Policies and Management Structure

NMF's Approach to Sustainability

Based on the recognition that it is essential for our sustainable growth to realize a sustainable society, we 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 improving our unitholder value.
With this in mind, alongside its asset management company, Nomura Asset Management Company Co., Ltd., NMF has carried out asset management that gives due consideration to ESG issues since its founding. We set goals or KPIs for ESG issues of particular importance (hereinafter referred to as “materiality”) and are promoting efforts to achieve the goals.

Net zero greenhouse gas (GHG) emissions by 2050

We recognize that “countering climate change” is of especially high importance among our materiality issues.
We believe that successful transition to a decarbonized society through achieving net zero greenhouse gas (GHG) emissions will eventually have a big impact on our medium- to long-term performance. Based on this idea, in October 2022, we set the goal of achieving net zero greenhouse gas (GHG) emissions by 2050. In addition, In October 2023, we revised our interim GHG reduction target upwards, aiming for 80% reduction in greenhouse gas (GHG) emissions by 2030 (compared with the 2019 level).Toward achieving that goal, we have been working to systematically reduce GHG emissions to the minimum so that our absolute emissions of GHG will become closer to zero. We are doing this by, for example, actively introducing energy-saving facilities and electricity generated from renewable energy sources for properties that we own.

We will continue to actively promote our sustainability initiatives based on the policies, targets and KPIs set for each materiality issue, as well as promoting bidirectional communication and working together with our unitholders, tenants, employees, supply chains, local communities and other stakeholders through our ESG disclosures.

Shuhei Yoshida
Executive Director

Sustainability Policy

NREAM recognizes that integration of sustainability activities is indispensable in order to enhance value for unitholders over the medium- to long-term. Based on the Sustainability Policy(Group’s Vision of 2050) of the Nomura Real Estate Group, we will integrate sustainability activities throughout all its real estate investment management services.
Nomura Real Estate Asset Management Co., Ltd. has set Purpose Values as the overarching concept of its sustainability policy. Click here for details

STRIVING WITH CONVICTION

towards a meaningful future for us all

We, as a fiduciary of investor capital, will keep generating new value by instilling our real estate asset management business with sustainability to ensure the continued preservation of our earth and our society.

Through our daily efforts in sustainable asset management, we will preserve our environment and bring revitalization to our community, thereby allowing local economies and industries to develop in an enduring way.

We believe that sustainability is key to our business, as we contribute to building the growth of this society.

By generating and expanding this sustainability cycle with everyone, we are striving with conviction towards a meaningful future for us all.

Stakeholder

We believe collaboration with stakeholders is crucial to creating a more meaningful future.

Materiality

We strive forward with these materiality issues to create a more meaningful future.

1. Making the foundation to continue our action.

1) Engagement and collaboration

To improve both economic and social value, we will regularly hold dialogue with stakeholders and collaborate with them.

2) Expand the sustainability cycle through information disclosure

By disclosing sustainability-related information, we will contribute to the growth of the sustainability cycle.

3) Cultivation of sustainability culture

We will build effective in-house systems, encouraging personal relevance to each employee in sustainability actions.

2. Actions focusing on PEOPLE and COMMUNITY

1) Ensuring the safety and security of Real Estate

To prepare for intensifying natural disasters, we will improve the resiliency of real estate, which is the foundation of society, from both tangible (building facilities) and intangible (maintenance/management) sides.

2) Revitalizing local communities

We will promote networking and revitalize communities, utilizing its landscape and contribute to building local culture.

3) Diversity and Inclusion

We aim to foster a more meaningful future, where diverse perspectives and values are embraced, everyone’s dignity is protected, and no one is left behind. In addition, we will maintain a workplace environment where well-being is promoted.

3. Actions for coexisting with nature

1) Mitigation of global warming

We will actively improve the energy efficiency and adopt renewable energy in our properties, which aims to meet the ZEB/ZEH standard.
Our goal is to achieve GHG net zero target by 2050, both in our company and funds.

2) Adaptation to climate change

We will take measures to deal with both physical risk and transition risk, such as intensified natural disaster and changes in our lifestyles moving toward decarbonized society.

3) Transition to circular economy

We will always consider the impact on nature and make efforts to realize the circular economy by utilizing water effectively, preserving environment and reducing waste.

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＞

＜Annual Schedule＞

Environmental Management System (EMS)

NMF became the first J-REIT to be certified and registered for “EcoAction 21” Program.

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＞

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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.
Sustainability Risk Assessments are carried out in rotation for about 5 years for all properties.

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.