In the Mitsui Fudosan Group's urban development business, ecosystems are something that must be protected at all costs. In addition, natural environments that are home to diverse living organisms provide places for enjoyment and relaxation in the city, and as such they also add significant value to urban spaces. However, the Group's development of real estate and extraction of natural resources for use as building materials in the supply chain can alter ecosystems and in turn negatively impact biodiversity. As such, we have positioned our impact on biodiversity as a key management issue, and as part of the Group Environmental Policy we are committed to a broad and comprehensive range of environmental initiatives, including the protection of biodiversity.

In light of the above, we have established the Mitsui Fudosan Group Biodiversity Policy.

1. Commitment

• In addition to making every effort to avoid any negative impact on biodiversity caused by our businesses or supply chains, we will strive to keep any unavoidable impact to a minimum.
• To increase our positive impact on biodiversity, we will engage in initiatives to restore and regenerate biodiversity and nature, and aim to eliminate any new net negative impacts caused by our business activities (no net loss).
• When conducting business in locations that are near important biodiversity areas, we will apply the mitigation hierarchy by first working to avoid any negative impact, then minimizing any unavoidable impact, before finally offsetting any remaining impact through restoration and regeneration activities.
• We will fully support the "living in harmony with nature" vision of the Kunming-Montreal Global Biodiversity Framework, a global target to achieve the goals of the UN Convention on Biological Diversity, as well as the global Nature Positive goal.

2. Assessment and Monitoring of Risks and Opportunities

• We will assess the impacts and dependencies on nature, including biodiversity, that our businesses and supply chains have, and also assess and appropriately respond to those risks and opportunities.
• Further, to accurately manage these risks and opportunities, we will establish indicators and targets as necessary and monitor the results.

3. Stakeholder Engagement and Information Disclosure

• We will work with our suppliers, experts, NGOs, and other external stakeholders as necessary.
• We will proactively disclose information on our initiatives in line with this policy.

4. Education and Training

• To ensure effective implementation of this policy, we will implement appropriate education and training to further understanding of the relationship between our businesses and nature/biodiversity among our executives and employees.

Purpose of this plan

This basic plan arranges the issues surrounding biodiversity at our Group-owned forests, setting goals and indicating matters to be addressed in our forest management.

Basic Policy

To ensure we can benefit from the diverse ecosystem services provided by forest ecosystems, we will engage in sustainable forest management with an emphasis on the following perspectives.

• Long-term perspective: We will engage in forest development from a long-term perspective with the knowledge that today's forest management will create an environmental foundation for the next 50 to 100 years.
• Integrated perspective: In addition to producing timber, we will move forward with forest development with the understanding that forest management is essential to ensuring we can benefit from diverse ecosystem services including carbon sequestration and soil protection.
• Adaptive management: As nature is a complex system, even if our forest management and biodiversity conservation does not produce the expected results, we will adapt our forest management methods to get as close as possible to our goals.
• Science-based approach: As we proceed with adaptive forest management, we will periodically monitor forest conditions, and use the data gained to conduct scientific assessments and reflect the results back into our business activities.
• Community-based approach: Activities at our Group-owned forests are closely linked to the surrounding nature and the lives of local citizens. Further, as biodiversity issues are often region-specific, we will engage in business activities while listening to the opinions of regional stakeholders.

Vision

To protect and develop the natural environments in our forests and contribute to the Nature Positive goal while using them as sites for timber production.

Initiatives to Achieve Vision

The two central pillars to achieving this vision are: (1) Reducing our negative impact on nature; and (2) Increasing our positive impact on nature. We have therefore put together several matters to be addressed for each pillar.

(1) Reducing our negative impact on nature (avoidance, reduction)

• Avoid cutting down trees in natural forests and forests near mountain streams
• Avoid planting non-native species
• Reduce landscape homogenization (standardization of tree ages)
• Reduce impact from tree-cutting (reduce scale)
• Prevent simplification of forest structure (leave natural trees, withered trees, and tree hollows untouched)
• Reduce ground surface disturbance from forestry operation
• Prevent ruin from lack of management
• Reduce chemical contamination

(2) Increasing our positive impact on nature (regenerate, restore)

• Regenerate natural forests
• Improve habitats for plant and animal life
• Protect endangered species

Mission

• Even if the types and structures of trees in a small section of artificial forest are limited, broader sections of natural forest contain a variety of tree types (environments), from those that have just been cut down to mature stands. We will therefore aim to carefully protect and maintain natural forests.
• We will aim to create forests that have minimal negative impact on biodiversity, such as by reducing clearcutting and leaving withering/dead trees and tree hollows untouched.

Promotion Framework

The department in charge of sustainability at Mitsui Fudosan will be responsible for administrative supervision.

Specific activities at each Group-owned forest will be outsourced to local forestry cooperatives by the Group company in charge of forest management (Minato Estate Co., Ltd.).

The challenges to tackle at each forest will be prioritized based on the forest's characteristics, and action plans for biodiversity conservation will be formulated and implemented for each.

Forests where biodiversity conservation requires particular attention will be designated as priority areas.

The status of biodiversity conservation at each forest will be monitored (audited) by experts and experienced academics.

Details on the timing and method of the above audits will be determined separately.