Sustainability Policy

NREAM recognizes that consideration for the environment, society and governance is indispensable in order to enhance value for unitholders over the medium- to long-term. In accordance with this thinking, NREAM established a Sustainability Policy on December 1, 2015 based on the CSR management principles of the Nomura Real Estate Group.

Nomura Real Estate Asset Management Co., Ltd.

Nomura Real Estate Asset Management Co., Ltd. recognizes that consideration for the environment, society and governance (hereinafter collectively referred to as "ESG") is indispensable in order to enhance unitholders' value over the medium- to long- term and, based on the CSR management principles of the Nomura Real Estate Group, will incorporate consideration for ESG centering on the following items throughout all its real estate investment management services.
1. Efforts to save energy and create energy

We will strive to introduce technologies/facilities that contribute to save and/or create energy while proactively promoting efficient use of energy in real estate management.
2. Efforts to save resources and reduce waste

We will strive to implement water saving and waste reduction (3Rs of reduce, reuse and recycle) for effective utilization of resources required in business activities.
3. Efforts for safety and security as well as improvement of the level of customer satisfaction

We will strive to improve the level of customer satisfaction by promoting disaster prevention/BCP measures for the safety and security of our clients including tenant companies or facility users, and through other means.
4. Efforts to develop in-house systems and educate executives and employees

We will not only fully enforce compliance but also develop in-house systems to promote our initiatives based on this policy, educate executives and employees, and conduct activities to raise awareness.
5. Collaboration with outside stakeholders

We will strive to collaborate with stakeholders including our business partners such as property management companies, our clients such as tenant companies and facility users, and local communities in order to practice initiatives based on this policy.
6. Information disclosure to investors, etc.

We will strive to proactively disclose information on the status of activities related to ESG to stakeholders such as investors.

Established: December 1, 2015

Sustainability Promotion Structure

We have in place the following structure to promote initiatives under its Sustainability Policy in a constant and organized manner.
1. Board of Directors

Main roles：Formulation and revision of the Sustainability Policy, sustainability promotion rules and other in-house policies and rules
2. Chief Sustainability Officer

Chief Strategy Officer
3. Sustainability Operating Officer

Head of NMF Investment Management Group / NPR Operations Manager
4. Investment Committee

Chair：President and Executive Officer
Members: Chief Strategy Officer, Other Executive Officers and Compliance Officer
Main roles: Decision making with regard to sustainability targets and measures
5. Sustainability Promotion Committee

Chair: Sustainability Operating Officer
Meeting frequency: Once in a quarter or more
Main roles: Formulation of NMF's sustainability targets and measures and the monitoring of achievement status

〈Sustainability Promotion Structure〉

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.)

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.)

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.