Keihanshin Building : Notice Concerning Information Disclosure Based on TCFD Recommendations

	June 21, 2022
To whom it may concern,
Company name:	Keihanshin Building Co., Ltd.
Representative:	Tsuneo Wakabayashi, President
Code No.:	8818 TSE First Section
Contact:	Junichi Tada,
	Managing Executive Officer
	responsible for Administration
	(TEL: [phone])

Notice Concerning Information Disclosure Based on TCFD Recommendations

Keihanshin Building Co., Ltd. (the "Company") recognizes the impact of initiatives concerning climate change on the sustainable development of society and the mid- to long-term enhancement of corporate value, and is actively working on measures to combat climate change.

As part of these initiatives, on November 26, 2021, the Company announced its endorsement of the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

In accordance with the above endorsement, the Company hereby announces that the Board of Directors' meeting held today passed a resolution, as per the appendix, regarding the details of "Governance," "Strategy," "Risk Management," and "Metrics and Targets," for which disclosure is recommended by the TCFD.

Going forward, the Company will continue to work to improve its information disclosure concerning climate change and to contribute to the realization of a sustainable society.

June 21, 2022

Keihanshin Building Co., Ltd.

	Information Disclosure Based on TCFD Recommendations
Table of Contents
1. The Company's Recognition of Climate Change .............................................................................	1
2.	Endorsement of TCFD ......................................................................................................................	1
3.	Governance .......................................................................................................................................	2
4.	Strategy .............................................................................................................................................	3
5.	Risk Management .............................................................................................................................	6
6.	Metrics and Targets...........................................................................................................................	7

1. The Company's Recognition of Climate Change

As illustrated in the IPCC Report and other publications, advancing climate change is an unequivocal scientific fact, which has had an immense impact in Japan, such as the frequent and massive natural disasters occurring as a result of extreme weather conditions. Furthermore, there has been an increasing social demand on companies to address sustainability issues including decarbonization and climate change, as evidenced by the Japanese government's October 2020 announcement of its commitment to "achieve carbon neutrality by 2050," following the signing of the Paris Agreement in 2015.

In such a social situation, the Company has recognized responses to environmental issues including climate change as an important management issue. With the materiality goals of "strengthening of resilience to climate change" and "sustainable use of resources by measures to reduce the burden on the environment," the Company moves forward with initiatives to contribute to resolving social issues relating to climate change through its business.

2. Endorsement of TCFD

In November 2021, the Company announced its endorsement of the Task Force on Climate-related Financial Disclosures (TCFD).

In recent years, expanded information disclosure on the impact of environmental issues including climate change on business has been required in order for investors to appropriately make investment decisions.

The Company will assess the impact of climate change on its business and proactively disclose climate change-related information in line with the framework recommended by the TCFD. With a renewed recognition that initiatives against climate change will contribute to the sustainable development of society and the mid- to long-term enhancement of corporate value, the Company will further promote initiatives toward sustainability.

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3. Governance

To promote sustainable management across the organization, the Company has established the Rules on Promoting Sustainability based on the Sustainability Policy and has in place a system to promote sustainability in accordance with these Rules.

As regards the system to promote sustainable management including responses to climate change, the President serves as the Chief Sustainability Officer at the Company while the Executive Officer responsible for Administration serves as the Sustainability Executive. In addition, the Company has established the Sustainability Committee to study and formulate various policies, targets and measures, as well as the Sustainability Promotion Group to develop the system and execute various measures. The Sustainability Committee is chaired by the President and comprises members of the Sustainability Promotion Group and members appointed by each department.

As a general rule, the Sustainability Committee meets at least once every three months to study policies and targets for addressing sustainability and manage their progress, as well as cooperate with each department cross-sectionally to work on matters related to climate change including the identification and assessment of the impact of climate change, the management of risks and opportunities, the management of the status of adaptation and mitigation initiatives, and the setting of metrics and targets. The Chief Sustainability Officer engages in decision-making in light of the deliberations and studies of each agenda by the participants of the Sustainability Committee. These activities by the Sustainability Committee are periodically reported by the Sustainability Executive to the Management Meeting and the Board of Directors, and the Board of Directors supervises the sustainability initiatives accordingly.

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4. Strategy

The financial impact of climate change on the Company was assessed, and to incorporate such impact into the Company's mid- to long-term business strategies, a scenario analysis was conducted in line with the framework recommended by the TCFD.

(1) Scope of the scenario analysis

The building lease business, which accounts for the majority of net sales, was subject to the analysis. The Company is engaged in the leasing of office buildings, datacenter buildings, WINS Buildings (off-track betting parlors), commercial buildings, logistics warehouses, etc., and the accompanying building maintenance business.

(2) Major reference scenarios

The TCFD recommends explaining the resilience of the organization's strategy based on multiple scenarios including a 2°C or lower scenario. The major scenarios referred to by the Company are as follows:

	Issuer	1.5°C scenario	4°C scenario
Transition risk	IEA (International Energy	IEA World Energy	IEA World Energy
	Agency)	Outlook 2020	Outlook 2020 SPS
		NZE2050
Physical risk	IPCC (Intergovernmental	IPCC RCP2.6	IPCC RCP8.5
	Panel on Climate Change)

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