Sustainability policy | Sustainability | MITSUI FUDOSAN INVESTMENT ADVISORS

Policy on Sustainability (ESG Initiatives)

Announced on August 1, 2019
Mitsui Fudosan Investment Advisors,. inc.

With the aim of achieving continuous value creation, the Mitsui Fudosan Group has positioned environmental, social, and governance (ESG) challenges as a key management issue and is working to bring about a sustainable society. As a member of the Mitsui Fudosan Group, it is the policy of Mitsui Fudosan Investment Advisors to conduct business operations in line with the Group Environmental Policy and the Mitsui Fudosan Group's Policy for Social Contribution Initiatives. In doing so, we will endeavor to reduce our environmental impact and conduct business that takes into account diverse collaborations and cooperative relationships with various individuals and groups both within and outside the organization.

Our objective of engaging in ESG-related efforts: Achieving continued profit growth for assets under management

Mitsui Fudosan Investment Advisors has established customer-oriented business conduct as one of its management policies, and positions initiatives to address environmental, social, and governance (ESG) challenges as part of its pursuit of customers' best interests.

We aim to achieve continuous profit growth for assets under management by taking on ESG challenges and contributing to the creation of a sustainable society.

Bringing about a sustainable society

Mitsui Fudosan Investment Advisors is aware that bringing about a sustainable society through the management of assets under management is the key to achieving continued profit growth for those assets. Driven by this understanding, we have established targets for the ESG fields as follows for real estate-related fund management.

Environment-related targets

In light of the effects that our business operations as well as assets under management have on the environment, Mitsui Fudosan Investment Advisors aims to reduce its environmental impact through such means as employing renewable energy, raising its energy efficiency, and reducing waste.

Applicable SDGsApplicable items from among the 17 goalsand 169 targets

Ensure access to affordable, reliable, sustainable and modern energy for all.

Increase the share of renewable energy in the energy mix

Increase the rate of improvement in energy efficiency

Make cities and human settlements inclusive, safe, resilient and sustainable.

Reduce the adverse environmental impact of cities by managing air quality and waste

Ensure sustainable consumption and production patterns.

Reduce waste generation

Take urgent action to combat climate change and its impacts.

Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters

Note: Written based on Subete no Kigyo ga Jizokuteki ni Hatten Suru Tame ni: Jizoku Kano na Kaihatsu Mokuhyo (SDGs) Katsuyo Gaido (For the sustainable development of all companies: Guide on utilizing the Sustainable Development Goals), Ministry of the Environment, Japan.

Priority issues and action policies

Promotion of energy efficiency

Achieve energy efficiency by such means as switching to LED lighting and updating air conditioning equipment
Utilize renewable energy

Promotion of resource efficiency and waste reduction

Use rainwater and reclaimed water
Promote thorough waste separation and the recycling of recyclable resources
Address the promotion of electric and hydrogen vehicle use

Further information on environmental issues

Society-related targets

Mitsui Fudosan Investment Advisors strives to build positive relationships with the various stakeholders in our business operations and assets under management.

Applicable SDGsApplicable items from among the 17 goalsand 169 targets

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.

Protect labor rights and ensure safe and secure working environments

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.

Increase resource-use efficiency and expand adoption of clean and environmentally sound technologies and industrial processes to enhance sustainability

Reduce inequality within and among countries.

Empower and promote the social, economic, and political inclusion of all people

Make cities and human settlements inclusive, safe, resilient and sustainable.

Reduce the number of deaths, the number of people affected, and direct economic losses caused by disasters

Provide access to green and public spaces

Note: Written based on Subete no Kigyo ga Jizokuteki ni Hatten Suru Tame ni: Jizoku Kano na Kaihatsu Mokuhyo (SDGs) Katsuyo Gaido (For the sustainable development of all companies: Guide on utilizing the Sustainable Development Goals), Ministry of the Environment, Japan.

Priority issues and action policies

Cooperation and collaboration with stakeholders

Cooperate with community and neighborhood associations, participate in local events, etc.
Collaborate with tenants through such means as conducting emergency drills and events for occupants

Employee engagement initiatives

Create comfortable workplace environments through such means as workstyle reform and enabling employees to balance their work and private life
Provide employee training both internally and through external programs

Further information on social issues

Governance-related targets

Mitsui Fudosan Investment Advisors upholds strict compliance as one of its management policies. As such, we will ensure that our decision-making processes are appropriate and will disclose information to our customers in a proper manner.

Applicable SDGsApplicable items from among the 17 goalsand 169 targets

Ensure sustainable consumption and production patterns.

Encourage companies to integrate sustainability information into their reporting cycle

Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.

Eliminate organized crime

Substantially reduce corruption and bribery

Ensure appropriate decision-making

Strengthen relevant national institutions to eliminate violence and terrorism

Note: Written based on Subete no Kigyo ga Jizokuteki ni Hatten Suru Tame ni: Jizoku Kano na Kaihatsu Mokuhyo (SDGs) Katsuyo Gaido (For the sustainable development of all companies: Guide on utilizing the Sustainable Development Goals), Ministry of the Environment, Japan.

Priority issues and action policies

Enforcement of strict compliance

Ensure customer-oriented business conduct by means including the appropriate management of conflicts of interest
Eliminate links with antisocial forces and strictly enforce measures to prevent money laundering and the financing of terrorism

Information disclosure

Disclose information to customers in an appropriate manner through management reports and other means

Further information on corporate governance

Sustainability promotion framework

Mitsui Fudosan Investment Advisors has a Sustainability Committee headed by its president and CEO, and the Committee formulates specific targets, plans, and other measures for putting the Policy on Sustainability into practice. In turn, MFPR has established its own environmental management system (EMS) with the aim of making progress on the various issues that lie in the path to achieving environmental sustainability. The EMS is operated and managed with the Committee playing a central role.

Sustainability Committee overview

	General Committee	MFPR Subcommittee
Objective	Decision on Mitsui Fudosan Investment Advisors' sustainability promotion policy and other important matters	Decision on MFPR's sustainability promotion policy and other important matters
Items decided	Matters related to implementing the policy Formulation of standards, guidelines, etc.	Establishment of medium- to long-term targets, annual targets, and annual implementation plans Decision on policy in acquiring ratings, certifications, etc. Decision on other important matters
Progress management	Reporting on results of target achievement and implementation plans at respective subcommittees once every year
Meeting frequency	The Sustainability Committee is held once every three months, in principle.
Reporting process	Items for deliberation and reporting by the Committee are to be reported to Mitsui Fudosan Investment Advisors' Board of Directors and MFPR's Board of Trustees.

Environmental management system

The PDCA cycle of the Sustainability Committee includes the formulation of sustainability policy and regulations on its promotion framework, determination of the environmental impact and progress of initiatives, setting of (numerical) environmental targets, formulation of environmental activity plans (measures), implementation of measures based on environmental targets, determination of actual figures for various environment-related data, implementation of ESG-related training, analysis of forecast and actual values of various environment-related data, confirmation of the status of environmental target achievement and modification of measures, implementation of management review (evaluation), and formulation of improvement measures for the next fiscal year.

External evaluations

In the fiscal year 2024 GRESB Real Estate Assessment, MFPR received GRESB 4 Star and Green Star ratings for the third straight year.