Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Acquisition of CASBEE Real Estate Certification for ArtizA Sendai Kakyoin and ArtizA Kokura
• Electronic breaker installation at 13 properties to promote efficient energy use
• Switching to LED lighting fixtures in common areas at 16 properties
• Introduction of green lease agreements for offices
• Replacement of vinyl window envelopes with recyclable glassine paper

Social Achievements

• AED installation at MRR Delta Building, etc.
• Vending machine installation at Komyoike Act
• Delivery BOX installation at ArtizA Higashi-Betsuin, etc.
• Installation of base stations of mobile phones at ArtizA Kawasaki East
• Security camera installation at ArtizA Awajieki-higashi, etc.
• Establishment of a low-carbon transportation network
• Installation of disaster stockpile stands at ArtizA Sobudai
• Installation of disaster prevention equipment in elevators at Ikeshita ES Building
• Participation in the Shiba Area Clean Campaign

Governance Achievements

• Establishment of Sustainability Policy (December 26, 2023)
• Introduction of an asset management fee structure linked to earnings per unit
• Prudent decision-making flow for transactions with interested persons

Climate Goals & Targets

Environmental Challenges

• Lawsuit for rent reduction at Yamada Denki Tecc Land Mihara

Mitigation Strategies

• Intending to respond and advocate through the master lessee (Marimo Co., Ltd.)

Supply Chain Management

Responsible Procurement

• Use of FSC certified papers and vegetable inks in printed materials.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Acquisition of CASBEE Real Estate Certification (A Rank ★★★★) for ArtizA Hakata PREMIER and other properties; Reduction of approximately 900,000 sheets of B5 sized paper in prospectus printing, resulting in 15,000 kg-CO2 less emissions; Switching to FSC-certified paper for various printed materials; Implementation of energy-saving measures in multiple properties (LED lighting, electronic breakers, etc.)
• Participation in GRESB real estate evaluation (results pending in October 2024)

Social Achievements

• Continued implementation of social contribution activities (AED installation, vending machine installation, delivery box installation, etc.); Initiatives for regional contribution (disaster stockpile stands, disaster prevention equipment in elevators, etc.); Participation in cleanup activities; Establishment of welfare programs (childbirth, childcare, nursing care leave, remote work, etc.) with high paid leave acquisition rate (75.7% in FY2023) and 100% health checkup rate (FY2023); Compliance training conducted eight times this fiscal period (ESG training, harassment prevention, etc.); Participation in Eco Cap Movement activities (8,480 caps collected, reducing 62.12 kg-CO2); Participation in Marimo Farm rice planting and Shiba Area Clean Campaign

Governance Achievements

• Introduction of an asset management fee structure linked to earnings per unit; Prudent decision-making flow for transactions with interested persons; Self-declared SECURITY ACTION “2 Stars”; Appointment of outside experts (lawyers, certified accountants, real estate appraisers, etc.)

Climate Goals & Targets

Environmental Challenges

• Overlapping contract cancellations in some properties leading to temporary decrease in occupancy rates; Intense competition in some areas
• Supply chain disruptions (implied by downtime in some properties)

Mitigation Strategies

• Backfilling of vacant spaces is proceeding; Asset replacement strategy to improve portfolio quality and optimize unitholders’ profits; Various cost reduction measures implemented (power cost revision, lot review, switching to purchase of security cameras, electronic breaker installation, LED lighting, etc.) resulting in approximately 10.88 million yen cost reduction per fiscal period

Supply Chain Management

Responsible Procurement

• Use of FSC-certified paper; Selection of environmentally friendly materials

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRESB

Certifications: CASBEE Real Estate Certification, FSC