The “Principles for Responsible Investment (PRI)” is a network of international investors endorsed by the United Nations Environment Programme Finance Initiative (UNEP FI) and the United Nations Global Compact (UNGC). The investors who are signatories to the PRI declare to include ESG issues into investment decisions, and while helping the beneficiaries enhance long-term investment performance and fulfilling their fiduciary duty as responsible investors over the long term, they aim to create an abundant world for all stakeholders.

The Six Principles for Responsible Investment

• We will incorporate ESG issues into investment analysis and decision-making processes.
• We will be active owners and incorporate ESG issues into our ownership policies and practices.
• We will seek appropriate disclosure on ESG issues by the entities in which we invest.
• We will promote acceptance and implementation of the Principles within the investment industry.
• We will work together to enhance our effectiveness in implementing the Principles.
• We will each report on our activities and progress towards implementing the Principles.

The Asset Manager agreed with the basic approach of the PRI and became a signatory in February 2021.

The Financial Stability Board (FBS) launched the Task Force on Climate-related Financial Disclosures (TCFD) for the purpose of examining how climate-related information is to be disclosed and the how financial institutions should respond.The TCFD considers that climate change presents a serious risk to the world economy, and publishes recommendations for companies, etc. to grasp and disclose climate-related financial data around the thematic areas of “Governance,” “Strategy,” “Risk Management” and “Metrics and Targets.”
The TCFD Consortium was established as an organization to promote initiatives in which companies that support the TCFD recommendations, financial institutions, etc. work together, and to discuss initiatives that will lead to effective information disclosure by companies and appropriate investment decisions by financial institutions, etc. based on the disclosed information.
The Asset Manager has shown its support for the TCFD recommendations and has joined the TCFD Consortium, an organization consisting of domestic companies supporting the TCFD recommendations.

DHR has set targets to reduce GHG emissions by the fiscal year ending March 2031. These targets are science-based targets following the goals of the Paris Agreement that “aims to keep the global average temperature well below 2°C above pre-industrial levels and pursue efforts to limit global warming to 1.5°C.” DHR has received the Science Based Targets (SBT) certification from the international SBT initiative as the first J-REIT.

Race to Zero is a global campaign to call for immediate action from businesses, local governments, investors, universities and other non-governmental actors worldwide to realize the goal of substantially zero GHG emissions by 2050.
Globally, 1,049 cities, 67 regions, 5,235 businesses, 441 investors, and 1,039 higher educational institutes participate in the Race to Zero, and they account for nearly 25% of CO₂ emissions and over 50% of the GDP worldwide.
DHR aims to achieve substantially zero GHG emissions by 2050 and became the first J-REIT to join the Race to Zero.

The Japan Climate Initiative (“JCI”) is a network of Japanese companies, local governments, and NGOs that are actively working to prevent climate change, established in response to the 2015 Paris Agreement, aiming independently to realize a decarbonized society.JCI has created a nationwide movement in Japan to achieve a decarbonized society by supporting the activities of participating members, working on the governments, and partnering with the international society.
DHR and the Asset Manager joined the JCI as we agreed with this mission to realize a decarbonized society and joined the JCI after satisfying the participation requirements.
Please see here for a statement on our positions consistent with the Paris Agreement goals.

The United Nations Global Compact (“UNGC”) is the world’s largest sustainability initiative for bringing together the United Nations and private organizations (companies/associations) and building a sound global society. UNGC is an independent initiative for companies and associations to act as a good standing member of society and achieve sustainable growth by exercising responsible and creative leadership.
Companies and associations who are signatories to the UNGC are making ongoing efforts to realize the ten principles related to the protection of human rights, elimination of all forms of unfair labor, response to the environment, and the prevention of corruption based on a commitment from top management at each supporting company.
Local UNGC networks in each country around the world act as a platform aiming to foster sustainable development.The Global Compact Network Japan (“GCNJ”) was launched in Japan in December 2003 as a local Japan network. The GCNJ supports member companies and associations in Japan to take independent and strategic action toward the UNGC’s Ten Principles and engages in activities to realize a sustainable society, such as holding seminars and subcommittees made up primarily of member companies.
The Asset Manager agrees with the UNGC’s Ten Principles and has become a signatory. Furthermore, it has joined the GCNJ to take active action.

The TNFD Forum is comprised of companies, government agencies, and academic institutions with expertise in a wide variety of fields, providing support for the development of information disclosure frameworks and sharing information related to the TNFD.
In August 2023, the Asset Manager became the first* J-REIT asset manager to join the TNFD Forum, which endorses the philosophy of the TNFD and supports its activities.

• Excludes affiliation by sponsoring groups.

TNFD Adopter refers to a company or organization that has registered on the TNFD website their intention to disclose information aligned with the TNFD Recommendations. TNFD Adopters are required to make public disclosures aligned with the TNFD Recommendations in their corporate reporting in respect of their FY2024 or FY2025.
In December 2023, DHR became the first J-REIT to register as a TNFD Adopter, indicating its intention to make disclosures based on the TNFD Recommendations.
As a TNFD Adopter, we will work to improve our systems, promote initiatives, and enhance disclosures in line with these recommendations.

30 by 30 is an initiative to halt the loss of biodiversity and put it on a recovery track (nature positive) by 2030. The goal is to effectively conserve at least 30% of land and sea as healthy ecosystems by 2030. In April 2022, a coalition of volunteers formed to promote efforts to achieve this goal. The coalition is known as the 30 by 30 Alliance for Biodiversity (hereinafter referred to as the “Alliance”). As a specific action to achieve 30 by 30, the Asset Manager will provide assistance in managing protected areas and areas registered (or expected to be registered) in the global database of OECMs.^*

The Asset Manager agrees with the significance of the activities of the Alliance, and in December 2022 became the first asset manager of a J-REIT to join.

• Other Effective area-based Conservation Measures (OECMs): Areas outside of national parks and other protected areas in which biodiversity can be conserved effectively and over the long term.