• Basic Policy for Environment
• Environmental Performance Targets/Results
• Environmental Initiatives at HCM's Properties
• Environmental Initiatives at Warehousing Stage
• Improving resilience (adaptability to disasters, etc.)
• Use of Environmentally Friendly Materials

Basic Policy for Environment

Reducing Environmental Burdens

Healthcare & Medical Investment Corporation (hereinafter, “HCM”) strives for energy conservation and reduction of CO2 emissions by improving energy efficiency at its properties and introducing facilities that contribute to energy saving. Also, HCM aims for resource conservation and waste reduction with regard to capital expenditure of its properties and in the formulation and implementation of their repair plans.

Environmental Performance Targets/Results

Basic Targets:

Item	Target	Results
		2020 (standard year)	2021	2022	Rate of change (Note3)
Total floor area	-	187,410.50㎡	187,410.50㎡	225,895.97㎡	20.5%
Energy	To make the total annual energy data capture rate (%) 100% across HCM’s real estate portfolio	59.2%	59.2%	77.3%	30.5%
GHG (Note2)	To make the total annual GHG emission data capture rate (%) 100% across HCM’s real estate portfolio	59.2%	59.2%	77.3%	30.5%
Water	To make the total annual water consumption data capture rate (%) 100% across HCM’s real estate portfolio	76.7%	76.7%	74.6%	-2.7%
Waste	To make the total annual waste emission data capture rate (%) 100% across HCM’s real estate portfolio	-	-	18.2%	-

(Note1)	The data capture rate is calculated based on floor area.
(Note2)	Abbreviation for Greenhouse Gas. Same below.
(Note3)	The standard year is 2020, the starting year of the effect measurement period is 2021, and the target year is 2025.

Long-term Targets:

Item	Target	Unit	Results
			2020 (standard year)	2021	2022	Rate of change (%) (Note)
Total floor area	-	㎡	187,410.50	187,410.50	225,895.97	20.5%
Energy	To achieve a 5% reduction in total annual energy consumption on an intensity basis across HCM’s real estate portfolio relative to the baseline year by the target year	Consumption (kWh)	25,973,361	25,932,139	44,932,975	73.0%
		Intensity (kWh/㎡)	234	234	257	10.0%
GHG	To achieve a 5% reduction in total GHG emissions generated by energy consumption on an intensity basis across HCM’s real estate portfolio relative to the baseline year by the target year	Emissions (t-CO2e)	9,176	8,906	15,140	65.0%
		Intensity (t-CO2e/㎡)	0.083	0.080	0.087	4.9%
Water	Not to increase annual water consumption on an intensity basis across HCM’s real estate portfolio relative to the baseline year by the target year	Consumption (㎥)	430,434	433,241	498,794	15.9%
		Intensity (㎥/㎡)	3.0	3.0	3.0	-1.2%

(Note)	The standard year is 2020, the starting year of the effect measurement period is 2021, and the target year is 2025.

Environmental Initiatives at HCM's Properties

Implemented high-efficiency renovation work for airconditioning equipment at "GreenLife Moriguchi" (2018)

• ▪Replace the control board and compressor of the outdoor unit of the common area air conditioner with ones with high energy-saving performance.
• ▪Introduction of high-performance air conditioning management unit (collective management of air conditioning in the building, scheduled operation setting).
• ▪Utilize national subsidy
  → Investment amount 13.5 million yen (of which, the subsidy is 6.4 million yen)

HCM has sequentially upgraded to energy- and water-efficient equipment in the rooms at its properties for resident comfort.

Cumulative Upgrade Status by Equipment Type

HCM introduced the green lease agreement with the tenant that rent a whole building of “Kobe Gakuentoshi Building (Hapine Kobe Gakuentoshi)” (2021). This is truly a win-win initiative which enables both HCM and the tenant to receive economic benefits while reducing environmental burden.

• ▪Based on the tenant’s lighting equipment usage conditions, which were obtained through interviews, we provisionally calculate that electricity consumption relating to lighting equipment will be reduced by about 69% as a result of performing work to convert the common-area lighting to LEDs.
• ▪Among the benefits that the tenant is expected to receive with LED lighting that has a rated life of 40,000 hours, including reduction of lighting equipment-related electricity fees and reduction of bulb replacement costs, a certain amount will be passed on to HCM in the form of a higher rent in the lease, based on a green lease fee.

Environmental Initiatives at Warehousing Stage

For Healthcare Asset Management Co., Ltd. (hereinafter, “HAM”) and HCM, sponsors entered into green lease clauses in building lease agreements with operators at the warehousing stage.

(Note)	Standard lease agreement clauses plus clauses incorporating ESG-focused requirements.

In development projects, HCM is working to obtain CASBEE, BELS and other environmental certifications with the cooperation of developers, design companies and other parties.

Improving resilience (adaptability to disasters, etc.)

Landslide Prevention Measures (Hanakotoba Oppama)

Part of the land of Hanakotoba Oppama, which HCM acquired on November 10, 2022, is within a landslide special warning zone and safety measures such as spraying mortar and installing a retaining wall were thus implemented between the steep east and south slopes. However, for the sake of long-term investment in the healthcare facility and based on a study on the impact of collapse of the slope, we decided to take additional prevention measures to improve resilience and ensure long-term safety.

The free frame method was chosen for its stability and safety, Keikyu Construction Co., Ltd., which had experience in landslide prevention in the neighborhood was hired to conduct the survey, planning and construction, HAM received a report on the adequacy of the measures from an independent third-party survey company, confirming that there were no problems, and made the decision that HCM would acquire the property.

Implementing stormwater countermeasure work (Sawayaka Mekarikan)

Use of Environmentally Friendly Materials

Environmentally friendly products were used when replacing the floors at GreenLife Moriguchi.

• ▪Environmentally friendly flooring materials: Loose Lay Tile LL Free 50NW-EX by TOLI Corporation
• ▪Half the amount of products weight consists of recycled materials, which reduced CO2 emissions (recycled from discarded agricultural vinyl and scrap materials generated during manufacturing).
• ▪Using durable UV resin coating to reduce staining eliminated the need for wax maintenance during use.

Facility Environment Improvement (Based on User Feedback)

• ▪Using easy-to-clean flooring improved sanitation and reduced cleaning work.
• ▪Using flooring that is better for wheelchairs increased activity in the facility.
• ▪The small step from the hallway to the day room has been eliminated.