Environmental Management

Governance

Risk Management

Environmental Management System

The Group is increasing the sophistication of its environmental initiatives through the use of an internationally acknowledged environmental management system (EMS).
Yokohama Business Park Offices (A1, A2, A3, C1, C2, and C3 buildings) at the Yokohama Division of Nomura Real Estate Partners Co., Ltd. acquired ISO 14001 certification for their environmental management system and are carrying out various initiatives including waste reduction, resource recycling, and energy-saving measures. At certified offices, annual internal audits as well as audits by external certification organizations are conducted to ensure their compliance with the EMS and environmental laws and regulations and the effectiveness of measures for controlling environmental pollution.

We strive for environmentally responsible management through the Nomura Real Estate Master Fund and the Nomura Real Estate Private REIT, both of which have achieved certification and registration for Eco-Action 21, an environmental management system of Japan’s Ministry of the Environment.

Environmental Management in the Supply Chain

Supply Chain Management

Assessment of Environmental Performance in Newly Developed Properties

When developing PROUD condominiums in the Residential Development Business Unit, the Group requires project implementers to submit Environmental and Product Planning Sheets and to improve residential environmental performance and quality. Similarly, when developing office buildings, commercial facilities and logistics facilities in the Commercial Real Estate Development Unit, the Group requires project implementers to submit Sustainability Assessment Sheets and to quantify the environmental performance and quality of each development project.

【Environmental and Product Planning Sheets (excerpt)】

Inclusion of UA-value^*1 and BEI-value^*2
Inclusion of environmental certification status, energy-saving equipment, and energy-creating equipment
Comprehensive coverage of safety and security, the environment, community, and health and well-being
Promotion of community design and universal design

*1

UA-value: Insulation performance of concrete, thermal insulation materials, sashes, etc.
*2

BEI-value: Energy-saving performance of the entire building, including thermal performance of building envelopes as well as equipment, such as heating and cooling systems and hot water supply systems

Indices and Targets

Targets, KPIs, and Results

	Target for 2030	Unit	Result for FY2020	Result for FY2021	Result for FY2022	Result for FY2023
Percentage of newly constructed fixed and income-producing properties (excluding rental housing) that acquire environmental certifications (DBJ Green Building^1, LEED^2, CASBEE^3, BELS^4, etc.) each year	100	％	100	100	100	100 (incl. pending applications)
Percentage of properties owned by Nomura Real Estate Master Fund, Inc. (NMF) with green certification (three stars or more or equivalent to)^*5、6	70.0	％	56.3	56.0	58.5	56.4

*1

A certification program developed by the Development Bank of Japan to promote real estate development that contributes to the environment and society.
*2

A system developed and operated by the U.S. Green Building Council for granting certification to environmentally conscious buildings.
*3

Comprehensive Assessment System for Built Environment Efficiency; includes the certification program administered by the Institute for Building Environment and Energy Conservation (IBEC) and independent local municipality assessment programs.
*4

BELS stands for Building-Housing Energy-efficiency Labeling System, which was established by the Ministry of Land, Infrastructure, Transport and Tourism. With this system, a third-party evaluation organization evaluates and certifies energy conservation performance of a building.
*5

Green certification (with three stars or more or equivalent to) refers to DBJ Green Building Certification (three stars or more), BELS Certification (three stars or more), or CASBEE for Real Estate (B+ or higher). The figure is calculated based on the floor area of NMF’s properties, excluding land. The green certification ratio is as of August 31 of the following fiscal year.
*6

The percentages of NMF-owned properties with green certification (with at least three stars or the equivalent) can be found at https://www.nre-mf.co.jp/en/esg/environmental/environmental-performance.html.

Other results

	Unit	Result for FY2020	Result for FY2021	Result for FY2022	Result for FY2023
Percentage of properties with ISO 14001 certification^*1	％	18.6	19.6	22.1	22.7
Number of properties with energy performance certification		17	16	14	19
Environmental compliance (material violations of environmental laws and regulations [including pollution and water use] and allegations by outside parties)		0	0	0	0
	Result for FY2023
List of properties with DBJ Green Building certification in FY2023 (including pending applications)	【Office buildings】	PMO Shinbashi PMO Yodoya Bridge PMO Hamamatsucho III PMO Ikebukuro (under application) PMO Hatchobori V (under application) PMO Kanda Suta-cho (under application) PMO Shinagawa (under application) H¹O Shiba Park (under application) PMO Suidobashi (under application) PMO Ikebukuro II (under application) PMO Ginza II (under application) Nomura Real Estate Ikezan King Building (pending applications)
	【Logistics facilities】	LP Yokohama Fukuura LP Fukuoka Hisayama I LP Toda LP Kashiwa I
	【Retail facilities】	MEFULL Kiba SOCOLA Tokorozawa (under application). GEMS Meieki 3-chome (under application).
BELS (Building-Housing Energy-efficient Labeling System) in FY2023	19 properties mentioned above＋PMOEX Yodoyabashi (including pending applications)

*1

The net lettable area of the Group as of the end of each fiscal year was used as the denominator, and the floor area of the relevant offices of the Yokohama Business Park is used as the numerator
Certification acquisition date: March 5, 2004 (JQA-EM3815)
Certification organization: Japan Quality Assurance Organization (JQA)
Scope of registered activities: Planning and provision of comprehensive building management services (facility management, cleaning, and security)

ESG Data (Environment)

Initiatives

Environmental Responses in the Design and Construction Stages

The Group undertakes environmental responses in the design and construction phases of condominiums, leased offices, and other properties in accordance with the Design and Construction Standards and the Quality Manual that include specifications for environmental performance.

Environmental Education

In addition to providing environmental education to all employees every year as part of the rank-specific training programs (the Group’s new employee and key employee training programs), we also publish our environmental initiatives in internal newsletters to promote environmental awareness among our employees. In addition, our Environmental Subcommittee, which consists of the persons in charge of architecture, product design, and technology at each Group company, shares information on environmental issues and the latest environmental technologies.

Environmental Subcommittee (as of April 2024)
Officers in charge	Officers in charge of Quality Management and Architectural Design, Nomura Real Estate Holdings, Inc.
Departments in charge	Residential Product Planning & Marketing Dept., Quality Management Dept., Engineering Management Dept., Architectural Design Office, Nomura Real Estate Development Co., Ltd., Environmental Engineering Dept., Corporate Planning Dept., Nomura Real Estate Partners Co., Ltd.
Secretariat	Sustainability Management Dept., Nomura Real Estate Holdings, Inc.

Environmental Compliance

In fiscal 2023, the Group did not commit any material violations of environmental laws and regulations (including pollution and water use) in the manufacture, sale, or management of its products and services.

Proper Management and Reduced Usage of Chemicals

When developing condominiums, office buildings, retail facilities, and the like, the Group follows its Design Standards and Quality Manual in using construction materials with a four star formaldehyde emission rating, the highest rating.
Our construction partners are required to submit a Quality Control Check Sheet. When construction is completed, measurement is conducted on the levels of five substances (formaldehyde, toluene, xylene, ethylbenzene, and styrene) designated in the Housing Quality Assurance Promotion Act.

Asbestos: Proper Handling and Continuous Monitoring

The Nomura Real Estate Group handles asbestos found during demolition work with the utmost caution and care by cordoning of affected areas and ensuring regular third-party testing to determine presence and concentration. We also conduct continuous monitoring to ensure that no problems exist.