MORI TRUST Sogo Reit : Sustainability Report（July 2022）

Sustainability Report

（Asset Management Company）

July 2022

＜CONTENTS＞
1．About MORI TRUST Sogo Reit, Inc.・・・・・・・・・・・・・・・・・・・・・・・・・	3
2．MTR's ESG Initiatives・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	4
3．Climate Change Initiatives・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	10
4．Environmental Initiatives・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	14
5．Social Initiatives・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	19
6．Corporate Governance Initiatives・・・・・・・・・・・・・・・・・・・・・・・・・・・	28

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1．About MORI TRUST Sogo Reit, Inc.

• Overview of MORI TRUST Sogo Reit, Inc.

MORI TRUST Sogo Reit, Inc. ("MTR") is a comprehensive REIT, whose main sponsor is Mori Trust Co., Ltd, a leading developer. It invests mainly in office buildings in central Tokyo and also commercial facilities, hotels, residential and other properties. MTR was listed on the Tokyo Stock Exchange's market for real estate investment trusts (J-REIT market) in 2004 and has since achieved steady growth by investing in carefully selected properties that will contribute to stable operations over the medium and long term.

Name of Investment Corporation

Address

Representative

Date of foundation

Date of listing

Portfolio

Securities Code

Fiscal period end

MORI TRUST Sogo Reit, Inc.

3-1 Toranomon 4-chome,Minato-ku, Tokyo

Masayuki Yagi, Executive Director

October 2, 2001

February 13, 2004

Office buildings, commercial facilities, residential properties and hotels

8961

March and September

Features of MTR

• Construction of a stable portfolio through selective investment
• • Carefully selects properties that will contribute to stable operations over the medium and long term
  • Attaches importance to "quality" including "location" and "sense of being high grade"

• Broad collaboration with the Mori Trust Group
• • MORI TRUST Holdings, Inc. owns approximately 26.5% (around 350,000 units) (Note) of the investment units outstanding of MTR
  • Collaborates over the acquisition and sale of real estate, etc. and also uses the Group's strong expertise in real estate leasing and management

• Solid financial strategy
• • Acquired "AA" rating (Outlook: Stable), the highest among J-REITs
  • Leverages creditworthiness to borrow capital at a low rate of interest

(Note) As of the end of March 2022

MTR's Organization Chart

For MTR's Organization Chart, please refer to page 29 of this report.

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2．MTR's ESG Initiatives

• Sustainability Policy and Framework for Promoting Sustainability

As MTR's asset management company, we, MORI TRUST Asset Management Co., Ltd. ("MTAM") recognize that efforts to improve sustainability such as environmental consideration, contribution to society and strengthening corporate governance though our asset management operations are essential for growing unitholders' value in the mid-to-long term. We hereby establish the "Sustainability Policy" and aim to implement it.

Sustainability Policy

（１）Promoting energy saving and GHGs emissions reduction

In our asset management operations, we make efforts to reduce CO2 emissions through energy conservation by promoting efficient energy use at our assets under management as well as introducing equipment and facilities that contribute to energy conservation and low carbonization.

（２）Contributing to recycle-oriented society

We strive to contribute to realizing sustainable recycle-oriented society through implementing measures to make effective use of limited resources, such as water saving and "3Rs" for reducing wastes, i.e., reduce, reuse, recycle.

（３）Streamlining internal management system and strengthening compliance

We establish internal management system to effectively promote initiatives based on this policy and strictly comply with laws and regulations including environmental and social matters. In addition, we promote sustainability initiatives by improving employees' awareness and performance by continually implementing educational and awareness-raising activities focused on environment, society, and governance (ESG).

（4） Respect for Human Rights

We respect human rights based on international norms such as the Universal Declaration of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work, and engage in business operations in compliance with human rights-related laws and ordinances in the countries and regions in which we conduct our business activities.

（5） Promoting health and comforty

We implement asset management that seeks improvement in health, safety, and comfort of tenants and facility users. We also respect individual employees and endeavor to create working environments that are healthy and friendly to them and that allow them to display their capacity to the fullest degree.

（6） Responding to climate change and improving resilience

We identify and evaluate risks and opportunities that arise from climate change and reflect them in our asset management operations, and by doing so, promote initiatives for adapting to and mitigating climate change to respond to risks and opportunities.

（7）Collaborating with external stakeholders

We make efforts to contribute to reducing environmental impact of our assets under management, improving tenants' satisfaction and developing sustainable local communities through engaging and collaborating with external stakeholders such as our tenants/occupiers, suppliers (e.g. property management companies) and local communities.

（8）Disclosing ESG information

We strive to proactively disclose ESG information such as this policy and status of sustainability initiatives to build good relationships and communicate with stakeholders such as our unitholders, tenants and suppliers.

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2. MTR's ESG Initiatives

• Relevance to materiality and the SDGs

We identify issues, taking into consideration recognized issues in the REIT sector, external organizations' ESG evaluations, current social trends and other factors, and then evaluate materiality from MTR's perspectives by factoring in the main initiatives advanced by MTR as well as the importance and priority of these initiatives. In addition, we seek to contribute to the achievement of the Sustainable Development Goals (SDGs) through the implementation of these materiality-linked initiatives.

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