Group Action Plan to Realize Decarbonized Society Mitsui Fudosan to Convert All Facilities to ZEB/ZEH in Japan by FY2030 Expand Mega Solar Business Five-fold Aggressive promotion of offshore wind and geothermal energy creation; Introduction of ICP from FY2022(PDF:2.15MB)

November 24, 2021

For immediate release

Mitsui Fudosan Co., Ltd.

Group Action Plan to Realize Decarbonized Society

Mitsui Fudosan to Convert All Facilities to ZEB/ZEH in Japan

by FY2030 Expand Mega Solar Business Five-fold

Aggressive promotion of offshore wind and geothermal energy creation;

Introduction of ICP from FY2022

Key Points of Press Release

• Formulation of Group Action Plan (Roadmap) up to FY2050

Raising to 40% the reduction rate of greenhouse gas emissions by FY2030

(Reduction of approximately 1.75 million t/year compared with FY2019 emissions of 4.38 million t/year, which is equivalent to approximately 1 million households' annual CO2 emissions*1)

Establishment of "Sustainability Promotion Dept." to realize the Action Plans, and introduction of the Internal Carbon Pricing System (ICP) from FY2022

1. Toward FY2030

• Achieve ZEB/ZEH level environmental performance in all new construction in Japan Proactively improve the environmental performance of existing facilities.
• Expand the use of renewable energy and green power*2 to all facilities in Japan
• Expand the mega-solar business five-fold (380 million kwh). Secure a power generation amount equivalent to the electricity used by all facilities owned in the Tokyo metropolitan area*3
• Strengthen partnerships to decarbonize the entire supply chain, including efforts to reduce CO2 emissions during construction and the use of forests

1. Looking ahead to FY2050

• Promote open innovation for the creation of new technologies, through the energy creation projects on offshore wind and geothermal power, research and development with academia, the University of Tokyo, and construction companies, investment in ventures, and provision of sites for demonstration experiments
• Synergizing the above, build a mechanism of the creation of neighborhoods to promote decarbonization in the entire area

Our mega-solar business: Tomakomai City, HokkaidoOffshore wind power generation (image)

*1: Annual emissions at the electricity consumption of general households calculated based on "4-6 Carbon Dioxide Emissions from
Households (FY2019)" by the Japan Center for Climate Change Actions
*2: Electricity equivalent to our share of common areas (including partially owned, excluding electricity equivalent to in-house power
generation within each facility).
*3: Equivalent to the current electricity consumption of all facilities in the Tokyo metropolitan area	1

Tokyo, Japan, April 8, 2021 - Mitsui Fudosan Co., Ltd., a leading global real estate company headquartered in Tokyo, announced today that the company has raised its GHG reduction rate target. Going from the medium- and long-term targets for GHG that were set in December 2020, it has now raised the reduction rate target for FY2030 to 40% (compared with FY2019) and formulated the "Group Action Plan to Realize Decarbonized Society (Roadmap)" (Action Plan hereinafter) to achieve net zero emissions in FY2050, in order to take concrete actions.

As symbolized by the "" mark, the Mitsui Fudosan Group has been contributing to the development of

society and the economy as well as the preservation of global environment. It has done so under the principles of "Coexist in Harmony with Society," "Link Diverse Values," and "Achieve a Sustainable

Society," guided by the Group Vision "."

In recent years, global interest in and the importance of action against climate change has been increasing, as exemplified by the Paris Agreement, an international framework for the prevention of global warming, and the government's new target for decarbonization set in April 2021. In response to these trends, we have decided to create the Action Plan as a comprehensive and concrete strategy to achieve our targets.

Based on the Action Plan, the Mitsui Fudosan Group will expand the scale of its facilities for introducing energy-saving measures and renewable energy, as well as its mega-solar business, looking to FY2030, and will strengthen its partnerships to reduce CO2 throughout the supply chain. Looking ahead to FY2050, we will work together with various partners to study and promote energy creation businesses by utilizing new technologies such as offshore wind and geothermal power generation, and through open innovation to decarbonize.

Mitsui Fudosan participates in various initiatives on climate change action.

Mitsui Fudosan Group's New Targets

Reduce Group GHG emissions by 40% by FY2030 (vs. FY2019)

Net Zero by FY2050

* SCOPE 1 + SCOPE 2: 46.2% reduction by FY2030 (vs. FY2019)

Former targets: 30% reduction by FY2030 (vs. FY2019), Net Zero by FY2050

• Targets set in Action Plan

The amount of GHG emissions to be reduced by achieving the above targets by FY2030 is 1.75 million tons, which is equivalent to the annual CO2 emissions of approximately one million households*.

• Calculated based on "4-6 Carbon Dioxide Emissions from Households (FY2019)" by the Japan Center for Climate Change Actions

As a level to keep the global average temperature rise due to global warming below 1.5 degrees Celsius, we aim to reduce the Group's emissions in SCOPE 1+2 by 46.2% compared to FY2019.

For more information on the Action Plan, please click here. https://www.mitsuifudosan.co.jp/english/corporate/news/2021/1124/download/20211124.pdf

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• Initiatives for FY2030

(1) Improvement of environmental performance in new and existing properties

We will achieve ZEB/ZEH level environmental performance in all new construction in Japan. In addition, for existing facilities, we will improve energy efficiency through strategic renovation and actively promote the creation of on-site renewable energy.

• Achieve ZEB/ZEH level environmental performance in new construction

ZEB/ZEH level: BEI level with environmental performance equal to or higher than ZEB/ZEH Oriented

• BEI (Building Energy Index) is an evaluation index for the energy performance of homes and buildings established by the Ministry of Land, Infrastructure, Transport and Tourism. It is calculated by dividing the design primary energy consumption by the reference primary energy consumption. The concept is based on the Building Energy Conservation Act.
  [Examples of ZEB/ZEH certified properties]

Mitsui Fudosan Logistics Park Ebina I (ZEB)

Tamachi M-SQUARE Garden (ZEB Ready)
	Park Homes LaLa NAGOYA minato AQULS
		Garden Square (ZEH-M Oriented)

• Examples of improved energy efficiency performance in existing facilities:
• On-sitepower generation and supply on the premises of logistics and commercial facilities by installing solar panels on the rooftops, etc., conversion to LED lighting and optimization of lighting intensity in office buildings, efforts to reduce impact by air conditioners in hotels and commercial facilities, etc.

Mitsui Fudosan Logistics Park Hino	Mitsui Outlet Park Kisarazu	Switching to LED office lighting
		(conceptual image)

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1. Proactive use of renewable energy, nationwide expansion of target facilities
   (i) Expanding the use of green electricity* to all facilities in Japan

We will take the lead in the use of renewable energy by expanding the scope of our own facilities (common areas) in the Tokyo metropolitan area set for greening of power consumption by FY2030 to "all facilities in Japan."

• Electricity equivalent to our share of common areas (including partially owned, excluding electricity equivalent to in-house power generation within each facility).

Examples of facilities owned by Mitsui Fudosan

(ii) Expansion of services using renewable energy for tenants, investors, and residents

In April 2021, we launched the "Green Energy Supply Service" using renewable energy to help tenant companies of our facilities solve ESG issues and achieve RE100, and currently about 100 companies are using or considering this service.

We will respond to diverse needs such as the growing interest in environmental considerations in recent years. To this end, we will expand the scope of services utilizing renewable energy to all facilities nationwide, including the provision of a system for greening of power consumption to purchasers of condominiums and facilities for investors sold by the Mitsui Fudosan Group.

Companies using the "Green Energy Supply Service"

(Some of companies using the system as of October 31, 2021, ABC order)

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• Proposal of "Green Energy Menu" to institutional investors at the time of property sale
• In mid- to high-rise condominiums, introduce the mechanism of "bulk high-voltage power reception

× Renewable energy" and ENE-FARM

Environmental

valueEnvironmental value

Renewable energy
	sources
	Other Power
	Sources			Retail electricity
				provider
	Normal electricity

		House
Supply at high		House
pressure
	House

Electric energy meter

Substation equipment

(converting high-voltage power to low-voltage

Mid-to-high-rise condominium

1. Securing stable electricity supply by expanding mega-solar business and renewable energy capacity

At Mitsui Fudosan, we are currently promoting a mega-solar business at five locations throughout Japan. By FY2030, the scale of our business will be expanded to 380 million kwh per year*, approximately five times the output in FY2019, to secure power generation equivalent to our own use in the Tokyo metropolitan area.

In addition, in the Tokyo metropolitan area, we have secured a procurement of 600 million kwh/year through a comprehensive agreement with TEPCO Energy Partner, Inc. based on the agreement concluded in December 2020. Through further cooperation with other companies, we will strive to secure a total of 800 million kwh/year or more of the non-fossil certificate by FY2030 as well as additional non- fossil certificates throughout Japan outside the Tokyo metropolitan area as needed.

* Total output of 80 M kwh in FY2019 Total output of approximately 175,000 kW

	Further
	Expansion
Output

5 times the

380 M current output kwh/year

					New development:
			300 M kwh/year
80 M kwh/year
								Mitsui Fudosan Sanyo Onoda Power Plant
	2019		2030			2050

(4) Other initiatives

1. Strengthening partnerships throughout supply chain to reduce CO ₂ emissions during construction

We will develop tools to accurately grasp CO₂ emissions during construction, and require submission of a reduction plan by construction companies, etc. and promote CO2 reduction in the entire supply chain, involving construction companies and component manufacturers.

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