• Information in respect of LaSalle REIT Advisors’ policy on the integration of sustainability risks into investment decision-making processes (SFDR Article 3-4 Disclosure)
• Information in respect of the integration of sustainability risks in remuneration policies (SFDR Article 5 Disclosure)

• Pre-contractual disclosure for the financial products (SFDR Article 8 Disclosure)

LaSalle LOGIPORT REIT (hereafter referred to as “LLR” or the “Fund”) is an investment corporation that was incorporated on October 9, 2015 under the Act on Investment Trusts and Investment Corporations of Japan (Act No. 198 of 1951 as amended, the “Investment Trust Act”). LLR was listed on the Real Estate Investment Trust (“REIT”) Section of the Tokyo Stock Exchange on February 17, 2016 (securities code: 3466). Asset management is conducted by LaSalle REIT Advisors K.K. (hereafter referred to as “LRA”), in accordance with the Investment Trust Act, and the investment targets and policies set forth in LLR’s Articles of Incorporation.

LLR promotes environmental characteristics, but does not have as its objective a sustainable investment within the meaning of article 9(1) of Regulation (EU) 2019/2088 (“SFDR”). LLR relies on LRA, to manage and operate the properties in its portfolio. LLR and LRA are hereinafter referred to collectively as “we,” “us” or “our.”

A. Summary

No sustainable investment objective	This financial product offered by LLR promotes environmental characteristics, but does not have as its objective sustainable investment.
Environmental or social characteristics of the financial product	As part of the Investment Corporation’s aim to increase unitholder value through stable, long-term growth in asset value, we recognize that climate change has a major impact on societies/industries and is an unavoidable risk that is closely related to our business activities. By contributing to the reduction of greenhouse gases (“GHG”) mainly through the reduction of energy consumption, we aim to contribute to a sustainable society. LLR specifically promotes environmental characteristics as follows: Energy & Carbon: reduction of greenhouse gas (“GHG”) emissions and the efficient use of energy. Climate Adaptation: contribution to the process of adjustment towards a low carbon economy and to the reduction of the adverse physical effects of climate change (such as floods) through adaptation measures. For the purpose of this disclosure, the Fund does not promote any social characteristics.
Investment strategy	The Fund invests in logistics facilities and intends to build a high-quality portfolio with a focus on prime logistics facilities, which are located in areas well suited to logistics operations and with large-scale and high functionality building specifications. When acquiring new assets, the Investment Committee conducts a review of sustainability risks as part of the due diligence process and evaluates the identified risks before making an investment decision. LRA has established an ESG Committee as an advisory body for the promotion of ESG, which deliberates on the formulation of basic policies, strategies, targets or plans for the promotion of ESG and monitors progress in relation to these.
Proportion of investments	The planned minimum proportion of the investments of the Fund aligned with environmental characteristics in category is expected to be 60% of total GAV of the Fund excluding liquid assets subject to further considerations set out in the Annex II. The remaining “Other” investments in category is expected not to represent more than 40% of total GAV of the Fund excluding liquid assets a subject to further considerations set out in the Annex II.
Monitoring of environmental or social characteristics	GHG emissions (Scope 1, Scope 2, Scope 3 and Total) (PAI 18 Table 2), energy consumption intensity (PAI 19 Table 2) and Environmental certifications (CASBEE and BELS).
Methodologies	To assess the indicators mentioned above, we have established a management system and conduct sustainability due diligence annually.
Data sources and processing	At the property level, the property management company collects and reports monthly data on energy, gas, water and waste management to LRA's Asset Management Department. At the portfolio level, LRA aggregates this environmental data and obtains an annual assurance report from an independent third party accounting firm to ensure the accuracy and quality of the aggregated data. In addition, 0% of data for calculating the characteristics of the financial product are estimated.
Limitations to methodologies and data	The primary limitation to the methodology or data source is the necessity of our reliance on the tenants and property management companies for raw data at the property level. Data at the portfolio level are compiled internally at the Asset Manager. To ensure the accuracy of compiled data at the portfolio level, we have engaged an independent third-party accounting firm which has provided an assurance report regarding the accuracy and quality of compiled data at the portfolio level, but the assurance report does not provide independent verification of accuracy of raw data at the property level and the challenges associated with our reliance on the tenant and property management companies for raw data at the property level remain. Limitations to the methodology and data are not expected to affect the attainment of the environmental or social characteristics promoted by LLR in any material way.
Due diligence	When acquiring new assets, the Investment Committee conducts a review of sustainability risks as part of the due diligence process and evaluates the identified risks before making an investment decision. These include soil contamination, flooding risk/history, energy efficiency, environmental certifications, water efficiency, waste management, and safety of building materials, etc., with some risks such as soil contamination being reviewed by external experts. The ESG Committee manages and monitors all sustainability-related risks. For all properties managed, a "Sustainability Management Plan" is formulated each fiscal year to monitor environmental performance, climate change risk, resilience improvement, etc. Progress is regularly reported to the ESG Committee, and additional measures are considered when necessary.
Engagement policies	We do not generally consider investing in properties that do not meet the eligibility criteria under our sustainability risks that include soil contamination, flooding risk/history, energy efficiency, environmental certifications, water efficiency, waste management, and safety of building materials, etc.
Designated reference benchmark	LLR has no benchmark index designated as a reference benchmark to meet the environmental characteristics promoted by LLR.

B. No sustainable investment objective

This financial product promotes environmental characteristics, but does not have as its objective sustainable investment.

C. Environmental and/or social characteristics of the financial product

LLR’s basic philosophy is to increase unitholder value through stable, long-term growth in cash flow and asset value. We believe that the implementation of best practices related to environmental, social and governance matters helps to mitigate risks and contributes to the sustainable improvement of unitholder value and is consistent with the basic philosophy set forth by the Investment Corporation.

As part of the Investment Corporation’s aim to increase unitholder value through stable, long-term growth in asset value, we recognize that climate change has a major impact on societies/industries and is an unavoidable risk that is closely related to our business activities. By contributing to the reduction of greenhouse gases (“GHG”) mainly through the reduction of energy consumption, we aim to contribute to a sustainable society.

LLR specifically promotes environmental characteristics as follows:

• Energy & Carbon: reduction of greenhouse gas (“GHG”) emissions and the efficient use of energy.
• Climate Adaptation: contribution to the process of adjustment towards a low carbon economy and to the reduction of the adverse physical effects of climate change (such as floods) through adaptation measures.

For the purpose of this disclosure, the Fund does not promote any social characteristics.

D. Investment strategy

The Fund invests in logistics facilities and intends to build a high-quality portfolio with a focus on prime logistics facilities, which are located in areas well suited to logistics operations and with large-scale and high functionality building specifications. When acquiring new assets, the Investment Committee conducts a review of sustainability risks as part of the due diligence process and evaluates the identified risks before making an investment decision. LRA has established an ESG Committee as an advisory body for the promotion of ESG, which deliberates on the formulation of basic policies, strategies, targets or plans for the promotion of ESG and monitors progress in relation to these.

Findings from due diligence review conducted prior to an acquisition of a property, including soil contamination, flooding risk/history, energy efficiency, environmental certifications, water efficiency, waste management, and safety of building materials, are binding on our investment strategy, and we will not acquire a property that does not meet certain criteria based on such findings. We also take into account the acquisition of green building certifications and environmental performance including CO2 emissions, which promotes acquisition of properties with high environmental performance.

E. Proportion of investments

The Fund Manager will undertake reasonable commercial endeavours to procure that not less than 60% of the portfolio of the Fund (calculated as a proportion of total gross asset value (“GAV”) of the Fund excluding liquid assets from such calculation aligns with the environmental characteristics promoted by the Fund, as assessed by the sustainability due diligence.

The remaining “Other” investments in category is expected not to represent more than 40% of total GAV of the Fund excluding liquid assets.

F. Monitoring of environmental or social characteristics

LLR measures the attainment of environmental characteristics using the following indicators.

• GHG emissions (Scope 1, Scope 2, Scope 3 and Total) (PAI 18 Table 2), energy consumption intensity (PAI 19 Table 2).
• Environmental certifications: Comprehensive Assessment System for Built Environment Efficiency (“CASBEE”) for real estate certification and Building-Housing Energy-Efficiency Labeling System (“BELS”) certification.

To assess these indicators, management systems are established and sustainability due diligence is performed annually.

G. Methodologies

To assess the indicators mentioned above, we have established a management system and conduct sustainability due diligence annually.

With regard to electricity consumption in the portfolio, we aim to obtain electricity consumption data for all properties by 2030 (target set in 2022), and will monitor monthly electricity consumption per unit of production on a gross floor area basis as a KPI. In addition to the KPI mentioned above, we will also monitor GHG emissions per unit on a gross floor area basis. We will aim to reduce emissions per unit by 50% by 2030 compared to 2019 emission levels.

In order to enhance transparency and reliability of the environmental performance of the properties we manage, we have been promoting the acquisition of environmental certifications by setting a target to achieve a 100% acquisition rate of environmental certifications by the end of 2025.

H. Data sources and processing

At the property level, the property management company collects and reports monthly data on energy, gas, water and waste management to LRA's asset management department. At the portfolio level, LRA aggregates this environmental data and obtains an annual assurance report from an independent third-party accounting firm to ensure the accuracy and quality of the aggregated data. In addition, 0% of data for calculating the characteristics of the financial product are estimated.

LLR has obtained environmental certifications issued by third-party organizations that issue environmental certifications for real estate properties, to increase the transparency and reliability of the environmental performance of its properties.

I. Limitations to methodologies and data

The primary limitation to the methodology or data source is the necessity of our reliance on the tenants and property management companies for raw data at the property level. Data at the portfolio level are compiled internally at the Asset Manager. To ensure the accuracy of compiled data at the portfolio level, we have engaged an independent third-party accounting firm which has provided an assurance report regarding the accuracy and quality of compiled data at the portfolio level, but the assurance report does not provide independent verification of accuracy of raw data at the property level and the challenges associated with our reliance on the tenant and property management companies for raw data at the property level remain.
Limitations to the methodology and data are not expected to affect the attainment of the environmental or social characteristics promoted by LLR in any material way.

J. Due diligence

When acquiring new assets, the Investment Committee conducts a review of sustainability risks as part of the due diligence process and evaluates the identified risks before making an investment decision. These include soil contamination, flooding risk/history, energy efficiency, environmental certifications, water efficiency, waste management, and safety of building materials, etc., with some risks such as soil contamination being reviewed by external experts.

The ESG Committee manages and monitors all sustainability-related risks. For all properties managed, a "Sustainability Management Plan" is formulated each fiscal year to monitor environmental performance, climate change risk, resilience improvement, etc. Progress is regularly reported to the ESG Committee, and additional measures are considered when necessary.

The ESG Committee chaired by the President and Representative Director, which holds regular meetings once a year to establish ESG-related goals and policies, including climate change, and to monitor the progress of these efforts. The members of the ESG Committee consist of the managers of LRA's major ESG-related divisions and other staff members in charge of ESG-related activities. The committee promotes ESG-related activities in collaboration with LaSalle's Global Sustainability Committee (which meets at least six times a year) and the sustainability officer responsible for Asia Pacific.

K. Engagement policies

We do not generally consider investing in properties that do not meet the eligibility criteria under our sustainability risks that include soil contamination, flooding risk/history, energy efficiency, environmental certifications, water efficiency, waste management, and safety of building materials, etc.

L. Designated reference benchmark

LLR has no benchmark index designated as a reference benchmark to meet the environmental characteristics promoted by LLR.