• ▼Message from the Management
• ▼Sustainability Policy
• ▼System for Promoting Sustainability

Message from the Management

DHR will work to continuously increase unitholder value by ensuring stable revenue and steady
growth of its assets over the medium to long term through fully utilizing Daiwa House Group’s
comprehensive strengths and knowhow regarding real-estate development.

■Daiwa House REIT Investment Corporation’s ESG Policy

Aiming to ensure stable revenue and steady growth of assets over the medium
to long term, we will strive to manage assets in a manner that embraces ESG
considerations while appropriately disclosing such performance

Daiwa House REIT Investment Corporation and its asset manager Daiwa House Asset Management Co., Ltd. share the Daiwa House Group’s basic approach of “Creating Dreams, Building Hearts.” To attain a sustainable society, it is essential that we include environmental, social, and governance (“ESG”) considerations in real estate investment management operations. We also believe that this will contribute to DHR’s basic policy of ensuring stable revenue and achieving steady asset growth over the medium to long term. As such, DHR established the Sustainability Policy in April 2017, and has been applying it to its real estate investment management business.
We released our first Sustainability Report in July 2021 for the purpose of providing an opportunity for unitholders and other stakeholders to learn more about the various ESG initiatives and approaches implemented by DHR and the Asset Manager thus far. Going forward, DHR will keep striving to further enhance its ESG initiatives with respect to its real estate investment management business, while endeavoring to appropriately disclose such performance.

Sustainability Policy

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.” Daiwa House Asset Management Co., Ltd. shares the Daiwa House Group’s basic approach as DHR’s asset manager, and considers that including consideration for ESG in its real estate investment management operations contributes to DHR’s basic policy of ensuring stable revenue and steady growth of assets over the medium to long term. Therefore, we have established the following “Sustainability Policy” to guide our real estate investment management.

• 1. Prevention of global warming

  We will promote energy conservation measures through the installation of energy conservation equipment and so forth to realize a carbon-free society. We will also consider introduction of renewable energy power generation facilities and acquisition of properties that have such equipment installed.

• 5. Establishment of an internal framework and initiatives for employees

  We will establish an internal framework for promoting sustainability and take steps to develop personnel by conducting regular education and training for officers and employees. We will also aim to create workplaces where people can work safely and healthily, and workplaces where diverse employees can work flexibly.

• 2. Harmony with the natural environment (preservation of biodiversity)

  We will aim for a society that is able to pass on abundant natural resources to future generations in order to protect and improve natural capital. We will also promote planting and management considering harmony with the surrounding environment.

• 6. Building of trust relationships with external stakeholders

  We will aim to build trust relationships with external stakeholders and we will work on our suppliers to enhance the satisfaction of tenant customers and promote CSR in our supply chain. We will undertake neighborhood co-existence activities with local residents.

• 3. Conservation of natural resources (protecting water resources, reducing waste)

  We will work towards the realization of a recycling-oriented society by promoting water conservation measures through the installation of water conservation equipment. We will also promote 3R activities (reduce, reuse, and recycle) for resources.

• 7. Promotion of communication through information disclosure

  We will proactively disclose ESG-related information and utilize dialogues with stakeholder such as investors in our future business activities. Furthermore, we will aim for continuous acquisition of Green Building Certification.

• 4. Prevention of chemical pollution

  We will aim to realize a society where people and ecosystems do not suffer adverse effects from chemical substances by promoting reduction, substitution and appropriate management of harmful chemical substances when managing real estate, and taking efforts to minimize risks.

• 8. Compliance with laws and regulations, and risk management

  We will comply with ESG-related laws and regulations. Moreover, we will strive to implement appropriate risk management, such as giving consideration for the environmental and social impacts in risk evaluations when acquiring real estate and promoting awareness of human rights.

Learn more about Daiwa House Group’s CSR Guidelines

System for Promoting Sustainability

To promote awareness of ESG based on the Sustainability Policy, the Asset Manager is working to secure an appropriate system for promoting sustainability. To do this, it established the “Regulations Concerning the System for Promoting Sustainability” and rules regarding topics such as internal framework, collaboration with stakeholders, and information disclosure policy. In addition, a meeting of the Sustainability Committee must be held at least once a month, in principle, to examine goals and measures related to sustainability. The Asset Manager is working to achieve these goals and implement various measures. Moreover, in principle, the Head of the Sustainability Committee annually directs the Committee to assess the status of all sustainability initiatives and to review them as necessary.

≫Sustainability Committee

Committee Head	President and CEO
Operating officer	General Manager of Sustainability Promotion Department
Person responsible for execution	Head of Daiwa House REIT Division Head of Private Fund Division
Members	All Managing Directors, all Heads of Division, all General Managers (excluding the Compliance Officer) and other selected officers and employees
Observer	Outside Expert Advisor Compliance Officer
Frequency of meetings	At least once a month
Function and role	Deliberations and resolutions on sustainability-related policy and strategy development and execution on sustainabilityrelated operations Reporting to Board of Directors of DHR as appropriate

≫Number of Sustainability Committee meetings held

Fiscal year ended March 2018	Fiscal year ended March 2019	Fiscal year ended March 2020	Fiscal year ended March 2021	Fiscal year ended March 2022
6	6	6	5	9

Concept of Sustainability Promotion Based on the PDCA Cycle