TNFD Report

April 22, 2025

Forest owned by the Mitsui Fudosan Group (Biei Town, Hokkaido)

Contents

Introduction

The Mitsui Fudosan Group aims to create social value by solving a broad array of social issues under the "& Mark" principles laid out in its Philosophy.

In light of the significant impact that real estate development has on society and the environment, the Mitsui Fudosan Group has embraced the principle of "& EARTH, With nature, sharing the future" and has been advancing various initiatives through the creation of neighborhoods.

Under the Group Environmental Policy, we have worked to achieve coexistence with the environment in neighborhood creation. In April 2025, we formulated "& EARTH for Nature," our declaration of coexistence with the environment in neighborhood creation. In this declaration, we conveyed the Mitsui Fudosan Group's universal values and basic approach, which it has put into practice in past neighborhood creation efforts to date and aims to further evolve in future projects.

The Mitsui Fudosan Group sees the environment as a "Holistic Environment," blending nature, people, and community. Through neighborhood creation, the Group will expand its network of sustainable and prosperous "Holistic Environments" not only in Nihonbashi, but also throughout Tokyo and across Japan and pass it on to future generations.

The Group has established five key issues to address: Preserve and nurture greenery, Harness the allure of water, Enrich the ecosystem, Connect the aspirations of the community, and Promote the circulation of natural resources. By addressing these issues, the Group will further advance its coexistence with the environment through neighborhood creation.

Additionally, in approximately 5,000 ha (12,355 acres) of Group-owned forest in Hokkaido, we are working to create sustainable forests through a cycle of planting, cultivating, and using.

The Group recognizes that appropriately managing natural capital and its associated risks and opportunities is essential to enhancing corporate sustainability. Under the Biodiversity Policy established in 2023, we will take biodiversity into consideration and contribute to its preservation through our business activities, including neighborhood creation and initiatives in our Group-owned forests. In addition, based on the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD), we will ensure highly transparent disclosure of information related to natural capital. Through these efforts, we will work to strengthen our relationships of trust with stakeholders, promote sustainable economic activities, and help to create a prosperous "Holistic Environment."

In this TNFD report (hereafter, the "Report"), we disclose information related to the Group's natural capital with reference to the TNFD's four recommendation pillars for disclosure: governance, strategy, risk and impact management, and metrics and targets. We hope this Report will help deepen your understanding of our initiatives and foster greater empathy and support for them.

General Requirements

In this Report, we considered the following items based on the final TNFD recommendations, Version 1.0.

Governance

• Management's role

  With the aim of promoting initiatives to address ESG issues, including nature-related issues, the Group has established the ESG Promotion Committee (headed by the President and Chief Executive Officer). The Group has also established an ESG Management Committee (headed by the Director of the Sustainability Promotion Division), subordinate to the ESG Promotion Committee.

  The ESG Promotion Committee manages principles and policy formulation for ESG issues, including nature-related issues. The committee also coordinates the goals, targets, and planning of environmental promotion activities for each business division and oversees and evaluates the progress of those activities. To promote these efforts, the ESG Management Committee establishes fiscal year targets for each division in accordance with the Group Environmental Policy and is carrying out tasks such as progress management.

  In addition, where there is significant risk, the Risk Management Special Committee (headed by the Director in charge of risk management) considers the potential influence on the Company's business and possible responses through the Company's core operations.

• The Board of Directors' oversight

Reports on ESG issues, including nature-related issues, are transmitted to the Board of Directors on a regular basis. Environmental goals and progress are monitored, and as needed, the Board considers whether action may be required.

In addition, the status of ESG-related initiatives is considered in determining management evaluation and compensation.

Policy planning & management; corporate management of activities Monitoring & target management of ESG issues

Cooperation