• Environment
• Establishment of an EMS Operation Manual
• Target and Performance
• Green Building certification
• Stakeholder Engagement
• Adaption to Climate Change
• Biodiversity Conservation Initiatives

Environment

We are convinced that capturing opportunities in buildings with high environmental performance such as energy/water efficiency and promoting waste reduction will bring long-term benefit to JEI and committed to improve environmental performance of the portfolio as follows.

Establishment of an EMS Operation Manual

The Asset Management Company recognizes energy saving, reduction of CO₂ emissions, and effective use of resources as material issues and has established a unique environmental management system (EMS) based on the PDCA cycle to make continuous efforts for improvement.
In this system, the setting of environmental targets related to energy, CO₂, and water (Plan), performance monitoring (Do), budget management (Check), and implementation and improvement of countermeasures (Act) are performed.
Moreover, the Asset Management Company periodically confirms and evaluates the achievement progress of each environmental target at the Sustainability Committee eyeing continuous improvement.

Target and Performance

We are measuring and monitoring 100% of our portfolio, including even the non-certified green buildings to improve environmental performance.

Target

CO₂ Emissions Reduction Target

• Achieve 42% reduction in CO₂ emissions intensity (Scope 1 and Scope 2 ) by FY2030 compared with the FY2023 level
• Net zero by FY2050

Energy Consumption Reduction Target

• Achieve 7% or more reduction in energy consumption intensity by FY2030 compared with the FY2023 level

Water Consumption Reduction Target

• No increase in water consumption intensity from the FY2023 level by FY2030

Green Building Certification Target

• Aim to acquire 100% of the properties with green building certification in the mid-to-long-term

Environmental Performance

JEI performance against the target is shown below. (As to water consumption and waste amount, only the performance is disclosed at the moment).

GHG emissions

		Unit	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Total GHG emissions		(t-CO2)	37,309	30,918	14,989	16,930	13,346	7,779
	Scope1	(t-CO2)	3,577	4,164	2,935	2,349	2,434	1,779
	Scope2	(t-CO2)	33,732	26,754	7,547	8,291	6,456	3,904
	Scope3 (Category 13)	(t-CO2)	－	－	4,507	6,290	4,456	2,094
Total GHG emissions intensity		(t-CO2/㎡)	0.071	0.060	0.030	0.034	0.027	0.016
	Scope1+2	(t-CO2/㎡)	－	－	0.021	0.021	0.018	0.012

Energy consumption

		Unit	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Total energy consumption		(MWh)	109,294	110,536	103,609	102,346	101,774	94,804
	Electricity	(MWh)	65,751	63,240	60,845	59,986	60,388	59,421
	Fuels	(MWh)	20,039	23,313	18,633	16,546	17,724	12,109
	District Heating&cooling	(MWh)	23,504	23,984	24,131	25,815	23,660	23,275
Total energy consumption intensity		(kWh/㎡)	209.6	217.1	208.0	210.5	208.8	199.9
	Electricity	(kWh/㎡)	126.1	124.2	122.2	123.4	123.9	125.3
	Fuels	(kWh/㎡)	38.4	45.8	37.4	34.0	36.3	25.5
	District Heating&cooling	(kWh/㎡)	45.0	47.1	48.4	53.1	48.5	49.1

Water consumption

		Unit	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Total water consumption		(1,000m³)	289	267	281	305	308	314
Total water consumption intensity		(m³/㎡)	0.55	0.52	0.56	0.62	0.63	0.66

Waste emissions

		Unit	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Total waste emissions		(t)	3,411	3,063	3,159	1,920	1,809	1,690

• As a general rule, the above data covers all properties held at the end of March of each fiscal year.
• Residential tenant areas are excluded from all data.
• The calculation method for intensity is as follows:
  Intensity = Consumption or Emissions / Adjusted Area^*1
  
  • Office: Exclusive area (share ratio) × Annual average occupancy rate per property + Common area (share ratio)
    Residential: Common area (share ratio)
• "Scope1" is direct emissions of GHG which is from using fuels in buildings.
  "Scope2" is indirect emissions of GHG which is using electricity, district heating & cooling supplied from other companies.
  Scope 3 covers emissions from fuels, electricity and district heating&cooling used by tenants in tenant controlled areas(Category 13).
• Scope3(Category 13) is calculated from FY2023.
• The above "Environmental Performance" was prepared based on the "WEB information" attached below which has been given limited assurance by a third party organization. For fiscal year 2025 (FY2025), the assurance was provided by Sustainability Accounting Co., Ltd.
• Independent Assurance Report

As of end of June 2026, smart meters (※) have been installed in 29 properties owned by JEI.

• A smart meter is a next-generation power meter that can measure electricity consumption digitally and have a function to send the relevant data within it. It enables to get the picture on electricity consumption and analyze optimal activity on electricity consumption with the data stored by it.

Switching to electricity derived from renewable energy

JEI is working to reduce CO₂ emissions by switching to electricity derived from renewable energy for the electricity used in owned properties.
In order to achieve JEI's FY2050 target of net zero, we will continue to promote the introduction of electricity derived from renewable energy.

Status of introduction of electricity derived from renewable energy

（As of June 30, 2026）

Green Building certification

The target number of green building certifications to be acquired is set on the annual plan by the sustainability committee each year and asset management division is to acquire/maintain certifications accordingly.

Refurbishments of existing buildings to improve environmental performance and be certified to green building standard

JEI has constantly made refurbishments on its portfolio to improve environmental performance of the properties as introduced below.

Promotion of LED Lighting and Installation of High-Efficiency HVAC System

We are progressively implementing LED lighting installation work in the common and private areas of our owned properties. We are also upgrading facilities such as heating and air-conditioning equipment to high-efficiency, energy-saving systems.

(As of June 30, 2026)

Water Consumption Reduction

We are working to reduce water consumption by installing water-saving devices when renovating toilets.Additionally, rainwater and greywater systems have been installed in 11 of our owned properties, with the recycled water utilized for non-potable purposes within the buildings.

　

Waste Reduction

In collaboration with tenants and cleaning service providers, we are actively promoting waste reduction by reinforcing recycling practices and ensuring compliance with waste separation protocols.

　

Management of Hazardous Substances

During property acquisitions, we conduct assessments to confirm the usage and storage conditions of hazardous substances such as PCBs, asbestos, and fluorocarbons, and to verify in advance whether there is a possibility of soil contamination.If any hazardous materials are identified, we ensure proper management, storage, and disposal in accordance with applicable laws and regulations.

Green Finance for green building

Eligible properties for green finance are set as a building with green building certification above a certain level to improve/maintain quality of the portfolio.

Please find the below link for more details on JEI Green Finance.

Green certified Percentages

We aim to acquire 100% of the properties with green building certification in the mid-to-long-term.

As of June 30, 2026

	Number of properties	Green certified buildings as % of total	Leasable Floor Spaces（㎡）	Green certified buildings as % of total
CASBEE Real Estate	29	78.4%	266,868.34	87.8%
LEED	1	2.7%	4,505.52	1.5%
An Office Taking Excellent Specific Global Warming Countermeasures	1	2.7%	4,505.52	1.5%
Building-Housing Energy-efficiency Labeling System (BELS) evaluation	4	10.8%	51,182.71	16.8%
Certificated Properties	29	78.4%	266,868.34	87.8%

• Properties which are conferred a couple of certifications are deducted from the figure of the certificated properties.
• The acquisition rates are percentages of each number of properties / leasable floor spaces to the total number of properties(36) / leasable floor spaces of properties(302,337.85㎡) owned by JEI.
• The residential section and the office section of HAMARIKYU INTERCITY and Shiba 2-Chome Building are calculated as separate properties.
• For OSAKI BRIGHT TOWER・OSAKI BRIGHT PLAZA, we count one property each for the BRIGHT TOWER and BRIGHT PLAZA.
• For GRAND FRONT OSAKA, we count one property each for the North Building, Umekita Plaza, and South Building (a total of three properties).
• For co-owned properties, the leasable floor spaces are calculated in the effective co-ownership interest ratio of JEI.

Stakeholder Engagement

Promotion of Green Leases

As a rule, newly signed lease agreements with JEI contain green lease clauses, and we are working to reduce our environmental burden in collaboration with tenants.
Green lease clauses stipulate that tenants must work in collaboration with us to improve environmental performance, share energy consumption data, factor in environmental considerations when performing renovation work, and so forth.

Raito of Green Lease	94.2 %

• Ratio of office tenants with whom JEI has concluded contracts including green lease clauses from April 2016 to March 2026.

Engagement with Property Management Companies

JEI has established sustainability requirements for property management companies to improve environmental performance of the portfolio. When initiating contract with property management companies, JEI assesses the company using those requirement and those requirements and JEI Sustainability Policies are explained to ask for adherence in property management. The compliance to those requirements is monitored through an annual survey.

Sustainability training for business partners such as property management companies

JEI strives to improve the environmental performance of our properties by providing sustainability training to our business partners, such as property management companies.

Tenant Renovation Guide

We introduce each tenant to JEI’s sustainability initiatives and have created and disseminated a Tenant Renovation Guide that introduces and recommends construction during renovation that will reduce environmental load and improve health and wellbeing.

Sustainable Procurement Policy

To promote ESG considerations across the entire value chain of its real estate portfolio, JEI has established a Sustainable Procurement Policy. This policy outlines guidelines related to the selection and evaluation criteria for procured products and suppliers.

Sustainability Training and Accreditation of Employees

Employees at JEAM who actually operate JEI receive training program on sustainability to broaden expertise and improve environmental performance of properties.

Please find the below link for the percentage of officers and employees who received sustainability training.

Urban revitalization / redevelopment

JEI's sponsor, NIPPON STEEL KOWA REAL ESTATE, has been engaged in urban revitalization business to provide spaces abundant in plants and trees in the city. JEI is collaborating closely with NIPPON STEEL KOWA REAL ESTATE to achieve such environment by acquiring a part of the green building developed by NIPPON STEEL KOWA REAL ESTATE, such as AKASAKA INTERCITY AIR and managing the building.

Please find the below link for more information on Environmental Initiatives of NIPPON STEEL KOWA REAL ESTATE.

Related Links

• AKASAKA INTERCITY AIR Development Concept
• NIPPON STEEL KOWA REAL ESTATE　Initiative for environment (Japanese Only)

Ensuring Environment, Health, and Safety in Real Estate Investment

As part of our due diligence in property acquisitions, we conduct on-site inspections and surveys, review disclosures from the seller, and obtain documents such as real estate appraisal reports and engineering assessments. We also carry out investigations into environmental hazards including soil contamination and hazardous substances related to the building, such as asbestos and PCBs, in order to evaluate the appropriateness of the property as an investment target.
In January 2023, we partially revised our asset management guidelines to stipulate that disaster risks, such as water damage and landslides, as well as the presence or absence of green building certification, must be taken into consideration when evaluating potential real estate investments.

Undeveloped Sites Commitment

On greenfield ^{(Note 1)}, investments are made only in properties that have acquired or have the potential to acquire CASBEE for New Construction ^{(Note 2)} or other green building certifications, with the awareness that development activities will have an impact on the natural environment and ecosystems.

• “greenfield” means land that is devoid of human intervention, such as untapped forestland or grassland.
• “CASBEE for New Construction” is a certification system in which buildings are evaluated based on their design at the time of new construction

Adaption to Climate Change

JEI is proactively expanding greenery at owned properties to curb rises in temperatures.

Biodiversity Conservation Initiatives

The following biodiversity conservation initiatives are underway at JEI’s properties.

AKASAKA INTERCITY AIR

・Installation of 237 kinds of seasonal trees and flowers, and birdhouses for small wild birds

・Waterscape regeneration based on land use and topography dating back to the Edo period

AKASAKA INTERCITY AIR’s green urban development:
https://www.nskre.co.jp/company/news/ksr/2010/20100602.html (Japanese only)

AKASAKA INTERCITY

・Selected as one of 100 properties by companies for biodiversity conservation (2010)

・Waterscape design of pond and stream, leaving existing green slope intact

AKASAKA INTERCITY’s selection as one of 100 properties by companies for biodiversity conservation:
https://www.nskre.co.jp/company/news/ksr/2010/20100602.html (Japanese only)