Philosophy on Environmental Consideration and Environmental Performance

Basic Philosophy on Environmental Consideration

Mitsui Fudosan Accommodations Fund Management Co., Ltd., the asset management company of NAF, provides its basic philosophy on environmental consideration below as described in its "Sustainability Policy."

Promoting Energy Saving and Reduction of CO2 Emissions

By promoting efficient use of energy in asset management activities and pursuing introduction of energy-saving facilities, etc., the Company endeavors to reduce CO2 emissions through energy saving.

Preserving Water Environment and Promoting Resource Saving and Waste Reduction

The Asset Management Company aims to preserve the water environment by initiatives for saving water and introduction of water-saving devices. The Company also pursues efforts to promote reduction of harmful substances, resource saving, and waste reduction.

Environmental Management System/PDCA Cycle

The Asset Management Company established its own Environment Management System (EMS) and implements a PDCA cycle every year in order to manage the environmental load of its real estate portfolio such as energy consumption, CO2 emissions, water consumption, etc., and achieve its targets.

Environmental Targets

We continuously monitor the amount of energy used in the common areas of the portfolio and continue to implement initiatives to achieve the targets.

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Indicator	Target（Target year：2030）
Energy-oriented CO2 emissions (based on intensity)	With actual consumption of 2015 as the base, 50% decrease in amount used
Water consumption (based on intensity)	With actual consumption of 2015 as the base, no increase in amount used
Green Building certified percentage（based on total floor space）	40％

※The Asset Management Company, while achieving the above medium-term targets, supports the international goals set forth by the Paris Agreement over the long term, and will continuously promote initiatives for realizing net-zero greenhouse gas emissions by 2050 in order to contribute to mitigating climate change.

Environmental Performance

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Indicator/Unit		Base year （2015）	2016	2017	2018	2019	2020	2021	2022	2023	Change (vs FY2015)
Energy consumption	Total (1000 kWh)	10,544	10,387	9,895	9,580	9,406	9,001	9,060	9,129	9,046	-13.53%
Energy consumption	Intensity (1000 kWh/㎡)	52.05	50.93	48.32	46.55	45.38	43.23	42.42	42.13	41.70	-19.25%
Electricity consumption	Total (1000 kWh)	9,800	9,650	9,111	8,839	8,659	8,434	8,410	8,440	8,454	-13.74%
Electricity consumption	Intensity (1000 kWh/㎡)	48.38	47.32	44.49	42.95	41.78	40.52	39.38	38.95	38.97	-19.44%
CO2 Emission	Total (t-CO2)	5,038	4,958	4,509	4,183	3,297	2,646	3,355	3,542	3,880	-22.99%
CO2 Emission	Intensity (t-CO2/㎡)	0.0249	0.0243	0.0220	0.0203	0.0159	0.0127	0.0157	0.0163	0.0179	-28.08%
Water consumption	Total (㎥)	24,273	23,836	23,811	24,055	22,811	19,996	20,078	20,180	21,777	-10.28%
Water consumption	Intensity (㎥/㎡)	0.1198	0.1169	0.1163	0.1169	0.1101	0.0961	0.0940	0.0931	0.1004	-16.21%

※ Results are actual figures for the common areas in "rental apartments" among assets under management. For co-ownership properties, the figures are according to the ownership ratio.
※ Each of the intensity figures are calculated upon adjustment with the ownership period of each asset.

Independent Practitioner's Review about Environmental Performance

NAF has received assurance by a third party organization (Deloitte Tohmatsu Sustainability Co., Ltd.) in order to enhance the reliability of the disclosed Environmental Performance data.

Independent Practitioner's Assurance Report

Purchase of FIT Non-Fossil Certificates

NAF purchased FIT Non-Fossil certificates with tracking through ITOCHU ENEX CO.,LTD..
(for the power used in the common areas of properties)

Green Building Certification

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	No. of properties	Total floor space （㎡）	Acquisition rate （％）
Certified buildings	10	235,339.61	30.6