##### ▮Meeting for Promotion of Sustainability
Meetings for promotion of sustainability are held regularly to ensure that the Sustainability Policy is implemented and the sustainability goals are achieved.
##### Attendees
- President & Director (Chief Officer with the authority to make final decisions on matters related to promotion of sustainability)
- Other Directors
- General Manager of Strategic Management Departments and Investment Departments of each Management Division and General Manager of the Planning & Finance Department (Operating Officers of matters related to promotion of sustainability)
- Compliance Officer
- Other members whose attendance is considered necessary by operating officers
##### Details of Discussions and Reports, Frequency of Meetings and Examination Process
At meetings for promotion of sustainability, policies regarding sustainability are established, revised or abolished, and a range of measures that should be taken in line with the Sustainability Policy are discussed and reported.
Meetings for promotion of sustainability are held four times a year. We are working on continuous improvement through the repetition of the PDCA cycle, including the examination and planning of measures, the reporting and evaluation of progress, the analysis of results, and the examination and planning of improvement measures.
Matters discussed at the meetings for promotion of sustainability are to be decided upon and implemented according to the asset management company's Rules Regarding Administrative Authorities. [...] ##### ▮Governance on Climate Change
The Asset Management Company has established the following organizational governance system to respond to climate change-related risks and opportunities and promote and supervise initiatives related to climate change.
##### Chief Executive Responsible for Response to Climate Change
President & Director (Chief Officer with the authority to make final decisions on matters related to promotion of sustainability)
##### Executive Officer Responsible for Response to Climate Change
General Managers of the Strategic Management Department and Investment Management Department of Hotel REIT Management Division and General Manager of Planning & Finance Department (Operating Officers of matters related to promotion of sustainability)
##### Matters for Discussion and Reporting at the Meetings for Promotion of Sustainability
- Identification and assessment of impacts of climate change
- Managing risks and opportunities
- Progress of adaptation and mitigation initiatives
- Climate change responses such as setting metrics and targets
For more information about the Meetings for Promotion of Sustainability, please refer to "Meeting for Promotion of Sustainability" in "2. Policies and Management Structure" on p.9 of this report. [...] ##### ▮Compliance Structure
Basic Compliance Policy and Structure
The Asset Management Company has set compliance with laws, regulations and other rules as one of its management priorities and the Asset Management Company's management is actively working to develop and strengthen the compliance structure and internal control structure. To establish an appropriate operational structure, the Asset Management Company has appointed a compliance officer as the person responsible for compliance-related matters at the Asset Management Company to ensure that internal checks and balances on other departments function effectively. Furthermore, through the establishment and operation of the Compliance Committee, the Asset Management Company has established a multi-tiered structure for ensuring MORI TRUST Hotel Reit's compliance with laws, regulations and other rules.
**(1) Board of Directors**
The Board of Directors seeks to ensure compliance as the organization with ultimate responsibility for the execution of business and, besides receiving reports on matters approved by the Compliance Committee, also makes resolutions on important compliance-related matters at the Asset Management Company, including formulation and amendment of the basic policy on compliance and compliance program, formulation of the risk management plan and internal audit plan, as well as appointment and dismissal of Compliance Committee members and the Compliance Officer.
**(2) Compliance Committee**
The Compliance Committee is responsible for execution of the duties set forth in the [...] **(3) Compliance Officer**
As the person responsible for compliance at the Asset Management Company, the Compliance Officer works to establish an internal compliance structure and to raise awareness of norms for compliance with laws, regulations and other rules within the company. The Compliance Officer, therefore, constantly monitors whether the Asset Management Company executes asset management business in accordance with laws, regulations and other rules, and also monitors and supervises the status of compliance in the execution of day-to-day operations.
In light of the importance of the Compliance Officer's responsibilities, the Asset Management Company elects as Compliance Officer an individual who is sufficiently capable of examining and supervising business execution to achieve compliance with laws, regulations and norms. [...] Appropriate Management of Conflicts of Interest
To prevent the Asset Management Company from engaging in transactions with interested parties sharing certain interests with the Asset Management Company which may be harmful to the interests of MORI TRUST Hotel Reit, the Asset Management Company has identified types of interested party transactions and set forth interested party transactions standards and comprehensively judges whether to conduct a transaction through deliberation by more than one body. The Asset Management Company elects outside specialists as committee members to both the Compliance Committee and the Investment Committees that hold such deliberations.
If the acquisition of an asset or other transaction by an investment corporation which entrusts its asset management to the Asset Management Company constitutes an interested party transaction, the approval of the outside committee members of the Compliance Committee and Investment Committees as well as the approval of the investment corporation's Board of Management are required. Details of this decision-making process are as shown below.