ESG Initiatives

The ITOCHU Group is involved in ESG initiatives through its wide-ranging businesses. IAL and ITOCHU REIT Management Co., Ltd. (IRM), the asset management company, acquire environmentally friendly properties from the ITOCHU Group and are also provided with related expertise and services. Furthermore, IAL and IRM share ESG standards demanded by investors with the ITOCHU Group.

ESG Initiatives

Environmental Initiatives

The ITOCHU Group is implementing the following initiatives with the aim of protecting the environment.

Solar power generation

i Missions Park Noda

Green car park

i Missions Park Misato

LED lighting

i Missions Park Misato

Governance Initiatives That Take into Account Unitholder Interests

Highly transparent decision-making process for transactions with interested parties

IRM makes decisions on the acquisition and transfer of assets between IAL and interested parties through a transparent decision-making process.

Acquisition/transfer of assets (in cases where transaction involves interested parties)

Decision flow

Introduction of Management Fee Structure Aligned to Unitholder Interests

IAL aims to align the interests of its unitholders with those of IRM by introducing the management fee structure described below.

Management fee 1: Total assets × 0.2% (upper limit)

Management fee 2: NOI of rental business × 5.0% (upper limit)

Management fee 3: Income before income taxes × adjusted EPU × 0.005% (upper limit)

Same-Boat Investment in IAL by ITOCHU Corporation

ITOCHU Corporation, IAL’s sponsor, holds a number of its investment units. By aligning the interests of IAL’s unitholders and those of ITOCHU Corporation, IAL seeks to maximize unitholder value.