Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Friendliness
• Social Considerations

Environmental Achievements

• Participated in the 2015 Global Real Estate Sustainability Benchmark (GRESB) survey.
• Acquired environmental certifications (CASBEE, DBJ Green Building Certification, Tokyo Metropolitan Top-Level-Facility Certification) for various properties.
• Implemented energy-saving measures (LED lighting, high-efficiency air conditioning) in several buildings.
• Retrofitted HVAC systems in multiple buildings.

Social Achievements

• Established the “Policy for Environmental Considerations” on March 26, 2015.
• Implemented a disaster impact evaluation system and installed more emergency power generators.
• Engaged with tenants and communities through concerts and photo contests.
• Provided well-being initiatives for tenants (umbrella lending).

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRESB

Certifications: CASBEE, DBJ Green Building Certification, Tokyo Metropolitan Top-Level-Facility Certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 46% or more by 2030 (compared to 2013)
• Achieved 1.5 times reduction in CO2 emissions per unit of output by 2022 (compared to 2015)
• Introduced a new system for managing CO2 emissions in 2020
• Implemented initiatives to reduce water consumption and improve energy efficiency
• Pursuing green finance initiatives

Social Achievements

• Launched employee well-being programs
• Engaged with stakeholders to improve understanding of ESG initiatives
• Implemented initiatives to promote diversity and inclusion
• Strengthened relationships with communities

Governance Achievements

• Established the “Policy for ESG Initiatives”
• Implemented a corporate governance system
• Enhanced compliance and risk management systems
• Strengthened stakeholder engagement

Climate Goals & Targets

Environmental Challenges

• Tightening environmental regulations
• Changes in stakeholder preferences for real estate
• Supply chain disruptions

Mitigation Strategies

• Proactive disclosure of ESG initiatives
• Strengthening ESG initiatives to increase asset value
• Developing alternative sourcing strategies
• Implementing responsible procurement practices
• Strengthening stakeholder engagement

Supply Chain Management

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: CASBEE, LEED, BELS

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• 97.2% of NBF's properties were Eligible Green Assets as of December 31, 2023.
• 40.9% reduction in GHG emissions (Scope 1+2) by 2023 compared to 2021.
• 43.2% reduction in CO2 emission intensity by 2023 compared to 2013.
• 17.3% reduction in water consumption intensity by 2023 compared to 2019.
• Promotion of LED lighting (55% of lighting fixtures converted to LED).
• Introduction of renewable energy, focusing on FIT Non-Fossil certificates electricity.
• Implementation of water-saving equipment and reuse of rainwater and greywater.
• Improved waste recycling rate (62.1% in 2023).

Social Achievements

• Annual tenant satisfaction surveys conducted and actions taken based on feedback (e.g., Shinjuku Mitsui Bldg. No.2 renovations).
• Annual employee satisfaction surveys conducted and initiatives implemented based on results (e.g., expanding training support).
• Initiatives for local communities (e.g., lunchtime concerts, community revitalization projects, disaster preparedness).
• Increased female employee rate from 13.3% in FY2019 to 39.5% in FY2023.
• 100% maternity leave taken rate and 40% childcare leave taken rate.
• 74% paid vacation usage rate in FY2023.

Governance Achievements

• Established ESG Promotion Committee to oversee and promote ESG initiatives.
• Established a robust governance structure including Compliance Committee, Risk Management Meeting, and Investment Review Meeting.
• Implemented a remuneration policy that considers sustainability targets.
• No compliance incidents reported from January to December 2023.

Climate Goals & Targets

Environmental Challenges

• Climate-related risks (transition risks and physical risks such as extreme weather events).
• Data limitations due to reliance on tenants and building management companies for raw data at the property level.

Mitigation Strategies

• Set GHG emissions reduction targets (42% reduction by 2030, net zero by 2050).
• Implementing energy-saving renovations and introducing renewable energy.
• Building a portfolio with superior environmental performance.
• Introducing Internal Carbon Pricing (ICP).
• Systematic implementation of building and facility improvements for disaster resilience.
• Strengthening BCP system and conducting disaster drills.
• Engaging an independent third-party accounting firm for assurance report on data accuracy.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Adherence to Mitsui Fudosan Group Sustainable Procurement Standards.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, floods, heavy rains)
• Rising sea levels
• Rising average temperatures

Transition Risks

• Introduction of GHG emissions regulations
• Introduction of carbon taxes
• Strengthening of energy conservation standards
• Changes in environmental performance values in financing
• Changes in tenants' needs for environmental performance

Opportunities

• Higher rents for properties with high environmental performance
• Development of energy-efficient products and services
• Acquisition of Green Building Certification
• Procurement of Green Finance

Reporting Standards

Frameworks Used: TCFD, GRESB, CDP

Certifications: DBJ Green Building Certification, CASBEE, BELS

Third-party Assurance: Deloitte Tohmatsu Sustainability Co., Ltd.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• GRESB Green Star (9 consecutive years), 4 Stars overall GRESB score (2023).

Environmental Metrics

ESG Focus Areas

• Climate change
• Social contribution
• Governance

Environmental Achievements

• 63% of the entire portfolio converted to LEDs
• 98.8% acquisition rate of green building certification (based on total floor area)

Social Achievements

• PDCA cycle set up to reflect issues and improvements from daily management and customer satisfaction surveys
• Strive to provide a safe, secure, and comfortable environment for tenants

Governance Achievements

• Regular compliance training for all employees and directors
• Actively working to obtain evaluations and certifications from external organizations (GRESB Real Estate Evaluation 4-star overall score in 2023)

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRESB, TCFD

Certifications: DBJ Green Building Certification, CASBEE Building Evaluation Certification, CASBEE Real Estate Evaluation Certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed