The Daiwa House Group’s basic approach is “Creating Dreams, Building Hearts.” As a group that co-creates value for individuals, communities and people’s lifestyles, the group aims to build trust relationships with stakeholders and contribute to society through its businesses, and to realize a sustainable society by meeting the challenge of achieving “zero environmental impacts.”
DHR shares the basic stance of the Daiwa House Group and engages in Green and Sustainability Finance to further promote real estate investment management that considers ESG.

Green Finance Framework

Third-party Evaluation

DHR has obtained a rating of “Green 1 (F)” for our Green Finance Framework. This is the highest rating offered in JCR Green Finance Framework Evaluations conducted by the third party, Japan Credit Rating Agency, Ltd. (JCR).
For details on this evaluation, see the JCR website at https://www.jcr.co.jp/en/greenfinance/

Eligibility Criteria

Funds procured through Green Bonds or Green Loans are applied to the acquisition of eligible green assets that meet the eligibility criteria below, refinancing of those funds or funding or refinancing renovation work.

Eligible green assets

Properties that have received or will receive one of the following four third-party certifications:

• DBJ Green Building Certification: 3 Stars, 4 Stars or 5 Stars
• CASBEE for Real Estate Certification: B+ rating to S rating
• BELS Certification: 3 Stars, 4 Stars or 5 Stars
• LEED Certification: Silver, Gold or Platinum

Renovation work

Renovation work that can reduce energy consumption, CO₂ emissions or water usage by 30% or more

Management of Financing

The eligible green debt amount is calculated by multiplying the sum of the total acquisition price of eligible green assets and the total amount of renovation work that meets the eligibility criterion 2 (total amount of eligible green assets) by the interest-bearing debt to total assets ratio (LTV) as of the end of the most recent fiscal period. This is the maximum amount for Green Finance.

Period	February 2024 (36th Fiscal Period)
Total amount of eligible green assets (millions of yen)	393,819
LTV	42.8%
Eligible green debt amount (millions of yen)	168,555

Reporting

Reporting on Status of Fund Allocation

	Balance (millions of yen)
Green Finance	33,500
Green Bonds	15,000
Green Loans	18,500

• The amount stated refers to the balance as of March 1, 2024.

The following table provides information about DHR’s status of fund allocation regarding Green Finance.

Green Bonds

Name	Outstanding issue (millions of yen)	Interest rate	Issue date	Maturity	Unallocated amount (millions of yen)	Third-party evaluation
9th Unsecured Investment Corporation Bonds	6,000	0.53%	November 25, 2019	November 22, 2029	-	JCR Green Bond Evaluation “Green 1”
10th Unsecured Investment Corporation Bonds	2,400	0.34%	May 27, 2020	May 27, 2025	-	JCR Green Bond Evaluation “Green 1”
11th Unsecured Investment Corporation Bonds	1,600	0.64%	May 27, 2020	May 27, 2030	-	JCR Green Bond Evaluation “Green 1”
12th Unsecured Investment Corporation Bonds	1,000	1.00%	May 27, 2020	May 25, 2040	-	JCR Green Bond Evaluation “Green 1”
14th Unsecured Investment Corporation Bonds	4,000	0.50%	April 15, 2021	April 15, 2031	-	JCR Green Bond Evaluation “Green 1”

Green Loans

Lender	Loans executed and outstanding (millions of yen)	Interest rate	Borrowing date	Repayment date	Unallocated amount (millions of yen)	Third-party evaluation
Sumitomo Mitsui Banking Corporation; Sumitomo Mitsui Trust Bank, Limited; MUFG Bank, Ltd.; Mizuho Bank, Ltd.; Development Bank of Japan Inc.; Mizuho Trust & Banking Co., Ltd.; Shinsei Bank, Limited; The Yamanashi Chuo Bank, Ltd.; Kansai Mirai Bank, Limited; Shinkin Central Bank; The Bank of Kyoto, Ltd.; The Yamaguchi Bank, Ltd.	10,500	0.56419%	September 3, 2021	August 29, 2031	-	JCR Green Loan Evaluation “Green 1”
The Dai-ichi Life Insurance Company, Limited	1,000	1.40%	September 29, 2023	September 30, 2033	-	JCR Green Loan Evaluation “Green 1”
SBI Shinsei Bank, Limited	1,000	1.30087%	October 2, 2023	March 31, 2032	-	JCR Green Loan Evaluation “Green 1”
Kansai Mirai Bank, Limited	1,000	1.30087%	October 2, 2023	March 31, 2032	-	JCR Green Loan Evaluation “Green 1”
Mizuho Bank, Ltd.; The Chiba Bank, Ltd.; The Keiyo Bank, Ltd.; The Yamaguchi Bank, Ltd.; Kansai Mirai Bank, Limited	5,000	0.74354%	March 1, 2024	February 28, 2029	-	JCR Green Loan Evaluation “Green 1”

Impact Reporting

DHR will annually disclose the following indicators on its website for as long as the funds procured through green finance are outstanding.

• Number and type of environmental certifications of portfolio assets
  Please refer to "External Evaluations" for details.

• Water consumption
• Electric power consumption (energy consumption)
• CO₂ emissions (GHG emissions)
  Please refer to "Environmental Performance" for details.