NOMURA REAL ESTATE MASTER FUND, INC.

TSE code :3462

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Policies and Management Structure

NMF's Approach to Sustainability

Nomura Real Estate Asset Management Co., Ltd. (NREAM), an asset management company for Nomura Real Estate Master Fund, Inc. (NMF), established the Sustainability Policy in December 2015.
NMF, along with the asset management company, is committed to carrying out asset management that gives due consideration to environmental, social and governance (ESG) issues in order to enhance unitholder value over the medium to long term.

A Message from Top Management
Since its founding in October 2015, NMF has been adhering to a fundamental philosophy of “securing stable profit over the medium to long term” and “steadily achieving growth in assets under management.” In line with this philosophy, NMF has built a strong track record in the course of developing an excellent asset portfolio and maintaining a stable distribution stream through the strategic execution of asset management policies based on a medium- to long-term perspective. Throughout these efforts, NMF has ceaselessly endeavored to maximize unitholder value, and it has grown into one of a handful of leading J-REITs boasting total assets in excess of \1 trillion. Meanwhile, global environmental problems and various other issues society is now confronting are becoming matters of urgency and requiring effective solutions. Given this, United Nations formulated the Sustainable Development Goals (SDGs) while the Paris Agreement was adopted by the international community to define an across-the-board framework for global warming countermeasures. Taking these developments into account, we believe that corporations are being called to fulfill ever greater responsibilities and thereby live up to the expectations of the general public.
Based on the idea that it is essential for our sustainable growth to realize sustainable society, we also believe our contribution to solving social issues through our business is in line with our fundamental philosophy of “securing stable profit over the medium to long term” and “steadily achieving growth in assets under management.” Consequently, it would contribute to improve our unitholder value.
NMF has been pursuing environmentally friendly operations together with the asset management company since its foundation. For taking more active and specific sustainable initiatives, we have identified ESG materiality issues in consideration of expectations from our stakeholders as well as the impact on our business and performance.
Accordingly, NMF and the asset management company are promoting our sustainable initiatives based on our policies and targets set out in our ESG materiality issues and key performance indicator(KPI). In addition, we will improve our sustainability initiatives continuously by promoting bidirectional communication and working together with our unitholders, tenants, employees, supply chains, neighboring communities and other stakeholders through our ESG disclosures including ESG materiality issues.

Shuhei Yoshida
Executive Director

Sustainability Policies and Systems

Sustainability Promotion Structure

Nomura Real Estate Asset Management Co., Ltd. (NREAM), an asset management company for NMF, has in place the following structure to promote initiatives under its Sustainability Policy in a constant and organized manner.

<Sustainability Promotion Structure>
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<Annual Schedule>
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Sustainability Promotion Manuals

Nomura Real Estate Asset Management Co., Ltd. (NREAM) formulated sustainability promotion manuals to provide basic policies with regard to and clarify procedures for its sustainability promotion initiatives, including those aimed at constantly monitoring and reducing the volume of energy and water consumption and greenhouse gas and waste emissions as well as those aimed at promoting green procurement through external collaboration. Through the distribution of these manuals, NREAM is striving to enhance the effectiveness of its sustainability initiatives.

<Overview of Sustainability Promotion Manuals>

Titles Content
Manuals for energy saving,
GHG reduction,
water saving and
waste reduction
Basic policies for the constant monitoring of and achieving ongoing reductions in consumption and emission volumes
Procedures for the monitoring, management and analysis of consumption and emission volumes and reporting to the Sustainability Promotion Committee
Green procurement manual Additional criteria to be assessed in the course of product and service procurement (energy-saving potential, vendors’ efforts to reduce the use of substances leading to environmental pollution, product durability and recyclability and other factors associated with environmental load reduction)
Additional criteria to be assessed in the course of the selection and evaluation of suppliers based on their involvement in sustainability initiatives (sustainability promotion structures, collaboration with environmental load reduction, etc.)

Sustainability Risk Assessments

Our assets under management are subject to periodic sustainability risk assessments.
Whenever assessment results reveal a critical sustainability risk, in-house specialists charged with assessments propose improvement measures at the Sustainability Promotion Committee. In this way, we are ensuring that any sustainability risk is properly identified, monitored and addressed.

Training for Officers and Employees

We aim to empower our officers and employees to play greater roles in sustainability promotion and help raise their sustainability awareness, to this end providing them with special training. At least once a year, these individuals attend training sessions designed to call their attention to the importance of sustainability, address the latest trends in sustainability initiatives and brief them on the status of NMF’s sustainability measures and targets and the progress it has made. These training sessions thus help attendees stay acutely aware of and properly updated about various sustainability issues.

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