ORIX USA

Our Approach to Our Sustainability Themes

ORIX USA (OCU) believes that investment decisions incorporating sustainability considerations are essential to contributing to society, generating sustainable growth, managing risk, and maintaining the trust and respect of our stakeholders. As we continue to evolve, we aim to:

• Continue to evaluate and monitor sustainability scores and conduct annual reviews;
• Develop a new policy on stewardship and engagement;
• Provide training on climate change to all OCU Group employees; and
• Move forward with the launch of sustainable investment products.

Business Activities and Sustainability Themes Matrix

Affordable housing and lending

• #Investments and lending that take ESG into account

Boston Financial

Boston Financial has been the largest Low Income Housing Tax Credit* (LIHTC) syndicator in the U.S. for the past four years and has been in business for 55 years. As of March 2024, Boston Financial manages LIHTC funds totaling approximately $16.1 billion of equity invested in almost 1,000 properties containing more than 159,000 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 all 50 states, which nearly 930,000 people have called home. In FY2024, Boston Financial raised over $1 billion in low-income housing tax credit and preservation equity, and closed two new national multi-investor funds. This led directly to more than 5,000 affordable homes being built or preserved for people who need them.

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

Lument

Lument, a national leader in commercial real estate finance, is also a top affordable multifamily housing lender with a track record of success in Fannie Mae, Freddie Mac, and HUD/FHA loan programs. 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.

Alternative energy

• #Climate change / Spreading and promoting renewable energy generation

OCU has invested in three anaerobic digestion projects in Iowa and South Dakota that are expected to convert more than 194 million gallons of dairy manure annually into renewable natural gas (RNG). The three projects will produce usable RNG while reducing greenhouse gas emissions and are expected to remove 691,000 MMBtu of methane from the atmosphere each year. This investment follows our investment in BC Organics Anaerobic Digestion Facility, a commercial biorefinery in Wisconsin that will serve multiple local dairy producers and that is expected to remove 650,000 MMBtu of methane from the environment per year.