Initiatives Addressing Environmental Issues

Environmental Policy

In terms of environmental issues, we are contributing to the prevention of global warming by promoting the reduction of CO2 emissions through measures such as improving our operations to reduce energy consumption and introducing energy-saving equipment. Furthermore, with the objective of reducing our environmental load, we are aiming to support the realization of a circular economy with a smaller environmental footprint by conserving water, implementing the 3Rs (reducing, reusing, and recycling resources), etc.

Environmental Targets

Scope 1 and Scope 2 GHG Emissions

(1) Medium- to long-term targetFor areas that they are responsible for managing, TLR and the Asset Manager have set a medium- to long-term target of reducing energy consumption (crude oil equivalent) and greenhouse gas emission intensity by an average of at least 1% per year each.

(2) Short-term targetThe short-term target is to reduce energy consumption (crude oil equivalent) and greenhouse gas emission intensity by at least 1% year-on-year each.

Water ConsumptionThe target is to reduce specific water consumption each year compared with the previous year across the entire portfolio and at individual properties.

Waste DisposalThe target is to improve the proportion of waste that is recycled each year compared with the previous year across the entire portfolio and at individual properties. For non-residential properties, we are currently striving to improve the measurement coverage rate and to promote the 3Rs and reduce waste quantities while asking tenants to support TLR's approach as part of efforts to enhance tenant relations. At residential properties, since we cannot measure waste amounts, we will continue to conduct awareness activities aimed at tenants.

Environment-Related Data

Energy Consumption

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Item	Overall
Item	FY2019	FY2020	FY2021	FY2022	FY2023
Total energy consumption (000s of kWh)	23,263	20,996	26,143	24,478	20,320
Fuel consumption (000s of kWh)	7,444	6,421	5,616	5,173	2,311
Electricity consumption (000s of kWh)	15,820	14,575	20,527	19,305	18,009
Renewable energy production (000s of kWh)	325	354	351	367	348
Specific energy consumption (kWh/m2)*	146	133	124	112	80
Year-on-year specific energy consumption reduction rate (%)	-	91.2%	93.3%	90.3%	71.5%

N.B.:The intensity for * is rounded off after the decimal point.

Greenhouse Gas Emissions

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Item	Overall
Item	FY2019	FY2020	FY2021	FY2022	FY2023
Total CO2 emissions (t-CO2)	8,850	7,308	10,309	9,697	8,143
Scope 1 emissions (t-CO2)	1,341	1,169	1,024	929	415
Scope 2 emissions (t-CO2)	7,509	6,139	9,285	8,769	7,728
CO2 emission intensity (kg-CO2/m2)*	55	46	49	44	32
Year-on-year CO2 emission intensity reduction rate (%)	-	83.5%	105.7%	90.7%	72.2%

N.B.:The emission intensity for * is rounded off after the decimal point.

Water Consumption

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Item	Overall
Item	FY2019	FY2020	FY2021	FY2022	FY2023
Total water consumption (thousands of m3): A+B	134.8	110.7	180.3	186.8	179.2
Externally purchased water consumption (thousands of m3): A	132.4	108.6	177.6	183.6	175.8
Other water consumption (thousands of m3): B	2.4	2.1	2.7	3.2	3.4
Specific water consumption (m3/m2): for A*	0.83	0.69	0.84	0.84	0.69
Year-on-year specific water consumption reduction rate (%)	-	82.9%	122.5%	99.7%	82.2%

N.B.:The intensity for * is rounded off after the second decimal point.

Waste Generation

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Item	Overall
Item	FY2019	FY2020	FY2021	FY2022	FY2023
Total waste generation (t)	936.10	1,108.90	1,358.09	948.89	607.58
Total general waste generation (t)	936.10	1,108.90	1,358.09	948.89	607.58
Total industrial waste generation (t)	0.00	0.00	0.00	0.00	0.00
Ratio by waste disposal method
Recycling (%)	41.4	39.5	33.6	27.3	20.3
Reused (%)	0.7	0.5	0.4	0.4	0.7
Thermal recycling (%)	11.9	17.3	0.1	0.1	0.0
Incinerated (%)	26.2	24.6	33.0	39.3	27.2
Landfill (%)	5.8	8.6	7.9	0.6	0.9
Unknown (%)	14.0	9.5	25.1	32.4	50.9

N.B.:The intensity for * is rounded off after the decimal point.

Basis for Calculating Environmental Performance

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Item	Energy Consumption	Greenhouse Gas Emissions	Water Consumption	Waste Generation
Reporting scope	In addition, it covers properties or areas owned during a given calculation period. In the case of acquisition or disposition during the period, reporting covers data during the period when they were owned.
Aggregation period	As a rule, performance is updated annually, taking the period from April to March as the fiscal year.
Intensity denominator	The intensity denominator is the total floor area (m2). In the case of acquisition or disposition during the reporting period, the total floor area during the period the property was owned is used (total floor area / 12 months x number of months owned = m2). The total floor area for office buildings and commercial buildings is calculated by factoring in the occupancy rate. For residential properties, the total floor area of common areas is used.
Premises of calculation method	The fuels covered in the fuel consumption amount are city gas, LPG, kerosene, and Bunker A consumed at the applicable business establishments. The standard heating value of fuel is based on the Ministry of the Environment and Ministry of Economy, Trade, and Industry's “Standard Heating Value and Carbon Emission Coefficients by Energy Source” and “List of Calculation Methods and Emission Coefficients for Calculation, Reporting, and Publication System”.	Scope 1 covers city gas, LPG, kerosene, and Bunker A consumed at the applicable business establishments. Scope 2 covers electricity consumed within the reporting scope. GHG emission coefficients by energy type are based on the Ministry of the Environment and Ministry of Economy, Trade, and Industry's “Standard Heating Value and Carbon Emission Coefficients by Energy Source” and the “Standard Emission Coeffcients” in the “List of Calculation Methods and Emission Coefficients for Calculation, Reporting, and Publication System”.	Externally purchased water consumption covers water and sewerage. Other water consumption covers reclaimed water.	-
Intensity calculation method	The formula for calculating intensity is as follows: \[ \sf Intensity = \frac{Energy\ consumption\ amount\ or\ greenhouse\ gas\ emission\ amount\ or\ water\ consumption\ amount}{Total\ floor\ area} \] The total floor area here is the sum of the total floor areas based on the calculation method indicated in “Intensity denominator”.			-

Initiatives Addressing Environmental Issues at Assets under Management

The Asset Manager is engaged in energy-saving upgrades and improvements to building operations for the purpose of reducing the portfolio's environmental footprint and improving the interior environment.

Energy-Saving and LED Conversion Work

Conversion to LED lighting is progressing at 60 properties (including partial conversion) in the portfolio. The LED conversion rate for the portfolio is as shown below (based on floor area; as of the end of February 2025).

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	No. of Properties (including partial implementation)	LED Conversion Rate across Portfolio
LED conversion work	60	Total: 75.6%	In common areas: 90.2%
			In private areas: 67.4%

Higashi-Ikebukuro Central Place (private areas)

Renewable energy

Renewable energy generation

The amount of renewable energy generation at TLR’s portfolio properties is as follows

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	FY2019	FY2020	FY2021	FY2022	FY2023
Solar power generation (kWh)	312,713	371,566	350,752	367,121	348,327

*All electricity generated is sold to Shikoku Electric Power Company, Incorporated

C-05 YAMADA web.com Matsuyama Toiyacho (Rooftop Solar Panel)

Status of initiatives to introduce renewable energy

The MIRARTH HOLDINGS Group, TLR’s main sponsor, engages in energy business utilizing renewable energy that contributes to reductions in the emissions of CO₂, a greenhouse gas, and is involved in the development and operation of biomass and wind power as well as solar power facilities.

At the time of this report's publication, various studies are underway regarding the introduction of renewable energy to properties owned by TLR.

Reduction of Greenhouse Gas Emissions

We are striving to create a shared power-saving culture through measures such as putting up awareness posters in common areas and tenants' private areas.

(Putting up power-saving awareness posters)

Reducing Water Consumption

At one of the properties in the portfolio, NT Building, rainwater is reused as flushing water in the bathrooms. Furthermore, we are striving to promote the conservation of water resources on an ongoing basis, such as completing work to install water-saving packing at 7 of the portfolio properties and pursuing awareness activities aimed at tenants.

(Displaying water-conservation posters)

Waste Reduction

As an initiative to reduce waste in office buildings, we are pursuing awareness activities aimed at tenants in collaboration with property and building managers.

(Displaying awareness posters)