Environmental Targets

The following environmental targets toward carbon neutrality and net-zero emissions by 2050 were established at the Sustainability Promotion Committee meeting held in March 2025.

1. GHG emissions: To be reduced by 60% by fiscal 2030
2. Energy consumption: To be reduced by 1% annually
3. Water consumption: To be reduced by 10% by fiscal 2030

• The intensity, and base year is fiscal 2018.

For the fiscal 2050 target (long-term target), we will accelerate various initiatives for carbon neutrality and net-zero emissions.

Energy consumption / Water consumption / Greenhouse gas emissions

Energy Management

Established the Energy Conservation Policy

Based on the "Energy Conservation Policy" established in March 2019, HHR and HHRAM will continually seek to understand the energy consumption levels of the portfolio and measure the rate of achievement against the targeted values. Considerations for operational improvements and equipment investments will be made for energy inefficient properties, and we will continually aim to reduce energy consumption across the entire portfolio.

• Initiatives through equipment renovation

  For measures that require equipment investments such as switching to LED lighting and switching to high efficiency air conditioning, measures that are the most cost-effective will be prioritized based on consideration of the lifecycle costs, etc.

• Initiatives through operational improvement

  HHR promotes initiatives in collaboration with the property management companies and tenants, including:
  - Inspecting for forgotten electrical and gas appliances left on after closing
  - Saving energy during periods of absence or non-use (hallways, warehouses, conference rooms, etc.)
  - Setting appropriate temperatures for common area air conditioning
  - Setting appropriate temperatures for warm water in toilet sink and toilet seat heaters during summer
  - Implementing appropriate lighting reduction measures in back areas.

Application of leading project to reduce carbon footprint in housing / buildings

A leading project to reduce carbon footprint in housing / buildings is a project that is selected after the government solicits entries of housing / building projects to become leading projects for carbon footprint reduction, and offers support for them from its budget by subsidizing part of the projects’ cost, such as maintenance costs. GRAND FRONT OSAKA was chosen as the leading project in 2009. Its "organizing an integrated water and green network over multiple city blocks", "adoption of highly effective carbon footprint reduction technology" and "building a sustainable management system" initiatives were adopted to realize its environment-friendly design such as extensive greenery on the rooftops and in the surrounding city blocks, natural ventilation system and adoption of a solar power system.

Utilization of renewable energies

Introduction of electricity generated virtually from renewable energy

At the following properties, all electricity consumed throughout the facilities, including both common and tenant-exclusive areas, has been switched to virtually renewable energy. Furthermore, at GRAND FRONT OSAKA we installed Japan's fastest EV charging stations equipped with battery storage systems using this power starting in December 2023. This provides EV owners visiting Osaka with a convenient and environmentally friendly charging experience.
GRAND FRONT OSAKA, HEP Five, LAXA Osaka, HANKYU NISHINOMIYA GARDENS, SHIBAURA RENASITE TOWER, kotocross Hankyu Kawaramachi, H-CUBE MINAMIAOYAMA, H-CUBE MINAMIAOYAMA II, H-CUBE KITAAOYAMA

EV charging stations

Implementation of solar power generator facilities

Solar panels have been installed above the south parking lot of HANKYUNISHINOMIYA GARDENS (along Yamate Kansen), and the powergenerated is used to illuminate the lights. Solar panels have been alsoinstalled on the roof of HEP Five, and the clean natural energy is used tolight up the Ferris wheel. A monitor indicating the quantity of energyg enerated by the sunlight has been set up in the atrium on the first floor. Furthermore, the amount of energy generated and consumed is as follows.

Property name	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024
HEP Five	18,054 kWh	18,197 kWh	18,432 kWh	17,473 kWh	18,394 kWh	17,438 kWh	17,625 kWh

• As of October 1, 2025

Solar panels

Installation of wind turbine generator system

At HANKYU NISHINOMIYA GARDENS,  hybrid-type generators that combine savonius wind turbines with solar panels have been installed, and the power generated  is used to illuminate the rooftop lights.

Savonius wind turbines with solar panels

Switching to LED lighting

From the perspective of energy-saving measures, HHR promotes the switch to LED lighting ateach portfolio property. As of the end of October 2025, HHR has upgraded common area lights (excluding backyards) to LED lighting in 15 properties, accounting for more than 70%of its total owned properties, and almost all the lights, including the exclusive areas, have beenupgraded at Ueroku F Building and kotocross Hankyu Kawaramachi, while HHR continues tosequentially upgrade mainly common area lights in other buildings.

Introduction of heat-shielding paint

At METS OZONE, heat-shielding paint has been applied to some window surfaces to suppresssolar heat gain. This helps maintain appropriate indoor temperatures, thereby reducing the airconditioning load and promoting energy saving.

Countermeasures against urban heat islands

As a countermeasure against urban heat islands that occur in the summer, we have installed a fountain and mist spraying system in the rooftop sky garden of HANKYU NISHINOMIYA GARDENS, water sprinklers on the roofs ofcinema complexes, and water facilities such as cascades and a mist projection system at the Umekita Plaza of GRAND FRONTOSAKA. These have contributed to cutting CO2 emissions by reducing the load placed on air conditioners.

Promoting green walls and planting vegetation in urban areas

At GRAND FRONT OSAKA, there is the 500-meter-long "Icho Namiki" (row of ginkgo trees) that encircles thebuilding, and the "Keyaki Namiki" (row of zelkova trees) that runs east-west between the South Building and theNorth Building. The 4,000 m2 garden on the north side of the North Building is a space where people canexperience the changes in the four seasons, and people enjoy walks in the garden throughout the year.Moreover, on the roof of the 9th floor of the South Building and the North Building, there is a rooftop gardentotaling more than 10,000 m2. This space creates a place where office workers can exchange ideas. In addition, the Sky Garden on the rooftop of HANKYU NISHINOMIYA GARDENS is a space of relaxation forthose who visit. This is because vegetation indigenous to the Rokko mountain range is planted in the gardensuch as trees, cherry trees, and fruit trees, based on the facility concept of "harmony with the naturalenvironment".

Icho Namiki

Rooftop garden

Sky garden

Collaboration with tenants

Water Resource Initiatives

Established the Water Conservation Policy

Based on the "Water Conservation Policy" established in March 2019, HHR and HHRAM will continually seek to understand the water consumption levels of the portfolio and measure the rate of achievement against the targeted values. Considerations for operational improvements and equipment investments will be made for water resource inefficient properties, and we will continually aim to reduce water consumption across the entire portfolio.

• Initiatives through equipment renovation
  For measures that require equipment investments such as switching to water conservation equipment and installing water-saving devices, measures that are the most cost-effective will be prioritized based upon consideration of the lifecycle costs, etc.
• Initiatives through operational improvement
  We are working together with property management companies and tenants to conserve water during routine cleaning, check for leaks in washrooms and restrooms during patrols, and make every effort to conserve water.

Reusing rainwater

At HANKYU NISHINOMIYA GARDENS, GRAND FRONT OSAKA, and METS OZONE, rainwater is stored and reused as sprinkling water for plants and for flushing toilets.

Installation of kitchen wastewater pretreatment equipment

By installing kitchen wastewater pretreatment equipment at HANKYU NISHINOMIYA GARDENS, the pollutants found in kitchen wastewater produced by cafés and restaurants are reduced by processing it with mixed-microbial communities, before draining it into public sewage systems. As a result, HANKYU NISHINOMIYA GARDENS is able to maintain water quality that falls well within the wastewater standards for sewage systems of Nishinomiya City.

Circular Economy Initiatives

Waste management

HHR and HHRAM regularly seek to understand the figures submitted by the waste disposal operators of the portfolio.

Charging by waste amount

At HANKYU NISHINOMIYA GARDENS and GRAND FRONT OSAKA, the waste disposed by each tenant is measured on an exclusive measurement device, and a fee is assessed based on the quantity of waste produced. This system has contributed to the reduction of waste generated by tenants.

Thorough waste sorting and recycling

At Dew Hankyu Yamada and HEP Five, etc, recycling is conducted thoroughly by sorting cardboard, paper, cans, glass bottles, and plastic bottles. 

Using recycled trash bags

At HANKYU NISHINOMIYA GARDENS, recycled trash bags, which are made partly from plastic cupscollected at Hanshin Koshien Stadium, are used to collect garbage brought from common use areas. This activity contributes to HHR’s recycling-oriented efforts.

External Certifications

Acquisition of “3 Stars” and "Green Star" Rating in GRESB Real Estate Assessment

GRESB is an annual benchmarking assessment to measure ESG (Environmental, Social and Governance) integration of real estate companies and funds. In the 2025 GRESB Real Estate Assessment, HHR received a “3 Stars” in GRESB Rating, which is based on GRESB Overall Score and its quintile position relative to globalparticipants. It also won a “Green Star” designation for the seventh consecutive year by achieving high performanceboth in “Management Component” that evaluates policies and organizational structure for ESG promotion, and “Performance Component” that assesses environmental performance and tenant engagement of propertiesowned. HHR also received the highest “A Level” for the sixth consecutive year for the GRESB Public Disclosure, which assesses thewidth of ESG disclosure.

Acquisition of DBJ Green Building Certification

DBJ Green Building Certification is a program which Development Bank of Japan grants certifications after assessing properties in five ranks, from the perspective of environmental and social considerations.
In the future, HHR will continue to work to expand the number of certified properties.

Properties with the best class environmental & social awareness

Properties with exceptionally high environmental & social awareness

Properties with excellent environmental & social awareness

Acquisition of Certification for CASBEE for Real Estate

Certification for CASBEE for Real Estate is an evaluation system that evaluates and ranks buildings and structures in terms of their environmental performance by using CASBEE (Comprehensive Assessment System for Built Environment Efficiency). CASBEE is designed to comprehensively assess the quality of a building, including not only consideration of environmental practices that include using materials and equipment that save energy or achieve smaller environmental loads, but also consideration of interior comfort and scenic aesthetics.

S Rank（Excellent）

A Rank（Very good）

Ratio of environmentally certified properties

The environmental certification acquisition rate (based on total floor area) across the entire portfolio is 58.8%.

• As of October 1, 2025

Green Finance

HHR has established Green Finance Framework (hereafter the “Green Finance Framework”) that complies with the Green Bond Principles 2021, the Green Loan Principles 2023, the Green Bond Guidelines 2022, and the Green Loan Guidelines 2022 for the implementation of green finance.

Green Finance Framework

Use of Proceeds

The proceeds of green finance are allocated to the acquisition of Eligible Green Assets (Note) or implementation of renovation work or the refinancing or reimbursement of borrowings (including green loans) or investment corporation bonds (including green bonds) which have been allocated to such.

• Assets that meet the following eligibility criteria

Eligibility Criteria

1. Eligible Green Assets

The criteria apply to assets for which any of the following green building certifications was obtained or renewed within 36 months prior to the payment date of green bonds or the execution date of green loans or the reporting date based on the Green Finance Framework, or will be obtained or renewed in the future.

• DBJ Green Building Certification: 3 Stars, 4 Stars or 5 Stars
• CASBEE Certification
  ・CASBEE Certification for Buildings (New Construction)・ Certification for CASBEE for Real Estate：B+ Rank, A Rank or S Rank 
  ・CASBEE by Local Government: B+ Rank, A Rank or S Rank (Note 1)
• BELS Certification (FY2016 standard): 3 Stars, 4 Stars or 5 Stars (Note 2)
  BELS Certification (FY2024 standard):
  ・Non-residential properties: Level 4, 5 or 6 (Note 3)
  ・Residences with renewable energy facilities: Level 3, 4, 5, or 6 (Note 4)
  ・Residences without renewable energy facilities: Level 3 or 4 (Note 4)
• LEED Certification: Silver, Gold or Platinum (v4 or later for LEED BD+C)

• Within 3 years from the construction completion date
• Excluding factories, etc., including logistics facilities which exceed BEI＝0.75.
• New acquisitions of existing buildings built before 2016 must be at least Level 3, excluding factories, etc., including logistics facilities that exceed BEI＝0.75.
• New acquisitions of existing buildings built before 2016 shall qualify at Level 2 or higher, regardless of the use of renewable energy.