Samty Co., Ltd. has formulated the Green Loan Framework^*1 to further promote its sustainability initiatives and contribute to the realization of a sustainable environment and society through financing investments that contribute to solving environmental problems (green finance), as well as to expand the investor base interested in ESG investments and strengthen its stable fund-raising base.
The Framework is based on the Green Loan Principles 2021 (LMA^*2, APLMA^*3, LSTA^*4) and the Green Loan and Sustainability Linked Loan Guidelines 2022 (the Ministry of the Environment) and consists of the following four elements. The Samty Group will conduct green loan procurement in accordance with this framework.

• *1 A green loan framework is developed for each project, as needed.
• *2 LMA: the Loan Market Association
• *3 APLMA: the Asia Pacific Loan Market Association
• *4 LSTA: the Loan Syndications and Trading Association

Green loans are used by corporations and local governments to finance domestic and international green projects. Green Loans are characterized by (1) the use of funds is limited to green projects, (2) the funds are tracked and managed, and (3) the transparency is ensured through post-financing reporting.

1. Use of Raised Funds

The funds raised under the framework will be used to finance the development and purchase of properties or projects that meet the following Green Eligibility Criteria 1, to finance renovation and other work that meets the following Green Eligibility Criteria 2, or to refinance the borrowings required for these projects. Building uses in the projects include office buildings, rental housing, hotels, and commercial facilities.

Buildings that have obtained or are scheduled to obtain, as of the drawdown date of the loan, a valid environmental certification by a third-party certification body for any of the following i) to iii)

1. S rank, A rank, or B+ rank in CASBEE Evaluation
2. 5 stars or 4 stars or 3 stars in DBJ Green Building Certification
3. 5 stars or 4 stars or 3 stars in BELS Evaluation

Renovation work, etc. that fulfills any of the following i) to iv)

1. Renovation work for a building that meets any of the Green Eligibility Criteria 1, with the intention of improving the star rating or rank of each certification standard by one or more levels
2. Renovation work for a building that does not meet any of the Green Eligibility Criteria 1, with the intention of improving the star rating or rank of each certification standard by at least one level, and meeting the Green Eligibility Criteria 1 after the renovation
3. Renovation work that can reduce either energy consumption or greenhouse gas emissions by 30% or more
4. Installation or acquisition of equipment related to renewable energy

Green Eligibility Criteria 1 falls under the category of "Green Buildings" and Green Eligibility Criteria 2 falls under the category of "Energy Conservation (Energy Efficiency)," which are illustrated in the Green Bond Principles (2021) by the International Capital Market Association (ICMA).
When the funds are allocated to refinance a project that meets either Green Eligibility Criteria 1 or 2, refinancing within three years from the initial fundraising is targeted.
When refinancing the same project with multiple Green Loans, the elapsed years of the asset and the amount to be refinanced will be disclosed, and the long-term environmental improvement effects will be evaluated.

Depending on the property, a potential negative impact on environmental and social aspects may occur. If a negative impact on environmental and social aspects occurs, our policy is to reduce the environmental burden as much as possible and to give consideration to the negative impact on environmental and social aspects by forgoing investment in the property or taking corrective measures to improve the situation.
In addition, during the operational period of existing properties, we will regularly monitor the negative environmental and social impacts, as well as reduce such impacts and increase the value of the property.

2. Project Evaluation and Selection Process

The environmental goal that the Group aims to achieve through its business operations is the mitigation of climate change. Each of the criteria for selecting green loan targets under this framework is expected to have a high environmental improvement effect*, and financing through this loan is implemented in accordance with the Group's basic sustainability policies.

• * Including CO₂ reduction effects, etc.

In selecting individual projects, we have established our eligibility criteria and make the final decision after confirming the project’s compliance with national environmental regulations, acquisition of various permits and authorizations, negative environmental and social impacts, and environmental conservation measures.

If unforeseen circumstances^*1 occur and the environmental improvement effects initially anticipated cannot be achieved^*2, we will disclose how we will respond thereafter.

• *1 Including damage to buildings due to disasters or accidents.
• *2 Including cases where green building certification cannot be obtained as planned.

3. Management of Raised Funds

Management of green loans procured under this framework is carried out by our Finance Department. The funds are tracked and managed by using accounting systems and ledgers to ensure that an amount equal to the raised funds is allocated to the business project. The funds already allocated and not yet allocated to the project will be managed by using electronic files.

If there is an unallocated amount of funds raised through the Green Loan, we will maintain an amount equal to the unallocated amount in cash or cash equivalents. If unallocated funds arise from the sale of assets, etc., they will be reallocated to other projects that meet the eligibility criteria.

Documents, etc. that serve as evidence related to the raised funds will be properly managed in accordance with our internal rules and regulations.

4. Reporting

The outline of the reporting is as follows.

If there is a major change in the plan for the allocation of raised funds, or a major change in the status of the allocation or the subject facilities after the allocation, we will disclose such information as appropriate.

	CASBEE Evaluation and Certification System	DBJ Green Building Certigication System	BELS
Details of the certification system	CASBEE (Comprehensive Assessment System for Built Environment Efficiency) is a system for comprehensively evaluating the quality of buildings, including not only environmental considerations such as energy conservation and the use of materials and equipment with smaller environmental loads, but also features such as interior comfort and landscape considerations.	Certification system that was established in 2011 as an initiative to support environmentally and socially conscious real estates and business enterprises that own and operate such real estates	BELS (Building-Housing Energy-efficiency Labeling System) is a system in which third-party evaluation organizations evaluate and display the energy conservation performance of buildings and was launched in April 2014 for non-residential buildings. Currently, the scope of coverage has been expanded to include residential buildings, and the system is operated as one of the third-party certifications in the guidelines for the labeling of building energy efficiency and conservation performance based on Article 7 of the Act on the Improvement of Energy Consumption Performance of Buildings (Building Energy Efficiency Act).
Rating conditions	BEE (Building Environmental Efficiency) is calculated using the following formula based on the scores of each evaluation item of Quality (environmental quality and performance of buildings) and Load (reduction of environmental load of buildings).	Comprehensive evaluation that includes not only the environmental performance of the property, but also tenant/user comfort, risk management such as disaster prevention and crime prevention, consideration for the surrounding environment and community, and collaboration with stakeholders	The evaluation method is based on the building envelope performance and primary energy consumption, following the energy-saving standards.
Rank	S (Superior) A (Very Good) B+ (Good) B- (Slightly Poor) C (Poor)	Rating by the number of stars on a five-tier scale	Rating by the number of stars on a five-tier scale

Green Loan Financing

Borrowing status with Green Loan

• * The procurement amounts are the total borrowing amount (planned), and the Loan drawdown date is the initial drawdown date.