Reporting on Sustainability Activities activity report

Mizuho Realty One Group’s Recognition of Climate-Related Issues

Mizuho Realty One Group recognizes the resilience of our Group’s business to climate change and climate-related issues as follows.

• As shown by the Paris Agreement (2015), IPCC Special Report (2018), IPCC Sixth Assessment Report (Working Group 1, 2021), and others, the advance of climate change is a scientific fact. It is a material issue that will cause dramatic changes to the natural environment and social structure, significantly impacting Mizuho Realty One Group’s management and business as a whole.
• The advance of climate change is expected to cause and exacerbate extreme weather and climatic disasters, including more severe typhoons and storms, more frequent heat waves and droughts, and ongoing rise in global sea levels. It is possible that this will have a major impact on Mizuho Realty One Group’s business.
• As part of the global effort to mitigate climate change, societies and economies are expected to transition toward decarbonization, including establishing a framework for reducing greenhouse gas (GHG) emissions and strengthening emission regulations. These changes could have a major impact on Mizuho Realty One Group’s business.
• Based on the recognition of climate-related issues as a systemic risk in the financial industry, disclosure of information on climate-related risks and opportunities is being requested by many stakeholders, including investors. Improving transparency by pursuing the disclosure of climate-related risks in accordance with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in particular is an important issue for Mizuho Realty One Group.
• Identifying, assessing, and managing the risks and opportunities caused by climate change and increasing the resilience of our business are indispensable to ensuring sustainable, stable revenues for Mizuho Realty One Group over the long term.

Commitment

Based on our awareness stated above, Mizuho Realty One (MONE) and Mizuho Realty One Group have made the following commitments with regard to climate change and resilience.

• Mizuho Realty One Group supports the international targets established by the Paris Agreement and will continue striving to reduce GHG emissions in order to contribute to mitigating climate change.
• MONE endorses the TCFD recommendations, and in accordance with the disclosure framework proposed by them, it will disclose climate-related information to stakeholders.

Basic Policy: Governance

MONE has established the following governance system for the purpose of addressing climate-related risks and opportunities that are associated with it and Mizuho Realty One Group.

• Mizuho Realty One Group’s Chief Climate Officer is MONE’s President and Representative Director.
• The Climate Promotion Officers are the Presidents and Representative Directors of MONE, Mizuho Real Estate Management (MREM), and Mizuho REIT Management (MREIT).
• An advisory body to the Board of Directors, MONE’s Sustainability Committee discusses sustainability-related policies for Mizuho Realty One Group, then presents/shares targets for Mizuho Realty One Group to/with MONE, MREM, and MREIT’s Promotion Officers and monitors them. However, MONE is not involved in MREM and MREIT’s decision-making on investment management-related matters involving funds whose asset management tasks are entrusted to MREM and MREIT (regardless of the contract name or applicable asset type).
• The Chief Climate Officer can ask MONE, MREM, and MREIT’s Sustainability Promotion Officers to report to the Sustainability Committee on the status of climate-related issues (this is limited to information that MREM and MREIT deem may be provided without any problems, such as public information in the case of One REIT, Inc., of which assets are managed by MREIT).

Basic Policy: Strategy

MONE establishes a process for identifying, assessing, and managing the impact that climate-related risks and opportunities will have on Mizuho Realty One Group’s management activities, strategies, and financial planning, and implements such in an appropriate manner. Using scientific and academic knowledge, it aims to identify and assess climate-related risks and opportunities systematically as well as objectively.

• MONE, MREM, and MREIT’s Promotion Officers designate business activities at each company for which risks and opportunities are to be identified, assessed, and managed and reports on these to the Sustainability Committee (this is limited to information that MREM and MREIT deem may be provided without any problems, such as public information in the case of One REIT, Inc., of which assets are managed by MREIT).
• MONE, MREM, and MREIT’s Promotion Officers identify and assess climate-related risks and opportunities for the designated business activities.

Basic Policy: Managing Risks and Opportunities

For business activities designated separately by each company’s operating officer (the “designated business activities”), MONE, MREM, and MREIT’s Promotion Officers aim to reduce business-related risks, realize opportunities for value creation and ensure sustainable, stable revenue over the long term by managing the identified and assessed climate-related risks and opportunities and promoting initiatives to enhance resilience.

Basic Policy: Indicators and Targets

For the designated business activities, MONE, MREM, and MREIT’s Promotion Officers establish indicators and targets for the purpose of managing climate-related risks and opportunities and also take care that indicators are aligned with the management strategy and overall risk management for the applicable business activities. The officers also disclose information including the targets that have been set and performance relative to those targets.