Japan Real Estate Investment : Announcement of Setting New Targets for CO2 Emissions Reduction

NEWS RELEASE

March 18, 2022

For Immediate Release

Investment Corporation

Japan Real Estate Investment Corporation

Yutaka Yanagisawa, Executive Director

(TSE code: 8952)

Asset Management Company

Japan Real Estate Asset Management Co., Ltd.

Naoki Umeda, President & CEO

Contact: Masaru Motooka

Executive Officer & General Manager

Planning Department

Phone: +81‐3‐3211‐7951

Announcement of Setting New Targets for CO2 Emissions Reduction

Japan Real Estate Investment Corporation ("JRE") hereby announces that it has newly revised its targets for CO2 emissions reduction as we expect to achieve the previous targets announced in 2020 ahead of schedule.

1. New Targets for CO2 Emissions Reduction

Absolute CO2 emissions

80% reduction by FY2030 (Base year: FY2019) Net zero by FY2050

Comparison with the previous targets (Base year: FY2013/intensity basis)

If the 80% reduction in the new target is converted to the former target criteria announced in 2020 (base year: 2013/intensity basis), the 35% reduction rate then would be raised to 87%.

Intensity ( Scope 1+2+3 / kg‐CO2/㎡)
100
80	35％		87％
60	Reduction	Reduction
40
20
0
FY2013	Former Target	New Target
	(FY 2030)	(FY 2030)
	1

2. SBTi Approval and RE100 Membership

We have determined the new targets that we considered feasible and ambitious based on the external expert verification, as well as internal verification for reduction methods such as introducing renewable electricity.

We have submitted the new reduction targets to the "Science Based Target Initiative ("SBTi")"(*1) and expect to obtain the approval. Furthermore, we have also applied for the membership of the global initiative "RE100"(*2) and aim to make 90% of electricity used at our buildings renewable electricity by 2030 and 100% by 2050.

3. Changes in the New Targets in Line with the SBTi Criteria （1）Change from intensity targets to absolute targets

Since the SBTi recommends setting of absolute reduction target, we have changed intensity targets to absolute target.

（2）Change of the base year

The SBTi recommends using the most recent year for which data is available. However, since 2020 was greatly impacted by the COVID‐19 pandemic, we have set 2019 as the new base year.

（3）Management of reduction targets by scope(*3)

Since the SBTi requires small and medium‐sized enterprises (SMEs) to commit and reduce their "scope 1 and 2" emissions and annually disclose the progress, we will track CO2 emissions separately for "scope 1 and 2" and "scope 3" going forward. As to scope 3, we will press ahead with reduction through cooperation with tenants and other efforts.

Total emissions ( Scope 1+2 / t‐CO₂)
50,000
40,000	80％	Net
Reduction	Zero
30,000
20,000
10,000
0
FY2019	New Target	FY2050
	(FY 2030)

Total emissions ( Scope 3 / t‐CO₂)
60,000
50,000	％	Net
80	Zero
40,000	Reduction
30,000
20,000
10,000
0
FY2019	New Target	FY2050
	(FY 2030)

JRE will further promote initiatives to realize a decarbonized society by proactively introducing renewable electricity in addition to renovating its buildings and making efforts to own more ZEBs (Zero Energy Building).

For JRE's initiatives on ESG, please refer to the following website.

Website for JRE's ESG initiatives: https://jre-esg.com/en/

（*1）The SBTi is a global joint initiative by CDP, the United Nations Global Compact, the World Resources Institute (WRI) and the

World Wide Fund for Nature (WWF), established in 2015. It promotes the validation and certification of science‐based GHG emissions reduction targets set by private companies to achieve the goal upheld at the Paris Treaty (limiting global warming due to climate change to below 2°C compared with pre‐industrial levels).

（*2）RE100 is the global corporate renewable energy initiative bringing together hundreds of large and ambitious businesses committed to 100% renewable electricity.

（*3）Explanation of each scope:

Scope 1: Direct combustion of fossil fuels (gas, heavy oil)

Scope 2: Indirect combustion for electricity use and district heating and cooling

Scope 3: Indirect combustion for fossil fuel/electricity use at sections leased to tenants, etc.

This is the English translation of the announcement in Japanese dated March 18, 2022.

No assurance or warranties are given for the completeness or accuracy of this English translation.

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