Decarbonization

• This is a common global issue leading up to 2050, and the real estate industry is expected to help in addressing it.
• Our Group’s business uses a large amount of natural resources and energy, and environmental issues have an impact on business continuity.
• Environmental issues are major issues that affect not only our Group’s business but also the lives and businesses of our stakeholders.
• To address climate change issues, we will work to reduce total CO₂ emissions by promoting energy conservation, low-carbon businesses, and a shift to renewable energy in the properties developed by the Group.

• Energy saving (our own and our customers’ processes)
• Low-carbon business (low-carbon products)
• Shift to renewable energy (renewable energy for our buildings and products)

Joining RE100

In January 2022, Nomura Real Estate Holdings, Inc. joined RE100, a global initiative leading the transition to 100% renewable electricity.

Approved by Science Based Targets (SBT) initiative

Nomura Real Estate Holdings, Inc.’s CO₂ emissions reduction targets were approved by the SBT initiative on November 24, 2020.

Agreement with Recommendations Made by the Task Force on Climate-related Financial Disclosures (TCFD)

Nomura Real Estate Holdings, Inc. and Nomura Real Estate Asset Management Co., Ltd. are fully aware that the substantial impact of climate change on their business continuity is a major management issue, and they have, therefore, agreed to recommendations made by the Task Force on Climate-related Financial Disclosures (TCFD) in order to further promote these initiatives.

Responding to the TCFD

The UN Global Compact

The Group signed the UN Global Compact in May 2019. Based on the principles of the UN Global Compact initiative, we will support a precautionary approach, such as climate change mitigation, to environmental problems, and proactively fulfill our responsibility to address environmental problems.

Endorsement of the Voluntary Action Plan on the Environment for the Real Estate Industry, Formulated by the Real Estate Companies Association of Japan

In accordance with the voluntary environmental action plan set forth by the Real Estate Companies Association of Japan, of which the Nomura Real Estate Group is a member, we support environmental targets for reducing energy consumption, improving energy independence, reducing waste, and preserving biodiversity in each of our real estate business activities. and we will promote measures to combat climate change by reducing CO₂ emissions to levels above those required by law.

• *1
  Starting with this report for the fiscal year ended March 2025, the following changes have been made to the calculation method for GHG emissions for some fiscal years.
  

  • Changes in activity data and emissions intensity due to a change in the useful life of properties sold by the Company from 60 years to 50 years, which is the activity data for Scope 3 Category 11.
  • Calculzation of GHG emissions after transferring the amount of electricity used by tenants of the Company’s properties from Scope 2 to Scope 3 Category 13.
  • Within the boundary of the Company’s emissions (Scope 1 and 2), properties owned by the Company with a total floor area of 150 tsubo (approximately 496 m2) or less are excluded from the calculation.
    The figures from before the revision of the standards are referred to as the “old standard,” and the figures from after the revision are referred to as the “new standard.” The GHG emissions (Scope 1 & 2) and (Scope 3) in the Company’s 21st fiscal year securities report submitted on June 25, 2025 are based on the “old standard.”
• *2*3
  Scope 1: Direct emissions from fuel combustion, etc.; Scope 2: Indirect emissions associated with use of electricity and heat purchased by the Company; Scope 3: Indirect emissions other than those in Scopes 1 and 2. Emissions for the base year, FY2020/3, were 3,269,000 t-CO₂.
  

  • Emissions for FY2020/3, the base year under the old standards, were Scope 1: 23,627 t-CO₂, Scope 2: 126,960 t-CO2, Scope 3 (Categories 1-15): 3,367,714 t-CO₂
  • Under the old standards, in Scope 3, Category 1 (emissions from construction of buildings, etc.) and Category 11 (emissions from use of sold products, etc.) are targeted, which cover approximately 92.17% of the Scope 3 emissions in FY2020/3. Scope 3 (total of Categories 1 and 11): 3,172,710 t-CO₂.
  • Emissions for FY2020/3, the base year under the new standards, were Scope 1: 23,476 t-CO2, Scope 2: 59,451 t-CO₂, Scope 3: 3,186,245 t-CO₂
  • Under the new standards, in Scope 3, Category 1 (emissions from construction of buildings, etc.), Category 11 (emissions from use of sold products, etc.) and Category 13 (downstream leased assets) are targeted, which cover approximately 94.84% of the Scope 3 emissions in FY2020/3. Scope 3 (total of Categories 1, 11, and 13): 3,021,677 t-CO₂.
• *4
  Excludes leasing properties (including the portion used by tenants) for which Nomura Real Estate Development has concluded direct electricity supply contracts with power companies, properties that Nomura Real Estate Development owns units in or are jointly owned with other parties, and properties planned to be sold or demolished, as well as the common-use areas of some rental housing.
• *5
  In order to achieve ZEH/ZEB oriented levels by 2030, the BEI (Building Energy-efficiently Index) value to be achieved in each year is set. The degree of achievement of the BEI value is measured.
• *
  The BEI is based on the energy-saving standards of the Act on the Improvement of Energy Consumption Performance of Buildings (Building Energy Efficiency Act) and indicates a building’s level of primary energy consumption.

• *1
  1 Less than 1
• *2
  Calculation for Category 8 is included in Scopes 1 and 2. Categories with no figures indicate emission sources do not exist.
• *3
  Figures are based on those stated in Scopes 1 and 2 Gross Floor Area by Use (Number of Facilities).

Helping Customers to Save Energy

The Group not only strives to reduce CO₂ emissions from buildings but also helps condominium residents and tenant companies to save energy.
Specifically, the Group provides a system that calculates total energy consumption and a system that makes it possible to visualize the amount of energy used, realizes energy savings using the enecoQ system, and provides eco-information via a members’ newsletter.

Net Zero Energy House Initiatives

The Group is developing net zero energy house (ZEH)^* condominiums from the perspective of comprehensive environmental impact reduction. In 2023/3, PROUD Aobadai was selected as a Ministry of the Environment High-Rise ZEH-M Support Project. Also, in 2024/3, PROUD tower Sagami-ohno cross was selected as a Super High-Rise ZEH-M Demonstration Project of the Ministry of Economy, Trade and Industry. Looking ahead, we plan to adopt ZEH and ZEB oriented standards for all new buildings by 2030. We have also been pursuing initiatives for adopting the same standards for detached housing since 2023/3.

Net Zero Energy House: Adoption Results and Future Target

ZEH Condominium Initiatives (Japanese text only)

Environmental Performance Assessments During Product Planning and Design

The Group provides products and services that address climate change in accordance with the Design and Construction Standards and the Quality Manual. Thermal insulation performance rating of level 5^*, double-glazed windows, LED lighting fixtures, and other features are set as standard specifications for PROUD condominiums, and Environmental and Product Planning Sheets are used to improve the environmental performance.

Assessment of Environmental Performance in Condominiums

Reduction of Chlorofluorocarbons

To reduce the usage of ozone layer-depleting chlorofluorocarbons, the Group established a quality manual that requires the use of chlorofluorocarbon-free insulation and air conditioner refrigerants.
Construction partners are also required to submit a Quality Control Check Sheet during construction to confirm that only chlorofluorocarbon-free materials are used.

Yukai-full Enables Condominiums to Reduce CO₂ Emissions

Nomura Real Estate Development developed an air-conditioning system, Yukai-full, that makes it possible to reduce CO₂ emissions while realizing a healthy and comfortable life, and it has installed this system in more than 1,000 units.
In recognition of the simplicity of its air conditioning system and technology that combines temperature control with standardized comfort, Yukai-full was selected as one of the best 100 products in 2021/3 Good Design Awards.

News Release (Japanese text only)

Use of Renewable Energy in Logistics Facilities

The Group is promoting renewable energy utilization through its solar power generation business. As of 2025/3, solar panels were installed on a total of 19 buildings at Landport logistics facilities, with an annual output of 23,335 MWh per year for the entire portfolio.
In addition, each hotel of the Nomura Real Estate Group (Nohga Hotel Ueno Tokyo, Nohga Hotel Akihabara Tokyo, Nohga Hotel Kiyomizu Kyoto, and Hotel Niwa Tokyo) has acquired the Eco Mark certification from the Eco Mark Office and is promoting the use of green power by procuring all of its electricity from renewable energy sources.

Global Environmental Initiatives of Nohga Hotel Ueno Tokyo

Solar Power Generation in Detached Housing in the Tokyo Metropolitan Area

Nomura Real Estate Development, in collaboration with TEPCO Energy Partner, launched a Virtual Mega Solar project in May 2022 to install solar power generation capability at the same scale as mega solar power generation (total output 1,000 kW) in the PROUD SEASON (detached housing). This is the first initiative in Japan to introduce solar power generation with a total output of 1 MWh to detached houses for sale in the Tokyo metropolitan area (300 roofs per year on PROUD SEASON houses), and the two companies will promote this as an initiative for localized generation and consumption of electric power, to conserve and generate energy in the Tokyo metropolitan area, where there are few areas of fallow land to be utilized.

Introduction of Renewable Energy to Nomura-Owned Properties

News Release (Japanese text only)

• *1
  Excluding property reconstruction and redevelopment
• *2
  As a general rule, EV charging facilities will be installed in approximately 30% of parking spaces. Although there will be some properties that fall short of 30% due to the type of parking system utilized (e.g., mechanical parking lot), charging facilities will be gradually implemented starting with applicable properties, taking into account such factors as future technological advances in the installation of charging equipment.

• *1
  Contribute to increasing renewable energy use throughout society by developing new renewable energy power generation facilities.