Sustainability Policies

Established April 1, 2019

TLC REIT Management Inc. (hereinafter referred to as “the Company”) recognizes the impact of environmental and social considerations, and that of strong governance, and as a member of the Tokyu Fudosan Holdings Group (hereinafter referred to as “the Group”), shares the Group’s Sustainability Vision. The Company believes that tackling these issues is a social responsibility, realizes our management philosophy, and contributes to the development of a sustainable society. The Sustainability Policies are established hereunder to implement the beliefs of the Company.

1. Environmental Considerations
   
   1. （1）The Company will consider energy efficiency, decarbonization, water efficiency, and waste reduction as four major items in the operation of each investment corporation, and promote our initiatives by applying these items to each environmental policy.
2. Efforts for Employees
   
   1. （1）The Company will improve employees’ sustainability knowledge, promote enlightenment activities for that purpose, implement capacity building to allow personnel to act professionally and become more productive, provide training for human resource development, and support the acquisition of qualifications.
   2. （2）The Company will promote efforts to improve the way employees work in light of the policies and practices of the entire Group and by closely sharing information in the Company.
3. Collaboration with External Stakeholders
   
   1. （1）As a member of the local community, the Company will enhance relationships with customers, such as tenants and facility users, and the local community through improvements in disaster prevention and BCP measures, contributing to safety and security.
   2. （2）The Company will promote programs and procurement with environmental and social considerations through engagement with tenants and suppliers, including property management companies.
   3. （3）By means of the effective use of the expertise in real estate and other fields owned by the Group's affiliates, the Company will be committed to improving customer satisfaction while continuing to create value through each investment corporation.
4. Legal Compliance and Risk Management
   
   1. （1）The Company will comply with environmental, social, and governance laws and regulations as well as pay close attention to and appropriately respond to legislative changes. For risk assessment upon real estate acquisition, the Company will work on risk management in an appropriate manner, taking into account environmental and social impacts.
5. Information Disclosure
   
   1. （1） The Company will strive to disclose information on our sustainability efforts to investors and other stakeholders.

To enhance the Company’s efforts towards the issues related to environmental or societal consideration, etc. based on its Sustainability Policy, the rules on the Sustainability Promotion System require that the President & CEO to be the Chief Sustainability Officer, each department appoints one responsible person from the department, the Sustainability Promotion Council is to be held with the President & CEO as chairperson, matters discussed at the Sustainability Promotion Council are regularly reported to the Company's Board of Directors, and as needed, to Investment Corporation Board of Directors as well.
Sustainability Department was established as of April 1, 2021 to expand the functionality of the Sustainability Promotion System. The Sustainability Department succeeds the ESG-related missions from the Environmental Engineering Department, and we will further promote our sustainability program.

■Sustainability Promotion Council

The Sustainability Promotion Council meets regularly with President & CEO as the Chief Sustainability Officer who assumes the ultimate responsibility, and other members from across the organization of company and among members, we share relevant information and examine and promote the efforts. External experts are invited to the Council to consult opinions when needed.

■Environment Management System

The company established a unique environment management system (EMS) which applies PDCA cycle to continuously approach to environmental challenges. We are working to continuously reduce environmental impacts in the management operation for each REIT, through the cycle of four steps; set targets (Plan), assess performance (Do), analyze budget vs. actual (Check), and implement countermeasures for a better performance (Act). The Asset Management Department of each Management Division reviews actual performances in its regularly meeting and reports the results to the management at least once a year, then receives feedbacks and instructions for further improvement for the following year, from the management.