ORIX USA

Our Approach to Our Sustainability Themes

We believe that ESG-based investment decisions are essential to contributing to society, generating sustainable growth, managing risk, and maintaining the trust and respect of our stakeholders.

• We will evaluate and monitor ESG scores and conduct annual reviews.
• We will improve the ESG scorecard^* to better contribute to ESG due diligence and engagement.
• We will identify indicators and exposures related to information disclosure based on the TCFD recommendations, and monitor them as part of risk management.

• ORIX USA uses its own ESG scorecard to assign ESG scores to all assets on its balance sheet. The ESG scorecard incorporates the framework of the U.S. Sustainability Accounting Standards Board (SASB), and also adjusts risk weightings by industry sector.

Business Activities and Sustainability Themes Matrix

Affordable housing

• #Investments and lending that take ESG into account

Boston Financial has been the largest Low Income Housing Tax Credit^*2 (LIHTC) syndicator in the U.S. for the past three years and has been in business for over 50 years. As of March 2023, Boston Financial manages LIHTC funds totaling approximately $16.2 billion of equity invested in over 2,000 properties containing more than 172,000 homes across the U.S. Boston Financial has contributed to the development of low-income housing across the United States, working with investors and developers on housing in disadvantaged communities. For example, Boston Financial’s April 2023 $131 million multi-investor fund provided capital for both new construction and the preservation of existing affordable housing properties in 15 communities across nine states. The fund is expected to create nearly 1,517 new jobs, bringing an estimated $170 million in wages and business income to the surrounding communities, as well as almost $59 million in tax revenue. Nearly 70% of the properties will bring affordable homes to majority Black, Indigenous, and other people of color (BIPOC) communities, and several properties will have units designated for veterans, seniors, persons with physical and mental disabilities, as well as formerly unhoused people.

• 2 A US federal tax credit program designed to promote the supply of affordable housing.

Affordable housing lending

• #Investments and lending that take ESG into account

Lument, a national leader in commercial real estate finance, is also the #1 FHA Multifamily Affordable Housing Lender and has closed more than 240 Fannie Mae/Freddie Mac affordable transactions since 2015. In addition, Lument has been a leader in Rental Assistance Demonstration executions ever since Congress authorized the Department of Housing and Urban Development (HUD) program in 2012. They have supported housing authorities across the country with expertise and development services in both debt and equity financing.

Solar power facilities

• #Climate change / Spreading and promoting renewable energy generation

Since March 2021, OCU has owned solar power generation facilities at 63 properties in twelve U.S. states, with a projected total generating capacity of 80MW. The facilities comprise a mix of standalone facilities supplying base load to local and regional utilities, and commercial and industrial behind-the-meter installations providing power on-site to businesses and institutions.