Second-Party Opinion Download

Sustainalytics is of the opinion that the Kenedix Office Investment Corporation (“KDO”) Green Bond Framework is credible and impactful, and aligns with the four core components of the Green Bond Principles 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible category for the use of proceeds – (i) Green Buildings and (ii)Construction and/or facility refurbishments contributing to energy savings and positive environmental benefits – are aligned with those recognized by the Green Bond Principles and have a clear positive environmental impact. Sustainalytics considers that the eligible green projects will lead to positive environmental impacts and advance the UN Sustainable Development Goals (SDGs), specifically SDGs 7 and 9.

PROJECT EVALUATION/SELECTION

KDO’s internal process of evaluating and selecting projects is executed by a dedicated Sustainability Committee within the Kenedix Real Estate Fund Management, Inc. (“KFM” – the asset management company for KDO) which has cross-departmental representation. This is in line with market practices.

MANAGEMENT OF PROCEEDS

KDO has an internal process in place to track and monitor the bond proceeds allocations, which will be externally verified by a third-party. Pending full allocation, KDO will track and maintain the net proceeds in cash and cash equivalents, described in statutory documents. This process is aligned with current market practices.

REPORTING

KDO commits to publish an annual allocation and impact report. The (i) allocation report will confirm that the amount of outstanding green bonds does not exceed the size of Eligible Green Projects. With regards to the (ii) impact report, KDO will disclose data on its environmental performance through KPIs such as: energy consumption (in kl of crude oil equivalent/ year), water consumption (in m³/year) and carbon emissions (in tCO₂/year). Sustainalytics views KDO’s reporting aligned with market practices.