Japan Logistics Fund : Promotion of environmental and/or social characteristics (Summary of SFDR article 8 Pre-contractual disclosure)

we can contribute to the environment, improve the work environment, ensure compliance, and collaborate with each stake holder. In order to advance its ESG initiatives, the Asset Manager establishes material ESG targets and utilizes an environmental management system (EMS) to achieve those targets.

We implement various environmental initiatives including the following.

• Addressing climate change. We contribute to the creation of low-carbon society through our initiatives including greenhouse gas reductions (e.g. installation of LED light bulbs and solar panels), and we also make efforts to adapt to climate hazards and natural disasters (e.g. obtaining and reviewing updated engineering reports). Our target KPI is to reduce Scope 1 and 2 GHG emissions by 42% by FY2030 compared to the levels in FY2021 and to achieve carbon neutrality by FY2050.
• Consent with and support of TCFD. In July 2021, the Asset Manager announced its support of the June 2017 recommendations by the Task Force on Climate-related Financial Disclosures ("TCFD"), which was established by the Financial Stability Board in December 2015 to develop recommendations for more effective climate-related disclosures. The Asset Manager has participated in the TCFD Consortium, a group of Japanese companies that support TCFD recommendations. The TCFD Consortium meets from time to time to discuss how to disclose and use climate-related information effectively to support informed decisions by investors.
• Responding to transitional risks - improving facilities to save energy and conducting ESG efforts with tenants. We are prepared to address what we call the "transitional risks", the policy, regulatory, market and reputational risks associated with climate change. In order to save energy, we have replaced old lighting equipment with LED lighting equipment (which covered 80.1% of JLF's properties by gross floor area as of January 31, 2023), and the estimated yearly reduction of electronic power consumption from LED conversion carried out from February 2022 to January 2023 is 600,863kWh. We have also renewed air-conditioningequipment (11 units were renewed during the period from February 1, 2022 to January 31, 2023)and installed photovoltaic panels on the rooftop of some of JLF's properties (11 properties as of March 31, 2022, which generated 5,926,902 kWh of electricity in FY2021). In addition, we cooperate with tenants on environmental efforts, including by providing ESG training sessions for tenants. We have entered into "green leases" with some tenants, which require tenants to cooperate with us on implementing environmentally-friendlyinitiatives; 64.1% of JLF's properties (by leasable area) were subject to green leases as of March 31, 2023, exceeding our short-termtarget KPI of 50% by FY2022.【We have also implemented "greening", the process of selection and planting of plants, initiatives at JLF's properties such as installing green roofs, greening of walls, setting up of green zones and protection of native species, which we believe would help suppress temperature rise at the properties caused by heat-islandphenomena and improve visual aesthetics. We contribute to biodiversity conservation by planting indigenous plant species. As of March 31, 2023, we have implemented the greening initiatives at 15.4% of JLF's properties by land area.
• Responding to physical risks - greenification and countermeasures against disasters. We promote greenification of rooftops and the grounds surrounding all of JLF's properties to mitigate the urban heat island effect, which describes the higher temperatures experienced in urban areas due to buildings because they absorb and re-emitheat more than natural landscapes. Additionally, we take countermeasures to protect buildings from disasters, including raising the level of building foundations to help avoid electrical system failures in JLF's properties.
• Promote resource circulation. We strive to minimize water use in our business activities by improving efficiency and reducing consumption. We promote greening of buildings to help suppress temperature increases caused by the urban heat island effect and improve the aesthetics of our logistics properties. We also contribute to biodiversity conservation by planting indigenous

plants. In addition, we endeavor to minimize waste from JLF's properties by monitoring and conducting appropriate management.

• Conducting soil contamination surveys. We conduct soil contamination surveys when acquiring properties and require the seller to ensure that all chemical substances are removed before the acquisition, and do not consider investing in properties that do not meet the standards for soil contamination and other environmental contamination in accordance with the Air Pollution Control Act and the Soil Contamination Countermeasures Act of Japan and other environmental laws and ordinances, unless the underlying lands meet our voluntary standards for evaluation and determination of soil contamination.

We implement various social initiatives at JLF's properties including the following.

• • Disaster response and building safety. JLF and the Asset Manager examine the safety of buildings, including whether they comply with applicable laws, and earthquake risks associated with buildings at the time of acquiring properties by obtaining engineering reports. In addition, the Asset Manager reviews the safety of our buildings on an ongoing basis by obtaining updated engineering reports about every five years for all of JLF's properties. The Asset Manager has established disaster policies and procedures to ensure that damages are minimized, ensure business operation continues, and achieve fast recovery in a time of disaster. We have installed on-site power generators at some of JLF's properties that can be used during a power outage, and toilets that are available even during a disaster at some properties.
  • Initiatives to stimulate local communities. We redevelop JLF's properties and engage in joint efforts with partners to develop modern, large-scale logistics properties so that these properties can contribute to revitalization of the local economy. Additionally, we recruit mobile phone companies to install their antennas at JLF's properties, which has improved cellular coverage in the community surrounding JLF's properties. We regularly conduct technical evaluations of environmental and social risks of all of JLF's properties, not only to conduct risk management, but also evaluate environmental initiatives.
  • Connection with local community. We have improved channels of communication with tenants and local residents through various initiatives, including cleaning activities in cooperation with property managers, building managers and tenants. We also help to keep tenants and local residents safe by installing security cameras at some of JLF's properties to monitor areas surrounding the property and on vending machines inside JLF's properties.
  • Initiatives aimed at enhancing tenant satisfaction. In order to create a pleasant working environment for users of JLF's properties, we have enhanced amenities at some of JLF's properties, by adding break rooms and kiosks and regularly assessing and improving air-conditioning.
  • Creating a healthy and pleasant working environment. The Asset Manager conducts an employee satisfaction survey on an annual basis for all employees. The survey results and proposals based on such results are reported annually by the CEO. The Asset Manager has a family leave program, a special paid leave program and a flexible working hour program. The Asset Manager supports its employees' health and safety by providing financial aid for their health exams. The Asset Manager has a hotline for employees which allow them to consult an attorney anonymously to report harassment or other workplace issues, either inside or outside the Asset Manager.
• What sustainability indicators are used to measure the attainment of the environmental or social characteristics promoted by Japan Logistics Fund, Inc.?

We use the following indicators to measure the attainment of the E/S characteristics we promote.

• Policy on acquiring external certifications. We are evaluated under the GRESB Real Estate Assessment, which is an annual benchmarking assessment to measure the level of ESG integration achieved by real estate companies and funds. In 2022, we have received the 5 Stars rating, the highest rank in GRESB Rating, based on GRESB's overall evaluation. In addition, we have received the Green Star designation by GRESB in 2022 for the sixth consecutive year, reflecting our high performance in areas of management and policy, and implementation and measurement, with respect to environmental, social and sustainability-related activities, and the A Level rating, the highest ranking in GRESB's public disclosure assessment. We are also evaluated under MSCI ESG Rating, which researches, analyzes, and rates the extent to which companies adequately manage ESG-related risks and opportunities, and provides an overall corporate ESG rating on a seven-point scale from "AAA" to "CCC". In May 2022, we have received an "AA" rating.
• Principles for Responsible Investment ("PRI") and Principles for Financial Actions for the 21st
  Century ("PFA 21"). The Asset Manager became a ratifying institution of PRI in 2021 and adopted PRI's six core principles. In addition, the Asset Manager became a ratifying institution of PFA 21 in 2021. PFA 21 was, established in October 2011 in Japan with the participation of financial institutions as their action guidelines to fulfill their roles and responsibilities in shaping a sustainable society.
• Science Based Targets ("SBT") certification. The SBT Initiative is an international initiative that encourages companies to set science-based GHG emissions reduction targets to achieve the Paris Agreement that "aims to keep the global average temperature well below 2°C above pre-industrial levels and pursue efforts to limit global warming to 1.5°C," and certifies companies' GHG emissions reduction targets that are scientifically consistent with the goals set forth in the Paris Agreement. In 2022, we have received the SBT certification from the SBT Initiative for our target KPI of reducing Scope 1 and 2 GHG emissions by 42% by FY2030 compared to the levels in FY2021 and achieving carbon neutrality by FY2050.
• Policy on the acquisition of green building certifications. To track the environmental performance of JLF's properties, we use certifications issued by third-partyorganizations such as the
  Development Bank of Japan's Green Building Certification ("DBJ Certification"), Building
  Energy-efficiency Labeling System certification ("BELS Certification"), SMBC Sustainable Building Assessment Loan Program, Certification for Comprehensive Assessment System for Built Environment Efficiency ("CASBEE") for Real Estate and Certification for CASBEE for New Construction. With respect to DBJ Certification, we consider a property to have sufficient environmental certification if it received a 3-star ranking or higher out of DBJ Certification's 5-star ranking system. With respect to BELS Certification, we consider a property to have sufficient environmental certification if it received a 3-star ranking or higher out of BELS Certification' 5- star ranking system. With respect to CASBEE, we consider a property to have sufficient environmental certification if it received a Rank B+ or higher out of the CASBEE ranking system for Real Estate or New Construction featuring Rank S (excellent), Rank A (very good), Rank B+ (good), Rank B- (slightly inferior) and Rank C (inferior). We consider JLF's properties that receive any such sufficient environmental certifications or equivalent level of environmental certifications as "Green Eligible Assets".
  As of March 31, 2023, with respect to BELS, we received 5 Stars for 16 properties; 1 property was recognized as "Net Zero Energy Building" or ZEB, which is a designation given to buildings that achieve a reduction in primary energy (i.e., fossil fuel energy) consumption of 100% or more; and 13 properties were recognized as "ZEB Ready", which is a designation given to buildings that achieve a reduction in primary energy consumption of 50% or more as compared to the standard primary energy consumption, excluding renewable energy, set by BELS. With respect to the SMBC Sustainable Building Assessment Loan Program, 1 property received Bronze, representing the first time the SMBC Sustainable Building Assessment Loan Program awarded a rank to a logistics

property. With respect to the Certification for CASBEE for Real Estate, 2 properties received the S rating, 29 properties received the A rating and 5 properties received the B+ rating. With respect to the Certification for CASBEE for New Construction, 1 property received the A rating. As of March 31, 2023, 78.6% of JLF's properties (by leasable area) had obtained sufficient level of green building certification and had qualified as Green Eligible Assets, exceeding our short-term target KPI of 75% by FY2022. We aim to acquire BELS Certification, CASBEE and other certifications, which we refer to collectively as "green building certification", on 90% or more of JLF's properties by the end of FY2025, based on leasable area.

• • Greenhouse gas emissions and energy consumption. The greenhouse gas emissions from JLP's
    properties increased from 29,872 t-CO2 (in FY2020) to 32,410 t-CO2 (in FY2021), and total greenhouse gas emissions intensity increased from 0.020 t-CO2/m2 (in FY2020) to 0.022 t-CO2/m2 (in FY2021). Total energy consumption increased from 255,288 GJ (in FY2020) to 262,751 GJ (in FY2021), and total energy consumption intensity increased from 0.173 GJ/m2 (in FY2020) to 0.175 GJ/m2 (in FY2021). Water usage decreased from 139,946 (in FY2020) to 133,075 (in FY2021) in water usage (by m3), and from 0.095 (in FY2020) to 0.089 (in FY2021) in total water usage intensity (by m3 /m2).
  • ESG efforts with tenants and the conclusion of green leases. We cooperate with tenants on environmental efforts, including by providing ESG training sessions for tenants. In addition, we have concluded "green leases" with some tenants, which stipulate the tenants to cooperate with us on implementing environmentally friendly initiatives. As of March 31, 2023, green leases accounted for 64.1% of JLF's properties (by leasable area), exceeding our short term target KPI of 50% by FY2022.
• What are the objectives of the sustainable investments that the financial product partially intends to make and how does the sustainable investment contribute to such objectives?
  Not applicable.
• How do the sustainable investments that the financial product partially intends to make, not cause significant harm to any environmental or social sustainable investment objective?
  Not applicable.

Principal Adverse Impacts

Does Japan Logistics Fund, Inc. take into account principal adverse impacts on sustainability factors?

Yes, we collect on an ongoing basis select information on JLF's existing portfolio regarding the principal adverse impact indicators, including exposure to fossil fuels through investment assets, exposure to energy-inefficient investment assets, greenhouse gas emissions and energy consumption intensity. We aim to manage the risk connected to principal adverse impacts from our investment decisions in several ways, including general screening criteria and due diligence.

• Exposure to fossil fuels through assets. JLF does not invest in real estate assets involved in the extraction, storage, transport or manufacture of fossil fuels.
• Exposure to energy-inefficientinvestment assets. We consider properties other than Green Eligible Assets to be energy-inefficient. As of March 31, 2023, 21.4% of JLF's properties (by leasable area) had not obtained sufficient level of green building certification and had not qualified as Green