Environmental performance

We have set targets for greenhouse gas (GHG) emissions, energy consumption, water consumption, and other environmental matters. To achieve these targets, we are implementing initiatives including improvements and investments in facilities for building operations and increasing tenants, property managers and other stakeholders' awareness of energy-saving activities.

Environmental Policy

SLR and SRM established their ESG policy in April 2020 and have been undertaking a series of ESG initiatives, particularly initiatives to reduce environmental burden, in the real estate investment management business.

Sustainability policy(Excerpt)

1.Climate Change Measures
SRM shall aim for realization of carbon neutrality through efforts on efficient use and reduction of energy and minimization of greenhouse gas emissions to as close to zero as possible at real estate under management. Furthermore, recognizing the importance of renewable energies, SRM shall consider possible utilization of such.

2.Efforts on Reducing Environmental Burden
Recognizing environmental burden at real estate under management, including water consumption and waste discharge, SRM shall continuously make efforts to reduce such.

3.Consideration for Natural Environment
With sufficient consideration for protection of natural ecosystem and other natural environment as well as for maintenance/conservation of biodiversity, SRM shall promote greener buildings and communities.

Environmental Targets

Energy

Reduce energy consumption intensity
by FY2030

35%reduction

Intensity basis, compared to the FY2019 level

Total GHG emissions
(Scope 1 and 2)

Short-term target:
by FY2030

42%reduction

with FY2020 as the baseline

Total GHG emissions
(Scope 1, 2, and 3)

Long-term target:
by FY2050

Net zero

with FY2019 as the baseline

Water use

In terms of water consumption,
until FY2030

Remaining unchanged

The FY2019 level is considered to be the baseline

Waste

In terms of waste disposal,
until FY2030

Remaining unchanged

The FY2019 level is considered to be the baseline

External certification

Increase external environmental certification acquisition percentage to 70% by FY2030

70%

based on total floor space

Setting New Environmental Targets

As described in the Notice Concerning Identification of Materiality, Partial Revision of ESG Policy, and Establishment of DE&I Policy dated April 28, 2023, SLR and SRM reviewed the Climate Change Measures section of their ESG Policies and have established a net zero policy to get their greenhouse gas emissions to as close to zero as possible.
In line with this policy and as announced in the Notice Concerning Establishment of New Environmental Targets (Energy consumption and GHG emissions) released on May 23, 2023, SLR and SRM revised the energy and GHG emissions reduction part of their environmental targets. Recently, SLR and SRM have decided to aim to achieve net zero emissions by FY2050 and set new environmental targets regarding greenhouse gases as follows.

Indicators	Target
Greenhouse gas (GHG)	Current	In conjunction with the energy consumption reduction target, SLR aims to achieve a CO2 emissions unit reduction of 35% from the level in FY2019 by FY2030.
	New	The investment corporation aims to reduce the total greenhouse gas emissions of its portfolio (Scope 1 and 2) by 42.0% (with the 2020 level as the baseline) by FY2030.
	New	The investment corporation aims to reduce its greenhouse gas emissions throughout its value chain (Scope 1, 2 and 3) to net zero by FY2050.

Performance Data

Energy

Energy：SLR aims to achieve an energy consumption intensity reduction of 35% from the level in FY2019 by FY2030.

(kWh/㎡)

target line40kWh/㎡

Energy Consumption	Total Energy Consumption (kWh)	Breakdown		Data Coverage (GFA basis) (Note 1)	Energy Consumption Intensity (kWh/㎡) (Note 2)	Percentage Change (vs previous year)
Energy Consumption	Total Energy Consumption (kWh)	Gas/fuel Consumption (kWh)	Electricity Consumption (kWh)	Data Coverage (GFA basis) (Note 1)	Energy Consumption Intensity (kWh/㎡) (Note 2)	Percentage Change (vs previous year)
FY 2019	17,067,975	225	17,067,750	100%	58.1	―
FY 2020	18,867,677	1,199	18,866,478	100%	44.4	-23.7%
FY 2021	20,594,448	384	20,594,064	100%	45.4	2.4%
FY 2022	23,880,134	1,507	23,878,627	100%	42.3	-6.9%
FY 2023	24,844,848	1,773	24,843,075	100%	43.4	2.6%
FY 2024	26,495,628	79,472	26,416,156	100%	44.3	2.1%

Greenhouse gas (GHG)

Greenhouse gas (GHG) : (Short-term)SLR aims to reduce the total greenhouse gas emissions of its portfolio (Scope 1 and 2) by 42.0% (with FY2020 as the baseline) by FY2030.
(Long-term)SLR aims to reduce its total greenhouse gas emissions throughout its value chain (Scope 1, 2 and 3) to net zero by FY2050.

(t-CO2)

target line646.1t-CO2

GHG Emissions	GHG Emissions (t-CO2) (Note 3)	Breakdown				Renewable energy measures	Breakdown		Renewable energy measures	Breakdown		Scope1+Scope2 rate of change （vs. base year）	Data Coverage (GFA basis) (Note 1)	CO2 Emissions Intensity (t-CO2/㎡) (Note 2)	Percentage Change (vs previous year)
GHG Emissions	GHG Emissions (t-CO2) (Note 3)	Scope1+Scope2 （t-CO2)	Scope1 (t-CO2)	Scope2 (t-CO2)	Scope3 (t-CO2)	Renewable energy measures	Scope1+Scope2 （t-CO2)	Scope3 （t-CO2)	Renewable energy measures	Scope1+Scope2 （t-CO2)	Scope3 （t-CO2)	Scope1+Scope2 rate of change （vs. base year）	Data Coverage (GFA basis) (Note 1)	CO2 Emissions Intensity (t-CO2/㎡) (Note 2)	Percentage Change (vs previous year)
FY 2019	7,885	979	0.048	979	6,906	-	-	-	-	-	-	-	100%	0.0269	-
FY 2020	8,396	1,114	0.006	1,114	7,282	0	-	-	8,396	1,114	7,282	-	100%	0.0197	-26.5%
FY 2021	8,917	1,167	0	1,167	7,750	0	-	-	8,917	1,167	7,750	5%	100%	0.0197	-0.4%
FY 2022	10,388	1,308	0	1,308	9,079	241	-241	0	10,147	1,067	9,079	-4%	100%	0.0184	-6.5%
FY 2023	10,882	1,361	0	1,361	9,521	288	-288	0	10,594	1,073	9,521	-4%	100%	0.0190	3.3%
FY 2024	11,194	1,429	0	1,429	9,765	681	-784	0	10,513	748	9,765	-33%	100%	0.0187	-1.6%

Water use

Water consumption: SLR aims to preserve the status quo up until 2030, using FY2019 as a baseline.

(㎥/㎡)

target line0.1442㎥/㎡

Water consumption	Water consumption (thou. m3)	Data coverage (based on total space) (Note 1)	Water consumption intensity (m3/㎡) (Note 2)	Reduction of intensity
FY 2019	31,203	74%	0.1442	―
FY 2020	35,453	100%	0.0834	-42.2%
FY 2021	34,893	100%	0.0770	-7.7%
FY 2022	50,842	100%	0.0901	17.0%
FY 2023	51,236	100%	0.0895	-0.6%
FY 2024	52,863	100%	0.0884	-1.2%

Waste

Waste disposal: SLR aims to preserve the status quo up until 2030, using FY2019 as a baseline.

(t/㎡) (%)

target line0.00375t/㎡

Waste management	Waste output (t)	Data coverage (based on total space) ^{(Note 1)}	Recycling rate	Waste management intensity (m3/㎡) ^{(Note 2)}	Reduction of intensity
FY 2019	1,100	81%	97%	0.00375	-
FY 2020	1,797	100%	93%	0.00423	13%
FY 2021	588	100%	48%	0.00130	-69%
FY 2022	1,448	83%	70%	0.00256	98%
FY 2023	3,701	72%	80%	0.00647	152%
FY 2024	3,896	67%	82%	0.00652	1%

Numerator = GFA of the property for which data is known(㎡）, Denominator = Total GFA of Portfolio properties excluding land with leasehold interest and land Gross floor area is calculated based on the area listed on the inspection certificate of each property.

Numerator = Each consumption amount, Denominator = Total GFA of the Portfolio properties every fiscal year, and take consideration of occupancy rate

Scope 1:Direct emissions derived from areas managed by owner. Scope 2:Indirect emissions derived from areas managed by owner (location-based). Scope 3:Emissions derived from areas managed by tenants.

Environmental performance above is calculated for which the requisite data is available.