The Mitsubishi Estate Group CSR Report 2011 3 Message from the President

Editorial Policy Contents

The Mitsubishi Estate Group began publishing its Environmental Editorial Policy / Contents 3 Report in fiscal 2000 to provide an overview of its environmental 4 initiatives. Beginning in fiscal 2005, the Group expanded the Message from the President coverage of the report to include corporate social responsibility CSR Concept 6 and began calling it the CSR Report. Scope The organizations covered in this report are Mitsubishi Estate and the 44 Group Special Feature companies listed below. 1 Marunouchi continues to forge ahead 8 Business Group Company Name Business Segment Mitsubishi Estate Building Management Co., Ltd. 2 Providing friendly, value-added homes Mitsubishi Jisho Property Management Co., Ltd. that are good for the environment Property Management Hokuryo City Service Co., Ltd. 12 and Office Leasing Yuden Building Kanri Co., Ltd. Grand Parking Center Co., Ltd. 3 “Experience Nature” project brings Tokyo Garage Co., Ltd. together urban and rural communities 16 Marunouchi Heat Supply Co., Ltd. Sunshine City Corporation Sunshine BS Corporation Commercial Asset Building Business Management and Sunshine Enterprise Corporation Committed to Environmental Sustainability Development Ikebukuro District Heating and Cooling Co., Ltd. Basic Policy and Performance Highlights 18 Tokyo Kotsu Kaikan Co., Ltd. Marunouchi Direct Access Limited Building a Low-Carbon Society 19 Mitsubishi Jisho Retail Property Management Co., Ltd. Creating a Sound Material-Cycle Society 20 Yokohama Sky Building Co., Ltd. Retail Property Yokohama Swimming Center Co., Ltd. Fostering Harmony between Nature and Human Society 21 IMS Co., Ltd. Reducing Environmental Impact 22 Chelsea Japan Co., Ltd. Increasing Ecological Awareness Izumi Park Town Service Co., Ltd. 22 Mitsubishi Jisho Community Co., Ltd.1 MT Community Staff Co., Ltd. Interacting with Local Communities and the Ryoei Life Service Co., Ltd. Higashinihon Kaihatsu Co., Ltd. Broader Society Residential Development MEC Urban Resort Tohoku Co., Ltd. Residential Business Basic Policy and Performance Highlights 23 Mitsubishi Estate Home Co., Ltd. Mitsubishi Estate Housing Components Co., Ltd. Harmony with the Local Community 23 Mitsubishi Jisho Residence Co., Ltd.2 Support for Culture and the Arts 24 Towa Nasu Resort Co. MEC eco LIFE Co., Ltd. Environmental Conservation 25 Mitsubishi Jisho Investment Advisors, Inc. Social Welfare Investment Management Investment 25 Japan Real Estate Asset Management Co., Ltd. Management Mitsubishi Jisho Sekkei Inc. Architectural Design and Architectural Design Engineering MEC Design International Corporation Engaging Clients Royal Park Hotels and Resorts Co., Ltd. Communicating with Clients 26 Yokohama Royal Park Hotel Co., Ltd. Tohoku Royal Park Hotel Co., Ltd. Safe and Secure Urban Development 27 Hotel Business Hotel Business Royal Park Shiodome Tower Co., Ltd. Information for Everyone 28 Royal Park Hotel Co., Ltd. Royal Park Hotel Management Co., Ltd. Mitsubishi Real Estate Services Co., Ltd. Cooperating with Business Partners 29 Real Estate Services Real Estate Services Mitsubishi Jisho House Net Co., Ltd.3 MEC Information Development Co., Ltd. Corporate Group Keiyo Tochi Kaihatsu Co., Ltd. Other Serving Shareholders and Investors 30 MEC Human Resources, Inc.

In addition, the report covers some initiatives of the Rockefeller Group, a Working Together with Employees U.S.-based subsidiary, and MEC UK Limited, a UK-based subsidiary. Initiatives in Human Resource Development 31 Note: Business segments were changed in April 2011 as below: • The Custom-Built Housing Business was integrated into the Residential Business. Creating a Vibrant Workplace 31 • The Urban Development and Investment Management was renamed the Commercial Property Development and Investment. Creating a Workplace that Respects Human • The Investment Management Business was established by separating the Rights and Employee Diversity investment management business in Japan from the Commercial Property 32 Development and Investment. Supportive Workplaces for Employees 33 1 Renamed from Mitsubishi Jisho Towa Community Co., Ltd. on April 1, 2011 2 Established on January 1, 2011 by integrating the residential businesses of Mitsubishi Estate Co., Ltd., Mitsubishi Real Estate Services Co., Ltd., and Towa Real Estate Development Co., Ltd. Corporate Governance 34 3 Renamed from Towa Real Estate Brokerage Co., Ltd. on April 1, 2011 Compliance 36 Environmental performance data primarily covers the following organizations, which are among those that have acquired ISO14001 certification. • Property Management and Office Leasing Group and Commercial Asset Management and Development Group of Mitsubishi Estate Co., Ltd. Opinions by the External Advisors • Yokohama Sky Building Co., Ltd. on the CSR Committee 37 • Mitsubishi Jisho Towa Community Co., Ltd.* Response to the Great East Japan Earthquake 38 • Mitsubishi Jisho Sekkei Inc. • Mitsubishi Estate Home Co., Ltd. • Royal Park Hotels and Resorts Co., Ltd. • Royal Park Hotel Co., Ltd. * Renamed Mitsubishi Jisho Community Co., Ltd. in April 2011 Publication date: December 22, 2011 Period Next issue: This report covers fiscal 2010 (April 1, 2010 to March 31, 2011), but also The next issue is scheduled for publication in December 2012. includes information pertaining to other fiscal years. Production overseen by: Reference guidelines CSR Department • Sustainability Reporting Guidelines 2006, Global Reporting Initiative (GRI) Mitsubishi Estate Co., Ltd. • Environmental Reporting Guidelines (2007 edition), Ministry of the Otemachi Building, 6-1, Otemachi 1-chome, Chiyoda-ku, Tokyo 100-8133 Japan Environment, Japan Tel: +81-3-3287-5780 Fax: +81-3-3211-5290

The Mitsubishi Estate Group CSR Report 2011 3 Message from the President

We continue to deepen ties with our stakeholders as we strive to create growth for all.

In tandem with this kind of innovation, in the Redevelopment Contributing to earthquake and tsunami Project we also focus on creating environmentally sound communities. reconstruction and building a more vibrant society: In addition to using the most advanced environmental technologies in Living up to our Group Mission each of our own buildings, we have established an organization to Our hearts go out to all those suffering from the Great East Japan promote environment-friendly urban development, bringing together Earthquake, and we pray for a fast recovery in all the areas affected. industry, government, and academic parties with the public to consider A safe society that is resilient in the face of disaster and the future of the entire area. Thus, we are pursuing various environmental environmentally sustainable has never been more earnestly desired initiatives in both the “hard” aspects like equipment and facilities and the than at this point in Japan’s history. This is precisely why we now “soft” aspects like partnership and social initiatives. Moreover, we reaffirm that the definition of our social responsibility is our Group established the Mitsubishi Estate Group Long-term Environmental Vision Mission: “By building attractive, environmentally sound communities to articulate the Group’s collective approach, and also introduced the where people can live, work and relax with contentment, we environmental slogan “For Sustainable Cities, For the Sustainable Earth” contribute to creating a truly meaningful society.” This is what to communicate our initiatives and improve environmental awareness motivates us every day to bring together all of our strengths as a both internally and externally. Group to help with reconstruction in the affected regions, as we Our focus on community building is also effective in building a continuously strive to build a truly vibrant society. safer society. We have not only reinforced the disaster prevention measures we take in our buildings, but have also strengthened the “soft” aspect of our efforts, for example, by holding comprehensive Cutting-edge safety and environmental performance emergency drills and conducting regional networking to increase in urban development demonstrated by the preparedness for large-scale disasters. This kind of preparation proved Marunouchi Redevelopment Project to be highly helpful when the massive earthquake hit in March, as we The redevelopment of the Otemachi, Marunouchi and Yurakucho were able to provide shelter overnight to many people who were district puts our Group Mission into practice and symbolizes our stranded in the center of Tokyo. approach to urban development. We believe that sparing no effort when it comes to safety and Ever since we built the Mitsubishi Ichigokan in 1894 as the environment is not only essential to the Group’s continued Marunouchi’s first office building, we have been involved in the existence but is also the driver of new growth. Mitsubishi Estate will development and reconstruction of this area, a place which has always continue to take innovative steps that define the best practices of our been at the center of the Japanese economy. We have introduced times, as we seek to make the Otemachi, Marunouchi and Yurakucho cutting-edge urban functions by innovating with the changing times. district a model city in terms of environmental responsibility and With the Marunouchi Redevelopment Project, launched in disaster preparedness. 1998, we created a sense of vitality and excitement in the streets by redeveloping the area around Tokyo Station in the first stage of the project. In the second stage, begun in 2008 and ongoing, we aim to Increasing the appeal of cities by pursuing our expand and deepen the redevelopment to create new forms of customers’ hopes and dreams value. As such, we opened the Mitsubishi Ichigokan Museum, which The Mitsubishi Estate Group established the Mitsubishi Estate Group serves as a hub of history, art and culture. Vision: BREAKTHROUGH 2020, a long-term vision starting from fiscal

The Mitsubishi Estate Group CSR Report 2011 4 2011, to guide our efforts to pursue our unique brand of urban support it “As One Team” that works seamlessly across Group development over the long term. The plan includes a slogan that companies and departments to create greater value. The articulates our long-term vision: “Orchestrating comfortable cities for cross-sectional task forces (CSTs) we started in fiscal 2007 were the future—we create ideal urban environments worldwide.” It also expanded to include Group company employees in fiscal 2011. The specifies the five values of “innovative,” “eco-conscious,” “customer- CSTs bring together junior and mid-career employees to discuss oriented,” “global” and “As One Team,” together with corresponding management issues and make suggestions to top executives, who actions to take. also serve as mentors to the CSTs. This is another measure Among these, the “customer-oriented” value expresses our designed to bring together the Group’s strengths. Our Japanese commitment to constantly identifying with customers and advertising campaign (“Check it out! Mitsubishi Estate.”) launched continually working to create the value they require. This is much in fiscal 2010 was one of the proposals from the CST program more than just building beautiful office buildings and condominiums. developed to communicate the Group’s engaged stance and We do this by engaging with our customers, learning about their openness to individual customers. hopes and dreams, to ensure that our efforts actually reflect the desires of the people who live and work in the communities we develop. This is the key to improving the Mitsubishi Estate Group’s Pursuing new social contributions that make the unique appeal. most of management resources Social contribution programs that make the most of management resources are also pursued “As One Team.” The “Experience Nature” Enhancing the competitiveness of Japan’s cities to project, a project based in Hokuto City in Yamanashi Prefecture, build a stronger economy and energize our society was started in 2008 to foster interaction between urban and rural When it comes to our perspective on “global” value, we refer to our communities. The project involves not only employees, but also profound aspiration to help energize Japan’s society and economy Marunouchi district workers and customers of the Residential by actively pursuing globalization. Our approach emphasizes two Division, and is helping to revitalize the community by linking parallel strategies: “out-in,” which means helping to attract both Yamanashi Prefecture’s timber and food products to the Mitsubishi corporate investment and human talent to Japan; and “in-out,” Estate Group’s business activities. which means leveraging Japan’s advantages in overseas markets. On the “out-in” front, the value and appeal of Japan’s cities must be improved to attract foreign companies and investors as A corporate group that encourages new energy and well as tourists. For example, take our plans to open medical growth by staying connected with people facilities and financial education and exchange centers for At the Mitsubishi Estate Group, all of us are committed to visitors from other countries in the Otemachi, Marunouchi and remembering how important it is to stay connected with people Yurakucho district. We are endeavoring to strengthen and the society as a whole. Naturally, this means we treat international competitiveness by augmenting urban functions in compliance as the most fundamental management issue as we a variety of forms. strive to meet the needs of our clients and the broader society. We In the “in-out” direction, we are developing office buildings, are working hard to be a corporate group that encourages new commercial complexes and condominiums in fast-growing major energy and growth, while deepening ties with all of our cities in Asia, as well as Europe and the U.S. We intend to ensure stakeholders, in order to realize our brand statement, “A Love for that our business takes root in the local culture and climate by People, A Love for the City.” partnering with leading local companies and building trust. This will enable us to contribute to local communities through urban development, just as we do in Japan.

Creating greater value by bringing together the Hirotaka Sugiyama Group’s strengths “As One Team” President & CEO The Mitsubishi Estate Group’s value chain supports these initiatives. Mitsubishi Estate Co., Ltd. The Group boasts comprehensive expertise ranging from planning and development, leasing and sales, facility management and September 2011 maintenance, to area management. I believe that executives like myself are responsible for bringing together this value chain and the human resources that

The Mitsubishi Estate Group CSR Report 2011 5 CSR Concept

For the Mitsubishi Estate Group, CSR is epitomized by the Group’s Mission, which is to help create a truly meaningful society by working to build attractive, environmentally sound communities where people can live, work and relax with contentment. To realize this mission, the Group puts into practice the three core elements of its Code of Conduct: acting with integrity, earning the trust of clients and creating a vibrant workplace. The Group strives to maintain an ongoing dialogue with the public by pursuing thorough communication with stakeholders.

The Spirit of Mitsubishi: The Three Principles Shoki Hoko Shoji Komei Ritsugyo Boeki Corporate Responsibility to Society Integrity and Fairness Global Understanding through Business Strive to enrich society, both materially Maintain principles of transparency and Expand business, based on an and spiritually, while contributing openness, conducting business with all-encompassing global perspective. towards the preservation of the integrity and fairness. global environment.

The Mission of Mitsubishi Estate Group We contribute to society through urban development. By building attractive, environmentally sound communities where people can live, work and relax with contentment, we contribute to creating a truly meaningful society.

The Mitsubishi Estate Group Code of Conduct In order to carry out the Group Mission, we pledge to observe the following Code of Conduct.

1. We will act with integrity. We will base our conduct on laws and ethics, and always reﬂect with humility upon our behavior, valuing our communication with society and placing priority in our corporate activities on earning trust through fairness and transparency.

2. We will strive to earn the trust of our clients. We will approach all objectives from our clients’ point of view, providing safe and reliable products and services, and make information available as appropriate.

3. We will strive to create a vibrant workplace. While aiming at personal growth, we will respect the human rights and the diversity of opinion of others, and increase our creativity and professionalism while displaying our collective strengths as a team.

Mitsubishi Estate Group Guidelines for Conduct Full text available at www.mec.co.jp/e/company/charter/

Formulated: December 1, 1997 / Revised: August 1, 2002 / Revised: January 1, 2006

The Mitsubishi Estate Group CSR Report 2011 6 Mitsubishi Estate Group’s Relationships with Stakeholders

The Mitsubishi Estate Group’s business is premised on its Mitsubishi Estate Group’s ties with stakeholders relationships with a wide variety of stakeholders, including Local customers, shareholders, the local community, government and community Customers Shareholders local administrations, business partners, and executives and employees and their family members. Government and The Mitsubishi Estate Business activities in urban development involve many Investors administrations Group stakeholders by their very nature, and the Mitsubishi Estate Group has the responsibility to pursue its business activities while living up to the trust placed in it by these stakeholders. The Group holds Executives and Business Competitors dialogue with stakeholders in various formats, and carries out employees partners many programs to reflect these opinions in its management.

Operational Framework for CSR

Mitsubishi Estate takes an active, groupwide approach to CSR. the same year, chaired by the company president, to ensure In April 2005, Mitsubishi Estate Co., Ltd., established the CSR groupwide implementation of CSR. In addition, the Compliance Department by integrating CSR-related organizations and tasking Subcommittee, the Environmental Subcommittee and the Risk it with setup and management of the framework for its CSR efforts. Management Subcommittee were established as forums for The company also set up the CSR Committee in September of discussion before the CSR Committee meets.

Overview of CSR Committee meetings held in fiscal 2010 Operational Framework for CSR

First meeting (July 2010, regular meeting) CSR Committee Compliance Subcommittee • Discussion on establishing a long-term environmental vision for the Group • Risk management initiatives The CSR Committee, chaired by the Environmental Subcommittee • Report on compliance, etc. company president and made up of Second meeting (February 2011, regular meeting) executives in all business fields, including Risk Management Subcommittee • Discussion on developing an environmental slogan and logo the major Group companies, discusses and • Report on “Experience Nature” project, a social contribution initiative shares information on issues related to CSR These subcommittees, made up of • Report on results of compliance survey, etc. at the Mitsubishi Estate Group. In addition department managers in all business to two regular meetings a year, the fields, discuss issues affecting compliance, The following two external experts participate as advisors in the regularly committee also meets on an ad hoc basis. risk management and the environment. scheduled CSR Committee meetings. Iwao Taka, Ph.D. Dean, International School of Economics and Business Administration, Professor, C. Hiroike Graduate School, Reitaku University Setsuko Egami, Professor, Faculty of Sociology, Musashi University Committee Secretariat, CSR Department, Mitsubishi Estate

Priority CSR Issues for the Near Term

At the CSR Committee meeting held in February 2009, the Group determined three issues that will be given priority over the next three to five years.

Priority CSR issues for the near term

Building a low-carbon society Creating a sound material-cycle society Promoting environmental management Fostering harmony between nature and human society Promoting environmental communication Increasing employees’ ecological awareness

Promoting new social contribution programs Implementing groupwide social contribution initiatives utilizing management resources Pursuing collaboration with local communities on projects that demonstrate the uniqueness of the Mitsubishi Estate Group

Creating a more vibrant workplace and fostering Creating a workplace in which employees are motivated and able to exercise their skills a dynamic workforce Creating a workplace where human rights and diversity are always respected

The Mitsubishi Estate Group CSR Report 2011 7 Special Feature 1 after work and on weekends. Commercial facilities such as Working to create new value in the trendy brand-name shops, restaurants and cafes were invited Otemachi, Marunouchi and Yurakucho to open outlets in the new buildings. This transformed district while expanding and deepening Marunouchi continues to Marunouchi from a neighborhood focused on business into a urban development hopes and dreams community with versatile functions including retail and tourist attractions. The district is now full of life and diverse The Otemachi, Marunouchi and Yurakucho district’s urban forge ahead crowds—business people, shoppers and tourists from Japan development has had such good results because all of the and all around the world. Creating a prosperous, comfortable neighborhood that harmoniously integrates the environment people involved—government administrators, landowners and and culture—Mitsubishi Estate is developing the Otemachi, Marunouchi and Yurakucho district to academics—aim to create a good community and work expand the area and deepen all of its diverse urban functions. Disseminating new value in culture, together in mutual trust. Building on these relationships of trust, art and history from the Otemachi, at Mitsubishi Estate we plan to introduce new urban functions in Marunouchi and Yurakucho district the district and make the district into a global hub for Tokyo and all of Japan. We will also continue to share Marunouchi—Japan’s evolving Tokyo Station. Starting with the Marunouchi Building, which In 2008, the present information with overseas audiences about business center for more than was completed in August 2002, major buildings were rebuilt, Marunouchi the district’s public-private partnership a century including the Industry Club of Japan and the Mitsubishi UFJ Redevelopment Project model of eco-friendly urban development. Trust and Banking Building, Marunouchi OAZO, Tokyo reached its second We will continue to take on the Marunouchi’s development began in 1890 when Yanosuke Building, Shin-Marunouchi Building and the Peninsula Tokyo. stage, which focuses on challenge of creating new value in Iwasaki, the second Mitsubishi president, decided to acquire During the redevelopment work, eorts were made to expanding the area the district while deepening and the Marunouchi district from the government with the vision ensure that the covered by the urban expanding people’s hopes and of creating a business center that would bring Japan into project would not development and dreams for urban development. modernity. Beginning with Mitsubishi Ichigokan, the rst oce only enhance the deepening the district’s Exhibit “The Party à la japonaise—from the building in Marunouchi, completed in 1894, a series of red area’s business cultural, artistic and Davey Collection,” June 14 – August 21, 2011 Kenji Hosokane brick buildings were built, resulting in Japan’s most well-known functions, but also historical functions. The General Manager, Area Planning Office business center. These buildings were renovated into modern make it an enjoyable objective is to expand the area to the entire Otemachi, Mitsubishi Estate Co., Ltd. oce buildings during the period of strong economic growth place to spend time Marunouchi and Yurakucho district, expanding out from after World War II, and Marunouchi was transformed Marunouchi to Otemachi and Yurakucho, and to bring its into an oce community symbolic of Japan’s cultural, artistic, and historical functions to a whole new dramatic economic boom. Today, the third major level of depth. The completion of the Marunouchi Park Museum open to local community, to provide redevelopment project is underway in Marunouchi. Building and Mitsubishi Ichigokan in April 2009 represented a place to enjoy art up close Mitsubishi Estate began this Marunouchi the rst step in this process. A devoted eort was made to Redevelopment Project in 1998. In the rst 10 restore the Mitsubishi Ichigokan building to its original Mitsubishi Ichigokan Museum, Tokyo, having been transformed years, representing the rst stage of the project, appearance when it was built in 1894, and the building was from a renovated Meiji-era office building into a museum, stands as one of the world’s most unique museums. Located right in the work began on redeveloping the area around Mitsubishi Ichigokan (in 1894) Mitsubishi Ichigokan (restored) and the Marunouchi opened in April 2010 as a museum tasked with serving as a Park Building (both completed in 2009) steward of art and culture. middle of Tokyo, the museum quickly gained attention from around the world in the first year after it opened. Given the history Marunouchi Map Mitsubishi Estate is also pursuing projects that will

Kokyo Gaien National Park Resona Maruha Bldg. N of the building and the history of Marunouchi itself, the museum (owned by a special-purpose create new value in this area, such as enhancing its company under management of Mitsubishi Estate) holds small but innovative exhibits based on the concept of a JA Bldg. The Bank of Tokyo functions as a global business center and building a medical Hibiya Station, Chiyoda Line Harumi Dori Mitsubishi UFJ Otemachi Bldg. Keidanren modern city and art focused on the nineteenth century. Hibiya-bori Moat Wadakura-bori (owned by a special-purpose company under Kaikan Babasaki-bori Moat Moat management of Mitsubishi Estate) facility for international visitors and a nancial education

Hibiya Station, Toei Mita Line We will not only take a unique approach to promoting new Hibiya Dori Otemachi Station, Toei Mita Line and interaction center. The company is also enhancing the Marunouchi 1st St. Marunouchi 5th St. Marunouchi 4th St. Marunouchi 7th St. Marunouchi 6th St. Nijubashimae Station, Chiyoda Line Otemachi Station, Chiyoda Line Marunouchi 3rd St. Marunouchi 2nd St. Tokyo Kaikan Kishimoto Tokyo Ginko Otemachi Station, Hanzomon Line artistic value from the district, but will also make Mitsubishi Nippon Broadcasting Bldg. Kyokai Bldg. System Bldg. area’s versatility and hospitality by holding events using the Babasaki Dori

The Kokusai Gyoko Dori Mizuho Corporate Bank Ltd. Head Office Bldg. Ichigokan Museum open to the local community so that people Peninsula Bldg. Fuji Bldg. Marunouchi (owned through a special-purpose underground passageway gallery space and taking initiatives Tokyo Nakadori Bldg. company capitalized by Mitsubishi Estate) Otemachi Hibiya Station, Hibiya Line Yurakucho Station, Line Marunouchi Naka Dori Ave. Bldg. working in and visiting the district come in as casually as if they Shin-Kokusai Marunouchi The Industry Club Yurakucho Yurakucho Shin Shin Otemachi 1-chome Second Area like opening a childcare facility to support people working in Bldg. 2-chome Bldg. Marunouchi of Japan and The Marunouchi 1st Class Urban Denki Bldg. Bldg. Yurakucho Shin-Tokyo Marunouchi Park Bldg. Marunouchi Mitsubishi UFJ Bldg. & Mitsubishi Ichigokan Bldg. 1-4 Project Redevelopment Project Bldg. Shin-Nisseki Mitsubishi Bldg. Bldg. Trust and Banking (tentative name) were going to a coﬀee shop. This would enable the museum to Bldg. Bldg. the district. The district Tokyo Station, Marunouchi Line Daimyo Koji Ave. Otemachi Station, Marunouchi Line Mitsubishi give visitors a taste of art on a daily basis. We would like the

Yurakucho Station Otemachi Station, Tozai Line Soken stretches across Bldg. Mitsubishi Ichigokan Museum to rejuvenate visitors by approximately 120 Marunouchi Tokyo Station, JR Keiyo Line Marunouchi Marunouchi Marunouchi OAZO Yurakucho ITOCiA South Exit Central Exit North Exit holding events that energize the community and give the Tokyo Bldg. Shin (owned by a Mitsubishi Estate Marunouchi Otemachi hectares. About 4,000 consolidated subsidiary) Hotel Bldg. neighborhood a clear image. The ideal way of achieving this Tokyo Kotsu Kaikan Bldg. Marunouchi Tokyo Metropolitan Expressway(owned by Inner a MitsubishiCircular Route Estate Kitaguchi Bldg. companies are located in consolidated subsidiary) (Marunouchi OAZO) would be to bring a new way of enjoying life to the district by Asahi Life Insurance te u o Otemachi Bldg. R this area, and it attracts Tokyo Station r la (owned by a special-purpose company u c under management of Mitsubishi Estate) ir expanding the range of activities C r e n n about 230,000 people I JFE Corp. y a Bldg. w Eitai Dori ss in the community as a whole, Nippon re xp Bldg. E each day. As the owner of an lit po ro including commercial facilities. et M o ky about one-third of this To I hope that the Mitsubishi Buildings Owned by Mitsubishi Estate JX Bldg. land, Mitsubishi Estate is Ichigokan Museum can be at The First Stage working to create an the heart of this movement. attractive community The Second Stage

Mitsubishi Jushi Bldg. that people in Japan and * Note: Includes buildings co-owned or projects co-developed with other companies (owned by a special-purpose company Akiya Takahashi under management of Mitsubishi Estate) Le Divan Japonais in the collection of Mitsubishi As of September 2011 visitors from all over the Ichigokan Museum shown at the exhibit Director “Toulouse-Lautrec: The Maurice Joyant world nd fascinating. Mitsubishi Ichigokan Museum, Tokyo Collection” held October 13 – December 25, 2011 The Mitsubishi Estate Group CSR Report 2011 9 Public-private partnership to Estate pursues a range of environmental measures. Environmental Preservation. This recognition is an affirmation develop urban areas replete with For example, in April 2010, the Shin-Marunouchi of Mitsubishi Estate’s extensive efforts across the areas of environmental harmony Building switched from electricity to Fresh Green Power,* Highlight1 “management systems,” “facility performance,” and “facility generated from renewable energy such as wind power. This Using public-private collaboration operations,” such as the development of an integrated system Mobilizing the strengths of the community is essential to is expected to reduce CO2 by about 20,000 tons every year for pursuing energy-conserving activities. e cient urban development on a large scale, as in the (about two-thirds of previous levels) in the Shin-Marunouchi to counter the heat island effect Some facilities of Mitsubishi Estate Group companies were Otemachi, Marunouchi, and Yurakucho district. Accordingly, in Building. Results in scal 2010 were in line with the plan. In Sprinkling reclaimed water from the also honored. Ikebukuro District Heating and Cooling Co., Ltd., and 1988 Mitsubishi Estate and about 70 other companies and addition, ultra-e cient lighting and air-ow window Marunouchi Building on Gyoko Dori Street one center belonging to Marunouchi Heat Supply Co., Ltd., were organizations owning land in the district formed the Otemachi systems, which reduce the heat load from outside, were In collaboration with the Tokyo Metropolitan Government’s Bureau of recognized as “near-top-level installations” in the category of Marunouchi Yurakucho District Redevelopment Project Council installed in newly built buildings. These are just some of the Construction, Mitsubishi Estate sprinkled reclaimed water* from the district heating and cooling systems. (OMY Council), which formed the basic concept for the examples of the cutting-edge energy-conserving Marunouchi Building on Gyoko Dori Street—from Tokyo Station’s redevelopment project. In addition, in 1996 the OMY Council, equipment and technology being adopted. Marunouchi entrance to Hibiya Street—from June to September the Tokyo Metropolitan Government, Chiyoda Ward and East Moreover, in June 2010, Mitsubishi Estate launched a 2010. This was intended to alleviate the urban heat island effect Japan Railway Company formed the Advisory Committee on new service to provide information to individual tenants on by reducing the rise in road surface temperature. The program Highlight 3 Otemachi-Marunouch-Yurakucho Area Development. This their energy use, expanding on its unique online e-Concierge was continued in fiscal 2011. The sprinkled water evaporates as Hybrid radiant ceiling air Advisory Committee developed the City-planning Guidelines service that provides building information to tenants. This is the temperature rises and absorbs the heat from the surrounding in 2000, which form the basis for comprehensive urban an eort to reduce environmental impact in buildings by air. This can curb the rise in road surface temperatures by a conditioning system installed development, from the construction of individual buildings to raising awareness of power and water conservation. maximum of about 10 °C (measurements taken in summer 2010). First in Japan to be adopted while renovating infrastructure development, emergency preparedness and * Fresh Green Power is green energy that is delivered directly to the purchaser from the In conjunction with this measure, the Tokyo Metropolitan existing buildings crime prevention activities, as well as public space and generation facility. A power producer and supplier (PPS) supplies the Shin Government’s Bureau of Construction used water-retentive In July 2010, Mitsubishi Estate introduced a hybrid radiant ceiling air Marunouchi Building with electricity generated using windmills in Aomori Prefecture’s sidewalk maintenance, in a public-private partnership. Rokkasho village and water energy in Hokkaido. The energy is supplied directly to the pavement on Gyoko Dori Street. This enables the pavement to conditioning system in an effort to make some of the offices in the This collaborative system plays an important role in building through the transmission and distribution networks of power companies. retain the sprinkled water longer. Collaborating, Mitsubishi Otemachi Building, where its headquarters is located, into advanced creating an environmentally friendly neighborhood. In 2002, Estate installed equipment to send reclaimed water from the low-carbon facilities. The system combines both radiant air the NPO Otemachi, Marunouchi and Yurakucho Area Marunouchi Building for sprinkling on the road. conditioning from a radiant ceiling panel and cold thermal energy Management Association (Ligare) was launched to improve * Reclaimed water is treated wastewater which can be recycled in nonpotable stored in the building structure. The system uses thermal radiation, applications. Kitchen water from building tenants and rain water are used. the district’s environment by promoting greenery and Reclaimed water is also used in the Marunouchi Building as toilet flush water which enables the transfer of heat from a heat source to an object or keeping it clean and energize the community with events. Mitsubishi Estate Group’s e orts to reduce and to water exterior trees and plants. area being heated without the need for a physical medium. This makes Moreover, in 2007 the Association for Creating Sustainability environmental impact Status of completion on it completely different from conventional air conditioners which Reclaimed water Gyoko Dori Street in Urban Development of the Otemachi, Marunouchi and Environmental measures in new buildings Kitchen wastewater, supplied for distribute cooled or heated air. While this was the first time that such sprinkling on roads Yurakucho District (Ecozzeria Association) was established. rain water, etc. a system had been introduced in an existing building in Japan, it has Reducing heat load from Cool roof Rain Gyoko Dori St. Ecozzeria conducts studies and research supporting external heat (airflow Solar panels been successfully used in both new and existing buildings in Europe. window system, using eco-friendly urban development, and also plans and hosts optimal exteriors for direction This kind of system is known for balancing the room each wall faces, etc.) Water treatment events to raise environmental awareness, such as the facility Tank, pump temperature while alleviating discomfort from noise, wind and Optimal Use of natural energy exteriors for Marunouchi Club for Global Sustainability, a group of people (introduction of solar power, direction chills. It achieves a reduction in energy consumption of about 25% each wall Reclaimed water supplied from industry, government, academia and the private sector natural ventilation systems, etc.) faces Use of from Marunouchi Building compared to conventional air conditioners. In addition, ventilation natural Adoption of highly efficient light that meets to discuss environmental problems. Along with equipment (use of energy- ducts above the ceiling are minimized so that the ceiling height these eorts, initiatives to reduce the environmental impact in conserving controls, energy- can be about 20cm higher. In addition, less-expensive midnight conserving highly efficient the area overall are actively underway in the district, including equipment, etc.) power can be used to store the cold energy in the structure. encouraging the use of district-wide energy-supply networks Conceptual diagram of Highlight Cold energy released from structure Cold water pipes new buildings District heating and cooling system 2 such as district heating and cooling systems, greening of roofs Recognized as “top-level installation” by and walls, installing water-retentive pavement and micro-misters, and running Japan’s rst low-polluting bus, the Environmental measures in existing buildings the Tokyo Metropolitan Government Air conditioning and ventilation Radiant panel Solar “Marunouchi Shuttle,” which runs on a combination of Environmental measures introduced Meeting the requirements of Tokyo Metropolitan with gentle wind speed Heat transfer to radiation electricity and micro gas turbines. while renovating existing buildings Government’s Cap-and-Trade Program to ceiling panel surface Gentle air current created by the use Hibiya Kokusai Building recognized as Reduce Greenhouse Gas Emissions of radiant panel In 2011, the OMY Council, Ligare and the Ecozzeria “top-level installation” by the Tokyo Association won the City Planning Institute of Japan’s Metropolitan Government for excellence in In May 2011, a number of office buildings that Mitsubishi Estate promotion of global warming countermeasures Ishikawa Award for their contributions to the progress and (May 2011) owns in full or in part were recognized by the Tokyo Metropolitan development of innovative city planning. This award was given for Government for their outstanding environmental performance. the three groups’ cutting-edge environmental initiatives in Environmental measures introduced in The Marunouchi Building, Hibiya Kokusai Building, and both the “hard” aspects like equipment and facilities and the managing and administering oce buildings Shin-Otemachi Building were each recognized as a “top-level “soft” aspects like partnership and social initiatives. Making tenants more aware of energy conservation by installation,” and the Tokyo Building, Sanno presenting energy-use data in a visual format Park Tower, Shin-Aoyama Building and Akasaka Provision of information for tenants through online Proactively introducing e-Concierge service Park Building were recognized as “near-top-level Owner-tenant committees are installations.” “Top-level installations” and cutting-edge environmental established to promote global technology and services warming countermeasures on an “near-top-level installations” refer to particularly ongoing basis successful global warming countermeasures Office space after renovations In addition to the environmental initiatives for the Otemachi, e-Concierge website installed by business facilities to comply with Cutting-edge plant in basement of Marunouchi Marunouchi and Yurakucho district as a whole, Mitsubishi the Tokyo Metropolitan Ordinance on Park Building (Marunouchi Heat Supply)

The Mitsubishi Estate Group CSR Report 2011 10 Public-private partnership to Estate pursues a range of environmental measures. Environmental Preservation. This recognition is an affirmation develop urban areas replete with For example, in April 2010, the Shin-Marunouchi of Mitsubishi Estate’s extensive efforts across the areas of environmental harmony Building switched from electricity to Fresh Green Power,* Highlight1 “management systems,” “facility performance,” and “facility generated from renewable energy such as wind power. This Using public-private collaboration operations,” such as the development of an integrated system Mobilizing the strengths of the community is essential to is expected to reduce CO2 by about 20,000 tons every year for pursuing energy-conserving activities. e cient urban development on a large scale, as in the (about two-thirds of previous levels) in the Shin-Marunouchi to counter the heat island effect Some facilities of Mitsubishi Estate Group companies were Otemachi, Marunouchi, and Yurakucho district. Accordingly, in Building. Results in scal 2010 were in line with the plan. In Sprinkling reclaimed water from the also honored. Ikebukuro District Heating and Cooling Co., Ltd., and 1988 Mitsubishi Estate and about 70 other companies and addition, ultra-e cient lighting and air-ow window Marunouchi Building on Gyoko Dori Street one center belonging to Marunouchi Heat Supply Co., Ltd., were organizations owning land in the district formed the Otemachi systems, which reduce the heat load from outside, were In collaboration with the Tokyo Metropolitan Government’s Bureau of recognized as “near-top-level installations” in the category of Marunouchi Yurakucho District Redevelopment Project Council installed in newly built buildings. These are just some of the Construction, Mitsubishi Estate sprinkled reclaimed water* from the district heating and cooling systems. (OMY Council), which formed the basic concept for the examples of the cutting-edge energy-conserving Marunouchi Building on Gyoko Dori Street—from Tokyo Station’s redevelopment project. In addition, in 1996 the OMY Council, equipment and technology being adopted. Marunouchi entrance to Hibiya Street—from June to September the Tokyo Metropolitan Government, Chiyoda Ward and East Moreover, in June 2010, Mitsubishi Estate launched a 2010. This was intended to alleviate the urban heat island effect Japan Railway Company formed the Advisory Committee on new service to provide information to individual tenants on by reducing the rise in road surface temperature. The program Highlight 3 Otemachi-Marunouch-Yurakucho Area Development. This their energy use, expanding on its unique online e-Concierge was continued in fiscal 2011. The sprinkled water evaporates as Hybrid radiant ceiling air Advisory Committee developed the City-planning Guidelines service that provides building information to tenants. This is the temperature rises and absorbs the heat from the surrounding in 2000, which form the basis for comprehensive urban an eort to reduce environmental impact in buildings by air. This can curb the rise in road surface temperatures by a conditioning system installed development, from the construction of individual buildings to raising awareness of power and water conservation. maximum of about 10 °C (measurements taken in summer 2010). First in Japan to be adopted while renovating infrastructure development, emergency preparedness and * Fresh Green Power is green energy that is delivered directly to the purchaser from the In conjunction with this measure, the Tokyo Metropolitan existing buildings crime prevention activities, as well as public space and generation facility. A power producer and supplier (PPS) supplies the Shin Government’s Bureau of Construction used water-retentive In July 2010, Mitsubishi Estate introduced a hybrid radiant ceiling air Marunouchi Building with electricity generated using windmills in Aomori Prefecture’s sidewalk maintenance, in a public-private partnership. Rokkasho village and water energy in Hokkaido. The energy is supplied directly to the pavement on Gyoko Dori Street. This enables the pavement to conditioning system in an effort to make some of the offices in the This collaborative system plays an important role in building through the transmission and distribution networks of power companies. retain the sprinkled water longer. Collaborating, Mitsubishi Otemachi Building, where its headquarters is located, into advanced creating an environmentally friendly neighborhood. In 2002, Estate installed equipment to send reclaimed water from the low-carbon facilities. The system combines both radiant air the NPO Otemachi, Marunouchi and Yurakucho Area Marunouchi Building for sprinkling on the road. conditioning from a radiant ceiling panel and cold thermal energy Management Association (Ligare) was launched to improve * Reclaimed water is treated wastewater which can be recycled in nonpotable stored in the building structure. The system uses thermal radiation, applications. Kitchen water from building tenants and rain water are used. the district’s environment by promoting greenery and Reclaimed water is also used in the Marunouchi Building as toilet flush water which enables the transfer of heat from a heat source to an object or keeping it clean and energize the community with events. Mitsubishi Estate Group’s e orts to reduce and to water exterior trees and plants. area being heated without the need for a physical medium. This makes Moreover, in 2007 the Association for Creating Sustainability environmental impact Status of completion on it completely different from conventional air conditioners which Reclaimed water Gyoko Dori Street in Urban Development of the Otemachi, Marunouchi and Environmental measures in new buildings Kitchen wastewater, supplied for distribute cooled or heated air. While this was the first time that such sprinkling on roads Yurakucho District (Ecozzeria Association) was established. rain water, etc. a system had been introduced in an existing building in Japan, it has Reducing heat load from Cool roof Rain Gyoko Dori St. Ecozzeria conducts studies and research supporting external heat (airflow Solar panels been successfully used in both new and existing buildings in Europe. window system, using eco-friendly urban development, and also plans and hosts optimal exteriors for direction This kind of system is known for balancing the room each wall faces, etc.) Water treatment events to raise environmental awareness, such as the facility Tank, pump temperature while alleviating discomfort from noise, wind and Optimal Use of natural energy exteriors for Marunouchi Club for Global Sustainability, a group of people (introduction of solar power, direction chills. It achieves a reduction in energy consumption of about 25% each wall Reclaimed water supplied from industry, government, academia and the private sector natural ventilation systems, etc.) faces Use of from Marunouchi Building compared to conventional air conditioners. In addition, ventilation natural Adoption of highly efficient light that meets to discuss environmental problems. Along with equipment (use of energy- ducts above the ceiling are minimized so that the ceiling height these eorts, initiatives to reduce the environmental impact in conserving controls, energy- can be about 20cm higher. In addition, less-expensive midnight conserving highly efficient the area overall are actively underway in the district, including equipment, etc.) power can be used to store the cold energy in the structure. encouraging the use of district-wide energy-supply networks Conceptual diagram of Highlight Cold energy released from structure Cold water pipes new buildings District heating and cooling system 2 such as district heating and cooling systems, greening of roofs Recognized as “top-level installation” by and walls, installing water-retentive pavement and micro-misters, and running Japan’s rst low-polluting bus, the Environmental measures in existing buildings the Tokyo Metropolitan Government Air conditioning and ventilation Radiant panel Solar “Marunouchi Shuttle,” which runs on a combination of Environmental measures introduced Meeting the requirements of Tokyo Metropolitan with gentle wind speed Heat transfer to radiation electricity and micro gas turbines. while renovating existing buildings Government’s Cap-and-Trade Program to ceiling panel surface Gentle air current created by the use Hibiya Kokusai Building recognized as Reduce Greenhouse Gas Emissions of radiant panel In 2011, the OMY Council, Ligare and the Ecozzeria “top-level installation” by the Tokyo Association won the City Planning Institute of Japan’s Metropolitan Government for excellence in In May 2011, a number of office buildings that Mitsubishi Estate promotion of global warming countermeasures Ishikawa Award for their contributions to the progress and (May 2011) owns in full or in part were recognized by the Tokyo Metropolitan development of innovative city planning. This award was given for Government for their outstanding environmental performance. the three groups’ cutting-edge environmental initiatives in Environmental measures introduced in The Marunouchi Building, Hibiya Kokusai Building, and both the “hard” aspects like equipment and facilities and the managing and administering oce buildings Shin-Otemachi Building were each recognized as a “top-level “soft” aspects like partnership and social initiatives. Making tenants more aware of energy conservation by installation,” and the Tokyo Building, Sanno presenting energy-use data in a visual format Park Tower, Shin-Aoyama Building and Akasaka Provision of information for tenants through online Proactively introducing e-Concierge service Park Building were recognized as “near-top-level Owner-tenant committees are installations.” “Top-level installations” and cutting-edge environmental established to promote global technology and services warming countermeasures on an “near-top-level installations” refer to particularly ongoing basis successful global warming countermeasures Office space after renovations In addition to the environmental initiatives for the Otemachi, e-Concierge website installed by business facilities to comply with Cutting-edge plant in basement of Marunouchi Marunouchi and Yurakucho district as a whole, Mitsubishi the Tokyo Metropolitan Ordinance on Park Building (Marunouchi Heat Supply)

The Mitsubishi Estate Group CSR Report 2011 11 Special Feature 2 quality management system. “Custom Eyes” enables the among Group companies in the management and company to oer customizable features tailored to each renovation businesses to ensure that customers’ demands customer’s detailed demands, oering selections from can be met throughout their lifetimes. Moreover, the Providing friendly, value-added homes dierent plans, custom colors and other optional products company has adopted a Net Promoter Score (NPS), an and interior products. “Eco Eyes” is an initiative to enhance indicator that evaluates whether a customer would environmental performance in condominiums. The recommend Mitsubishi Estate to others and thus helps the that are good for the environment company proactively introduces environmentally company fulll its commitment to provide customer Mitsubishi Estate Group has reorganized its residential business to create an integrated sales and responsible features, such as the innovative eco system satisfaction. The company will reect various customer production system under a new condominium brand name. At the new company, the employees soleco,* which combines a collective-access high-voltage opinions, provided in questionnaires, into its product work “As One Team” across functional boundaries to create truly valuable homes. power receiving system to reduce electricity costs for each planning and sales operations, and it will endeavor to unit with solar power panels on the condominium roof that enhance operations on an ongoing basis by sharing the generate power for common-use areas. “Life Eyes” is the necessary measures with the entire Group. security system operated by Mitsubishi Jisho Residence in The company is also working to strengthen the Integrating sales and production to satised with this achievement, the company is implementing all of its condominiums across the Tokyo metropolitan area organization and employees that support these activities. provide value-added homes with a “neighborhood-focus” strategy that aims to ensure homes to give residents security and safety. Just after integration, the new company launched the refinement to suit each unique suit the particular demand of each neighborhood and meet Finally, “Community Eyes” is a communication system that inter-departmental task forces on themes such as “raising customer needs. This is the key to consistent supply of connects residents to condominium management associations customer satisfaction” and “pursuing lifetime value for neighborhood high-quality condominiums. The company refrains from and the condominium management company Mitsubishi Jisho customers.” The aim is to break down the barriers between Mitsubishi Jisho Residence Co., Ltd. was established in pursuing short-term fads and trendy features, instead Community Co., Ltd. In May 2011, the company launched the dierent operations and foster a common awareness of January 2011 in the integration of the residential businesses embracing a medium- to long-term perspective in assessing “Community Eyes Life Support Service,” issues so that they can be addressed “As One Team,” and in of three companies, Mitsubishi Estate Co., Ltd., Mitsubishi regional characteristics and market trends—such as oering residents one-stop service doing so, to energize the organization and employees. The Real Estate Services Co., Ltd., and Towa Real Estate environmental and urban functions—when developing and with a telephone contact available 24 company is also working to reinforce and augment the Development Co., Ltd. supplying residences. The aim is nothing short of delivering soleco logo mark hours a day, 365 days a year. training system to improve each employee’s business acumen. Mitsubishi Jisho Residence uses an integrated sales and value-added homes that completely satisfy customers with * soleco system won the fiscal 2010 Good Design Award. Mitsubishi Jisho Residence aims to bring all Group production organization for seamless execution of processes the touches that only Mitsubishi Jisho Residence can provide. employees together to oer products and services that ranging from site acquisition to planning, quality * Combined number of condominium units supplied by Mitsubishi Estate and Towa Enhancing organizational strengths exceed customers’ expectations. The sky is the limit for this management during construction, sales operations, and Real Estate Development in the Japanese market in 2010 (Source: Real Estate new company. Economic Institute Co., Ltd.) and human resource capabilities to property transfer. Within this integrated organization, all improve customer satisfaction employees share the same business principles, goals and Ensuring safety and quality of objectives, and they dedicate themselves to creating truly condominiums using the “Five Eyes” While advancing and building on the “Five Eyes” system valuable homes that will bring clients comfort and delight. system of performance indicators going forward, the company will strengthen a liations Mitsubishi Jisho Residence has supplied more condominium units than any other company in Japan.* Not Timed with the integration of the residential business of the three companies, Mitsubishi Jisho Residence announced a unied new condominium brand called “The Parkhouse.” Check Eyes Mitsubishi Jisho Residence also established the “Five Eyes” Mitsubishi Jisho Residence’s unique condominium quality management and performance indication process to ensure the security and quality of the new brand. How “Five Eyes” Supports system for all “The Parkhouse” condominiums The “Check Eyes” system is built on Mitsubishi Jisho “The Parkhouse” Residence’s unique condominium quality management and performance indication system for all “The Parkhouse” condominiums, and based on Mitsubishi Estate’s previous New condominium brand, “The Parkhouse” Eco Eyes Custom Eyes Environmentally advanced Customization service which offers specifications, such as soleco, which the ability to select plans, choose combines a collective-access colors and even arrange the location high-voltage power receiving system of electrical outlets with solar power panels

Mitsubishi Jisho Residence’s main brand, “The Parkhouse” condominiums, promises homes that will please a wide range of customers while meeting the highest standards of utility and aesthetics, and creatively responding to each customer’s needs.

Life Eyes Community Eyes Koji Sato Security system operated by Communication system that connects Executive O cer, Mitsubishi Jisho Residence across all residents to the management association and General Manager, “The Parkhouse” condominiums in the management company (Mitsubishi Jisho Brand and Customer Satisfaction Tokyo metropolitan area Community Co., Ltd.) Promotion Department Mitsubishi Jisho Residence Co., Ltd.

The Mitsubishi Estate Group CSR Report 2011 12 Special Feature 2 quality management system. “Custom Eyes” enables the among Group companies in the management and company to oer customizable features tailored to each renovation businesses to ensure that customers’ demands customer’s detailed demands, oering selections from can be met throughout their lifetimes. Moreover, the Providing friendly, value-added homes dierent plans, custom colors and other optional products company has adopted a Net Promoter Score (NPS), an and interior products. “Eco Eyes” is an initiative to enhance indicator that evaluates whether a customer would environmental performance in condominiums. The recommend Mitsubishi Estate to others and thus helps the that are good for the environment company proactively introduces environmentally company fulll its commitment to provide customer Mitsubishi Estate Group has reorganized its residential business to create an integrated sales and responsible features, such as the innovative eco system satisfaction. The company will reect various customer production system under a new condominium brand name. At the new company, the employees soleco,* which combines a collective-access high-voltage opinions, provided in questionnaires, into its product work “As One Team” across functional boundaries to create truly valuable homes. power receiving system to reduce electricity costs for each planning and sales operations, and it will endeavor to unit with solar power panels on the condominium roof that enhance operations on an ongoing basis by sharing the generate power for common-use areas. “Life Eyes” is the necessary measures with the entire Group. security system operated by Mitsubishi Jisho Residence in The company is also working to strengthen the Integrating sales and production to satised with this achievement, the company is implementing all of its condominiums across the Tokyo metropolitan area organization and employees that support these activities. provide value-added homes with a “neighborhood-focus” strategy that aims to ensure homes to give residents security and safety. Just after integration, the new company launched the refinement to suit each unique suit the particular demand of each neighborhood and meet Finally, “Community Eyes” is a communication system that inter-departmental task forces on themes such as “raising customer needs. This is the key to consistent supply of connects residents to condominium management associations customer satisfaction” and “pursuing lifetime value for neighborhood high-quality condominiums. The company refrains from and the condominium management company Mitsubishi Jisho customers.” The aim is to break down the barriers between Mitsubishi Jisho Residence Co., Ltd. was established in pursuing short-term fads and trendy features, instead Community Co., Ltd. In May 2011, the company launched the dierent operations and foster a common awareness of January 2011 in the integration of the residential businesses embracing a medium- to long-term perspective in assessing “Community Eyes Life Support Service,” issues so that they can be addressed “As One Team,” and in of three companies, Mitsubishi Estate Co., Ltd., Mitsubishi regional characteristics and market trends—such as oering residents one-stop service doing so, to energize the organization and employees. The Real Estate Services Co., Ltd., and Towa Real Estate environmental and urban functions—when developing and with a telephone contact available 24 company is also working to reinforce and augment the Development Co., Ltd. supplying residences. The aim is nothing short of delivering soleco logo mark hours a day, 365 days a year. training system to improve each employee’s business acumen. Mitsubishi Jisho Residence uses an integrated sales and value-added homes that completely satisfy customers with * soleco system won the fiscal 2010 Good Design Award. Mitsubishi Jisho Residence aims to bring all Group production organization for seamless execution of processes the touches that only Mitsubishi Jisho Residence can provide. employees together to oer products and services that ranging from site acquisition to planning, quality * Combined number of condominium units supplied by Mitsubishi Estate and Towa Enhancing organizational strengths exceed customers’ expectations. The sky is the limit for this management during construction, sales operations, and Real Estate Development in the Japanese market in 2010 (Source: Real Estate new company. Economic Institute Co., Ltd.) and human resource capabilities to property transfer. Within this integrated organization, all improve customer satisfaction employees share the same business principles, goals and Ensuring safety and quality of objectives, and they dedicate themselves to creating truly condominiums using the “Five Eyes” While advancing and building on the “Five Eyes” system valuable homes that will bring clients comfort and delight. system of performance indicators going forward, the company will strengthen a liations Mitsubishi Jisho Residence has supplied more condominium units than any other company in Japan.* Not Timed with the integration of the residential business of the three companies, Mitsubishi Jisho Residence announced a unied new condominium brand called “The Parkhouse.” Check Eyes Mitsubishi Jisho Residence also established the “Five Eyes” Mitsubishi Jisho Residence’s unique condominium quality management and performance indication process to ensure the security and quality of the new brand. How “Five Eyes” Supports system for all “The Parkhouse” condominiums The “Check Eyes” system is built on Mitsubishi Jisho “The Parkhouse” Residence’s unique condominium quality management and performance indication system for all “The Parkhouse” condominiums, and based on Mitsubishi Estate’s previous New condominium brand, “The Parkhouse” Eco Eyes Custom Eyes Environmentally advanced Customization service which offers specifications, such as soleco, which the ability to select plans, choose combines a collective-access colors and even arrange the location high-voltage power receiving system of electrical outlets with solar power panels

The Mitsubishi Estate Group CSR Report 2011 13 Parkhouse Kichijoji OIKOS On-site model unit (instead of building a model unit and printing pamphlets, the company showed visitors a completed unit Stakeholder Meeting to reduce resources used) Highlight The Mitsubishi Estate Group held a brie ng on responsible coexistence with 1 the natural environment, focusing on the environmental initiatives introduced Innovative environmental technology adopted in at the environmentally responsible condominium, Parkhouse Kichijoji OIKOS, new and existing condominiums and then held a discussion with stakeholders to hear their opinions.

OIKOS provides comfortable living with a Time and place radiant oor air conditioning system and a soleco to be introduced in existing 4:00-6:00pm, December 13, 2010 solar hot water system condominiums and new services developed Parkhouse Kichijoji OIKOS (Musashino City, Tokyo) Parkhouse Kichijoji OIKOS, completed in October 2010 with sales Mitsubishi Jisho Residence started including soleco (see the box beginning in January 2011, is an environmentally responsible below) as a standard feature in new family-type condominiums External participants (aliation and position as of time of meeting) condominium equipped with cutting-edge CO2-reduction technology. designed in and after 2010 with more than 40 units in the Mariko Kawaguchi Kikuko Tatsumi A wide range of CO2-reduction technology is installed, such as exterior Tokyo metropolitan region and Kansai region. soleco combines Managing Director, CSR Group, Corporate Board Member and Chairperson, thermal insulation and hot water systems that make effective use of a collective-access high-voltage power receiving system with Communication Department, Daiwa Securities Environmental Committee, Nippon Association of Group Inc. Consumer Specialists solar heat. Compared with conventional systems, CO2 emissions can solar power panels, and other eco-features. MEC eco Life is The radiant floor air conditioning system doesn’t stream air When choosing condominiums in the future, I think be reduced by 13.3 tons a year for the entire condominium building. now looking to introduce soleco in existing condominiums, as directly onto the human body, and the smell of the natural that maintenance fees, including electricity charges, wood used on the floors throughout the rooms makes it will be a major issue, in addition to environmental This building was recognized as an environmentally responsible well, and is working with solar power panel manufacturers on very pleasant. In addition, the space is not divided up so it considerations. In this respect, it makes sense that project under a program run by Japan’s Ministry of Land, the waterproofing technologies required to do so. feels more open, which offers more lifestyle options. soleco reduces maintenance fees. Infrastructure, Transport and Tourism to promote reduction in CO2 To further popularize soleco, MEC eco Life is collaborating Nobuo Taniguchi Nakanishi Kiyotaka emissions associated with residential and other buildings. with Mitsubishi UFJ Lease & Finance Company Limited to issue Assistant Division Chief in charge of Renewable Energy, Assistant Chief Editor, Nikkei Ecology, Nikkei Business Urban and Global Environment Division, Bureau of the Publications Inc. For example, a radiant floor air conditioning system that uses Renewable Energy Certificates (RECs) for the CO2-reduction Environment, Tokyo Metropolitan Government This condominium has technology that limits exposure to temperature exchange from the floor to cool and heat rooms was effect generated by soleco. The certificates will take the form of This is not only an eco-friendly system, but also allows external heat, such as exterior thermal insulation and adopted for the first time in a built-for-sale condominium. Using a Green Lease certificate for use when companies lease PCs for an extremely flexible layout and original interior wood-frame isolated windows (Smart Eco Windows). The texture design. It gives me the sense that residents can live of the materials and the design are also cleverly used to give the heat radiation from the floor coupled with exterior thermal and business equipment. The company aims to expand the however they please. I hope that systems such as visual impression of comfort and protection from heat, a kind of insulation and the heat storage performance of concrete, the system use of soleco to significantly increase solar power generation soleco and other solar power facilities that lower comfort which otherwise cannot be seen. The overall design operational costs will become increasingly popular. allows us to experience how good it feels to conserve energy. maintains consistent temperature within the rooms. There is no and help the Mitsubishi Estate Group to offset the CO2 need to install separate air conditioners in each room and there is no emissions of its business activities. Mitsubishi Estate Group participants (aliation and position as of time of meeting) strong air stream hitting the human body. These features have been MEC eco Life is also developing a new soleco series—a Atsuo Kyono, Executive Officer and General Manager, Residential Development Plan Department, Mitsubishi Estate Co., Ltd. enthusiastically received by residents. Moreover, in addition to water heating system for condominiums that uses solar power. Takashi Tokita, General Manager, Residential Design Planning and Marketing Department, Mitsubishi Estate Co., Ltd. Shinichi Hirao, President, MEC eco LIFE Co., Ltd. solar hot water supply systems, the condominiums are equipped A heat collecting system is installed on the condominium roof, Shinji Karasawa, Director, MEC eco LIFE Co., Ltd. with solar power generation systems and LED lighting. A functional and hot water heated with solar power is supplied to each Noboru Nishigai, General Manager, CSR Department, Mitsubishi Estate Co., Ltd. utility balcony is built near the water supply with space for a unit, thus curbing the use of natural gas for heating. This washing machine and hanging up laundry. Clothes can be dried system will be included in new designs in fiscal 2011. In either outside or inside, enabling residents to enjoy a full life while addition, the company is considering installing charging knowing that they are doing their part to preserve the environment. stations for electric vehicles in parking facilities in Mitsubishi Jisho Residence and MEC eco LIFE Co., Ltd., which condominiums with soleco. Highlight 2 jointly planned OIKOS, are undertaking research that will enable Zero-energy homes introduced this popular radiant floor air conditioning system to be adopted much more broadly in general, built-for-sale condominiums. Comfortable, healthy homes with major cuts in External view of the zero-energy energy consumption home “Zero Everie” In June 2011, Mitsubishi Estate Home announced its zero-energy The model plan, about 147 square meters of total floor space, soleco—a collective-access high-voltage power receiving system combined home “Zero Everie.” The company enhanced the energy efficiency of is based on the super-airtight, super-insulated and super-durable with solar panels its proprietary central air conditioning system Aerotech* and the “super 2x4 construction method” and the New Aerotech central air convenience of its temperature controls in the conviction that true conditioning system, which has achieved the highest-class soleco is an environmentally responsible system Diagram of business model for the collective-access high-voltage power zero-energy homes are not viable unless people can live comfortable, heating/cooling efficiency in the industry. It also includes the most that provides power to residents from a receiving system with solar power panels collective-access high-voltage power receiving Solar power panels are healthy, long lives in them with delight. Moreover, in order to up-to-date high-efficiency equipment such as LED lighting, the installed with the money saved from system* and power for common-use areas from Collective-access power omitting the conventional receiving/ receiving service provider is responsible transformer facility enhance the efficiency and practicality of the design practices using EcoCute electric heat pump water-heating system, the Conservatory solar power panels installed on the roof of the for the power receiving/transformer condominium. This keeps electricity costs below facility cost environmental technology and natural energy that the company to trap sunlight in the winter, the External Blind that screens out the rate that the individual units would otherwise has utilized thus far, the impact and effect of temperature, humidity, strong sunlight, and the Wind Catcher ventilation design to ensure have to pay the power company, and the High-voltage lighting, and ventilation were measured in Everie, an environmentally natural draft for effective ventilation. These cutting-edge features and residents also do not bear any of the costs of power installing and maintaining the solar panels. If a responsible model house in Tokyo’s Akasaka neighborhood. As a 7.2kW solar power panels combine to make this a zero-energy home. solar panel with a maximum output of about 5kW Local power supply company result of this research and development, energy consumption was While working to achieve further energy reduction with Power is transformed and Solar power panels are set up on the roof to is installed, electricity costs go down by about 10% distributed to individual units at supply power to the common-use areas drastically reduced and zero-energy homes that are gentle on both fewer solar power panels installed, the company is also seeking for individual units, and electricity costs for the a lower voltage the environment and household finances were successfully to develop a “life-cycle carbon negative home” that takes into common-use areas by about 110,000 yen per year. Selected as a model for the Ministry of Land, Infrastructure, Transport and Tourism’s new greenhouse gas reduction project in fiscal 2009 developed, while maintaining a comfortable and healthy living account the CO2 balance throughout the house’s life cycle, from * Collective access high-voltage power receiving system is a method in which electricity used by the condominium overall is received in bulk from a power supply company and then distributed to the individual units. Buying electricity for the entire condominium rather than for each individual unit keeps electricity costs down. environment for a year. construction to disposal. * Aerotech is a system that gives residents 24-hour control over ventilation, cooling and heating for the entire house with only a pair of indoor and exterior units.

The Mitsubishi Estate Group CSR Report 2011 14 Parkhouse Kichijoji OIKOS On-site model unit (instead of building a model unit and printing pamphlets, the company showed visitors a completed unit Stakeholder Meeting to reduce resources used) Highlight The Mitsubishi Estate Group held a brie ng on responsible coexistence with 1 the natural environment, focusing on the environmental initiatives introduced Innovative environmental technology adopted in at the environmentally responsible condominium, Parkhouse Kichijoji OIKOS, new and existing condominiums and then held a discussion with stakeholders to hear their opinions.

The Mitsubishi Estate Group CSR Report 2011 15 Special Feature 3 Highlight Project grows brewer’s rice without agricultural chemicals Sake made from rice grown in terraced rice “Experience Nature” project elds sold in Marunouchi restaurants Interaction between cities and rural communities The project to grow revives Japan’s fertile country landscape of brings together urban and brewer’s rice was an satoyama, a habitat for diverse life forms initiative aimed at These rice terraces represent precious land that has been rural communities creating sake using the passed down through the generations, but those of us who Japan-grown brewer’s The Mitsubishi Estate Group supports the “Experience Nature” project, which gives Group inherited it, including me, left the land fallow, and it fell into rice Hitogokochi, grown employees and their families opportunities to experience land clearing and tree thinning ruin. In 2008, the land-clearing experience sponsored by without using in rural communities. The project is intended to foster a society in which urban and rural the Experience Nature project agricultural chemicals. Junmai-shu “Marunouchi” sake communities energize one another and contribute to each other’s development. was the trigger for a rice terrace Marunouchi area employees and Marunouchi Group restoration project the following employees had worked together with local residents to plant year. In May, the laughter of the the rice seedlings and harvest the rice on rice terraces* that children who came to plant the thinned from the nearby forest (hinoki cypress and larch)¸ a had been reclaimed by clearing unused agricultural land. rice seedlings echoed through Contributing to the community by restoring terraced rice elds and other activities simple resting space was built with the cooperation of The rice seedlings were planted in May 2010 and Revitalizing the community with businesses utilizing local timber and other enterprises the fields. We took up the Mitsubishi Estate Home Co., Ltd., using a 2x4 construction harvested in October. Using the harvested rice, the junmai-shu challenge of making sake in Kiyoaki Obi method. The participants became immersed in the (“pure rice sake”) named “Marunouchi” was brewed by 2010, and the sake we produced Owner of a rice terrace, Masutomi, residing in Minami-Alps City, Sutama-cho, Yamanashi Tokyo Marunouchi construction work, breathing in the good aroma of the fresh Yorozuya, a sake brewer that was founded over 210 years had a very special taste for me. Yamanashi Prefecture Hokuto City wood under the clear blue sky. ago in Yamanashi Prefecture. It went on sale in Marunouchi area restaurants from late February 2011. Overall, the project Supplying a wealth of local resources such as agricultural products and timber Providing opportunities for studying and raising awareness about the global environment helped to promote the Realizing that the city’s food comes from and biodiversity conservation Promoting community revitalization by integrating business activities reclamation of agricultural communities and local resources wasteland and expand sales channels to the In a light rain, we sheared the yellow stalks of rice with a sickle and set them out to dry in the sun. As someone who Creating a sustainable society where In addition, the Mitsubishi Estate Group is progressively Tokyo metropolitan incorporating programs to link the project with its business area, a major center of works with food every day, visiting the producing region and cities and rural communities harvesting brewer’s rice while getting a feel for the region activities. Combining local resources such as timber and consumer activity. support one another itself was a valuable experience, and it made me realize again agricultural products with the company’s management resources Tour of sake brewery that the city’s food comes The Mitsubishi Estate Group launched the “Experience Nature” to create new value revitalizes the community, and this is one of * A rice terrace is a rice paddy on a series of steps on the slope of a mountain or hill. Rice terraces play many roles, including preventing landslides and flooding, from agricultural communities. project in 2008, with the goal of fostering a society where cities the key approaches of the Experience Nature project. replenishing groundwater as the rainwater and agricultural water permeates When we offer the finished and rural communities revitalize each other. Mitsubishi Estate For example, Mitsubishi Estate Home Co., Ltd., which the soil, and preserving the abundant biodiversity. junmai-shu “Marunouchi” sake collaborates with the NPO Egao Tsunagete (which literally utilizes Japan-grown timber to ensure the sustainable and in our restaurant, I hope to means “connecting smiles” in Japanese), at work in Hokuto City sound development of the Japanese timber industry, has describe my role in making it in Yamanashi Prefecture, to create opportunities for city previously considered using timber grown in Yamanashi to customers and convey the residents to interact with people from the Masutomi area, Prefecture through the Experience Nature project, and decided Tours held in scal 2010 Mamoru Sugiyama appeal of sake, an integral part which is su ering from population decline and aging. The to use products (I-type joists) marked as “Yamanashi Prefecture CSR Tour Manager of the sushi restaurant, of Japan’s traditional culture. Ginza Sushiko Honten project aims to promote awareness of the issues faced by Timber” as a standard feature in custom-order homes. (For Mitsubishi Estate Group employees) April 24: Land-clearing experience and Kanayama trek urban areas and rural villages in order to help build a Going forward, the company will take steps to ensure that August 6 – 7: Parent-child camping trip to experience sustainable society where they support one another. materials can be procured and costs stabilized in anticipation of rural community October 20: Community House Project (building wall) With this aim, Mitsubishi Estate holds a range of the standard adoption of Japan-grown timber for all structural “Experience Nature” bus tour experiential programs for Mitsubishi Estate Group employees components, while also building aliations to raise customers’ (For residents of condominiums managed by Mitsubishi and residents of the condominiums managed by Mitsubishi awareness of Japan-grown forest resources. Jisho Community) May 22: Parent-child rice-planting experience and Jisho Community Co., Ltd., including clearing elds at the In September 2010, with the aim of revitalizing the local forest experience August 20: Parent-child summer vegetable-harvesting “Experience Nature Farm” and thinning trees. In scal 2010, community through agricultural products, the “Try Yamanashi” experience, experience with buri-nawa (using rope and new experiential programs were planned to deepen interaction Fair was held (sponsored by the Yamanashi Prefectural Federation two sticks to climb trees) and river play between the communities. One of these was the Community of Societies of Commerce and Industry). The fair o ered dishes all Brewer’s rice growing tour (For Marunouchi area workers, Mitsubishi Estate House Project, in using food produced in Yamanashi Prefecture, such as local Group employees) which local forest beef and pork. The fair was held in the Marunouchi House, May 29: Rice-planting experience and sake-making seminar October 9: Rice-harvesting experience and naming workshop resources are used the food and drink area of the Shin-Marunouchi Building in to build a space the Marunouchi area. In October 2010, rice, wheat and other Experience Nature Club event (Experience Nature Club*; only for those who had registered) in which local agricultural products grown on the Experience Nature Farm were August 28 – 29: Community House Project (preparing floor) residents and sold at the “Blue Sky Market x Marunouchi Market,” also held November 20: Harvest festival (miso-making event) February 12: Brewer’s rice-growing tour (tour of sake brewery) visitors from the in the Marunouchi Building. The event attracted many people * The Experience Nature Club is an urban-rural community city can interact. such as oce workers from the Marunouchi area, chefs from club for participants in the Experience Nature project. Using wood Community house building nearby restaurants and participants in the experiential tours.

The Mitsubishi Estate Group CSR Report 2011 16 Special Feature 3 Highlight Project grows brewer’s rice without agricultural chemicals Sake made from rice grown in terraced rice “Experience Nature” project elds sold in Marunouchi restaurants Interaction between cities and rural communities The project to grow revives Japan’s fertile country landscape of brings together urban and brewer’s rice was an satoyama, a habitat for diverse life forms initiative aimed at These rice terraces represent precious land that has been rural communities creating sake using the passed down through the generations, but those of us who Japan-grown brewer’s The Mitsubishi Estate Group supports the “Experience Nature” project, which gives Group inherited it, including me, left the land fallow, and it fell into rice Hitogokochi, grown employees and their families opportunities to experience land clearing and tree thinning ruin. In 2008, the land-clearing experience sponsored by without using in rural communities. The project is intended to foster a society in which urban and rural the Experience Nature project agricultural chemicals. Junmai-shu “Marunouchi” sake communities energize one another and contribute to each other’s development. was the trigger for a rice terrace Marunouchi area employees and Marunouchi Group restoration project the following employees had worked together with local residents to plant year. In May, the laughter of the the rice seedlings and harvest the rice on rice terraces* that children who came to plant the thinned from the nearby forest (hinoki cypress and larch)¸ a had been reclaimed by clearing unused agricultural land. rice seedlings echoed through Contributing to the community by restoring terraced rice elds and other activities simple resting space was built with the cooperation of The rice seedlings were planted in May 2010 and Revitalizing the community with businesses utilizing local timber and other enterprises the fields. We took up the Mitsubishi Estate Home Co., Ltd., using a 2x4 construction harvested in October. Using the harvested rice, the junmai-shu challenge of making sake in Kiyoaki Obi method. The participants became immersed in the (“pure rice sake”) named “Marunouchi” was brewed by 2010, and the sake we produced Owner of a rice terrace, Masutomi, residing in Minami-Alps City, Sutama-cho, Yamanashi Tokyo Marunouchi construction work, breathing in the good aroma of the fresh Yorozuya, a sake brewer that was founded over 210 years had a very special taste for me. Yamanashi Prefecture Hokuto City wood under the clear blue sky. ago in Yamanashi Prefecture. It went on sale in Marunouchi area restaurants from late February 2011. Overall, the project Supplying a wealth of local resources such as agricultural products and timber Providing opportunities for studying and raising awareness about the global environment helped to promote the Realizing that the city’s food comes from and biodiversity conservation Promoting community revitalization by integrating business activities reclamation of agricultural communities and local resources wasteland and expand sales channels to the In a light rain, we sheared the yellow stalks of rice with a sickle and set them out to dry in the sun. As someone who Creating a sustainable society where In addition, the Mitsubishi Estate Group is progressively Tokyo metropolitan incorporating programs to link the project with its business area, a major center of works with food every day, visiting the producing region and cities and rural communities harvesting brewer’s rice while getting a feel for the region activities. Combining local resources such as timber and consumer activity. support one another itself was a valuable experience, and it made me realize again agricultural products with the company’s management resources Tour of sake brewery that the city’s food comes The Mitsubishi Estate Group launched the “Experience Nature” to create new value revitalizes the community, and this is one of * A rice terrace is a rice paddy on a series of steps on the slope of a mountain or hill. Rice terraces play many roles, including preventing landslides and flooding, from agricultural communities. project in 2008, with the goal of fostering a society where cities the key approaches of the Experience Nature project. replenishing groundwater as the rainwater and agricultural water permeates When we offer the finished and rural communities revitalize each other. Mitsubishi Estate For example, Mitsubishi Estate Home Co., Ltd., which the soil, and preserving the abundant biodiversity. junmai-shu “Marunouchi” sake collaborates with the NPO Egao Tsunagete (which literally utilizes Japan-grown timber to ensure the sustainable and in our restaurant, I hope to means “connecting smiles” in Japanese), at work in Hokuto City sound development of the Japanese timber industry, has describe my role in making it in Yamanashi Prefecture, to create opportunities for city previously considered using timber grown in Yamanashi to customers and convey the residents to interact with people from the Masutomi area, Prefecture through the Experience Nature project, and decided Tours held in scal 2010 Mamoru Sugiyama appeal of sake, an integral part which is su ering from population decline and aging. The to use products (I-type joists) marked as “Yamanashi Prefecture CSR Tour Manager of the sushi restaurant, of Japan’s traditional culture. Ginza Sushiko Honten project aims to promote awareness of the issues faced by Timber” as a standard feature in custom-order homes. (For Mitsubishi Estate Group employees) April 24: Land-clearing experience and Kanayama trek urban areas and rural villages in order to help build a Going forward, the company will take steps to ensure that August 6 – 7: Parent-child camping trip to experience sustainable society where they support one another. materials can be procured and costs stabilized in anticipation of rural community October 20: Community House Project (building wall) With this aim, Mitsubishi Estate holds a range of the standard adoption of Japan-grown timber for all structural “Experience Nature” bus tour experiential programs for Mitsubishi Estate Group employees components, while also building aliations to raise customers’ (For residents of condominiums managed by Mitsubishi and residents of the condominiums managed by Mitsubishi awareness of Japan-grown forest resources. Jisho Community) May 22: Parent-child rice-planting experience and Jisho Community Co., Ltd., including clearing elds at the In September 2010, with the aim of revitalizing the local forest experience August 20: Parent-child summer vegetable-harvesting “Experience Nature Farm” and thinning trees. In scal 2010, community through agricultural products, the “Try Yamanashi” experience, experience with buri-nawa (using rope and new experiential programs were planned to deepen interaction Fair was held (sponsored by the Yamanashi Prefectural Federation two sticks to climb trees) and river play between the communities. One of these was the Community of Societies of Commerce and Industry). The fair o ered dishes all Brewer’s rice growing tour (For Marunouchi area workers, Mitsubishi Estate House Project, in using food produced in Yamanashi Prefecture, such as local Group employees) which local forest beef and pork. The fair was held in the Marunouchi House, May 29: Rice-planting experience and sake-making seminar October 9: Rice-harvesting experience and naming workshop resources are used the food and drink area of the Shin-Marunouchi Building in to build a space the Marunouchi area. In October 2010, rice, wheat and other Experience Nature Club event (Experience Nature Club*; only for those who had registered) in which local agricultural products grown on the Experience Nature Farm were August 28 – 29: Community House Project (preparing floor) residents and sold at the “Blue Sky Market x Marunouchi Market,” also held November 20: Harvest festival (miso-making event) February 12: Brewer’s rice-growing tour (tour of sake brewery) visitors from the in the Marunouchi Building. The event attracted many people * The Experience Nature Club is an urban-rural community city can interact. such as oce workers from the Marunouchi area, chefs from club for participants in the Experience Nature project. Using wood Community house building nearby restaurants and participants in the experiential tours.

The Mitsubishi Estate Group CSR Report 2011 17 Committed to Environmental Sustainability

Environmental commitment is written specifically into the Mitsubishi Estate Group’s mission statement. The Mitsubishi Estate Group Long-term Environmental Vision further commits the company to reducing the environmental impact of its business. Mitsubishi Estate aims to lead the way in sustainable urban development. Basic Policy and Performance Highlights

Basic Environmental Policy Operational framework for environmental management officers are environmental management appointed for each of Mitsubishi Estate’s business areas and Group companies. The Mitsubishi Estate Group Basic The Mitsubishi Estate Group has tasked Environmental Policy is based on the the Environmental Subcommittee with Group’s fundamental mission. conducting deliberations on CSR, Mitsubishi Estate Group Long- including environmental issues, prior to term Environmental Vision Mitsubishi Estate Group Basic meetings of the CSR Committee. This Environmental Policy subcommittee met in July 2010 and The Mitsubishi Estate Group has The Mitsubishi Estate Group has developed January 2011 to discuss the status of established the Mitsubishi Estate Group an environmental management system various organizations’ environmental Long-term Environmental Vision, based and strives to protect the environment by initiatives and environmental objectives. on the Mitsubishi Estate Group Basic promoting environmental initiatives and reducing environmental impact, as well as In addition, an environmental Environmental Policy, to proactively address complying with all environmental laws and director is appointed at Mitsubishi environmental issues for the future. This regulations. Mitsubishi Estate is determined to ensure that its business activities play a Estate Co., Ltd. to take responsibility for vision clarifies the Group’s commitment leading role in the development of the promotion of environmental to actively contribute to society in order sustainable communities. management for the Group, and to reduce environmental impact. 1. Building a low-carbon society We are proactive about the efficient use of resources and energy, and encourage Mitsubishi Estate Group Long-term Environmental Vision the use of renewable energy to contribute For Environmental Sustainability 2050 to the creation of a low-carbon society. The Mitsubishi Estate Group’s growth strategy is to reﬁne its advanced environmental technology and take 2. Creating a sound material-cycle up the challenge of creating new value in all of its business activities. society In order to contribute to the realization of a sustainable society through business activities, the We strive to reduce, reuse, and recycle in Group develops innovative technology and readies it for practical application and dissemination. In every stage of our business, including addition, the Group proposes the adoption of work-style and lifestyle changes to its customers, and thus it planning, development, design, construction, actively takes initiatives with the aim of enhancing environmental technologies in a multifaceted and management and dismantlement, in cumulative manner over the long term. order to contribute to building a sound Globalization of business Mitsubishi Estate Group’s material-cycle society. ideal business image for 2050 Four key words Contribution Mitsubishi Estate Group’s initiatives toward 2020 3. Fostering harmony between Overall direction Building a low-carbon society nature and human society Performance Four typical initiatives Creating a sound material-cycle society We endeavor to foster new cultural values 1. Expansion of initiatives for the Otemachi, Marunouchi and and to practice environmental responsibility Yurakucho district in Tokyo. Fostering harmony between nature Eﬃciency and human society by demonstrating concern for biodiversity 2. Expansion of initiatives led primarily by MEC eco LIFE Co., Ltd. in the Residential Business Emphasizing environmental and developing attractive urban spaces that 3. Promotion of use of renewable energy sources communication and huuman harmonize with the surrounding natural 4. Promotion of R&D on environmental technology resource development environment, thus helping to build a society that lives in harmony with nature. 2010 2020 2050 4. Promoting environmental communication We proactively provide information on the environment and communicate with society on a broad range of issues in our Environmental slogan and meaningful society by developing efforts to coordinate and cooperate with logo developed areas in an environmentally conscious a wide range of stakeholders. way, to create new value by offering 5. Increasing employees’ ecological awareness The Mitsubishi Estate Group developed environmental technology, and to work In our efforts to increase employees’ an environmental slogan and logo in together with others in the community awareness of environmental conservation issues and ensure highly effective March 2011 to strengthen to achieve these goals. environmental activities, we provide dissemination of information on environmental education and awareness programs, aiming to develop an environmental coexistence and to raise ecologically aware workforce. environmental awareness internally and outside the company. Established on May 1, 2004 Revised on January 1, 2006 and April 1, 2010 The slogan “For Sustainable Cities, For the Sustainable Earth” reflects the Group’s aspirations to build a truly Mitsubishi Estate environmental slogan and logo

The Mitsubishi Estate Group CSR Report 2011 18 Development and administration In fiscal 2010, six organizations* from * Mitsubishi Estate’s Property Management and Office of the environmental the Mitsubishi Estate Group operated Leasing Group and Commercial Asset Management management system and Development Group (concurrent certification an environmental management system with Mitsubishi Estate Building Management Co., Ltd., The Mitsubishi Estate Group has certified under ISO14001 standards. Mitsubishi Jisho Property Management Co., Ltd., and Hokuryo City Service Co., Ltd.); Mitsubishi Jisho Sekkei acquired ISO14001 certification for The independent EMS, which is Inc.; Mitsubishi Estate Home Co., Ltd.; Royal Park Hotels organizations with relatively significant primarily intended for office facilities, is and Resorts Co., Ltd. (concurrent certification with Royal Park Hotel Co., Ltd.); Yokohama Sky Building Co., Ltd.; environmental impact, and has also used at Mitsubishi Estate Co., Ltd. and Mitsubishi Jisho Towa Community Co., Ltd. (now developed and is administering an (office activities), Mitsubishi Real Estate Mitsubishi Jisho Community Co., Ltd. since April 2011) independent Environmental Services Co., Ltd., and MEC Information Yokohama Sky Building Co., Ltd. relinquished its ISO certification at the end of April 2011. The company Management System corresponding to Development Co., Ltd. will continue to set environmental goals for each ISO14001 at organizations with fiscal year and run and manage its environmental relatively small environmental impact. program under its own system.

Development and administration of Mitsubishi Estate Group’s Environmental Management System (as of end of April 2011) Business groups, etc. Companies responsible for earnings, etc. •Business Development, Consulting & Solution Group, Mitsubishi Estate Co., Ltd. •Property Management and O ce Leasing Group, Mitsubishi Estate Co., Ltd. Mitsubishi Estate Building Management Co., Ltd. Mitsubishi Jisho Property Management Co., Ltd. •Commercial Asset Management and Development Group, Mitsubishi Estate Co., Ltd. Hokuryo City Service Co., Ltd. •Retail Property Group, Mitsubishi Estate Co., Ltd. •Yokohama Sky Building Co., Ltd. (Relinquished the ISO certication at the end of April 2011) •Commercial Property Development and Investment Group, Mitsubishi Estate Co., Ltd. Mitsubishi Estate Group •Residential Development Group, Mitsubishi Estate Co., Ltd. Mitsubishi Jisho Community Co., Ltd. (former Mitsubishi Jisho Towa Community Co., Ltd.) International Business Group, Mitsubishi Estate Co., Ltd. • Mitsubishi Estate Home Co., Ltd. •Investment Management Group, Mitsubishi Estate Co., Ltd. Mitsubishi Jisho Sekkei Inc. Organizations that Royal Park Hotels and Resorts Co., Ltd. Royal Park Hotel Co., Ltd. have acquired ISO14001 certiﬁcation •Mitsubishi Real Estate Services Co., Ltd. • Organizations Corporate Group, Mitsubishi Estate Co., Ltd. MEC Information Development Co., Ltd. implementing an • • independent EMS •Internal Audit O ce, Mitsubishi Estate Co., Ltd.

Building a Low-Carbon Society

Building management space was reduced by 13kg-CO2/m2 to CO2 emissions and CO2 emissions per unit 2 2 of floor space from Mitsubishi Estate’s programs to reduce CO 97kg-CO2/m compared to the previous emissions ISO14001-certified buildings fiscal year. This was due to a decline in CO2 emissions Emissions per unit of floor space (1,000 tons-CO2) (kg-CO2/m2) 2 2 In fiscal 2010, the energy consumption of total CO emissions because the CO 600 150 115 Mitsubishi Estate’s thirty ISO14001-certified emission coefficient stood at zero for 105 108 110 97 400 87 100 276 314 302 buildings stood at 6,702,503 GJ, and CO2 electricity used at the Shin-Marunouchi 272 200 167 279 50 emissions totaled 279,130 tons-CO2. Building with the use of the Fresh Green 0 0 1990 2006 07 08 09 10 Compared to fiscal 2009 results, consumption Power, and the CO2 emission coefficients (Fiscal year) decreased by 306,149 GJ, and CO2 emissions issued by electricity companies were * CO2 emissions are calculated using the emissions coefficients determined for individual electrical power suppliers, reflecting actual status. decreased by 22,550 tons-CO2. generally lower compared to 2009. * The number of ISO-certified buildings changes each fiscal year due to renovations and sales/purchases. In fiscal 2010, compared to fiscal Mitsubishi Estate’s fiscal 2011 target * The data for 1990 includes buildings prior to renovations (such as the former Marunouchi Building). 2009, Mitsubishi Estate took steps such as for reducing energy consumption in each Energy consumption and energy consumption setting air conditioners at warmer building is the stricter of either a 1% per unit of floor space in Mitsubishi Estate’s temperatures in the summer, partially reduction over the previous year per ISO14001-certified buildings stopping the hot-water supply, turning off Japan’s Energy Conservation Law or the Energy consumption Emissions per unit of floor space (1,000 GJ) (GJ/m2) 10,000 2.6 some of the lights, and operating air reduction mandated by city regulations 2.51 2.50 2.47 8,000 2.5 6,396 6,703 conditioners/heaters more efficiently in such as the Tokyo Metropolitan Ordinance 6,000 2.4 4,151 6,515 6,415 6,747 4,000 2.3 ISO-certified buildings. As a result, energy on Environmental Preservation. The 2.15 2.34 2,000 2.33 2.2 consumption per unit of floor space in company strives to combat climate 0 2.1 1990 2006 07 08 09 10 2010 was reduced by 0.01 GJ/m2 to 2.33 change through energy-saving programs (Fiscal year) * The number of ISO-certified buildings changes each fiscal year due to GJ/m2, and CO2 emissions per unit of floor conducted in cooperation with tenants. renovations and sales/purchases.

The Mitsubishi Estate Group CSR Report 2011 19 Global warming mitigation in the Tokyo metropolitan area, including about 80% of heat comes from biomass measures committees bring Yokohama, in an effort to work with boilers. While most buildings in London together tenants tenants to reduce energy consumption. rely on gas for their heat, the building By type of energy, electricity accounted Each committee meets twice a opted for biomass boilers, which are for about 80% of the energy consumed in year, once in the spring and again in the considered to be carbon neutral, since Mitsubishi Estate’s thirty ISO14001- fall. In fiscal 2010, the committees issued the CO2 released as heat is generated certified buildings, whereas by a pamphlet on energy conservation and the CO2 absorbed from the application, tenant use accounted for the entitled ECOBLDG STYLE to provide an atmosphere as the tree (the raw material) majority of energy consumption. Given overview of revisions to the Tokyo grows offset each other. The pellets used this, Mitsubishi Estate established a Global Metropolitan Ordinance on Environmental as the fuel are also made from the mill Warming Mitigation Measures Committee Preservation and the Energy Conservation ends and thinned wood left over from in November 2008 at each of its buildings Law, explain energy conservation timber processing, making this system programs carried out in buildings and more environment friendly than Fiscal 2010 energy consumption by type (for 30 ISO14001-certified buildings) specific reduction targets, and introduce systems using other fuels and City gas 2.0% Fuel oil 0.0% energy conservation initiatives practiced facilitating the operations of low- by tenants. carbon emitting buildings. Heat (district heating and cooling) Electricity 20.0% 78.0% Efforts to reduce CO2 emissions in the UK Fiscal 2010 energy consumption by application (for 30 ISO14001-certified buildings) The Central St Giles Redevelopment Garage 1.7% Other 0.4% Project, in which Mitsubishi Estate and General use 17.9% Legal & General, a major UK life Use in air conditioning (common areas insurance company, participated Tenant use and tenants’ areas) jointly, was completed in April 2010. 42.9% 37.1% This building was designed so that Central St Giles

Creating a Sound Material-Cycle Society

Recycling waste generated Total waste by type and primary recycling end-points at Mitsubishi Estate’s ISO-certified buildings*1 by buildings Change from Type FY Amount (kg) previous year Primary recycled (kg) end-products Mitsubishi Estate Group strives to Paper suitable 2010 9,343,284 8,504 Recycled paper improve the waste-recycling rate in the for reuse 2009 9,351,788 buildings it manages and operates. 2010 1,338,542 Bottles and cans 33,456 Glass, metal Efforts include calling for tenants’ 2009 1,305,086 2010 20,430 cooperation in sorting waste, as well as Fluorescent lights 1,966 Glass, aluminum 2009 22,396 recycling kitchen waste from some 2010 42,206 buildings as livestock food and fertilizer. Polystyrene foam 3,894 Processed plastic products 2009 38,312 2010 606,992 Total waste and recycle rates for PET bottles 121,045 Processed plastic products Mitsubishi Estate’s ISO-certified buildings 2009 485,947 Total waste Recycle rate Recyclable kitchen 2010 991,453 Organic fertilizers and (1,000kg) (%) waste 54,607 animal feed 60,000 60 2009 936,846 Non-recyclable kitchen 2010 10,039,030 51.0 53.0 53.5 53.2 53.2 2 28,318 — waste and scraps* 10,067,348 40,000 40 2009 2010 816,347 23,672 23,189 24,339 22,811 23,198 Industrial waste*3 212,792 — 2009 603,555 20,000 20 2010 23,198,284 Total 387,006 — 2009 22,811,278 0 0 2006 07 08 09 10 (Fiscal year) *1 Number of buildings included in scope of data may differ by fiscal year due to rebuilding, sale and purchase. * Number of buildings included in scope of data may diﬀer by ﬁscal year due *2 Non-recyclable kitchen waste and scraps includes paper and lunch boxes that are not suitable for reuse and are ultimately incinerated. to rebuilding, sale and purchase. *3 Industrial waste includes plastic products, metal scraps, ceramics and vinyl materials that are ultimately buried in landfill.

The Mitsubishi Estate Group CSR Report 2011 20 Building’s effective consumption certification of a newly built building Yokohama, Hibiya Kokusai Building, of water resources with lower consumption per unit of Shin-Aoyama Building, Akasaka Park floor space). Building on this Building, and Marunouchi Park Building Mitsubishi Estate is working to curb achievement, the company is working all use reclaimed water, a total of about water consumption at its buildings by to meet its fiscal 2011 target of reducing 511,793 m3 per year, thus helping to taking measures to streamline water water consumption in every building by conserve water resources. consumption such as adjusting the more than 1.0% from the previous year. Water consumption and water consumption amount of water used in toilets and The company is also effectively per unit of floor space (1,000 3m ) in Mitsubishi hot-water service rooms. Water using reclaimed water by treating used Estate’s ISO14001-certified buildings Water consumption Per-unit consumption 3 consumption totaled 2,726,435 m in water such as cooling tower blow (1,000 m3) (m3/m2) 4,000 1.2 Mitsubishi Estate’s ISO14001-certified water and kitchen wastewater and 0.98 0.95 3,000 1.09 1.10 1.04 0.9 2,836 2,816 2,849 2,676 2,726 buildings, up 1.9% compared to fiscal reusing it as toilet flush water. As of 2,000 0.6 2009, and water consumption per unit March 2011, the Marunouchi Building, 1,000 0.3 3 2 0 0 of floor space was 0.95 m /m , down Mitsubishi UFJ Trust and Banking 2006 07 08 09 10 (Fiscal year) 3 2 0.03 m /m (this is because the water Building, Marunouchi Kitaguchi * Number of buildings included in scope of data may diﬀer by ﬁscal year due consumption per unit of floor space Building, Tokyo Building, Shin- to rebuilding, sale and purchase. declined as a result of the ISO14001 Marunouchi Building, Landmark Tower

Fostering Harmony between Nature and Human Society

Acquiring FSC-CoC Mitsubishi Estate Housing about 35% of the structural materials of certification Components sells structural plywood these homes, the highest rate in the and base material used in wood-frame 2x4 housing industry. Mitsubishi Estate Housing Components construction not only to Mitsubishi Moreover, the company is Co., Ltd. (manufacturing, processing Estate Home Co., Ltd., but also to pursuing links with the “Experience and sales of building materials) customers outside of the Mitsubishi Nature” project, an initiative promotes the use of Japan-grown Estate Group. The company will implemented by the Mitsubishi Estate timber in the structural components of continue to promote the use and Group in Masutomi, Hokuto City in detached houses. This will lead to the application of Japan-grown timber. Yamanashi Prefecture, to promote use appropriate and effective use of Japan’s * To finish and process timber needed for construction and application of timber grown in that optimally and effectively. forest resources, which absorb CO2. prefecture. Beginning in August 2011, When procuring Japan-grown Japan-grown I-joists and LVL (laminated timber, the company not only makes veneer lumber) material* using larch sure that the timber has been legally Sustainable 2x4 Homes— trees were adopted, and they will be harvested, but also uses timber that project to encourage use of used in structural plywood in the Japan-grown timber has been certified as having been future, as well to boost the utilization grown in a forest planted according to Mitsubishi Estate Home Co., Ltd. makes rate to 50%. a sustainable plan. In August 2010, the comprehensive proposals to encourage * Both materials are used in major structural company obtained the Forest the use of Japan-grown timber by components such as the beams and floor framing of wood-construction homes Stewardship Council’s chain of custody proactively utilizing wood from (CoC) certification, an international thinned, small-diameter trees in homes standard that sets certified products adopting 2x4 construction, which apart from others in the processing and accounts for about 20% of all wood- distribution stages. construction homes. This is intended to In addition, the company is expand the base for the use of Japan- raising the percentage of pre-cut* grown timber in the field of wood- timber to improve its yield rate at its construction homes overall and processing plants, which means a more enables the company to supply high- efficient use of resources and reduction quality, long-life wood 2x4 homes that Japan-grown I-joist and LVL newly adopted of waste materials generated at can be used cyclically over the long construction sites. term. Japan-grown timber is used for

The Mitsubishi Estate Group CSR Report 2011 21 Reducing Environmental Impact

Eco-friendly proposals by The company will continue to Gold status, earned for its energy the Architectural Design and pursue sustainable architecture and efficiency and sustainability. The Group Engineering Business urban development and offer rich and is also working to earn certification for Mitsubishi Jisho Sekkei Inc., which is varied designs for secure and comfortable its existing buildings and earned LEED responsible for design and project living spaces that also reflect environmental certification for its McGraw-Hill Building supervision, recommends environment- and urban considerations. in New York City. The Group is also friendly technology in the belief that * The Environmental Technology Committee is made endeavoring to improve its Energy Star the environmental impact generated up of a chairperson, deputy chairperson, 11 members, rating (an energy conservation and 19 working group members (of which six are by a building during its lifecycle can be also members) and meets several times a year. program) for the Time-Life Building, reduced effectively at the design stage. another New York City property. In April 2008, the company established * Leadership in Energy and Environmental Design the Environmental Technology Acquiring environmental (LEED), a green building certification system developed by the U.S. Green Building Council Committee* to rapidly and effectively certification in the U.S. recommend technology and provide information in response to customer The Rockefeller Group, a Mitsubishi requests. This committee also considers Estate subsidiary with headquarters in technical issues and shares information the U.S., seeks to obtain LEED* on reducing environmental impact, certification for all newly developed such as reducing CO2 emissions (carbon buildings. The Group earned Gold offset) in building design. In addition, status LEED certification in fiscal 2010 in April 2011 the Environmental for its development of a logistics facility Technology Promotion Office was in Georgia for major food products Logistics facility development project for General Mills established to design more environment- company General Mills. This is the friendly buildings and cities. largest facility in the U.S. to receive

Increasing Ecological Awareness

Winner of Minister of the The Ministry of the Environment a shift to a morning lifestyle to save Environment’s Prize for Global has given this award to an individual or electricity at night, and information Warming Prevention Activities organization that has achieved dissemination through its environment in the Environmental Education and Dissemination Category remarkable results in preventing global portal site. warming in December, the month for In December 2010, the Association for the prevention of global warming, Creating Sustainability in Urban every year since 1998. This is intended Development of the Otemachi, to promote measures for the Marunouchi and Yurakucho District prevention of global warming. The (the Ecozzeria Association), of which Ecozzeria Association was recognized Mitsubishi Estate serves as the for its achievements in raising secretariat, won the Minister of the environmental awareness of urban Environment’s Fiscal 2010 Prize for lifestyles with its Water Sprinkling Receiving Minister of the Environment’s Prize for Global Warming Prevention Activities in the Environmental Global Warming Prevention Activities in Project, environmental education Education and Dissemination Category the Environmental Education and program for children, the Marunouchi Dissemination Category. Morning University, which encourages

The Mitsubishi Estate Group CSR Report 2011 22 Interacting with Local Communities and the Broader Society

As a good corporate citizen, the Mitsubishi Estate Group values social harmony. The Group makes the most of its unique strengths to build communities and foster social progress.

Basic Policy and Performance Highlights

Basic policy Breakdown of expenditures Social contribution performance (fiscal 2010) NPO infrastructure Social welfare 1.3% building 1.6% Healthcare 1.2% The Mitsubishi Estate Group Guidelines In fiscal 2010, Mitsubishi Estate spent Sports 2.2% Education 0.4% Preservation of on Social Contribution Activities were approximately 1,923 million yen on historical sites and International exchange traditional culture and cooperation established in April 2008, updating the social contribution activities on a 2.4% 0.3% Group’s philosophy on social contribution non-consolidated basis, or 1.91% of its Academic research Other 0.2% 4.1% activities established in 1994 to reflect ordinary income. The breakdown is Support for changes in the issues facing society shown on the right. disaster victims Culture and arts 5.2% 67.4% and the need for the entire Group to Environment work together on initiatives. 6.0% Activities in local communities 7.7%

The Mitsubishi Estate Group Guidelines on Social Contribution Activities 1. Solutions to social issues together with corporate growth 3. Ties with community As a good corporate citizen, we work to resolve social issues with the We engage in transparent and fair activities in affiliation with various added benefit of achieving corporate growth through such activities. groups, based on equal footing, trust and dialogue. 2. Development of activities characteristic of the Mitsubishi 4. Priority areas Estate Group We prioritize harmony with the local community, support for culture We carry out unique social contribution activities, both within and and the arts, environmental conservation and social welfare. outside our business spheres, which are characteristic of the Group and utilize its management resources.

Harmony with the Local Community

Marunouchi Food Education chefs in Marunouchi, has been launched. Tasting Class given by chef Kiyomi Mikuni. Project Mitsubishi Estate is working with the Club to Mitsubishi Estate will continue to devise plans and schemes that emphasize provide a range of opportunities for people to Mitsubishi Estate is pursuing the good communication among producers, think about food, with the aim of changing Marunouchi Food Education project with consumers and restaurants. the food awareness of adults working in chefs in the community in Tokyo’s In August 2010, a summer vacation the Marunouchi area and passing this Marunouchi area—home to over 350 food education program was held jointly knowledge on to their families and the next restaurants—to increase awareness of with The Eco Kids Expedition, which is generation. Mitsubishi Estate will continue food issues in urban settings. intended to give children the opportunity its activities The Group has invited Yukio Hattori, to discover environmental initiatives to make chairman of the board of directors of Hattori underway in Marunouchi. Children and Marunouchi Academy, as chairman of the Project, and adults alike participated in hands-on a forefront of under his auspices the Marunouchi Chefs programs to learn about how to cook Japan in the Club, made up of restaurant owners and delicious food without waste and a food sector. Hands-on class to learn about food

The Mitsubishi Estate Group CSR Report 2011 23 Eco Kids Expedition companies and tours to cutting-edge Group’s support activities include environmental companies and remodeling the school’s auditorium environmentally responsible facilities and schoolyard, as well as offering In August 2010, the Eco Kids Expedition were given. The programs taught advice on building maintenance and was held. This event for children living participants about issues such as the financing issues, with the goal of in urban areas—the hope of the next heat island phenomenon facing urban raising its rating from current “Good” to generation—is sponsored by the Eco areas with large energy demands, the highest “Outstanding” by 2012. Kids Expedition Executive Committee, global warming and the resource Mitsubishi Estate also gives back which is made up of the Otemachi cycle—in a fun and enlightening way. to the community by offering a wide Marunouchi Yurakucho District range of programs, such as workshops Redevelopment Project Council (OMY for children with sculptor Steven Council, chaired by Mitsubishi Estate) Giving back to Central St Giles Gontarski, who is in charge of the and other members and held in the artwork in Central St Giles, and Otemachi, Marunouch and Yurakucho donating money to restore a local district, one of the major business Mitsubishi Estate and Legal & General, a church’s garden. centers in Japan. major UK life insurance company, * OFSTED: Office for Standards in Education On the day of the event, participated jointly in the Central St A government organization that inspects and evaluates the level of school education in schools environmental workshops on the Giles Redevelopment Project. As part of throughout the UK. environmental conservation activities its social contributions in the area, taken on by the participating Mitsubishi Estate has formed a partnership with neighboring St Joseph’s Primary School to implement a project to improve the school’s educational environment with the aim of raising the school’s OFSTED* rating. While the redevelopment project was completed in April 2010, Mitsubishi Estate has been continuing Children’s workshop with Steven Gontarski Workshop at Eco Kids Expedition its support project for the school. The

Support for Culture and the Arts

Holding an art event in showcase their talents and energizes and animated films presented by cooperation with a university the Marunouchi area with the power of graduate students from the Graduate culture and art. School of Film and New Media. The Geidai Art Event in Marunouchi, A wide range of activities were Tokyo, sponsored by Mitsubishi Estate held during the festival, including the and Tokyo University of the Arts, was performance of an opera entitled held in the Marunouchi Building on Yataro Iwasaki’s Best Friend Glover and October 26–31, 2010. Marking the Madame Butterfly by students in the fourth time this event has been held, it university opera research section, gives talented young students at Tokyo music recitals and art exhibits by the University of the Arts an opportunity to winners of the Mitsubishi Estate Award, Geidai Art Event in Marunouchi, Tokyo

The Mitsubishi Estate Group CSR Report 2011 24 Environmental Conservation

Water Sprinkling Project in The 2010 event, from July 30 to that is sensed feel even cooler than Otemachi, Marunouchi August 17, was held at five locations, actual temperature decline. and Yurakucho with approximately 2,800 people Mitsubishi Estate continues to The Water Sprinkling Project has been participating. Clean, reclaimed water sponsor this project, which is open to organized on a regular basis in the recycled from some of the buildings in everyone, to help raise the Otemachi, Marunouchi and Yurakucho the area was sprinkled to lower the environmental awareness of the district. In this project, which draws on temperature, and changes in community in the Otemachi, traditional Japanese practices, temperature were measured. Marunouchi and Yurakucho district. anybody in the district can join in and Sprinkling water on hot summer sprinkle water to mitigate the heat days lowers the temperature, because island phenomenon specific to urban as the sprinkled water evaporates, it areas. The project is sponsored by a absorbs the heat from the ground and planning committee spearheaded by surrounding air. In addition, the the OMY Council, which is chaired by difference in air temperature creates a Mitsubishi Estate. breeze, which makes the temperature Water Sprinkling Project

Social Welfare

Ninth Dazzling Art Competition Japan—the highest number yet. Fifty to the community in many other ways, for children especially impressive works were including participation in Operation displayed at eight venues in Japan, Backpack, a program that gives Mitsubishi Estate has sponsored the including the Shin-Marunouchi backpacks filled with school supplies to Dazzling Art Competition for children Building, earning the admiration of children from poor families, and Toy with disabilities in Japan since fiscal 2002. countless people. Joy, a program that gives toys to This annual event is unique in disadvantaged children as Christmas that it displays all of the works of art gifts. It also donated 77,000 U.S. dollars submitted to the competition on the Philanthropic activities in to the United Way. Internet. The fiscal 2010 contest the U.S. attracted 1,175 works from all over The Rockefeller Group, a Mitsubishi Estate subsidiary with headquarters in the U.S., participated in the God’s Love We Deliver Program in February 2011. This program delivers food to people with serious illnesses such as HIV, and Employees participating in the God’s Love We many employees volunteered their Deliver Program time for this endeavor. Exhibition held in Sapporo The Rockefeller Group gives back

The Mitsubishi Estate Group CSR Report 2011 25 Engaging Clients

Communicating with clients is a crucial part of urban development. The Mitsubishi Estate Group will continue to provide safe, reliable services, always listening attentively to its clients’ opinions and requests.

Communicating with Clients Initiatives in the Building Management Business

Support for establishing an order to receive permission and aid childcare services without the setup in-house childcare facility from national and local governments. costs and management risks. However, the Tokyo Metropolitan Prior to this, Mitsubishi Estate Aiming to meet the diversifying Government’s in-house childcare had also strategically invited in childcare needs in the Marunouchi area, facility support program was partially employee support facilities, such as the Mitsubishi Estate invited Poppins Co., revised (April 2009) to allow Tokyo Metropolitan Government- Ltd. to open a workplace nursery, the “consortium-type” in-house childcare accredited nursery school in the Tokyo Poppins Nursery School Marunouchi, in facilities that are set up and Building, and will continue to foster a the Marunouchi Kitaguchi Building, administered by childcare providers, worker-friendly environment. which is owned by the company, in which can then contract with multiple April 2010. This was made possible by companies. The Poppins Nursery converting a part of this building from School Marunouchi was set up and is office use into a nursery. run by Poppins, and several companies Conventionally in Japan, a have contracts to use the facility. By company wanting to set up an in- contracting for just the childcare house childcare facility would have to needed by children of its own establish and administer it itself in employees, each company can offer Poppins Nursery School Marunouchi

Initiatives in the Residential Business

Condominium quality for its residences, to give customers customer of Mitsubishi Jisho management and performance greater peace of mind when they Residence’s commitment to checking indication system “Check Eyes” purchase their homes. the quality and performance of Mitsubishi Jisho Residence Co., Ltd. This system incorporates the residences at every stage, from design, operates the “Check Eyes” system, a government’s Housing Performance construction, and completion through unique performance indication system Indication System and informs the to move-in and beyond.

“Check Eyes” Process

Design stage Transfer After move-in Explanation of important Construction Private viewing, transfer, Regular after-service issues and contract questionnaire

Check Eyes Book Check Eyes Report Check Eyes Document Check Eyes Karte The Check Eyes Book uses visuals to The Check Eyes Report explains The Check Eyes Document is the final Regular inspections are conducted show initiatives in design and progress in the construction process report, explaining the results of three months, one year and two years construction work, in addition to and shows construction conditions progress made in construction from after the property transfer, and Check condominium design specifications and that the customer cannot see after the start of construction to the Eyes Karte reports are created to grades per the Housing Performance completion. This report is submitted building’s completion, with reference inform the management association Indication System. Construction to the customer under contract to the checkpoints confirmed during of location and details of renovations terminologies and features are before the property transfer. the various stages of construction as made in common-use areas. Photos explained in special boxes. Information part of quality management. This are used to clearly show location and on management plans and after- document is presented to the buyer methods used. services are included to help in the together with the Housing customer’s purchase decision. Performance Evaluation.

The Mitsubishi Estate Group CSR Report 2011 26 Safe and Secure Urban Development

Implementation of standard precautionary measures and to fulfill the Group’s social comprehensive emergency plans assignment of divisions’ and other responsibilities. and establishment of Overview organizations’ responsibilities, plans for The company is currently of Disaster Countermeasures disaster prevention education and reviewing its BCP to implement further Mitsubishi Estate has a long history of emergency drills, a storage system for improvements in response to the Great disaster prevention measures, starting food and equipment, a plan for prompt East Japan Earthquake, which occurred with the 1923 Great Kanto Earthquake, emergency steps and recovery in March 2011. when Mitsubishi Goshi Kaisha, as the measures in the event of a disaster, and company was then known, distributed a plan for emergency measures in the drinking water and meals at the former event of cautions and warnings of a Earthquake countermeasures Marunouchi Building and its environs Tokai earthquake. In the event of a for buildings and set up an emergency medical disaster, a Disaster Countermeasure center. Every September, Mitsubishi Committee will be set up, chaired by Mitsubishi Estate has carried out Estate holds comprehensive Mitsubishi Estate’s president, to take seismic diagnoses of the buildings it emergency drills with the participation steps in accordance with the Overview owns, based on the damage suffered in of all of its executives and employees of Disaster Countermeasures. In addition, the Hanshin-Awaji Earthquake in and many others from Group an emergency system has been January 1995. As a result, Mitsubishi companies and other parties. prepared to ensure the whole company Estate determined that some buildings In 1981, Mitsubishi Estate works as one in the event of a disaster should be retrofitted to improve prepared a disaster prevention manual, to respond to emergency situations. earthquake resistance, based on the Overview of Disaster Countermeasures, standards in the New Earthquake- to ensure that necessary measures are Resistant Design Code. In addition, with taken to preserve human life and BCP initiatives and review the passage of Japan’s Act on infrastructure in the event of a natural Promotion of Seismic Retrofitting of disaster, such as a major earthquake, Buildings in December 1995, Mitsubishi fire or other emergency, and to take In October 2006, the Mitsubishi Estate Estate carried out seismic retrofit appropriate and prompt recovery Group created the Guidelines for the construction in accordance with this measures. The manual is updated in Mitsubishi Estate Group’s Business law to enhance the safety of its response to changing social conditions Continuity Plan as part of its efforts to buildings, which was completed in and sets out detailed and wide-ranging establish a business continuity plan fiscal 2002. measures. It includes items such as (BCP) which lays out the steps for As a result, even buildings preventing any interruption of constructed before the current important operations in the event of a earthquake resistance standards went disaster or accident and resuming into force boast a seismic capacity important functions within an equivalent to buildings that suffered acceptable period in the event that little damage in the Hanshin-Awaji these operations are unavoidably Earthquake. Although there was interrupted. Based on the Group’s minor damage reported in some Mission, the BCP aims to ensure the buildings after the Great East Japan safety of clients and employees and the Earthquake, there were no cases of continuation and recovery of the structural damage. Comprehensive emergency drill clients’ and Group’s business, in order

The Mitsubishi Estate Group CSR Report 2011 27 Building safety management approach to managing information measures to ascertain which issues are initiatives and activities at each site, such as being properly addressed and which safety inspections and renovations, and should be enhanced or reviewed for Mitsubishi Estate has established a shares information on accidents within further improvement to ensure an even Building Safety Management Office in the Group, providing guidance and higher level of safety. In order to its Building Management and Planning support as needed. This office compiles prevent accidents, Mitsubishi Estate Department to carry out daily checks information on accidents at buildings, has devised the Building Safety Design and safety inspections in all of the including those not managed by the Guidelines, its own standards that are buildings that the Group manages Group, examines the causes, and more rigorous than Japan’s Building nationwide, working closely with promptly determines whether Standards Act and other regulations, to Group companies such as Mitsubishi countermeasures should be taken. ensure safety from the design stage. Estate Building Management and In light of experience gained in These guidelines are updated regularly. Mitsubishi Jisho Property Management. the Great East Japan Earthquake, the The office also takes an integrated company is re-examining its safety

Information for Everyone

Building signage planning and passageways and facilities to provide placement of appropriate signs gives universal design clearer guidance. peace of mind to visitors to the district. Mitsubishi Estate’s signage is also Mitsubishi Estate uses its Sign Design in multiple languages. Based on the Book to prepare standardized signage findings of a survey that 70% of tourists posted on the inside and outside of in Japan speak Chinese or Korean, signs its buildings, primarily in the along Marunouchi Naka Dori Avenue in Otemachi, Marunouchi and Yurakucho particular are written in Chinese and district. The company strives to create Korean, as well as Japanese and informational signs with color and English. The signage at the entrance of design concepts that make them very buildings in the Otemachi, Marunouchi easy to understand. In November and Yurakucho district displays the 2010 the company installed new building name in four languages. signage for the underground The company believes that proper Area guide signs (detailed)

The Mitsubishi Estate Group CSR Report 2011 28 Cooperating with Business Partners

The Mitsubishi Estate Group aims to grow side-by-side with its business partners and is committed to building an equitable, trusting relationship with every business partner.

Compliance in the that have done a particularly impressive Management and Office Leasing Group order process job, based on the status of the outsources work such as facility construction work verified during operation and management, security In accordance with the Mitsubishi construction and in the final inspection, and cleaning to its business partners, Estate Group’s Mission and Code of as well as on the handling of private and as such, the Group’s guidelines for Conduct, Mitsubishi Estate has viewing before the condominium is management quality and services are established the Order Action Guideline, transferred to the customer. shared with all their managers and which all executive officers and With the aim of raising the level on-site staff to ensure that the Group employees placing orders with of post-purchase services following provides consistent services at all of its business partners must follow, to transfer of the property to the customer, buildings. The Group strives to work ensure that orders are placed with Mitsubishi Jisho Residence also awards with its business partners to share the transparency and impartiality. The construction companies that address same mindset and maintain and Guideline is intended to ensure customer concerns with particular skill. improve high-quality management. objectivity and economic rationality, In addition to these awards for In addition, Mitsubishi Estate but it also includes rules on specific properties, Mitsubishi Jisho partially revised its Business Partner environmental conservation, Residence launched a program to Evaluation System (see below) in fiscal information management and recognize construction companies that 2010 to clarify the evaluation items and avoidance of any involvement with had received a large number of awards criteria. A briefing was held for business organized criminal elements. for individual properties. The company partners to explain these changes. When placing orders, the business uses diverse methods to continue to As part of its quality management organization and ordering organization raise quality. efforts through this system, in June are clearly separated. Appropriate 2011, Mitsubishi Estate presented an ordering is ensured by requiring award to the company with the best employees to use a check sheet to Pursuing high-quality practices, and it also held a reception to self-verify compliance at each stage of maintenance and deepen trust. Recognizing how management in the Building the order process. The results are then important relationships of mutual trust Management Business confirmed by Mitsubishi Estate’s CSR with its business partners are in Department. The Orders Surveillance Mitsubishi Estate thinks of the providing high-quality management, Committee, chaired by the president, companies to which it outsources Mitsubishi Estate is committed to meets when orders for large projects specialized work as important partners building an even stronger relationship are placed (it met three times in fiscal that have direct contact with clients, with each partner to ensure that its 2010) and holds discussions to verify just as Mitsubishi Estate Group management consistently meets the total compliance in the order process. employees do. The Property most exacting standards.

Communication with business partners Award for distinguished Contact with business partners Purpose and objective condominium 1. Quality management evaluation Improve quality through meetings with business partners and evaluations construction company system for business partners

Mitsubishi Jisho Residence Co., Ltd. has Standardize a high level of quality through mutual confirmation of conditions on site 2. On-site monitoring established an award program to and share successful initiatives recognize construction companies as Share knowledge of the management quality that the Mitsubishi Estate Group 3. Manager interviews part of its efforts to provide customers requires and promote communication among managers with high-quality condominiums. The In reference to the shared knowledge of management quality, analyze company gives a Best Quality Award to 4. Goal coordination among supervisors on-site conditions, hold discussions on improving quality and coordinate goals among supervisors local heads of construction companies

The Mitsubishi Estate Group CSR Report 2011 29 Serving Shareholders and Investors

The Mitsubishi Estate Group maintains good communication with its stakeholders by proactively disclosing corporate information in a timely manner.

Committed to prompt, as well as conferences with analysts, accurate and giving facility tours, and actively Mitsubishi Estate included in impartial disclosure FTSE4Good Global Index for tenth meeting with institutional investors in straight year Following its own Disclosure Regulations, and outside Japan. Mitsubishi Estate publishes information In fiscal 2010, the IR Office held that the Security Listing Regulations about 400 such meetings. Company mandates for timely release through executives and general managers are TDnet (Timely Disclosure Network), a also active participants in financial system operated by the Tokyo Stock results briefings and analysts’ Exchange, as well as via other channels. conferences. These opportunities for Mitsubishi Estate is committed to the direct dialogue with shareholders and prompt, accurate and impartial investors help to ensure that their In March 2011, Mitsubishi Estate was disclosure of information to all of its views are incorporated into the selected for inclusion in the FTSE4Good shareholders and investors. management of the company. Global Index for the tenth year in a row. The company also proactively participates in seminars organized by Company executives give the stock exchange and securities briefings for shareholders, companies to provide briefings for investors and analysts individual investors to enhance The IR Office, set up within Mitsubishi information disclosure and make it Estate’s Corporate Communication more broadly accessible to the Department, is a dedicated investor community. Mitsubishi Estate organization with the mission of will continue its efforts to increase disclosing appropriate information in a dissemination of IR information in timely manner, publicizing English and augment its Fact Book to management strategies, and providing improve communication with feedback to views expressed in the overseas investors. capital markets. The IR Office provides accurate and impartial information to customers and the mass media, as well as to shareholders, investors and analysts. The IR Office’s main IR activities consist of updating the Investor Relations page on Mitsubishi Estate’s website, holding financial results briefings twice a year, Briefing for analysts (June 2011)

The Mitsubishi Estate Group CSR Report 2011 30 Working Together with Employees

Corporate growth is only possible in an environment where all employees are able to work with enthusiasm and in good health, constantly developing their talents in pursuit of shared goals. The Mitsubishi Estate Group has established programs that help its employees become true professionals. Initiatives in Human Resource Development

Reforming human resource the workplace level. discuss and analyze management issues development programs Mitsubishi Estate currently prioritizes from a broad perspective apart from the following four measures in its ongoing everyday job responsibilities. Starting in Mitsubishi Estate believes that fostering reform of human resource programs. fiscal 2011, the cross-sectional task excellent human resources is essential to (1) Rapid training programs forces are also being implemented at the Group’s sustainable growth and (accelerated training) some Group companies. launched a reform of its human resource (2) Promotion of coordinated programs Objectives development programs in April 2009. at the workplace level (PDCA efforts (1) To provide a place in which leadership can be The company set up a working by organizations) exhibited through team operations group to spearhead the reforms and (3) Development of programs to (2) To encourage a crosscutting perspective and company-wide perspective through joint work defined Mitsubishi Estate’s ideal motivate employees to proactive with employees of different backgrounds employee as a person with the following efforts (incentives) (3) To raise participating employees’ awareness of their potential as candidates for managerial five strengths: people skills, real estate (4) Rotations with a long-term perspective positions through their interaction with skills, job performance skills, management executive officers, initiatives addressing company-wide issues and advice to managers skills, and global readiness. The company (4) To raise management’s awareness of the is endeavoring to raise performance as a Cross-sectional task forces importance of fostering candidates for professional organization with a managerial positions distinctive personality, while individuals Members Total number of teams: 2 (8 or 9 members per team) make the most of their own strengths. Mitsubishi Estate has convened cross- Member breakdown Mitsubishi Estate develops its employees’ sectional task forces regularly since •Mentor (advisor) executive officer: 1 skills using multiple approaches, September 2007 as an informal forum in •Leaders: 2 •Members: 5 or 6 combining training programs with job which mid-career and junior employees rotations and coordinated programs at can work with executive officers to

Creating a Vibrant Workplace

New business proposal and and open job application system this project, provided an opportunity for open job application fiscal year to encourage employees to Group employees to socialize. system implemented take up challenges and enhance the Mitsubishi Estate will continue to Mitsubishi Estate began a new business dynamism of the corporate climate. hold events in the communication proposal and open job application room to deepen mutual understanding system in fiscal 2009 as part of its between departments and Group measures to foster a vibrant workplace. Employee social promotion companies and help create a team The new business proposal system has opportunities provided in spirit “As One Team.” communication room attracted 12 applications thus far, of which two have passed the screening The Mitsubishi Estate Group has set up process and the final appraisal of a communication room for Group business feasibility. A person to oversee employees in order to provide more each of the new businesses was chosen opportunities for employees to from within the company through the communicate together and to foster a open job application system, and the vibrant workplace. company is working to translate In February 2011, the unveiling of the Social for Group company employees businesses into reality. Mitsubishi Estate junmai-shu (“pure rice sake”) “Marunouchi,” will continue the new business proposal completed in the brewer’s rice growing

The Mitsubishi Estate Group CSR Report 2011 31 Creating a Workplace That Respects Human Rights and Employee Diversity

Ongoing human rights training attorney Kou Eiki to give a lecture Hiring of people entitled, “The Annexation of Korea and with disabilities the Legal Position of Koreans in Japan.” Mitsubishi Estate provides training on Mitsubishi Estate actively promotes the human rights during its rank-specific hiring of persons with disabilities, in training for new hires and newly accordance with the normalization appointed section/division managers. concept advocated by the United Since fiscal 2007, the company has also Nations. As of the end of fiscal 2010, given theme-specific group training Mitsubishi Estate employed 29 people intended for all employees. Sexual with disabilities (1.69% of the harassment prevention, the first of the Attorney Kou Eiki’s lecture workforce), falling short of the legally topics addressed in the training, is an recommended employment rate of important issue in maintaining a positive 1.8% (which would be 30 employees), workplace environment, and accordingly Encouraging respect for due to the retirement of employees this training was given in fiscal 2010 to human rights and diversity and other developments. Mitsubishi new hires and employees who had not Estate plans to expand its hiring of yet attended due to transfer or other Mitsubishi Estate holds a meeting of its people with disabilities going forward. circumstances (99 participants). Human Rights Education Committee Employment rate of persons In addition, a human rights (chaired by the director in charge of with disabilities lecture is held every December for human resources) once a year to look at (%) 2.0 1.8 senior staff such as the president, the status of its human rights initiatives 1.85 1.76 1.69 directors, and division managers, as in daily operations and human rights Legally recommended 1.58 employment rate well as Group company presidents. In training, exchange views on ways to 1.0 view of the fact that it has been 100 improve programs, discuss that fiscal years since Japan’s annexation of Korea year’s activity plan, and review reports 0 End of fiscal End of fiscal End of fiscal End of fiscal in fiscal 2010, Mitsubishi Estate invited on recent human rights conditions. 2007 2008 2009 2010

The Mitsubishi Estate Group CSR Report 2011 32 Supportive Workplaces for Employees

Specific programs for Reducing overtime hours Workforce profile work-life balance

Mitsubishi Estate has established Mitsubishi Estate has made The breakdown of Mitsubishi Estate’s programs for childcare leave and family Wednesdays “no overtime days” to help employees is as follows. care leave, as well as shorter work prevent long work hours and overwork. Contract employees Full-time hours for childcare and family care, so In 2010, the company started a new and others: employees: 320 1,403 that its employees can choose the initiative on this front, setting “intensive work schedule that best fits their no overtime days” on the third Men: 220 lifestyle and achieve a balance Wednesday of every month and every between work and home life. Wednesday in November. Women: 100

Employees can take childcare In addition to these initiatives, all Women: 204 Men: 1,199 leave until the end of March after the supervisors meet one-on-one with * As of March 31, 2011 (Including employees seconded to child turns three, and can work shorter their subordinates to discuss workload Group companies) hours for childcare activities until the and task difficulty as well as their child has completed the third grade of health. Any employees with a tendency elementary school. Mitsubishi Estate to overwork are cautioned, while those Managing employee health also implements other initiatives to who work more than 80 hours of with medical checkups support childcare, such as temporary overtime per month are asked to have daycare services using contracted a checkup with an occupational Mitsubishi Estate gives regular medical daycare centers and subsidies for the physician. Mitsubishi Estate is earnestly checkups to all employees once a year cost of babysitting. striving to optimize the working hours to maintain and promote employee Mitsubishi Estate has established situation for employees. health. The company has expanded a general action plan so that examinations for lifestyle diseases, and Overtime hours worked, per month, employees can balance work and per person (career track and employees are given secondary exams childcare and created a Childbirth and administrative employees) and special exams as the results (Hours) Childcare Guidebook covering the 50 warrant. Beginning in fiscal 2005, the company’s support programs, which is 40 period in which employees can see a available on the Intranet. doctor was expanded to three months, 30 26 hours 25 hours 25 hours 24 hours with those who were yet to see a Number of employees taking childcare 20 and nursing care leave doctor notified individually. As a result FY2008 FY2009 FY2010 10 of these efforts, the examination rate improved 2.31 points in fiscal 2010 over 0 Childcare leave 2007 2008 2009 2010 18 13 6 (Fiscal year) of absence fiscal 2009 to 92.08%. Shortened work hours 11 21 18 for childcare Nursing care leave 1 0 1 of absence

The Mitsubishi Estate Group CSR Report 2011 33 Corporate Governance

The Mitsubishi Estate Group earns stakeholders’ trust by pursuing highly transparent management.

Committed to highly The Group has set up the risk management system by setting up transparent management Executive Committee, consisting of the the CSR Committee, which discusses president, the executives of each CSR issues in general, including the Mitsubishi Estate has developed a highly business group, standing statutory Group’s risk management, and the Risk transparent management system, with auditors and other persons designated Management Subcommittee, a an executive officer system that clearly by the president. The committee meets, working-level consultative body defines the oversight and business as a general rule, once a week, and met consisting of department managers execution functions. The four outside 49 times in fiscal 2010. The Strategic including major Group companies. The directors were selected to reinforce the Investment Committee, which functions executive heading the CSR Department management and oversight functions of as a subordinate body to the Executive at Mitsubishi Estate has been the Board of Directors. In June 2007, the Committee, gathers to discuss designated as Executive Director of Risk term of appointment for directors was important investment proposals and Management and given overall shortened to one year. summarize the points at issue before responsibility for risk management, and the Executive Committee meets, which general managers of each business enables the Executive Committee to group and general managers in the Managerial decision- discuss and make management Corporate Staff Departments have making process decisions at a more sophisticated level. been designated as Risk Management Officers and given overall control and The Mitsubishi Estate Group has responsibility for the management of established the Strategic Planning Risk management risk within their business groups. The Committee, which is chaired by the Group is enhancing its systematic president and consists of the directors risk management activities by (excluding outside directors), the The Mitsubishi Estate Group has thoroughly identifying risks at the job deputy president, the executive vice established the Mitsubishi Estate Group site and using the plan-do-check-act presidents, and the president’s Risk Management Rules and has set up (PDCA) cycle for everything from appointees, to discuss the Group’s a risk management system to manage planning and implementing reform management strategies. In fiscal 2010, risk in all its business activities. measures to monitoring by the Risk the committee met 11 times. The company has reinforced its Management Subcommittee.

Mitsubishi Estate Group’s corporate governance structure (as of April 2011)

Meeting of Shareholders Strategic Planning Committee 1

Board of Directors CSR Committee 2 3 Chairman of the Board Compliance Subcommittee 4 President & Chief Executive O cer Environmental Subcommittee 5

Risk Management Subcommittee 6 Internal Audit O ce Business groups (including a liated companies) 7 8 Executive Committee 9 Board of Statutory Auditors Strategic Investment Committee 10 Statutory Auditors 11 12 O ce of Statutory Auditors Departments in the Corporate Group 13 14 15 16 17 18 19 20

The Mitsubishi Estate Group CSR Report 2011 34 Reinforcing internal controls The four Group companies* that at the Board of Directors’ meetings and handle financial instruments have standing statutory auditors at the established and continue to operate Executive Committee ensure that the The Mitsubishi Estate Group’s Board of their own systems. Relevant divisions in status of operations is audited in each Directors adopted the Basic Policy on Mitsubishi Estate also strengthened division and Group company, while the Internal Control Systems, as required by their internal control systems to address establishment of the Office of Statutory Japan’s Companies Act, regularly compliance problems related to this law. Auditors has also enhanced audits. confirms that operations are consistent * Mitsubishi Jisho Investment Advisors, Inc. (real estate The Internal Audit Office has been with the policy, and makes investment and management), Japan Real Estate set up to reinforce the internal audit Asset Management Co., Ltd. (real estate investment improvements whenever necessary. and management), Mitsubishi Real Estate Services function and reports directly to the The Group also upgraded, Co., Ltd. (real estate consulting and solutions, president. This serves to emphasize its brokerage, sales and leasing), Mitsubishi Jisho House administered and evaluated its internal Net Co., Ltd. (real estate sales and brokerage) objectivity and independence from any control system in line with the internal business group. Internal audits are controls over financial reporting which conducted in accordance with the audit were adopted by listed companies in Management oversight plan (which also covers Group companies) April 2008 as mandated by Japan’s structure established on a risk basis to confirm that Financial Instruments and Exchange Act. internal controls are set up and The Internal Control Report concluding The Board of Directors works with the administered appropriately. All audit that the Group’s internal controls over Board of Statutory Auditors to oversee results are reported to the president, and financial reporting were effective as of and audit the business affairs of the are then shared with the standing March 31, 2011 was submitted to the company. The Board of Directors meets statutory auditors, with an overview Kanto Local Finance Bureau of the once a month, and more often when provided to the Board of Directors. Ministry of Finance on June 29. The necessary, to make decisions on The company also emphasizes Internal Control Audit Report confirmed important operations and legal matters, follow-up after audits, confirming that that auditors had ascertained that this and it also oversees business execution. problems indicated in internal audit report was presented fairly. In addition, the attendance of auditors results have been improved.

The Mitsubishi Estate Group CSR Report 2011 35 Compliance

The management of the Mitsubishi Estate Group is intently focused on strengthening compliance in order to secure the trust of stakeholders and ensure the continuing development of the company and the entire society.

System for promoting Rigorous information analyzing them to identify overall trends compliance management and characteristics of each company, to plan activities to improve compliance. The Mitsubishi Estate Group believes In light of society’s growing concern that compliance does not simply over the protection of personal involve legal compliance, but is also information and information Measures against organized defined as adherence to internal rules management, the Mitsubishi Estate criminal elements and corporate ethics. Group devised a system for managing Mitsubishi Estate’s compliance personal information based on its The Mitsubishi Estate Group clearly system has its roots in the determination concept of “information management stipulates its refusal to countenance of its executives and employees to compliance” in 2003. any relationship whatsoever with improve their awareness and reform the In May of the same year, the organized criminal elements in its organization after the company was Mitsubishi Estate Group’s Basic Guidelines for Conduct. Mitsubishi found in violation of some stipulations Regulations on Information Estate’s CSR Department serves as a of the Commercial Code of Japan in Management Compliance and the special department to take resolute 1997. In that year, the Code of Corporate Mitsubishi Estate Group’s Policy on measures for the Group, in cooperation Conduct was formulated to define the Personal Information Protection were with the police, in the event of any company’s basic commitment to reform. established—two years before Japan’s contact from criminal elements. Group-wide reform was implemented, Act on the Protection of Personal with all employees sharing the sense Information went into effect in April of urgency. 2005. Coupled with thorough Augmenting the help line In July 2005, a Compliance monitoring and oversight, the Advisory Committee consisting of company continues to reinforce its external experts was formed on a management of personal information. The Mitsubishi Estate Group has temporary basis to objectively review established a compliance help line to the compliance system in light of the receive inquiries and consultations on soil and groundwater contamination Compliance surveys compliance issues. The help line has problems discovered at Osaka Amenity both internal and external contact Park. This committee worked to improve points and can be used by Group the corporate culture, for example, by The Mitsubishi Estate Group regularly gives employees, temporary employees, revising the Code of Conduct. compliance surveys to its approximately part-time employees and various other The current compliance 12,000 executive officers and employees part-time staff, and even the business promotion system is administered by (including temporary employees) to partners of Group companies. Inquiries the CSR Committee, which discusses ascertain the extent to which they are can be made anonymously. There were CSR issues in general, including Group aware of compliance issues. 44 consultations and reports via the compliance, and the Compliance The Group uses the results, after help line in fiscal 2010. Subcommittee, a body consisting of general managers, including major Fiscal 2010 results for the entire Group Group companies, that holds Question: Do you think that your company has achieved the rst tenet of the Mitsubishi Estate Group Code of Conduct, discussions before the CSR Committee “We will act with integrity”? The entire Group Number of respondents: 11,105 (Fiscal 2010) meets. In addition, an executive Yes Yes, for the most part No, not really No director has been appointed by Fiscal 2010 4,043 6,100 742 decision of the Board of Directors to 220 take responsibility for overseeing and Fiscal 2009 4,075 5,757 820 ensuring compliance. All Mitsubishi 198 Estate departments and Group Fiscal 2008 2,934 4,923 795 196 companies are working closely with 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% the CSR Department to pursue * Implementation dates for fiscal 2010 survey: June 28–July 9, 2010 compliance in a coordinated manner. Subjects: All employees and executive officers at Mitsubishi Estate and 44 Group companies Out of 11,840 executive officers/employees, 11,164 responded (response rate of 94.3%)

The Mitsubishi Estate Group CSR Report 2011 36 Opinions by the External Advisors on the CSR Committee

Mitsubishi Estate Group’s strong desire to serve people and communities

The Mitsubishi Estate Group’s brand slogan “A Love for People, A Love for the City” can probably be seen as a PR strategy, but I strongly believe that it is more than an attractive slogan. Organizations and people show their true colors when crises occur, and when I learned about the Group’s rapid response to assist people left stranded in the Tokyo metropolitan area because of the earthquake and suspension of public transportation, I truly felt that no company had demonstrated its love for people and community so naturally and to such an extent as Mitsubishi Estate had. In keeping with its modesty in reporting on its own accomplishments, the Mitsubishi Estate Group only briefly mentioned its response on March 11 at the end of this report. However, I saw the letters of thanks delivered several days later, which really moved my heart, so I decided to introduce comments from some of the letters here. “I was so grateful to be provided with a warm and safe place to stay, and really felt obliged when we were even given a large carpet and clean blankets out of the blue.” “The food was all hot and delicious and the young people who delivered it had such warm smiles and Iwao Taka, Ph.D. welcoming manners. I was truly grateful.” Dean, International School of “A security guard was on post at all times, so I felt safe enough to take a catnap.” Economics and Business “Even though everyone in the Marunouchi Building was in the same difficult situation, we were really Administration, and Professor, treated kindly, for which I’m very grateful.” C. Hiroike Graduate School, Reitaku University As an outside observer, I want to sincerely express my respect for the Mitsubishi Estate Group’s strong desire to demonstrate its concern for people and community, which are expressed in its slogan, and for the kindness and warmth of the employees who are putting it into practice in such a natural way.

Looking forward to further development of the Mitsubishi Estate Group’s personality

The Great East Japan Earthquake, which occurred on March 11, became a vital opportunity for many companies to reaffirm their raison d’etre. The Mitsubishi Estate Group proactively worked to ensure the safety of various customers based on the voluntary initiatives of each individual employee. I believe that daily experience on the job is what made them able to think independently and act promptly and naturally to protect the lives of all customers as the top priority. I would say that this is evidence that the Mitsubishi Estate Group’s corporate philosophy has become the conviction of each individual employee. Companies also have personalities. CSR activities, which enable a company to fulfill its social responsibilities, cover a diverse and broad range of initiatives, but the key is the extent to which each individual employee can put the corporate philosophy into practice through his or her own actions. I hope that the Group will ensure the recent experience is shared among all employees so that its personality can develop even further. Companies are also institutions that resolve social problems using business methodologies. Many people today long for a clean environment and safety. By steadily implementing business measures that Setsuko Egami ensure safety by concentrating resources in specific areas of focus, I believe that the Mitsubishi Estate Professor, Faculty of Sociology, Group can meet stakeholders’ high expectations and live up to the trust placed in them. Musashi University

Benefiting from external insight

Professor Iwao Taka and Professor Setsuko Egami, external advisors on the CSR Committee, gave specific and fitting advice based on social trends on issues that the Mitsubishi Estate Group is called on to address. They praised our response to the earthquake, and we intend to further enhance safety and security and pursue initiatives that address our customers’ needs. To do that, we hope to put our CSR management into practice to meet our stakeholders’ expectations and earn their trust by ensuring that all employees embrace our Group Mission as their own and incorporate it in a range of business activities. Shiro Fujisawa Director, Senior Executive Officer responsible for CSR Department, Mitsubishi Estate Co., Ltd.

The Mitsubishi Estate Group CSR Report 2011 37 Response to the Great East Japan Earthquake The Mitsubishi Estate Group expresses sincere condolences to all those who suffered in the Great East Japan Earthquake. The Group is concentrating all of its efforts on its ongoing support for reconstruction in the regions affected by the earthquake.* * Policies and initiatives as of July 15, 2011.

Initiatives to ensure the safety of informed through building announcements and other means. customers and support restoration Similarly, several commercial buildings in the Tokyo metropolitan area suffered damage to internal facilities, but there Establishment of Disaster Response Office was no impact on human life. Of these, four facilities, including Aqua Immediately after the earthquake, Mitsubishi Estate established City Odaiba, were temporarily closed to carry out work to confirm the Disaster Countermeasure Office in line with its Overview of safety and make repairs, but they were all reopened in April. Disaster Countermeasures. The office was set up at its Tohoku Branch in Sendai City, which is in the affected area, and headed •Residences by the manager of the Tohoku Branch. Group companies also In the residential business, 100 condominiums that were under developed their own emergency programs. For example, the construction when the earthquake occurred were immediately Izumi Park Town Disaster Countermeasure Office was established surveyed for damage, and the absence of human injury and in Izumi Park Town (Sendai City, 1,070ha in total developed land major damage to buildings was confirmed for 96 condominiums area), which is home to more than 26,000 people, with a number on the same day and for the remaining four on the following day. of facilities such as hotels, commercial facilities, and a golf course. In addition, detailed inspections of all condominiums under The Disaster Countermeasure Office worked closely with construction were carried out by April 30, and subsequently a the Disaster Countermeasure Headquarters Task Force, established report on the impact of the earthquake on the building was at Mitsubishi Estate’s headquarters (Tokyo) as an information prepared and sent to the condominium buyers. center, to ensure the security of customers and confirm the Mitsubishi Jisho Community, which manages safety of employees, as well as to begin to compile information condominiums, surveyed damage and conducted operation on damage to relevant buildings, homes and facilities. Based on checks of facility equipment such as elevators to ensure residents’ the information, the office held meetings on countermeasures safety. In addition, based on the survey results, the company put and made decisions on reconstruction measures. together plans for repairing damage to common-use areas such as condominium entrances and proposed repair plans to the Damage and restoration management associations. Regarding the condominiums in the •Office buildings and commercial facilities Sendai region, engineers were dispatched from Tokyo to After the Disaster Countermeasure Office was established in the ascertain damage to condominiums that had already been sold Tohoku region, which suffered a great deal from the earthquake, in the region, and a survey was implemented for a rental the Mitsubishi Estate Group immediately began to survey the condominium in the same area to identify damage and facilitate damage done to buildings, facilities, homes and residential land, repair and installation of temporary equipment as needed. and began reconstruction work. Many support staff were sent to the area (the first group arrived on March 14) to survey damage Assistance for stranded people done to buildings and move ahead with reconstruction work. As After the earthquake struck on March 11, the streets of the Tokyo a result, with only a few exceptions, all office buildings and metropolitan area were crowded with people who had been commercial facilities resumed operations by the end of April. stranded as a result of the suspension of trains and other public The Mitsubishi Estate Group also surveyed buildings in the transportation. In response, the Mitsubishi Estate Group offered Tokyo metropolitan area to determine whether anyone was space for more than 3,500 people to stay overnight, laying sheets trapped in building elevators in the aftermath of the earthquake in the lobbies of more than a dozen buildings and certain spaces and survey damage. After confirming safety, tenants were kept in commercial facilities, including some in the Marunouchi area and the Yokohama Landmark Tower. Moreover, to support people with accurate information on the disaster, the Group used Marunouchi Vision’s* 79 monitors, which are administered by a Group company, to air NHK broadcast information on the disaster beginning at 2:55pm, Building damage survey immediately after the earthquake struck, for 24 hours. A group of the Mitsubishi Estate Group’s specialist engineers, including engineers in charge of building design, structure, * A networked display system used to distribute image information in the electricity and facilities, was formed and surveyed buildings with Marunouchi area. visual inspections, confirming the safety of all buildings owned by the Group in Sendai and the Tokyo metropolitan area.

The Mitsubishi Estate Group CSR Report 2011 38