Setting Targets (KPI) for Energy Consumption and Greenhouse Gas (GHG) Emissions

Hulic Reit, Inc. (Hulic Reit) and Hulic REIT Management Co., Ltd. (Hulic REIT Management) are working to reduce the carbon footprint for the entire portfolio to promote energy conservation and measures for prevention of climate change.
Environmental measures are promoted through investment and management operations by implementing a PDCA cycle of regular performance tracking, analysis and execution of measures to achieve reduction targets (KPI) for energy consumption and GHG emissions. Specifically, activities to raise awareness among tenants, utilization of renewable energy, introduction of energy-efficient facilities and equipment, and other efforts are made to reduce GHG emissions.

（1）Targets (KPI)

We have set targets (KPI) for and monitor the performance of the following key indicators.

Energy Consumption

GHG Emissions

（2）Performance

Actual Figures (Entire Portfolio) (Note 1) (Note 2)

• The following is the scope of subject properties for each year in the calculation of actual figures (entire portfolio). The same applies hereinafter.
  • Subject properties are those held throughout the year (limited to properties for which data is available).
  • For the properties that Hulic Reit holds under co-ownership, calculations are based on the figures equivalent to the co-ownership interest held by Hulic Reit at the beginning of each year.
• The actual figures have been verified by a third-party organization.
• GHG emissions are calculated by multiplying energy consumption by the factor, etc. in accordance with the Ministry of the Environment’s “GHG Emissions Accounting, Reporting and Disclosure System.”

Setting targets (KPI) for the percentage of properties that will have acquired green building certification

Hulic Reit and Hulic REIT Management are promoting proactive acquisition of third-party green building certification (Note) with the intention of raising the reliability and objectivity of the achievements of initiatives for reducing environmental footprint and, at the same time, enhancing building value over the medium to long term.

• One in which a third party certifies the initiatives, performance, etc. of a building in reducing environmental footprint, enhancing comfort for users, etc.

（1）Targets (KPI)

We have set targets (KPI) and keep up efforts for acquisition of green building certification for portfolio properties.

Green Building Certification Acquisition Rate

• Refers to certification by a third-party certification body, such as DBJ Green Building Certification, CASBEE, BELS, and JHEP Certification. The same applies hereinafter.
• In the calculation of the percentage of properties that will have acquired green building certification, the properties subject to calculation do not include properties for which ownership is of the land interest only. Even if a single property will have acquired several green building certifications, it is counted as 1 property. The same applies hereinafter.

（2）Performance

Of the properties held by Hulic Reit, the actual percentage of properties that have acquired green building certification (based on number of properties) is as follows:

• Entire portfolio
• Tokyo Commercial Properties