Improving Supplier Management

Approach and Policies

The Nomura Real Estate Group conducts its business in cooperation with various suppliers including design and construction companies and construction contractors in all business areas.
Because of this, the Group believes that initiatives throughout the supply chain are essential for implementing effective measures to address social and environmental issues, and we established the Nomura Real Estate Group CSR Procurement Guidelines (the "CSR Procurement Guidelines"). We request that suppliers apply the Guidelines to their business activities with regard to eight topics: compliance, respect for human rights, fair business activities, consideration for the environment, ensuring and improving quality, ensuring information security, whistleblowing systems, and creating business continuity plans.
Going forward, we will continue to improve supplier management in accordance with the Guidelines.


Management Structure

The Nomura Real Estate Holdings executive vice president and Group COO have been put in charge of this issue for the Group and carries out measures to improve supplier management.
In addition, the CSR Committee, which comprises Nomura Real Estate Holdings and Group company directors and others and is chaired by the Nomura Real Estate Holdings executive vice president, deliberates on and decides related policies and action plans. The CSR Committee annually sets targets regarding improvement of supplier management, and monitors progress.


The Group seeks to improve CSR procurement and supplier management in accordance with the CSR Procurement Guidelines.

Nomura Real Estate Group CSR Procurement Guidelines

The Group formulated the CSR Procurement Guidelines (Japanese and English versions) in April 2018 and started implementation of the guidelines to all suppliers from November that year.
Business consignment agreements and purchase orders (including those for new contractors and renewed suppliers) include a provision that requests suppliers to comply with the guidelines.

【Nomura Real Estate Group CSR Procurement Guidelines】

Ⅰ. Establishment of Compliance Structures
①Respect all social norms and relevant regulations, as well as agreements and promises, in all countries and regions where business activities are carried out, and understand the requirements of the international community and conduct corporate activities based on appropriate business practices and corporate ethics.

Ⅱ. Respect for Human Rights
②Respect the dignity and basic human rights of all people, including customers, suppliers and employees, and do not engage in discrimination or harassment for reasons of race, ethnic group, age, religion, beliefs, gender, nationality, social status, existence of disability, gender or sexual orientation, gender identity, physical features, existence of illness, or any other reason.
③In addition to ensuring equal employment opportunities, comply with labor-related laws and regulations and rules of employment, implement appropriate labor management, and work to maintain and improve sound and pleasant working environments.
④Along with carefully managing safety and health and preventing industrial accidents, endeavor to maintain physical and mental health and create well-ordered workplaces.
⑤Do not engage in unfair labor practices such as forced labor and child labor, and endeavor to take appropriate care to ensure that such unfair labor practices do not occur in suppliers.
⑥Give consideration to culture and customs as well as local residents and communities in regions where business activities are conducted.

Ⅲ.Fair Business Activities
⑦In relationships with public employees and the like (including deemed public employees and foreign public employees), maintain sound relationships and do not provide entertainment or exchange gifts in ways that conflict with the National Public Service Ethics Act and Regulations and related national and local laws and regulations, etc.
⑧Do not request, give, or receive from suppliers entertainment or gifts that deviate from sound business customs and social norms.
⑨Exclude all relationships with anti-social forces and groups that pose a threat to social order and security or obstruct fair economic activities. Also, resolutely challenge and totally reject any transactions with or unreasonable demands by such forces or groups.
⑩Comply with anti-monopoly, prevention of unfair competition and intellectual property rights legislation and related laws and regulations, and endeavor to treat suppliers, competitors, and others fairly, without engaging in acts constituting abuse of a dominant market position, blocking of transactions or other such conduct.
⑪Do not infringe or improperly use copyright, patents, trademark rights, design rights, or other intellectual property rights.
⑫Do not participate in money laundering, embezzlement, fraud or any other form of corrupt conduct.
⑬Carry out appropriate disclosure to customers and society and also endeavor to provide necessary information in an appropriate manner.

Ⅳ.Consideration for the Environment
⑭Endeavor to make continuous improvements for reducing environmental impacts in order to build a sustainable society.
⑮Comply with environmental laws and regulations in the countries and regions where business activities are carried out.
⑯Endeavor to reduce emissions of greenhouse gases and contaminants and conserve resources through the life cycles of goods, products, and services.
⑰Endeavor to appropriately manage hazardous chemicals and reduce the amounts used.
⑱Endeavor to reduce and appropriately manage waste.
⑲Endeavor to implement development and greening, taking into consideration the surrounding environment and biodiversity.
⑳When procuring raw materials, take into consideration the conservation of biodiversity and sustainable use of resources. In particular, when procuring wood and wood products, take due care not to use illegal logged timber, and endeavor to use wood that has been produced by sustainable methods, such as with recycled wood and certified wood.

Ⅴ.Ensuring and Improving Quality
㉑Create appropriate quality management and quality assurance systems for the goods, products and services provided, and in addition to ensuring the required quality, work to constantly improve quality.
㉒Correctly identify diverse needs and endeavor to provide goods and services that are friendly and beneficial to societies seeking safety and quality.
㉓In providing goods, products and services, take into consideration the convenience and comfort of users through universal design and other such measures.
㉔In keeping with the demands of society in relation to ethical procurement, recognize the impact that business activities in the supply chain have on the environment and society, and endeavor to disclose that information as necessary.

Ⅵ.Ensuring Information Security
㉕Give careful consideration to the handling of personal, private and confidential information, and establish management systems to enable the appropriate management and protection of such information. Also, avoid improper and unauthorized use and disclosure of information by taking thorough measures to prevent the leakage of information.

Ⅶ.Whistleblowing Systems
㉖In addition to creating whistleblowing structures for the prevention or early detection of problems, protect whistleblowers' confidentiality and seek to make it widely known to employees that whistleblowers will be protected from retaliation and other disadvantageous treatment.
㉗Make the significance and methods of use of the Suppliers' Helpline established by the Nomura Real Estate Group widely known to all employees involved in the Group's business.

Ⅷ.Creating Business Continuity Plans
㉘Endeavor to establish risk management systems in preparation for the occurrence of disasters by creating business continuity plans (BCPs) and other measures.

Improving Supplier Capabilities and Enhancing Quality

The Group works to enhance quality throughout the supply chain by holding Safety Conferences and study groups for suppliers that address issues such as quality and the environment.
Nomura Real Estate Development distributes Design and Construction Standards and Quality Manuals to construction companies and designers in order to achieve safety and security through appropriate quality control.
In addition, Nomura Real Estate Partners holds annual meetings of the East Japan Supplier Council Meetings on Health & Safety and West Japan Supplier Council Meetings on Health & Safety where it presents commendations to excellent companies and conducts training on health and safety.


Promotion Measures

The Nomura Real Estate Group requests that all suppliers comply with the CSR Procurement Guidelines.