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OJR's Approach to ESG

When conducting asset management for ORIX JREIT Inc. ("OJR"), we engage our duties with due consideration to the environment, society and governance (collectively, "ESG") and established the following "ESG Policy", for achieving stable growth of unitholder value, which is OJR's management philosophy.

ESG Policy

1. Reduction of environmental load and formation of a recycle-based society
We focus on reduction of greenhouse gas emission through improvement of energy efficiency and introduction of energy-saving facilities/equipment on properties owned by OJR among other measures. Furthermore, we seek to create a recycle-based society by promoting efficient use of water and other resources as well as reduction/recycling of waste.
2. Collaboration with stakeholders
We strive to contribute in forming a sustainable society by engaging dialogue with various stakeholders, including unitholders, tenants/business partners, communities, executives and employees, through business activities.
3. Enhancing health, comfort for tenants, executives and employees
We work to improve our tenants' health, safety and comfortability through our asset management capability. In addition, strengthening our asset competitiveness while enhancing health and comfort for our executives and employees by creating a pleasant working environment through diversity, work-life balance etc. towards the realization of our corporate slogan, “Keep Mixed”.
4. Risk management and compliance
We work to eliminate negative effects of transactions between parties, etc. that may cause conflict of interest by particularly paying close attention to conflicting interest transactions, while developing various in-house systems for appropriate risk management and thorough compliance with laws and regulations as well as internal rules.
5. ESG education/enlightenment activities
We work to enhance awareness and knowledge of ESG among executives and employees through continuous education/enlightenment activities.
6. Promotion of information disclosure and visualization of ESG
We proactively disclose information on ESG to various stakeholders, including unitholders, tenants/business partners, communities, executives and employees. As part of such efforts, we take proper initiatives, such as obtaining environmental certification for properties owned by OJR as well as ESG evaluation for real estate investment corporations, to visualize our ESG performance.

In addition, "Energy Usage/Greenhouse Gas Emission Reduction Policy", "Water Conservation Policy", and "Waste Weight Management Policy", established based on the above-mentioned ESG Policy, lay out quantitative targets, specific initiatives, and an organizational structure etc. These measures are being implemented.

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Material issues – Our Sustainability Priorities -

In February 2019, ORIX JREIT Inc. (“OJR”) defined material issues for sustainability that incorporate the perspective on the environment, society and governance (collectively, “ESG”), based on our management philosophy: Aim for sustainable growth of unitholder value.
By setting targets for each issue and going through the plan-do-check-act (“PDCA”) cycle to achieve them, we will work to help resolve the globally shared SDGs (social issues of the sustainable development goals) adopted by the United Nations in 2015, and to realize the medium-to-long-term growth of OJR.

OJR's Material Issues Outline Relevant SDGs
Promotion of climate change countermeasures (reduction of greenhouse gas emissions) •Reduce greenhouse gas emissions by installing equipment that contributes to improving energy efficiency and energy saving at our properties.
•Work for visualization of objectivity and performance by acquiring various “green building” certifications for these properties.
Waste management •Promote efficient use of resources including water, waste reduction and recycling.
•When disposing of waste, comply with laws and regulations and dispose properly including hazardous substances.
Improve the health, safety and well-being for customers (tenants and users) •At our properties, improve the satisfaction of customers and enhance the competitiveness of the properties by conducting environmental and energy-saving measures and asset management aimed at improving health, safety and well-being.
•Work for visualization of objectivity and performance by acquiring various “green building” certifications for these properties.
•Increase the intangible and tangible resiliency of properties through our asset management so that it leads to customer satisfaction.
Information disclosure and dialogue with stakeholders •Contribute to a sustainable society by engaging in dialogue through our business activities with various related parties including investors, customers, business partners, local communities, officers and employees.
•Proactively disclose ESG-related information to aforementioned various related parties.
•In addition to evaluation and certification of our properties, make other appropriate efforts including ESG assessments of OJR.
Cooperation with property managers (“PM”) and building managers (“BM”) •Request business partners such as PM and BM to understand and cooperate with the intent and content of our ESG Policy. Also, when selecting and evaluating business partners, consider the status of their compliance with our guidelines.
•Cooperate with PM and BM to ascertain and calculate energy consumption and greenhouse gas emissions, and to promote reduction efforts.
•Share and address initiatives to reduce energy consumption and greenhouse gas emissions between PM/ BM and tenants.
•Raise awareness of ESG among PM and BM.
Good workplace environment including diversity •Aim to improve the health and well-being of officers and employees by giving consideration to a good workplace environment including diversity and work-life balance.
Development of the competencies of executives and employees •Conduct ongoing education and awareness-raising activities regarding ESG for officers and employees, and strive to improve awareness and knowledge.
•Retain the knowledge and capabilities necessary for work, promote acquisition of qualifications to improve the quality and efficiency of work provided.
•Secure diverse and capable human resources by developing the competencies of officers and employees.
Thorough compliance •Maintain an internal system to ensure appropriate risk management and thorough compliance with laws and regulations.
•In particular, close watch on conflicts of interest and work to eliminate abuses in transactions between interested parties where conflict of interest is a concern.
■Material Issues Identification Process

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Sustainability Committee

ORIX Asset Management Corporation, OJR's asset management company, has established a Sustainability Committee composed of senior management including President and CEO as well as other board members to systematically proceed with initiatives based on our ESG policy on an ongoing basis.
The Sustainability Committee will meet four or more times per year in principle, and will share information on sustainability, examine targets for issues and individual measures, and will receive reports on progress in achieving targets and on evaluation analysis.

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Membership and Signatories

■Membership in Green Building Japan(GBJ)

OJR became a member of Green Building Japan (“GBJ”) as of August 24, 2018 in support of GBJ's aims as a forum connecting people interested in promoting a sustainable built environment .

グリーンビルディングジャパン(GBJ)への加盟

※Website of Green Building Japan(GBJ)
https://www.gbj.or.jp/english/

■Signatory of Principles for Financial Action for the 21st Century

ORIX Asset Management Corporation, the asset management company of OJR, is a signatory of “Principles for Financial Action towards a Sustainable Society (also known as Principles for Financial Action for the 21st Century)” since March 2019. The 7 principles were established as the action guidelines for financial institutions seeking to fulfill their roles and responsibilities necessary for a sustainable society. ORIX Asset Management Corporation fully endorses the concept of the principles.

> Click here to view details about the 21 century financial behavior principle.

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Awards and Accreditations

■MSCI Japan ESG Select Leaders Index

OJR was included in the MSCI Japan ESG Select Leaders Index as of December 2018. The MSCI Japan ESG Select Leaders Index is an index to represent companies with high ESG performance selected based on the data from the MSCI Japan IMI Top 700 Index. The Government Pension Investment Fund (GPIF) has also selected the MSCI Japan ESG Select Leaders Index as one of their ESG indices for their passive investment.
OJR sees inclusion in the index as having favorable effects to increase the liquidity of our investment units and further broaden our investor universe.

MSCI Japan ESG Select Leaders Index

> Click here to view details about the MSCI Japan ESG Select Leaders Index.

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■GRESB Assessment

◆What is the Global Real Estate Sustainability Benchmark?

GRESB is a benchmark established by some European pension funds to measure consideration of the environment and society by real estate companies and real estate institutions. This benchmark is used by major institutional investors in Europe, North America and Asia to make investment decisions.

>Click here to view details about the GRESB survey.

◆Certification Results

GRESB Assessment

GRESB Assessment

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