Sustainability policy and system

ESG Policy

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.

4.Efforts on Improving Health and Comfort

SRM shall strive to improve real estate value by raising tenant satisfaction through assessment of needs and appropriate implementation of measures for enhancing health/comfort of tenants and local communities.

5.Efforts on Enhancing Resilience

SRM shall strive to improve real estate value by retaining and gaining good tenants through enhancement of resilience of real estate under management against climate change and disasters. In addition, SRM aims for real estate management that can respond flexibly to changes in social structure such as urbanization and work sharing.

6.Collaboration with Stakeholders

SRM shall establish a good relationship with tenants, property management companies, local communities and other stakeholders involved in real estate under management and collaborate to promote ESG.

7.Efforts for SRM’s Employees

SRM shall strive to develop employees’ skills by providing specialized training, support for acquisition of qualifications and such based on its human resources strategy. In addition, SRM shall work to create a favorable working environment to allow diverse employees to work comfortably in good health.

8.Compliance and Strengthening of Governance

In order to protect investors and ensure SRM’s proper operations, SRM shall not only abide by laws and regulations, but also strive to prevent corruption, prevent conflicts of interest, manage information properly, and value human rights and diversity.

9.Disclosure of ESG Information and Utilization of Outside Evaluation

SRM shall make efforts to implement appropriate and transparent disclosure of ESG-related information for its stakeholders, and consider utilization of outside evaluation and third-party certification.

ESG Promotion Structure

SRM has established the following structure to continuously and methodically promote initiatives based on the ESG Policy (including initiatives to address climate change).

ESG Promotion Committee

The ESG Promotion Committee shall consider and report on various initiatives based on the ESG Policy. The committee shall meet once every quarter, in principle, to propose targets and measures related to ESG, report on the implementation status of measures, and evaluate them.
Under the framework, specific ESG targets and measures determined by the ESG Promotion Committee, the progress made towards them, and other relevant information will be reported to the Board of Directors of SRM and the Board of Directors of SLR.

Structure

Number of ESG Promotion Committee meetings

Fiscal year	Number of meetings
2020	4
2021	4
2022	4
2023	4
2024	4

Major reports and resolutions

ESG Promotion Committee (FY2024)

Reporting
Installation of solar power generators/renewable energy initiatives/rate of transition to LEDs/green lease contracts/rainwater recycling/consideration of the introduction of unstaffed convenience stores/Act on Rationalization of Energy Use and Shift to Non-fossil Energy/environmental certifications/ formulation of the net zero emissions KPI target/introduction of Times B for the efficient use of vacant parking spaces/introduction of off-site PPAs/introduction of portable batteries and solar panels for charging as a part of business continuity planning

Resolution
Revision of environmental targets for the portfolio/Setting of KPI targets related to material issues