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KDXR and the Asset Management Company have positioned initiatives on ESG (Environment, Social and Governance) awareness as an important business management issue. To promote ESG initiatives, the Asset Management Company has established the following Sustainability Policies.
Sustainability Management System
Sustainability Committee
The initiatives for sustainability are promoted under the leadership of the Sustainability Committee organized by the Asset Management Company.
The Sustainability Committee is chaired by the President & CEO (Chief Sustainability Officer), and consists of the following members.
Structure of the Asset Management Company
As of July 16, 2026
| Chair (Convener / President) | President & CEO (Chief Sustainability Officer) |
|---|---|
| Committee Members | Head of each REIT Department Head of Strategic Planning Department Head of Sustainability Department General Manager (each REIT) of Strategic Planning Department Head of Strategic Planning, each REIT Department Head of Asset Management Division of each REIT Department Head of Portfolio Management Division of Listed REIT Department Head of Finance & Accounting Department Head of Corporate Administration Department |
| Observers | Head of Public Relations & Sustainability Department of Kenedix, Inc. Others designated by the Chair |
| Secretariat | Sustainability Department |
| Frequency of Meetings | Once every three months |
| Functions |
|
Materiality
The Kenedix Group has established material issues in order to identify subjects that are critical for achieving sustained growth of the Kenedix Group along with stakeholders and society. We will make commitment to find solutions to these issues both in business and society by making initiatives that reflect the opportunities and risks associated with each issue. Furthermore, we intend to contribute to achieving the SDGs by carrying measures for our materiality.
Process of Defining Materiality
- Step 1.
Identify and study ESG issues - We examined ESG issues by creating a long list that covers Global Reporting Initiative, the evaluation items used by multiple ESG evaluation organizations, the SDGs.
- Step 2.
Cross check with business issues - After once again studying business issues at the Kenedix Group, we selected a list of issues that should be considered from the standpoint of both in our business operations and society.
- Step 3.
Examine issues based on input from Kenedix Group companies - The list was discussed among relevant departments and group companies that are involved, external professionals, and other stakeholders to select the issues that are most important to the Kenedix Group from the standpoint of both business operations and society.
- Step 4.
Final discussion at senior management - Board of directors of Kenedix, Inc. defined the material issues after final discussion led by the President and CEO of Kenedix, Inc., including auditors.
Kenedix Group’s Materiality
| Key Areas and Applicable SDGs | Materiality |
|---|---|
| Contribution to a Sustainable Environment | Reduction of energy consumption and CO2 emissions |
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Reduction of water consumption and waste materials |
| Collaboration with tenants for environmental initiatives | |
| Commitment to a Diverse Society | Providing properties with environmental and social considerations |
 |
Improving resilience/climate adaptation |
| Initiatives for an aging society with fewer children | |
| Stakeholder Engagement | Continuous improvement of customer satisfaction |
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Community engagement |
| Managing conflicts of interests | |
| Attractive Working Environment | Recruiting, employee retention and career advancement |
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Health and wellbeing of employees |
| Diversity and equal opportunities | |
| Responsible Organization | Compliance |
 |
Risk management |
| Commitment to responsible investments |
Sustainability Policies
To promote initiatives for each materiality of the Kenedix Group, the Asset Management Company and the REITs it manages have jointly established Sustainability Policies and will work together to continuously advance these initiatives.
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Contribution to a Sustainable EnvironmentResponding to the social mission of mitigating and adapting to climate change and preserving biodiversity, we comply with environmental laws and regulations and continuously promote and improve initiatives to reduce energy consumption, GHG emissions, water consumption and discharge of waste. We also pay close attention to the handling of hazardous substances and environmental pollutants, contributing to environmental sustainability.Challenge to Achieve Net Zero GHG EmissionsTo achieve Net Zero, KFM has established long-term targets for reducing GHG emissions of its REITs and will work internally and externally.
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Commitment to a Diverse SocietyWe actively engage with the diverse communities which our properties belong to, enhancing the safety and comfort of tenants and local communities. Furthermore, we contribute to the realization of a circular economy and the enhancement of resilience.
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Stakeholder EngagementWe manage our properties by emphasizing engagement and collaboration with a wide range of stakeholders, including investors, tenants and business partners. We strive for transparent information disclosure and aim to pursue responsible investment management.
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Attractive Working EnvironmentWe aim to create attractive and supportive workplace by improving working environment and company policies, and providing training programs for engagement of diverse employees.
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Responsible OrganizationWe are committed to disciplined and responsible investment management by ensuring strong compliance and risk control throughout our operations.