Nomura Real Estate Asset Management Co., Ltd.Nomura Real Estate Asset Management Co., Ltd.

SUSTAINABILITY

Signatory to Initiatives

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).

  • ・Signing of the UN Global Compact
  • ・Signatory of the Principles for Responsible Investment (PRI)
  • ・Signatory of the United Nations Environment Programme Finance Initiative (UNEP FI)
  • ・Participating in the Japan Climate Initiative (JCI)
  • ・Signatory of the Principles for Financial Action for the 21st Century (PFA21) for the formation of a sustainable society
  • ・Expressed agreement to the proposals of the Task Force on Climate-Related Financial Disclosures (TCFD)
  • ・Acquisition of SBTi (Science Based Targets Initiative) Approval

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

  • [Human Rights]
    Principle 1: Support and respect for the protection of human rights
    Principle 2: Non-complicity in human rights abuses
  • [Labour]
    Principle 3: Recognition of freedom of association and the right to collective bargaining
    Principle 4: Elimination of forced and compulsory labour
    Principle 5: The effective abolition of child labour
    Principle 6: The elimination of discrimination in respect of employment and occupation
  • [Environment]
    Principle 7: Precautionary approach to environmental challenges
    Principle 8: Initiatives to promote greater environmental responsibility
    Principle 9: Development and diffusion of environmentally friendly technologies.
  • [Anti-Corruption]
    Principle 10: Initiatives for the prevention of corruption in all its forms, including extortion and bribery.

For details, please refer to the United Nations Global Compact website.

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

  1. We will incorporate ESG issues into investment analysis and decision-making processes.
  2. We will be active owners and incorporate ESG issues into our ownership policies and practices.
  3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.
  4. We will promote acceptance and implementation of the principles within the investment industry.
  5. We will work together to enhance our effectiveness in implementing the principles.
  6. We will each report on our activities and progress towards implementing the principles.

For more information, please visit the Principles for Responsible Investment website.

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.

For more information, please visit the United Nations Environment Programme Finance Initiative website.

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.

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.

The Principles

  1. We will recognize our roles and responsibilities, taking into account the precautionary approach, and promote those actions that contribute towards shaping a sustainable society.
  2. We will contribute to the formation of a sustainable global society through the development and provision of financial products and services leading to the development and increased competitiveness of “industries contributing to a sustainable society” as represented by the environmental technologies and services sector.
  3. From the perspective of regional development and improvement in sustainability performance, we assist the environmental programmes of small and medium enterprises. We will also back activities that will raise environmental awareness amongst citizens and support disaster readiness and community activities.
  4. In the formation of a sustainable society we will recognize the importance of cooperation with diverse stakeholders and will not only participate in its activities but will endeavor to take a proactive role.
  5. We will not be limited to complying with environmental laws and regulations but will take active steps to reduce our own environmental footprint through resource and energy savings as well as encouraging our suppliers to do likewise.
  6. We will recognize activities that will further profile sustainability as a business issue and will endeavor to disclose information on our activities.
  7. In order to implement the above actions, we will aim to raise the awareness of environmental and societal issues of our own board and support them to take an active role through their normal duties.

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.

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.

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) .