Risk Management System

• While recognizing climate-related risks as well as nature-related dependency, impact, and risk as one of the risks that could pose a significant impact in the medium to long term, the Asset Manager sees such risk as an area of potential and manages the risk by incorporating it in its overall risk management process. The Asset Manager has established the “Risk Management Regulations” and “Risk Management Implementation Guidelines” as internal regulations in order to accurately identify climate-related risks and opportunities inherent in business as well as nature-related dependency, impact, and risk, develop a system for appropriately managing potential losses and profits when the identified risks and opportunities are realized, ensure the soundness of management and operate business in a fair manner.
• The Board of Directors shall oversee the development of an appropriate risk management system based on the “Risk Management Policy” after considering where and what the risk is based on the strategic goals set separately by the Board of Directors. The President and CEO shall be responsible for all risks in accordance with the provisions of the “Risk Management Regulations” of Daiwa House Group, develop an appropriate risk management system and be responsible for promoting and implementing risk management.