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 Approval for Greenhouse Gas Emissions Reduction Targets from Science Based Targets Initiative（SBTi）

SBTi is an international initiative operated jointly by CDP, United Nations Global Compact (UNGC), World Resources Institute (WRI) and World Wide Fund for Nature (WWF). SBT (Science Based Targets: Emissions reduction targets based on scientific grounds) indicates the GHG emissions reduction targets set by companies that are consistent with the level required by the Paris Agreement (which aims to keep the global temperature rise well below 2°C above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5°C), and SBTi approves companies setting SBT.
Hulic Reit established the GHG emission reduction targets, and these targets have now been approved by the SBTi as being consistent with the standards required by the Paris Agreement and based on scientific evidence in November 2024. Hulic Reit is the first J-REIT that has acquired SBTi approval through the corporate target validation route (not the SME route)*.

At the time of application for approval, Hulic Reit did not fall into the category of small and medium-sized enterprises (SMEs) as defined by the SBTi, so it formulated and applied for GHG emission reduction targets through the corporate target validation route and obtained approval.

Submitted responses to CDP’s Climate Change Program

We participated in the CDP's Climate Change program for the first time in 2023, and received a scored "B" in CDP’s 2024 Climate Change Program.

The CDP is an international environmental non-profit organization established in the U.K. in 2000 that administers a global environmental disclosure system for corporations and municipalities. Its annual disclosure of environmental information and its evaluation process are widely recognized as the global standard in corporate environmental disclosure.

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).
Currently, 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 2024, 2,223 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 “4 Stars” of “GRESB Rating,”, we also received a “Green Star” rating for eight consecutive years in the GRESB Real Estate Assessment in 2024.
In addition, the Investment Corporation’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 in fiscal 2017, for the sixth consecutive year.

Receiving the “Good Action Award in Social Category” in ARES ESG AWARD 2024

ARES ESG AWARD is an award program established by ARES to elevate the standards of ESG initiatives of J-REITs and show ESG initiatives to the investors. The aim of the program is to enhance the ESG initiatives of J-REITs and emphasize ESG initiatives to the investors and market, by awarding the unique initiatives to share them widely within and outside the industry, rather than ranking each J-REIT as in the existing external rating and certification systems.
At ARES ESG AWARD 2024, Hulic REIT Management Co., Ltd. (“Hulic REIT Management”), which is entrusted with the management of the assets of Hulic Reit, was awarded the Good Action Award in Social Category for its support of ESG activities through an employee awards system, which was recognized as a groundbreaking initiative in fostering a corporate culture for promoting sustainability by having each employee practice a variety of initiatives for self-development that are linked to sustainability and by evaluating those initiatives through the employee awards system in addition to personnel evaluations.

Third-party green building certification

DBJ Green Building Certification

Acquisition year	Evaluation	Property name
2023	★★★★★	Hulic Asakusabashi Building
2023	★★★★★	Ochanomizu Sola City
2023	★★★★	Hulic Toranomon Building
2025	★★★★	Toranomon First Garden
2025	★★★★	Oimachi Redevelopment Building (#1)
2025	★★★	Oimachi Redevelopment Building (#2)

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
2025	★ (Note4)	Sotetsu Fresa Inn Ginza 7 Chome

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)
The evaluation is based on the new BELS Evaluation that began on April 1, 2024.

CASBEE

Acquisition year	Evaluation	Property name
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
2024	★★★★★	Toranomon First Garden
2024	★★★★★	Ochanomizu Sola City
2024	★★★★	Hulic Takadanobaba Building
2024	★★★★	Hulic Shibuya 1 chome Building
2024	★★★★	HULIC &New SHIBUYA
2025	★★★★	Hulic Gotanda Yamate-dori 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
2024	★★★★★	Hulic Toranomon Building

Hulic Toranomon Building

JHEP Certification

Acquisition year	Evaluation	Property name
2022	A	Aristage Kyodo
2023	A	Granda Gakugeidaigaku
2024	A	Charm Suite Shinjukutoyama
2025	A	Charm Suite Shakujiikoen

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.

Independent assurance report(Date of Issuance:June,2024)^(Note)

Hulic Reit keep the original Independent Assurance report.

As of April 17, 2025