SUSTAINABILITY
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 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 signatory reports on and receives assessment concerning its ESG investment performance once a year.
We were assessed as follows in the annual assessment for 2021.
| Module | Assessment Result |
|---|---|
| Investment & Stewardship Policy | ★★★★★ |
| Real Estate | ★★★★☆ |
For more information, please visit the Principles for Responsible Investment website.
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.
In addition, from January 2022, based on an agreement between UNEP FI and PRI, part of the UNEP FI membership has been incorporated into PRI. As a result, from January 2022, Nomura Real Estate Asset Management will no longer participate in UNEP FI but continue the initiatives previously conducted in UNEP FI as a member of PRI.
For more information, please visit the United Nations Environment Programme Finance Initiative website.
| Main activities NREAM joined | Contents | Period |
|---|---|---|
| Property Working Group | Sharing of information on best practices in real estate and so on | 2017/12～(４ times per year) |
| Ditto | Creation of the Positive Impact Real Estate Investment Framework (Japanese version) (Related link) https://www.unepfi.org/wordpress/wp-content/uploads/2019/06/PI-Real-Estate-Investment-Framework_Japanese.pdf |
2018/11～2019/6 |
| Real Estate Impact Analysis Working Group | Development of a real estate impact analysis tool (Related link) https://www.unepfi.org/positive-impact/unep-fi-impact-analysis-tools/real-estate-impact-analysis-tool/ |
2020/5～2021/6 |
| Support for the message requesting strengthening of measures to address climate change | Support for the message presented by the Investor Agenda, of which UNEP FI is a partner, to the governments of various countries (Related link) https://theinvestoragenda.org/wp-content/uploads/2021/05/IN-CONFIDENCE_EMBARGOED_2021-Global-Investor-Statement-to-Governments-on-the-Climate-Crisis-1.pdf |
2021/6 |
| Support for the message requesting strengthening of measures to address climate change | Support for the message presented by the Investor Agenda, of which PRI is a partner, to the governments of various countries. (Related link) https://theinvestoragenda.org/wp-content/uploads/2022/08/2022-Global-Investor-Statement-.pdf |
2022/9 |
| Japan Advisory Committee | One of the PRI official Advisory committees and working groups. (Related link) https://www.unpri.org/signatory-resources/advisory-committees-and-working-groups/320.article#Japan_Network_Advisory_Committee |
2023/6～(４ times per year) |
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.
For more information, please visit the Japan Climate Initiative（JCI） website.
| Main activities NREAM joined | Contents | Period |
|---|---|---|
| Support for the message requesting strengthening of measures to address climate change | Support for the message presented by JCI to the Government of Japan (Related link) https://japanclimate.org/english/news-topics/callforndcenhancement/ |
2020/2 |
| Support for the message requesting strengthening of measures to address climate change | Support for the message presented by JCI to the Government of Japan (Related link) https://japanclimate.org/english/news-topics/re2030increment/ |
2021/1 |
| Support for the message requesting strengthening of measures to address climate change | Support for the message presented by JCI to the Government of Japan (Related link) https://japanclimate.org/english/news-topics/call-for-ambitious-2030-target/ https://japanclimate.org/english/news-topics/jci-message-calling-for-raising-japans-2030-reduction-target-was-published-on-newspapers-and-an-article/ |
2021/4 |
| Support for the message requesting strengthening of measures to address climate change | Support for the message presented by JCI to the Government of Japan (Related link) https://japanclimate.org/english/news-topics/jci-message-re-release/ |
2022/6 |
| Support for the message requesting strengthening of measures to address climate change | Support for the message presented by JCI to the Government of Japan (Related link) https://japanclimate.org/news-topics/jci-message-g7-press/ |
2023/4 |
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.
Ten years have passed since the establishment of the principles in 2011, and in response to the remarkable progress in trends in environmental finance in Japan and overseas, the principles (seven principles and the preamble) were revised on June 22, 2022.
The Principles
NREAM subscribes to the fundamental principles of Principles for Financial Action for the 21st Century and became a signatory in July 2019.
For more information, please visit Principles for Financial Action for the 21st Century website.
| Main activities NREAM joined | Contents | Period |
|---|---|---|
| Received the Minister of the Environment Award (general category) | Nomura Real Estate Asset Management has received the Minister of the Environment Award (general category) for best practice in recognition of being the first J-REIT to acquire third party certification of the environmental management system. (Related link) https://pfa21.jp/activity/bestaward/bestaward2019-3/sougou |
2020/3 |
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.
For details, please refer to the TCFD and TCFD Consortium websites.
| Main activities NREAM joined | Contents | Period |
|---|---|---|
| TCFD Round Table | Dialogue between domestic investors and business companies concerning TCFD disclosure | 2021/3, 7, 12, 2022/3, 7, 2023/2, 7, 11 |
| TCFD Summit | Sharing of best practices by global consenting agencies | 2020/10, 2021/10, 2022/10, 2023/10 |
NZAM is an international group of asset managers committed, consistent with their fiduciary duty to their clients and beneficiaries, to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees Celsius.
NREAM subscribes to the commitment of NZAM and became a signatory in September 2023.
For more information, please visit ”The Net Zero Asset Managers initiative ” website.
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
For details, please refer to the United Nations Global Compact website.
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.
For details, see the website of the Science Based Targets Initiative (SBTi) .
CDP, established in the United Kingdom in 2000, is an NGO that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.
Nomura Real Estate Holdings, in an effort to promote initiatives to address climate change and enhance the transparency of its information disclosure, responds to the “CDP Climate Change” survey that has been implemented by CDP since fiscal 2019. In fiscal 2022, the overall Nomura Real Estate Group, including Nomura Real Estate Asset Management, received a A- rating.
RE100, which draws participation from corporations all over the world, is an international initiative that aims to meet 100% of electric power needs with renewable energy in the business activities of members.
In January 2022, Nomura Real Estate Holdings overall joined RE100. At the same time, NREAM also participated as a member of the Nomura Real Estate Group.
TNFD is an international initiative that aims to build a framework for appropriately assessing and disclosing nature-related risks and opportunities for natural capital and biodiversity. The TNFD Forum is a group of stakeholders organized to support the construction of the TNFD framework.
In July 2022, Nomura Real Estate Holdings overall announced its participation in the TNFD Forum. At the same time, NREAM also participated as a member of the Nomura Real Estate Group.
30by30 refers to the target of effectively conserving sound ecosystems on at least 30% of the total land and ocean to achieve the goal of arresting and reversing the loss of biodiversity(nature positive) by 2030.
In July 2022, to contribute to the achievement of the "30by30" goal, Nomura Real Estate Holdings overall announced its participation in the Alliance, for which the Ministry of Environment acts as the secretariat. At the same time, NREAM also participated as a member of the Nomura Real Estate Group.
Eight companies, namely Nomura Real Estate Holdings, Nomura Real Estate, Nomura Real Estate Solutions, Nomura Real Estate Asset Management, Nomura Real Estate Building, Nomura Real Estate Life & Sports, Nomura Real Estate Partners, and PRIME X, were selected as the 2022 Certified Health & Productivity Management Organizations (Large Enterprise Category), and Nomura Real Estate Solutions was also recognized as a "White 500"* company.
*White 500 refers to companies that are recognized by the Ministry of Economy, Trade and Industry and Nippon Kenko Kaigi for implementing outstanding initiatives in the field of health and productivity.
news release
The "PRIDE Index" is intended to assess initiatives for addressing LGBTQ+ and other sexual minorities in the workplace, established by the voluntary organization "work with Pride". Targeting five assessment items, it measures the initiatives that are taken by corporations.
In November 2023, four companies of Nomura Real Estate Group, including NREAM, received the Gold Award under the scheme.
Based on the "Nomura Real Estate Group Diversity & Inclusion Promotion Policy", Nomura Real Estate Group promotes diversity and inclusion in various attributes such as race, ethnicity, nationality, age, gender, sexual orientation, gender identity, disability, religion, faith, social status, lifestyle, and life stage to ensure that all employees can fully display their individuality and capability and continue to take on challenges with diverse organizations and people to create new values.
The Minister of the Environment Award for Climate Action is presented by the Ministry of the Environment in recognition of individuals and organizations that have realized outstanding achievements in the field of climate initiatives.
The Ministry of the Environment, as part of its initiatives to address global warming, initiated the Minister of the Environment Award for Global Warming Prevention Activities in 1998, however, to better reflect recent trends of climate countermeasures in society, it renewed this scheme to the Minister of the Environment Award for Climate Action in 2020.
(Related link) https://www.env.go.jp/earth/ondanka/min_action_award/winners_r03.html
In recognition of ongoing climate change "mitigation" and "adaptation" initiatives by Nomura Real Estate Master Fund and Nomura Real Estate Private REIT, for which NREAM manages investment assets by the name of J-REIT, we received the FY2021 Minister of the Environment Award for Climate Action (Dissemination and Promotion Section) sponsored by the Ministry of the Environment.
The EcoPro Awards aim to promote the development and dissemination of initiatives and thereby contribute to the creation of a sustainable society by recognizing products, services, technologies, solutions, and business models that specifically incorporate valuable environmental considerations acquiring high recognition among businesspersons, consumers, investors and stakeholders in the Japanese market.
The Eco Products Awards, the forerunner of the scheme, were launched in 2004. However, to better reflect changing conditions in society and economy including economic globalization, enactment of the Paris Agreement, and establishment of the SDGs, they were revamped as the EcoPro Awards in 2018.
The Award was presented in recognition of ongoing initiatives on ESG/SDGs by Nomura Real Estate Master Fund and Nomura Real Estate Private REIT, for which NREAM manages investment assets by the name of J-REIT.
Eco Action 21 Of The Year 2022 (Social Section) highlights the following,
・It recognizes the initiatives for solving social issues by businesses accredited under the Environmental Management System guidelines compiled by the Ministry of the Environment.
・It widely advertises and accelerates initiatives geared toward realizing a carbon-neutral society and achieving the SDGs within Japan.
・It recognizes initiatives for contributing to the resolution of issues in companies or the local community that are separate from environmental management by companies.
The Award was presented in recognition of the fact that Nomura Real Estate Master Fund and Nomura Real Estate Private REIT, for which NREAM manages investment assets by the name of J-REIT, became the first companies in the REIT (real estate investment trust) industry to acquire Environmental Management Systems (EMS) Eco Action 21 certification, paving the way for introducing EMS to the corporate investment sector, thereby contributing to the dissemination of EA21 to the REIT and corporate investment sector.