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

PROMOTION OF ENVIRONMENTAL AND/OR SOCIAL CHARACTERISTICS (SUMMARY OF SFDR ARTICLE 8 PRE-CONTRACTUAL DISCLOSURE)

No sustainable investment objective

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

What environmental and/or social (“E/S”) characteristics are promoted by Japan Logistics Fund, Inc.?

We believe that an investment corporation should conduct its business toward achieving sustainable society from a long-term perspective by making contributions to people, local communities, and the natural environment. Mitsui & Co., Logistics Partners Ltd. (the “Asset Manager”), as the asset manager for Japan Logistics Fund, Inc., makes efforts to reduce our environmental burden and earn the trust of our stakeholders through its asset management. In addition, the Asset Manager ensures that we are in compliance with applicable laws, conducts risk management and makes timely and appropriate disclosures to investors and other parties. The Asset Manager has established a Sustainability Policy and has formed a Sustainability Promotion Liaison Committee, which promotes ESG initiatives. In order to advance its ESG initiatives, the Asset Manager establishes material ESG targets and manages an environmental management system (EMS) to achieve those targets. Specifically, we implement various environmental initiatives at our properties including setting Scope 1 and Scope 2 GHG emission reduction targets, reducing electronic power consumption by replacing lighting equipment with LED light bulbs and installing photovoltaic panels, entering into “green leases” contracts which require tenants to cooperate with us on taking environmentally- friendly actions, and promoting greenfication of our all properties. In addition, our social initiatives include creating a healthy and pleasant working environment for all employees of the Asset Manager, ensuring the safety of building by obtaining updated engineering reports, developing modern, large-scale logistics properties so that these properties can contribute to revitalization of the local economy and enhancing amenities at some of our properties to create a pleasant working environment for users of our properties.

What sustainability indicators are used to measure the attainment of the E/S characteristics promoted by the investment units of Japan Logistics Fund, Inc.?

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

• Acquiring external certification – We are evaluated under the GRESB Real Estate Assessment, and received the Green Star designation and 5 Stars rating, the highest rank in GRESB Rating, based on GRESB’s overall evaluation. In addition, we have received the Green Start designation by GRESB in 2022 for the fifth 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. JLF received an “AA” rating in the MSCI ESG ratings for its strong performance in managing ESG-related risks and opportunities.
• Policy on the acquisition of green building certifications – To track the environmental performance of our 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 and Comprehensive Assessment System for Built
  Environment Efficiency (“CASBEE”) certification.
• 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 – 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. We track and monitor the total annual energy consumption and CO2 emissions of our properties.

• Greenhouse gas emissions and energy consumption – We track and monitor the total annual amount of GHG (greenhouse gas) emissions, electronic power consumption and water usage of our properties.

What investment strategy does Japan Logistics Fund, Inc. follow?

In order to conduct sustainable asset management while maximizing the value of our properties, we have taken into consideration ESG factors in our investment and asset management processes. In particular, we have established a green finance framework (“Green Finance Framework”) in accordance with the Green Bond Principles 2018, the Green Bond Guidelines 2020, the Green Loan Principles and the Green Loan and Sustainability Linked Loan Guidelines 2020.

Our Green Finance Framework meets the four requirements set forth in the Green Bond Principles 2018 with respect to (1) use of procured funds, (2) project selection criteria and process, (3) fund management methods, and (4) reporting. Our Green Finance Framework was given the Green 1(F) rating, the highest rank under the JCR Green Finance Evaluation, which is conducted by Japan Credit Rating Agency, Ltd. (JCR) on the policy for issuance of green bonds or green loans based on the Green Bond Principles 2018, the Green Loan Principle.

What is the policy to assess good governance practices of Japan Logistics Fund, Inc.?

• Additional reporting process from the Asset Manager. Under the asset management agreement, we have the right to receive a variety of reports from the Asset Manager and the right to inspect the
  Asset Manager’s book and records, to be able to supervise the Asset Manager’s operations.
• Prevention of insider trading and conflict-of-interest transactions. We have set established insider trading controls to prevent insider trading by directors and rules on conflict-of-interesttransactions. We are not allowed to carry out related-partytransactions without the approval of the Asset Manager’s Internal Controls Committee and Board of Directors.
• Transparent and appropriate information disclosure. We have a policy of disclosing information in an appropriate and timely manner, in accordance to the requirements established by the Investment Trusts Act, the Financial Instruments and Exchange Act of Japan, the Tokyo Stock Exchange. The Asset Manager’s Finance & IR Department has responsibility to manage information disclosure. Each relevant department is required to immediately report to Finance & IR Department material information on asset management, accounting, compliance and other matters that may require disclosure. As necessary, a disclosure committee is convened. In general, approval from the President and CEO is required for all disclosure.

What is the asset allocation planned for Japan Logistics Fund, Inc.?

As of September 30, 2022, 50.0% of our properties (by leasable area) had obtained the Certification for CASBEE for Real Estate, 2.7% had obtained the CASBEE Certification for Buildings (New Construction), 13.7% had obtained the DBJ Green Building certification and 27.6% had obtained the BELS Certification. In total, 69.8% of our properties was qualified Green Eligible Assets as of September 30, 2022. We aim to

increase the percentage of green building certifications on our properties (by leasable area) to 75% by the March 31, 2024 and to 90% by the March 31, 2026.

Is a specific index designated as a reference benchmark to determine whether the investment units of Japan Logistics Fund, Inc. is aligned with the environmental or social characteristics that it promotes?

Japan Logistics Fund, Inc. does not have a specific index designated as a reference benchmark. However, our investment units have been included in the Nikkei ESG-REIT Index. The Nikkei ESG-REIT Index is a REIT index comprised of the REITs listed on the Tokyo Stock Exchange weighted by market capitalization adjusted for ESG factors based on ESG ratings issued by GRESB. The constituents are changed at the end of November through the periodic review which is conducted once a year. JLF received an “AA” rating in the MSCI ESG ratings for its strong performance in managing ESG-related risks and opportunities.

REMUNERATION AND SUSTAINABILITY RISKS (SFDR ARTICLE 5 DISCLOSURE)

The Asset Manager has a remuneration policy in place which aims to support its strategy, values and long- term interest, including its interest in sustainability. The Asset Manager’s remuneration policy is consistent with the integration of sustainability risks as follows.

• Employees of the Asset Manager receive remuneration according to their relative contribution to and expectations for the achievement of management targets, including, in some cases, sustainability targets.
• Remuneration, methods of calculation and payment, timing of payment, and increases in remuneration are determined according to the Asset Manager’s compensation rules, which are established based on statutory requirements.
• Monthly remuneration is base salary, fixed extra payments, position allowances, merit based allowances and other adjustments.
• Bonuses are calculated based on sales and performance, and are determined by the Asset Manager’s internal rules. Bonuses take into account issues including job content, performance, and attendance.
  Such evaluations take into consideration the employee’s contributions and conduct with respect to sustainability efforts and compliance requirements