Nomura Real Estate Asset Management Co., Ltd. has signed and participates in the following initiatives. (Including signing, participation, etc. by the Nomura Real Estate Group).
The UN Global Compact is a voluntary initiative in which companies and organizations act as good members of society and participate with a view to realizing sustainable growth through exhibiting responsible and creative leadership. Proposed by Kofi Annan, then Secretary-General of the United Nations, at the 1999 World Economic Forum (Meeting in Davos), the UN Global Compact was officially launched in 2000.
In May 2019, Nomura Real Estate Holdings signed the UN Global Compact, and the Nomura Real Estate Group was registered as a participant. At the same time, Nomura Real Estate Asset Management Co., Ltd. also participated as a member of the Nomura Real Estate Group.
UN Global Compact 10 Principles
The Principles for Responsible Investment (PRI) initiative is an international network of investors working together to put six principles for responsible investment into practice. The principles, which were proposed for the financial sector in 2006 by the then UN Secretary-General, Kofi Annan, are promoted by the United Nations Environment Programme (UNEP) and the United Nations Global Compact (UNGC).
The principles call on investors to incorporate environmental, social and corporate governance (ESG) issues into investment decision-making. By including those issues in the investment process, the goal is to improve long-term investment performance and further enhance fiduciary duty.
NREAM subscribes to the fundamental principles of the PRI and became a signatory in December 2017.
Principles for Responsible Investment – Summary
The United Nations Environment Programme (UNEP) was established by the General Assembly in 1972 as an agency of the United Nations. The agency was created to implement the Declaration on the Human Environment and the related Action Plan, which were approved at the Stockholm Conference on the Human Environment in 1972.
The United Nations Environment Programme Finance Initiative (UNEP FI) was established in 1992 as a wide-ranging, close partnership between the UNEP and more than 200 banks, insurance companies, securities firms and other members from the financial sector worldwide. Since it was established, the partnership has worked with financial institutions, policymakers and regulatory authorities to create a financial system that takes into account both economic development and ESG factors.(UNEP FI)
NREAM subscribes to the fundamental principles of the UNEP FI and became a signatory in December 2017.
Japan Climate Initiative was established in July 2018 to participate in the global forefront of decarbonization from Japan based on the belief that "converting to the decarbonized society envisioned by the Paris Agreement creates opportunities for new growth and development." It is a network of non-governmental parties in Japan, various companies, municipalities, organizations and NGOs, who are proactively implementing measures against climate change.
NREAM subscribes to the fundamental priciples of JCI and became a member in October 2018.
Principles for Financial Action Towards a Sustainable Society, or Principles for Financial Action for the 21st Century (PFA21), began at the request of the Minister of Environment, and the Central Environment Council’s Expert Committee on Environment and Finance presented a policy recommendation to expand the circle of commitment for environmental financial action. The principles were then established in October 2011 as a guideline for financial institutions seeking to fulfil their roles and responsibilities in shaping a sustainable society, with the Ministry of Environment taking on the role of secretariat.
Signatory financial institutions will implement initiatives based on the seven principles, to the extent possible within their business context. It is intended to be a starting point for the like-minded to cooperate without being restricted to their specific industry, scale and geography.
TCFD refers to the “Task Force on Climate-related Financial Disclosures” launched by the Financial Stability Board (“FSB”) for the purpose of discussing the disclosures of climate-related financial information and responses by financial institutions.
TCFD identifies climate change as a serious risk to the global economy and encourages companies and organizations to understand and disclose four core elements regarding climate-related risks and opportunities: "Governance", "Strategy", "Metrics and Targets" and "Risk Management", in its recommendations.
Nomura Real Estate Asset Management Co., Ltd. ("NREAM" or the "Asset Management Comany") announced its support for the recommendations of the TCFD and also decided to participate in the TCFD Consortium, a group of domestic companies that supports TCFD recommendations, in July 2020.
The SBTi is a joint initiative by the WWF, CDP (former Carbon Disclosure Project), World Resources Institute (WRI) and the United Nations Global Compact. It calls on companies to set science-based reduction targets geared to achieving the goal of holding global mean temperature increase caused by climate change to 1.5°C above pre-industrial levels. For example, it emphasizes and encourages companies to set a vision and goals for reducing greenhouse gases based on the long-term perspective of 2050, and it also formulates guidance, tools and so forth to support the setting of goals. As of October 2020, more than 1,000 companies worldwide have committed to setting aggressive reduction goals under the SBTi. It has become the global standard for formulating goals in accordance with the Paris Accord.
Nomura Real Estate Holdings obtained approval for its GHG emissions reduction goal of the Nomura Real Estate Group (reducing absolute scope 1, 2 and 3 GHG (CO₂) emissions 35% each by 2030 from the base year of 2019) in November 2020. This company is also participating in the activity as a member of the Nomura Real Estate Group.