Third-Party Opinion​

MIRARTH HOLDINGS commenced a new chapter in October 2022 as a holding company, and at that time, formulated its purpose:  "To design sustainable environments for a happier future for both people and our planet." This clearly positions sustainability initiatives at the very core of its purpose-driven management. In terms of achievements, the Company has been proactive in its efforts, such as the sequential revision of its GHG emission reduction plans and acquisition of SBT certification. Regarding structure, it has built coordination between the Board of Directors and the Sustainability Committee. With regard to disclosure, it actively fulfills its expected role by communicating its sustainability strategies and non-financial information through its integrated report and this website.
In the following, I would like to provide an evaluation focused on noteworthy aspects of the Company Group's major activities in FY2024 and its future outlook, from the perspectives of Environment (E), Social (S), and Governance (G).

**Environment (E) **: Based on the GHG reduction targets revised in March 2023 (which now include Scope 3), the Company is engaged in identifying challenges through continuous monitoring of targets and actual results and reflecting those insights into reduction measures as needed. This ongoing approach to reducing overall emissions is commendable. Meanwhile, the Ministry of Land, Infrastructure, Transport and Tourism has begun deliberations on a framework to require companies to calculate and verify CO₂ emissions over the entire lifecycle of buildings, from construction to demolition, starting in June 2025. It is hoped that the Company will also align with these social demands and further enhance the precision of its calculation and verification.

Additionally, the Company is working to enhance the environmental performance of our development projects through the acquisition of environmental certifications such as ZEH-M and CASBEE, as well as certification for low-carbon buildings. Looking ahead, challenges include the need to strengthen collaboration with construction companies to promote environmental considerations across the entire supply chain, and to further expand the creation of synergies among the various businesses within the Group.

**Social(S)**: The Group respects the diversity and inclusivity of its employees and is engaged in creating a workplace environment that provides a sense of fulfillment. In particular, our initiatives to promote Diversity, Equity and Inclusion (DE&I) can be positively evaluated. These include the enhancement of childcare support systems, planned recruitment aimed at increasing the percentage of female managers, and the encouragement of paternity leave among male employees.

In addition, under our long-term Vision toward 2030 — "Be the Takara of the community." — the Company is actively pursuing projects that contribute to local communities and address social issues, such as the development initiative in Sakaecho, Odawara City. This is considered one of the Company's notable strengths. Going forward, the Company is expected to further strengthen these core initiatives as a foundation for broader engagement that responds to community needs, such as enhancing resilience through improved earthquake and disaster preparedness, and promoting regional revitalization.

**Governance (G)**: The Company is strengthening governance by building a highly transparent management structure. Measures such as ensuring the independence of outside directors in accordance with the Corporate Governance Code, with outside directors comprising the majority, and the improvement of the audit framework, are commendable as initiatives to build stakeholder trust. Furthermore, through its various committees, the Company is striving to instill corporate ethics by strengthening its risk management systems and deepening compliance awareness. From now on, continued improvement in governance is expected, including further enhancement of the operation of the Board of Directors based on the evaluation of its effectiveness, and the development of mechanisms to reflect feedback obtained through dialogue with stakeholders into management practices.

As outlined above, in order for the Group to continue evolving as a more sustainable "future environment design company," it will become increasingly important to position sustainability initiatives at the heart of its management strategy and to pursue continuous improvement while valuing dialogue with stakeholders.