Initiatives to Achieve Targets

• DHR has established and is working to achieve quantitative metrics and targets for nature-related risks/opportunities and dependencies/impacts that are considered to be material in business operations.
• DHR has set a target for the obtainment of biodiversity-related certifications in addition to climate-related targets and will disclose progress in the Sustainability Report and on the website.
• DHR will consider setting targets based on the guidance of the Science Based Targets Network (SBTN) in the future.

TNFD	TCFD	Category		Subject of management	Metrics	Target	Initiatives to achieve the target
✓		Risk	Market	Impact on business from rising biodiversity needs of customers	Biodiversity-related certifications	Increase the number of certified properties from two in FY2023 to five or more in FY2030	Considering the impact on local ecosystems, mainly for properties located in high-priority areas for biodiversity conservation, using native tree species instead of invasive alien species, and implementing environmentally friendly maintenance and management
		Opportunities
✓	✓	Dependency		Energy consumption	Energy consumption intensity (gross floor area basis)	Reduce by 10% in FY2027 with FY2017 as the base year	Introduction of smart meters Promoting ZEB conversion of portfolio properties Setting internal carbon pricing to be used as an incentive for low-carbon promotion works, guidelines for investment decision making, and a reference index to identify risks of future rising costs Investing in solar power generation equipment
✓	✓			Water consumption	Water consumption intensity (gross floor area basis)	Reduce to below the intensity in FY2027 with FY2017 as the base year	Effective use of rainwater, groundwater, and greywater Adoption of water conservation equipment Monitoring real estate investments in areas with high or very high water stress
✓	✓	Impact		Waste discharge	Recycling rate	Exceed the rate of FY2017 in FY2027, with FY2017 as the base year	Displaying posters to promote recycling Promoting recycling through sorting
✓	✓			GHG emissions	GHG emissions	Reduce total emissions by 42% in FY2030 with FY2020 as the base year Net zero in FY2050 SBT	Promoting ZEB conversion of portfolio properties Setting internal carbon pricing to be used as an incentive for low-carbon promotion works, guidelines for investment decision making, and a reference index to identify risks of future rising costs Purchase of non-fossil certificates Investing in solar power generation equipment Promotion of LED lighting

Obtaining Biodiversity-related Certifications

DHR has set the following targets in consideration of the impact on business from rising biodiversity needs of customers.

Targets	5 properties (fiscal year ending March 2031)
Actual	2 properties (As of March 31, 2025)

Obtaining JHEP Certification (Royal Parks Toyosu)

Overview of JHEP certification

JHEP is a certification system to objectively and quantitatively evaluate and certify the degree of contribution to biodiversity conservation. JHEP compares biodiversity values before and after a project, and if the values after a project are equal to or greater than those before a project, it is certified by a third-party organization as a project that contributes to biodiversity, with evaluation rank represented on a six-tier (AAA to B+) scale.

Please see below for the details of JHEP certification.
Website for JHEP certification: https://www.ecosys.or.jp/certification/jhep/index.html

Points highlighted in JHEP certification

• While the subject property is surrounded by commercial areas and offices, there is an abundance of greenery on the exterior and rooftop.
• No species on the List of Invasive Alien Species for the Prevention of Ecosystem Damage or unevaluated alien species are being used, and there are no plans to use them in the future.

Please see below for the details of Royal Parks Toyosu’s evaluation.
Audit report of JHEP certification: https://www.ecosys.or.jp/certification/jhep/case/case111report.pdf
Case study of JHEP certification: https://www.ecosys.or.jp/certification/jhep/case/case111.pdf

Obtaining ABINC Certification (Royal Parks Hanakoganei)

Overview of ABINC certification

ABINC is a system to evaluate and certify biodiversity-friendly initiatives based on the Guideline for Offices Promoting Symbiosis with Life Forms developed by the Japan Business Initiative for Biodiversity (JBIB), and no evaluation rank is assigned.

Please see below for the details of ABINC certification.
Website for ABINC Certification: https://www3.abinc.or.jp/

Points highlighted in ABINC certification

• A diverse environment is maintained, with woodlands, grasslands, and waterside areas, as well as relatively large trees.
• A rain garden has been created, and efforts are being made to consider rainwater circulation.

Please see below for the details of Royal Parks Hanakoganei’s evaluation.
ABINC certified properties in the 14th evaluation: https://www3.abinc.or.jp/facility/14th_creature_facilites/

Dependency and Impact Status

Energy Data (Dependencies)

Energy consumption

Water consumption

Emissions Data (Impact)

GHG Emissions of Portfolio Properties

Waste management (recycling rate)

• <Aggregation period> From April to March every year.
• <Calculation method> Calculated using only portfolio properties for which the requisite data are available. Emission intensity is calculated by dividing total electricity usage and CO₂ emissions by intensity denominator (gross floor area (m2)).

Promotion of Environmentally Friendly Tree Name Plates

DHR is using tree name plates for the properties it owns in the hope that tenant companies will feel closer to nature and nurture their planting with affection for many years.

Introduction of Biodiversity Protection Program

DHR is reducing the use of plastics by switching the location of provision of hair and tooth brushes from rooms to an amenities counter near the front desk at some of its hotels.
“QiZ GATE URAWA” is reducing plastic waste by using recycled trash bags made from used stretch films, which would be normally disposed of as trash, for the trash bags in common areas.