 t-CO2/kWh
• 再エネ100宣言 RE Actionに参加
• 環境負荷の少ない太陽光発電設備の開発（起伏のある土地を造成することなく太陽光パネルを設置）
• 地産地消型エネルギーの導入（陸前高田しみんエネルギー㈱、うすきエネルギー㈱への出資）

Social Achievements

• 愛媛県西条市における「糸プロジェクト」を通じた、地域創生に関する実証実験を実施中

Governance Achievements

• コンプライアンス・プログラムの履践による社員のコンプライアンス意識の醸成・向上
• 投資法人役員会、取締役会、投資委員会、コンプライアンス委員会における外部委員・外部役員との積極的な対話に基づく健全な会議体運営を実現
• 顧客本位の業務運営に関する原則を採択し、お客様本位の業務運営に関する方針を策定・公表

Climate Goals & Targets

Environmental Challenges

• 2022年8月以降の天候不順により、期中の発電予想に対する達成率が96.4％にとどまる

Mitigation Strategies

• 安定性と上振れの両立を目指した賃貸スキーム（賃料不足額は保険金で支払いを担保）

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: グリーンファイナンス・フレームワーク

Certifications: Green1（F）

Environmental Metrics

ESG Focus Areas

• Renewable Energy
• Decarbonization
• Energy Security
• Regional Community Activation
• Environmental Conservation

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Unexpectedly frequent output control in multiple power company areas, primarily in the Kyushu Electric Power Company service area.
• Delayed receipt of some settlement payments due to online proxy control.
• Theft of electrical cables at the TI Yabu Solar Power Plant in Fukushima Prefecture.

Mitigation Strategies

• Adjusted performance forecasts for the 12th fiscal period and beyond.
• Continued monitoring of government and power company actions regarding output control.
• Implemented security system at TI Yabu, though theft occurred outside the system's range.
• Strengthened security measures, including manned security, and plans for new anti-theft measures.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

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

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Investments in renewable energy contribute to these goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Renewable Energy
• Carbon Neutral
• Energy Self-Sufficiency
• Regional Revitalization
• Environmental Conservation

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Theft of electrical cables at some power plants
• Record heavy rain in the Hokuriku region

Mitigation Strategies

• Made every effort to restore damaged areas quickly
• Conservative cost control

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, flooding

Transition Risks

• Regulatory changes, market shifts

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

• Renewable energy
• Energy self-sufficiency in Japan
• Regional community revitalization
• Contribution to global environmental conservation
• Carbon neutral by 2050

Climate Goals & Targets

Environmental Challenges

• Adverse weather conditions at some solar power plants
• Theft of electrical cables resulting in partial power outages

Mitigation Strategies

• Appropriate maintenance of existing facilities
• Enhanced security measures (planned)

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• CO2排出抑制量 33,581 t-CO2 (2023年7月1日～2024年6月30日まで)

Social Achievements

• 愛媛県西条市における「糸プロジェクト」を通じた地域創生、脱炭素及び地域防災に資するまちづくり

Governance Achievements

• グリーンファイナンス・フレームワークの策定及びグリーンファイナンスによる資金調達の実施
• コンプライアンス・プログラムの履践及び社内研修の実施等による役員及び従業員のコンプライアンス意識の向上

Climate Goals & Targets

Environmental Challenges

• 出力制御は想定を下回る
• 一部発電所における天候不順や電気ケーブル盗難被害

Mitigation Strategies

• 防犯対策を強化するべく計画修繕の優先順位を見直した
• 期中運営コストを保守的にコントロール

Supply Chain Management

Climate-Related Risks & Opportunities