Biodiversity
Governance
Strategy
Background and Aim
- This issue is drawing attention as the next common global issue after climate change, and the United Nations and other organizations are already working to develop guidelines and consider legislation concerning it.
- Our aim is to restore the forest cycle in Japan and conserve the natural environment through urban afforestation and forest preservation, thus enabling rich biodiversity.
Impact on Strategy and Business Model and Value Chain
Based on the LEAP approach, and taking into account our business model, our Group has determined that the upstream activities in the value chain, which encompass the Residential Development Business Unit and Commercial Real Estate Business Unit and consist of land and property acquisition, asset procurement, product planning and design, and business promotion, as well as direct operations (ownership (operation and leasing)) have a relatively high degree (medium or higher) of relationship with natural capital, and we are conducting analysis and evaluation of these activities. Also, through this process, we are also identifying any areas that require special attention.
After analyzing our dependence and impact on nature, we consider what risks and opportunities these may present to the Group and then consider and implement strategies and measures to take on those risks and opportunities.
For more details, see the TNFD report.
Scenario Analysis
Biodiversity Policy
In order to respond to international demands and to promote actions aimed at achieving nature positivity, we have established the Nomura Real Estate Group Biodiversity Policy as a guideline for our individual business activities.
In formulating this policy, we received supervision from the international NGO World Wide Fund for Nature Japan to ensure that the content took into account a global, progressive perspective.
Participation in Biodiversity-related Initiatives
Keidanren Initiative for Biodiversity Conservation
In fiscal 2019, The group announced its endorsement of the Keidanren Initiative for Biodiversity Conservation. We are aware that initiatives for biodiversity are important management issues for the Group, which is engaged in real estate and urban development. Therefore, we will promote this initiative, taking into consideration the natural environment and ecosystems.
TNFD Forum
The Group supports the principles of the Taskforce on Nature-related Financial Disclosures (TNFD) and joined the TNFD Forum in July 2022. The TNFD is an international organization that was conceptualized at the 2019 World Economic Forum Annual Meeting (Davos) and established in June 2021 by the United Nations Environment Programme Finance Initiative (UNEP FI), the United Nations Development Programme (UNDP), the World Wildlife Fund (WWF), and the UK-based environmental NGO Global Canopy. Through its participation in the TNFD Forum, the Group will continue to assess the impact of all its business activities on biodiversity and promote initiatives for conservation and restoration.
30by30 Alliance for Biodiversity
30by30 is a target for nations to conserve or protect at least 30% of their lands and sea areas by 2030 to halt the loss of, as well as restore, biodiversity (nature-positive).
In order to achieve the target, the Ministry of the Environment has established the 30by30 Alliance for Biodiversity to expand the protected areas in Japan (currently about 20% of the land and 13% of the sea) and to promote efforts to certify areas that have been conserved by the private sector and others as OECMs. Nomura Real Estate Holdings joined this alliance in July 2022.
Business-specific Risk Assessment
In New Business Development
When starting a new development project, we conduct a biological survey on the development site and a risk assessment as necessary. Following the assessment results, we implement measures such as preservation, transplantation, and maintenance as necessary and periodically review and report.
For large-scale development projects, we conduct environmental assessments to ensure there will not be any damage to the existing natural environment. We have established procurement guidelines and give due consideration to conserving biodiversity and the sustainable use of resources when procuring raw materials.
When performing property planning, the Residential Development Division conducts a survey of the surrounding vegetation in advance and creates plans that blend in with the surroundings by using native species established in the area. In addition to just planning, we also take care of the plant management, giving consideration to the health of the plants and soil, e.g., via reduced use of chemical fertilizers.
For the forests we own in Okutama Town in Tokyo, we have created a five-year management plan and risk management manual and are uniquely managing the forests with full awareness of biodiversity.
In Design, Construction and Raw Material Procurement
Acquisition of Biodiversity Certification
The Group actively seeks to acquire biodiversity certification for new construction and owned buildings, such as ABINC certification (certification registered by the Association for Business Innovation in harmony with Nature and Community)*1, JHEP (Japan Habitat Evaluation and Certification Program)*2, and SEGES (Social and Environmental Green Evaluation System series)*3, which assess and certify apartment buildings, office buildings and other structures regarding efforts to create biodiversity-friendly green areas. For PROUD Kokubunji, which was the Group’s first ABINC certification acquired for condominiums, we surveyed the green areas on the site and worked to preserve and restore them as the Musashino Forest in accordance with the ABINC certification standards.
The Project for Nakamachi 3-chome, Setagaya-ku, Tokyo (provisional name) was praised for its incorporation of medium-scale rooftop greening. For PROUD City Kotake Mukaihara, we implemented a reforestation plan to make use of existing trees and preserve them for future generations. We will continue to strive for real estate development which is focused on coexistence with nature.
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*1ABINC (Association for Business Innovation in harmony with Nature and Community) certification: A program that assesses and certifies apartment buildings, office buildings and other structures regarding efforts to create biodiversity-friendly green areas in accordance with the Guidelines for Sustainable Business Sites prepared by the Japan Business Initiative for Biodiversity (JBIB)
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*2JHEP (Japan Habitat Evaluation and Certification Program): A program that quantitatively assesses and certifies efforts to contribute to the preservation and restoration of biodiversity operated by the Ecosystem Conservation Society Japan.
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*3SEGES (Social and Environmental Green Evaluation System series): A green certification program operated by the Organization for Landscape and Urban Green Infrastructure to comprehensively and objectively assess social and environmental functions created from the preservation of corporate green spaces and environmental communication.
| Year of certification | Certified facilities/condominiums |
|---|---|
| FY2014 | Yokohama Business Park (urban/SC version) |
| FY2015 | PROUD Kokubunji (condominium version) |
| Roka Koen The Residence*1 (condominium version) | |
| PROUD City Musashino Mitaka (condominium version) | |
| FY2017 | PROUD City Kichijoji*1 (condominium version) |
| PROUD Tower Musashi Koganei Cross*1 (condominium version) | |
| PROUD Season Inagi Minamiyama (detached housing complex version) | |
| Project for Noritake Shinmachi 3-chome, Nishi-ku, Nagoya City*1 (condominium version) | |
| FY2018 | HARUMI FLAG*1 (acquired ABINC ADVANCE certification*2)〕 |
| The Gardens Ota Tamagawa*1 (condominium version) | |
| FY2020 | PROUD Tower Meguro MARC (urban/SC version) |
| Minamiyama Club House (detached housing complex version) | |
| FY2021 | PROUD City Musashino Mitaka (condominium version) |
| PROUD City Kotake Mukaihara (condominium version) | |
| FY2022 | Project for Nakamachi 3-chome, Setagaya-ku, Tokyo (tentative name) |
| FY2023 | BLUE FRONT SHIBAURA (Shibaura Project) |
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*1Application by multiple vendors
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*2ABINC ADVANCE certification: Certification for long-term projects covering a wide area
BLUE FRONT SHIBAURA (Shibaura Project)
Consideration for the Surrounding Environment
The Group implements building site plans and tree planting plans in its real estate development and urban development activities, giving consideration not only to the comfort of customers and local residents but also to the surrounding environment and ecosystems. In all development projects, the Group requires project managers to submit Environmental and Product Planning Sheets for residential development projects and Sustainability Assessment Sheets for commercial real estate development projects, thereby including consideration for biodiversity.
Examples of key assessment points on Environmental and Product Planning Sheet
- Acquisition of biodiversity certification
- Ingenuity and consideration in tree selection (e.g., use of existing trees)
- Ingenuity and consideration in the landscape of the roadside and surrounding areas (e.g., continuity with roadside trees)
- Creating green roofs and walls
Indicators and Goals
Targets, KPIs, and Results
| 2030 | Unit | FY2020 | FY2021 | FY2022 | FY2023 | |
|---|---|---|---|---|---|---|
| KPICarbon storage through the development of wood-based buildings | 10,000 | t‐CO2/year | Since this target was set in FY2023, results will be disclosed starting that year | 15,700 | ||
| KPINumber of biodiversity certifications acquired (ABINC, JHEP, SEGES) | ー | 2 | 3 | 1 | 1 | |
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*Approximate calculation based on the Forestry Agency's guidelines for calculating wood carbon stocks
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*The amount of wood used, 16,500 m3, is equivalent to about 50,000 cedar logs, about 65 hectares of artificial cedar forest, and is estimated to store 10,000 t-CO2 of carbon.
Key performance indicators (KPIs) for priority issues (materialities) up to 2030
ESG Data (Environment)
Initiatives
Use of Domestic Lumber
A tripartite Agreement on the Promotion of Timber Use in Buildings was concluded with the Ministry of Agriculture, Forestry and Fisheries on March 9, 2022. As part of the agreement, we aimed to use 10,000 m2 of domestic timber as building materials over the following five years. We are also striving to develop a stable supply chain for domestic timber while promoting the cyclical use of domestic forest resources and, in turn, achieving both the utilization and conservation of forest resources. The timber we procure is building material for our detached housing business, and 3,880 m2 was used in fiscal 2023.
The Nomura Real Estate Group Procurement Guidelines ask suppliers to use sustainable resources and timber to reduce the risks of disrupting the ecological balance and impacting local communities due to illegal logging. We actively promote the use of domestic and certified timber.
In our future construction projects, we plan to apply domestic lumber for the interiors of common areas in PROUD condominiums and introduce a wooden hybrid structure in our office building brand H¹O Shibakoen and the Nomura Real Estate Tameikesanno Building.
Domestic lumber not only allows us to provide a more comfortable living environment for our customers but also leads to the reduction of CO2 emissions and the prevention of natural disasters by preserving the recycling of forest resources.
Mori wo Tsunagu TOKYO project (Integrated Forest Management Project in Tokyo)—Supporting the Coexistence of Urban and Nature through Business Activities
Our Group launched the Mori wo Tsunagu TOKYO project, which supports the coexistence of nature and the city in Tokyo, where we mainly operate our businesses. Tsunagu Mori, a forest owned by the Group in Okutama Town, obtained certification for Other Effective Area-based Conservation Measures (OECM)*1 in recognition of its rich biodiversity and its ecosystem management initiatives. We are creating a case model in Tokyo that can be applied to other regions by advancing initiatives for conserving ecosystems and important species while also contributing to a nature-positive future through ecosystem-related services.
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*1A system under which the Ministry of the Environment certifies areas where biodiversity is being protected through initiatives with the private sector.
Project to Create Firefly Habitats in the Yokohama Business Park
Our Group has been presenting an annual exhibit of Urban Design for Firefly Habitats, for conserving biodiversity, since 2008 at the Yokohama Business Park (YBP) (Yokohama City, Kanagawa Prefecture), an office building and commercial facility that it owns, in cooperation with Yokohama National University. In fiscal 2023, the event resumed for the first time in four years, after having been suspended during fiscal 2020, 2021 and 2022 to help contain the spread of the COVID-19 pandemic. Firefly observation events for local residents and hands-on rice planting programs for local elementary school students are offered, and the business park has become a site for us to think and learn about biodiversity and environmental problems together with local residents.
Yokohama Business Park acquired certification for consideration of biodiversity conservation under the ABINC certification program (urban/SC version) of the Association for Business Innovation in harmony with Nature and Community (ABINC).
