Responding to Climate Change

Approach and Policies

Group Policy (Environment)

To address the social issues identified in the Group Policy, we will work with our stakeholders to promote the reduction of energy consumption and CO₂ emissions, the use of renewable energy, and the provision of low-carbon and decarbonized products and services across our supply chains.

Targets and Results


The Group has set the following three targets to address climate change.

Target 1. Reduce CO₂ emissions

Mid- to long-term target
35% reduction in the Group’s total CO2 emissions in Scopes 1 and 2, and Scope 3 (Categories 1 and 11)*by 2030 from the fiscal 2019 baseline (approved by the Science Based Targets initiative (SBTi) in November 2020)

Short-term target
15% reduction in the Group’s total CO₂ emissions in Scopes 1 and 2, and Scope 3 (Categories 1 and 11)by 2025 from the fiscal 2019 baseline.

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

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 88.45% of the Scope 3 emissions recorded in fiscal 2020.

Mid- to long-term target
The power consumption of Scope 1 and 2 in the Group will be 100% renewable electricity by 2050. (joined RE100 in January 2022)

Short-term target
Switching electricity consumed by all leasing properties* owned by Nomura Real Estate Development to renewable electricity by 2023.

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.

Target 2. Reduce Energy Use

Target 3. Promote Solar Power Generation


Result 1. Reduce CO₂ emissions

Scopes 1 and 2 (Nomura Real Estate Group)

(Unit: t-CO₂) (Nomura Real Estate Group)

FY2018 FY2019 FY2020
Scope 1 24,018 23,627 20,119
Scope 2 136,569 126,960 112,087
Scope 1 + 2 160,586 150,588 132,206
Scope 1 + 2 Intensity (kg-CO₂/m² per year) 80.70 74.06 63.56

Scopes cover 190 facilities with a gross floor area of 1,989,974 m² for FY2018, 183 facilities with 2,033,422 m² for FY2019, and 191 facilities with 2,079,952 m² for FY2020.

Scopes 1 and 2 Gross Floor Area by Use

FY2019 FY2020
Total (m²) 2,033,422 2,079,952
Offices 1,423,113 1,447,598
Fitness facilities 127,295 130,130
Commercial facilities 347,445 362,504
Hotels 64,469 68,620
Logistics facilities 49,547 49,547
Parking lots 17,141 17,141
Training centers 654 654
Heating and cooling center 3,758 3,758

Number of facilities aggregated for Scopes 1 and 2

FY2019 FY2020
Total (buildings) 183 191
Offices 104 110
Fitness facilities 45 48
Commercial facilities 15 13
Hotels 12 13
Logistics facilities 1 1
Parking lots 4 4
Training centers 1 1
Heating and cooling center 1 1

Scope 3 (Nomura Real Estate Group)

(Unit: t-CO₂)

Category FY2019 FY2020
1 Products and services purchased 969,704 453,707
2 Capital goods 71,164 97,862
3 Fuel- and energy-related activities that are not included in Scopes 1 and 2 27,473 24,854
4 Transportation and delivery (upstream) 4,081 3,164
5 Waste generated by businesses 6,858 5,317
6 Business trips 1,421 936
7 Employers’ commuting 2,395 2,409
8 Lease assets (upstream) - -
9 Transportation and delivery (downstream) - -
10 Processing of products sold - -
11 Use of products sold 2,203,005 834,184
12 Disposal of products sold 62,603 19,605
13 Lease assets (downstream) 19,011 14,025
14 Franchise - -
15 Investments - -
Total 3,367,714 1,456,063

Calculation for Category 8 is included in Scopes 1 and 2.

Categories with no figures indicate that emission sources do not exist.

Result 2. Reduce Energy Use

Energy Consumption Performance (Nomura Real Estate Group)

FY2018 FY2019 FY2020
Energy consumption (MWh/year) 445,772 422,490 381,817
Energy consumption intensity (MWh/m² per year) 0.224 0.208 0.184

Scopes cover 190 facilities with a gross floor area of 1,989,974 m² for FY2018, 183 facilities with 2,033,422 m² for FY2019, and 191 facilities with 2,079,952 m² for FY2020.

Result 3. Promote Solar Power Generation

Solar Power Generating Facility Installation Rate and Electric Power Generated at Landport Logistics Facilities

FY2018 FY2019 FY2020
Solar power generating facility installation rate at Landport logistics facilities (%) 92.9 94.7 90.0
Electric power generated at Landport logistics facilities (million kWh/year) 12,081 15,194 21,926


Joining RE100

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

Approved by Science Based Targets initiative (SBTi)

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

Agreed to 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 therefore agreed to recommendations made by the Task Force on Climate-related Financial Disclosures (TCFD) in order to further promote their initiatives.

Special Feature: TCFD

Climate Change Risk Management

We manage climate change risks based on the TCFD. Matters related to climate change, including risk management, are overseen by the Board of Directors and Management Committee and are discussed as required by their subordinate organizations, the Sustainability Committee and the Risk Management Committee.
The Sustainability Committee discusses matters on Group-wide policies and targets related to climate change and climate change risks as well as opportunities.
The Risk Management Committee manages risks in accordance with the Risk Management Regulations, formulated to ensure the appropriate management and operation of risks. Identifying risks associated with changes in the business environment due to climate change, as well as those risks associated with natural disasters as major risks, the Risk Management Committee deliberates and discusses countermeasures.
Contents of deliberations of both committees are reported to and overseen by the Board of Directors on a regular basis.
In addition, we assess and manage supplier risks through interviews on their status of compliance with our procurement guidelines to reduce environmental risks in the supply chain.

Environmental Management

Details of the Risk Management System

Responding to Physical Risks

The Group is working to address the physical risks of climate change, including increased frequency of natural disasters, by identifying the impact of these risks on the Group. The Group has identified losses following the occurrence of disasters, such as typhoons, floods and torrential rains and the impact of rising temperatures on real estate valuations.
To address these risks when developing real estate, the Group confirms hazard maps, which show expected damage areas released by each local government, and implements localized severe rain and flooding countermeasures in accordance with the Quality Manual. We also take measures to minimize damage and ensure the safety and security of customers during disasters in accordance with business continuity plans (BCP).
We attach hazard maps to the disclosure statement provided to housing purchasers.

ZEH Initiatives

The Group is developing net zero energy homes (ZEH)* in condominiums from the perspective of comprehensive environment impact reduction.
In fiscal 2020, the Proud Tower Kameido Cross Gate Tower was adopted as a Ministry of Economy, Trade and Industry Superhigh-rise ZEH-M Demonstration Project, and the Proud Kagurazaka Hill Top and Proud Musashiurawa Station Arena were adopted as a Ministry of the Environment High-rise ZEH-M Support Project. In fiscal 2021, the Proud Musashishinjo Station Marks was adopted as a Ministry of the Environment High-rise ZEH-M Support Project.
In addition, we will strive to work on detached houses from FY2022.

ZEH(Net Zero Energy House)dissemination record and dissemination target

Record:FY2020・FY2021 Target:FY2025
0units 50% or more in all detached houses

Housing designed to achieve a net zero annual primary energy consumption by greatly improving the insulation performance of the building envelope, installing highly efficient facilities and equipment to maintain the quality of the indoor environment, while substantially reducing energy consumption and then introducing renewable energy.

ZEH Condominium Initiatives (Japanese 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 4 (the highest level),* double-glazed windows (end panel eco-glass), 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.

Thermal insulation performance rating: A housing performance evaluation system pursuant to the Housing Quality Assurance Act. Levels indicate performance in the thermal environment.

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.

Procuring and Supplying Power Efficiently

At PROUD condominiums, the Group provides the enecoQ energy management system, which uses a service for purchasing high-voltage electric power for entire buildings as well as information and communications technologies (ICT) to curtail peak electric power consumption, and it uses the demand forecasting models developed for the enecoQ service to efficiently procure electric power.

Independent Third-Party Assurance Report

We have asked Lloyd's Register Quality Assurance Ltd. (hereinafter LR) to provide assurance on the environmental data.
Please refer to the following Independent Assurance Statement for detail.

LR Independent Assurance State

Smart Community Collaboration and Cooperation

Nomura Real Estate Development has entered into an agreement regarding smart community collaboration on Proud City Hiyoshi with Kanden Realty & Development, Panasonic Homes, Kansai Electric Power and Tokyo Gas.
In this project, we are able to reduce CO₂ emissions and supply electric power during disasters by implementing the energy management in the entire area.

Proud City Hiyoshi (rendered image)

“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 and realize a healthy and comfortable life, and has installed it in more than 1,000 units.
Yukai full was selected as one of the best 100 products in the 2020 Good Design Awards in recognition of its simple air conditioning system and technology that combines temperature control with standardized comfort.

News Release (Japanese only)

Use of Renewable Energy

The Group is promoting renewable energy utilization through the solar power generation business. As of March 2021, solar panels were installed on a total of 18 buildings at Landport logistics facilities, with annual output of 21.926 million kWh/year for the entire portfolio.
In addition, each hotel of the Nomura Real Estate Group (NOHGA HOTEL UENO TOKYO, NOHGA HOTEL AKIHABARA TOKYO, 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

Lanport Kashiwa Shonan

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 member newsletter.

Participation in Initiatives Related to Climate Change

The Group has taken part in international initiatives related to climate change and frameworks of industry associations, and is actively working to address climate change.

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 action plan on the environment established by the Real Estate Companies Association of Japan, the Group endorsed the environmental targets in the real estate industry, and it promotes measures to respond to climate change by working to achieve CO₂ emissions reductions that exceed the statutory required standards.