Policy Regarding Sustainability and Sustainability Promotion System

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Daiwa Securities Living Investment Corporation	Daiwa Real Estate Asset Management Co. Ltd.
Executive Director Tetsuo Akuzawa	President and Representative Director Yoshiki Nishigaki

Daiwa Real Estate Asset Management Co., Ltd. (hereinafter referred to as the "Asset Manager") established the "Sustainability Promotion Committee" in June 2021 to discuss important policies, measures, and approaches concerning sustainability, based on the recognition that focusing on ESG in asset management, such as environmental considerations, social contributions, and strengthening organizational governance, will contribute to improving corporate value of the investment corporation in the medium to long term. In June 2021, The Asset Manager established the "Sustainability Promotion Office" as a specialized department to promote the planning, formulation, and implementation of ESG and SDGs across the entire company in order to address various ESG-related issues. In March 2023, The Asset Manager expanded the sustainability elements of the "Policy on ESG" and formulated a new "Sustainability Policy" to systematically promote sustainability initiatives while taking into account the diversifying needs of stakeholders.

The Investment Corporation has continuously participate in the GRESB Real Estate Assessment and have obtained multiple environmental certifications and assessments from external organizations, while working to reduce environmental impact through energy conservation, reduction of greenhouse gas emissions, and effective use of limited resources such as water conservation. The Investment Corporation is working to reduce environmental impact through energy conservation, reduction of greenhouse gas emissions, and effective use of limited resources such as water conservation. In addition, The Investment Corporation aims to realize a sustainable society by building good relationships, partnerships, and collaboration with all stakeholders (unitholders, tenants, local communities, employees, etc.) related to the properties The Investment Corporation own

Policy Regarding Sustainability

The Daiwa Securities Group has set forth the Vision 2030 management vision, aiming to achieve the SDGs by creating a mechanism to circulate funds, under the core concept of "From savings to SDGs."
Daiwa Real Estate Asset Management Co. Ltd. (the "Asset Manager"), as a member of this Group, will incorporate ESG considerations into its asset management operations for alternative assets such as real estate. It has formulated the Sustainability Policy and will promote the following initiatives to enhance the medium- to long-term value of the investment corporations and funds for which it is entrusted with asset management.

Initiatives for Environmental Management and Reduction of Environmental Impact

Promoting Resource and Energy Conservation

We will continue to promote the reduction of greenhouse gas emissions in order to mitigate climate change and achieve our goal of a decarbonized society with net-zero emissions. In addition, we will strive to strengthen the resilience of managed properties against natural disasters.

Contributing to a Recycling-Oriented Society

We will work to reduce, reuse and recycle water, waste and other elements.

Considering Biodiversity and Working to Conserve Ecosystems

We will strive to manage our business in a way that is mindful of environmental protection, manage tree planting that is considerate of harmony with the surrounding environment and practice green procurement to reduce the environmental impact of society as a whole, including our entire supply chain.

Initiatives for Social Issues

Respecting Human Rights

We will further strengthen our human rights education and awareness efforts to further enhance our corporate culture, which is based on respect for human rights.

Cultivating Human Resources and Creating Rewarding Workplaces

We focus on human resource development, which is the source of our competitiveness, and are enhancing our training programs. In particular, we will strengthen support for professional talent, including assistance programs for acquiring qualifications.

Diversity, Equity and Inclusion

Through a high level of work-life balance facilitating success for diverse human resources, we will pursue harmony between our employees' professional and private lives, and aim to enhance workplace environments so that both men and women can enjoy diverse work styles, while taking into consideration the health and comfort of executives and employees.

Coexistence and Collaboration Throughout the Supply Chain

By building partnerships with our suppliers and business partners, we aim to deepen their understanding of our initiatives for the environment and society, and to target the creation of a sustainable society throughout our supply chain.

Initiatives for Governance

Establishing a Highly Transparent and Objective Corporate Governance Structure

We will maintain strict compliance with laws, regulations and internal rules, as well as ensure rigorous appropriate management of conflicts of interest and enhance our compliance system to increase the value of the investment corporations and funds.

Fair, Timely and Appropriate Disclosure of Material Information

We are committed to disclosing information in a fair, timely and appropriate manner to promote understanding of our company among all stakeholders, including investors, business partners and society at large, and to earn an appropriate assessment and level of trust from these. We will also utilize external evaluations in the interest of transparency and comparability.

Based on the Sustainability Policy set forth by the Asset Manager, the Investment Corporation will take actions for sustainability in order to achieve a sustainable society.

Sustainability Promotion System

Based on its "Sustainability Policy," the Asset Manager has formulated the "Regulations for Sustainability Promotion System" and established the "Sustainability Promotion Committee" for the purpose of continuous and systematic implementation of ESG-related initiatives. The Sustainability Promotion Office, established in June 2021, systematically promotes planning, formulation, and implementation of ESG and SDGs, and the Committee deliberates on the final target KPIs and specific initiatives, etc., and implements each measure.

Sustainability Promotion Committee

Members

● President and Representative Director (Chief Executive Officer for Sustainability Promotion)
● Executive Managing Director
● General Managers of DLI Investment Management Dept., DOI Investment Management Dept., DRP Investment Management Dept., DHP・DLP Investment Management Dept., and Private Fund Management Dept. (Chief Sustainability Officers)
● Head of Sustainable Promotion Office
● Compliance Officer
● Others who are appointed by the Chief Executive Officer

Contents of deliberation/reports, frequency, consideration process

The Sustainability Promotion Committee is held regularly (once a month, in principle) in order to realize the policy and targets for sustainability. The committee deliberates matters such as management policies on sustainability, target setting, and their revision and abolition, and reports on the progress of the targets, etc.

Establishment of Sustainability Promotion Policy

To enhance the effectiveness of our sustainability activities, we have established (1) Energy Conservation Policy, (2) Greenhouse Gas Emissions Reduction Policy, (3) Water Saving Policy, and (4) Sustainable Procurement Policy, Climate Change and Resilience Policy, EMS Operation Manual, and a cooperative framework with each of our stakeholders.

Sustainability Education and Awareness Activities

Sustainability education and awareness-raising activities are conducted for all officers and employees of the Asset Management Company (including temporary employees). Sustainability training is conducted by external lecturers approximately once a year for all officers and employees of the Asset Management Company (including temporary employees).

Year	Training Theme	Training Attendance rate
FY2021	TCFD -Climate Change Response and Disclosure	100%
FY2022	Overview of ESG and trends in ESG in the real estate investment industry Trends in DEI (Diversity, Equity & Inclusion)	100%
FY2023	Sustainability Policy and implementation of ESG-related initiatives in the Asset Manager	100%