Initiatives and Third-Party Evaluations

Support for Task Force on Climate-related Financial Disclosures (TCFD) Recommendations

1. Overview of TCFD

The TCFD is an international initiative established in 2015 by the Financial Stability Board (FSB) at the request of the G20 Finance Ministers and the Central Bank Governors Meeting to discuss climate-related issues to be addressed by the financial sector. TCFD discusses how financial institutions and companies should disclose the impacts of climate-related risks and opportunities on the organization’s businesses to investors and other stakeholders, and announces recommendations.

2. Initiatives by Hulic Reit and Hulic REIT Management to Achieve Sustainability

Hulic Reit and Hulic REIT Management have been continually implementing initiatives in consideration for environment, society and governance (hereinafter, collectively referred to as “ESG”). These include Hulic REIT Management formulating the Sustainability Policy in March 2016 based on the view that consideration for ESG leads to maximization of Hulic Reit’s unitholder value over the medium to long term, and also include initiatives to enhance consideration for the environment and customer (tenant/user) satisfaction, initiatives to contribute to local communities, and initiatives to raise the effectiveness of prevention of transactions involving conflict of interest at Hulic Reit and Hulic REIT Management.
With the worldwide expansion of ESG investing, in which ESG factors are taken into consideration for investment decisions, Hulic REIT Management considers the recommendations of TCFD, which advocates disclosure frameworks for risks and opportunities posed by climate change, to be an important tool to start actively implementing various climate change measures. It has therefore agreed on the aims of recommendations.

Acquisition of "5-star" Rating in the GRESB Real Estate Survey

1. About GRESB

GRESB is an annual benchmarking assessment to measure ESG (Environmental, Social and Governance) integration of real estate companies and funds, as well as the name of organization which runs the assessment. It was founded in 2009 by a group of major European pension funds who played leading roles in launching Principles for Responsible Investment (PRI).
As of October 2023, approximately 150 Investor Members use GRESB data for their investment decision-making and engagement with investees, and several institutions from Japan, including Government Pension Investment Fund (GPIF), use GRESB assessment results. In 2023, 2,084 listed or private real estate companies/funds in the world participated in the GRESB Real Estate Assessment.
For more information about GRESB, please visit the GRESB website. (https://gresb.com/nl-en/)

2. Results of GRESB Assessment

Hulic Reit earned outstanding evaluations in terms of “Management Component” and “Performance Component”—two operational dimensions subject to assessment in light of efforts aimed at addressing environmental concerns and sustainability issues. We received a “5-Star” rating, the highest evaluation of “GRESB Rating,” for a four consecutive year, we also received a “Green Star” rating in the GRESB Real Estate Assessment in 2021 for a seven consecutive year. Hulic Reit’s information disclosure on its environmental consideration and sustainability initiatives was assessed as particularly impressive, and was given a rating of “A,” the highest of five possible scores, in the GRESB Public Disclosure, introduced from fiscal 2017 for a five consecutive year.

Third-party green building certification

DBJ Green Building Certification

Acquisition year	Evaluation	Property name
2022	★★★	Toranomon First Garden
2022	★★★	Oimachi Redevelopment Building (#2)
2022	★★★	Oimachi Redevelopment Building (#1)
2023	★★★★★	Hulic Asakusabashi Building
2023	★★★★★	Ochanomizu Sola City
2023	★★★★	Hulic Toranomon Building

BELS Evaluation

Acquisition year	Evaluation	Property name
2018	★★★	Hulic Toranomon Building
2019	★★★★★	HULIC &New SHIBUYA
2019	★★	Trust Garden Tokiwamatsu
2019	★★	Sotetsu Fresa Inn Tokyo-Roppongi
2020	★★★★	Hulic Mejiro (Note1)
2020	★★★	Hulic Kanda Building
2020	★★★	Hulic Asakusabashi Building
2020	★★	Hulic Asakusabashi Edo-dori (Note2)
2020	★★	HULIC &New SHINBASHI (Note3)
2020	★★	Charm Suite Shinjukutoyama
2021	★★★★★	Hulic Shimura-sakaue
2021	★★★	Hulic Kandabashi Building
2021	★★★	Hulic Ryogoku Building
2021	★★★	Hulic Hachioji Building
2021	★★	Hulic Ebisu Building
2021	★★	Hulic Nakano Building
2022	★★	Hulic Kojimachi Building
2023	★★★	Hulic Jimbocho Building

Excluding the rental spaces for tenants (B1~4F)
Excluding the rental spaces for tenants (1F~5F)
Excluding the rental spaces for tenants (2･3F、B1･1F)

CASBEE

Acquisition year	Evaluation	Property name
2019	★★★★	Hulic Takadanobaba Building
2020	★★★★★	Toranomon First Garden
2020	★★★★	Hulic Shibuya 1 chome Building
2020	★★★★	HULIC &New SHIBUYA
2021	★★★★★	Hulic Kandabashi Building
2021	★★★★★	Hulic Kakigaracho Building
2021	★★★★★	Hulic Kojimachi Building
2021	★★★★★	Hulic Mejiro
2021	★★★★	Hulic Kanda Building
2021	★★★★	Hulic Ryogoku Building
2021	★★★★	Hulic Asakusabashi Edo-dori
2021	★★★★	Hulic Nakano Building
2021	★★★★	Hulic Hachioji Building
2022	★★★★★	Hulic Higashi Ueno 1 Chome Building
2022	★★★★★	Hulic Jimbocho Building
2022	★★★★★	Oimachi Redevelopment Building(#2)・Oimachi Redevelopment Building(#1)^(Note)
2022	★★★★★	Hulic Jingu-Mae Building
2022	★★★★	Bancho House
2023	★★★★	Hulic Oji Building
2023	★★★★★	Hulic Kobunacho Building
2024	★★★★★	Hulic Kamiyacho Building

We have received certification for Oimachi Redevelopment Building(#2) and (#1) as a single building.

CASBEE for Wellness Office Certification

Acquisition year	Evaluation	Property name
2019	★★★★	Hulic Toranomon Building

Hulic Toranomon Building

JHEP Certification

Acquisition year	Evaluation	Property name
2019	A	Charm Suite Shakujiikoen
2022	A	Aristage Kyodo
2023	A	Granda Gakugeidaigaku
2024	A	Charm Suite Shinjukutoyama

Third-party Assurance

Hulic Reit have been given limited assured by Ernst & Young ShinNihon LLC, an Independent third-party assurance organization, with the aim of keeping the credibility of the scope of our assurance procedures (Environmental data).

Independent assurance report(Date of Issuance:June,2023)^(Note)　The scope of our assurance procedures (Environmental data)

Hulic Reit keep the original Independent Assurance report.

As of April 18, 2024