About MTR's ESG Measures

 MTR believes that initiatives to improve sustainability are essential for enhancing unitholder value for the medium to long term. Also, MTAM, to which MTR entrusts the management of its assets, establishes a corporate philosophy of “Reliability,” “Continuity,” “Benefit sharing” and “Social nature,” and aims to improve unitholder value by contributing to social and economic development through cooperation and collaboration with various stakeholders.
I introduce recent initiatives on ESG.

 With regard to “E: Environment”, MTR is working to reduce the environmental impact of its portfolio by saving energy and reducing greenhouse gas emissions through the introduction of equipment with high energy-saving performance, and by making effective use of limited resources by conserving water and reducing waste. MTR has been promoting energy-saving measures in its facilities, including the use of LED lighting fixtures at the Kioicho Building, Sendai MT Building, Midosuji MTR Building and Hilton Odawara Resort & Spa. In addition, MTR has been working to obtain environmental certifications and assessments. In the fiscal period under review, Kamiyacho Trust Tower obtained DBJ Green Building certification and Hotel Sunroute Plaza Shinjuku became the first MTR property to obtain BELS. The ratio of certified properties in the portfolio, excluding land with leasehold interest, is 65% on the number of properties basis and around 57% on a leasable area basis as of March 31, 2024. MTAM has formulated a green finance framework with the aim of further promoting ESG investment and strengthening funding base of MTR by expanding the number of investors and lenders interested in ESG investment and financing. MTR has issued its first green bonds in December 2023.

 With regard to "S: Society," MTR strives to contribute to tenant satisfaction and sustainable development of local communities by building good relationships, partnerships, and collaboration with external parties involved in the properties it owns. In addition, MTAM strives to create a healthy and comfortable work environment so that employees of MTAM can maximize their abilities. During the period under review, posters were displayed at properties owned in order to cooperate with the Japanese Red Cross Society's awareness-raising activities. During the period under review, MTR displayed posters at properties owned in cooperation with the Japanese Red Cross Society's awareness-raising activities. With regard to the employees of MTAM, MTAM has formulated an action plan to improve their satisfaction based on the results of an employee satisfaction survey and is promoting efforts for improvement. In addition, we stipulated the creation of a diversity, equity, and inclusion (DEI) work environment as one of our sustainability policies, and established a DEI policy and provided DEI training to all full-time officers and employees.

 With regard to "G: governance," MTR implemented training and awareness-raising activities such as providing compliance training to all executives and employees of MORI TRUST Asset Management Co., Ltd. on a regular basis, and sought to improve compliance awareness among employees.

 MTR will continue to promote various initiatives on issues regarding ESG and proactively disclose information in response to the expectations from various stakeholders.

MORI TRUST REIT, Inc.,
Executive Director
MORI TRUST
Asset Management Co., Ltd.,
President and Representative Director

Hiroshi Naito