Basic approach of NBM and NBFM to social considerations is to hold dialogues with stakeholders (affiliates inside and outside the company) associated with its business activities including its investors, NBFM employees, tenants, business partners and local communities and to endeavor to meet their expectations.
<<Responsibilities to Main Stakeholders which NBF and NBFM are to Fulfill>>
Recognizing that human resources are the most valuable resources of the company and are indispensable for the sustainable development of business and the organization, NBFM has strived to secure and develop specialists with extensive expertise in real estate and finance as well as potential leaders with management skills to improve organizational productivity.
In order to continuously improve expert know-how, NBFM promotes the acquisition of specialized certificates of its employees such as ARES Certified Master (an educational program that systematically teaches practical expert know-how in the fields of real estate and finance). NBFM bears the costs for the training and exams in acquiring the various certificates as well as for maintaining the certificates and increasing expert abilities through seminars, etc.
This program has been used by new employees as an opportunity to advance their career; and by experienced employees and certification holders as an opportunity to continuously build and enhance their expertise.
Number of certificates acquired by the support program | Number of training provided by the support program | Number of officers and employees who used the programs (%) | |
---|---|---|---|
FY2017 | 26 | 18 | 12(46%) |
FY2018 | 22 | 14 | 13(50%) |
FY2019 | 27 | 12 | 10(37%) |
The number of employees with certificates are as shown below (includes employees seconded from sponsors, etc.).
*As of February 1, 2021
For the purpose of periodically updating fundamental knowledge necessary for asset management, training programs led by outside lecturers are regularly conducted to learn the circumstances of the current economic environment and real estate market, revision of laws and regulations on asset management, etc. In addition, information exchange sessions are also held on a weekly basis for all employees to share knowledge on the circumstances surrounding the market and each financial sector in real time.
【Examples of training】
・Information exchange sessions (held weekly)
In addition to the specialized education in the real estate, financial and other sectors mentioned above, NBFM introduced, with an aim to encourage ideas full of creativity through diversified viewpoints and sensibilities, a training support program in which the company will bear the costs of attending seminars, lectures and courses that lead to self-improvement as long as it is within the annual budget stipulated for each employee, By allowing access to trainings and educational opportunities appropriate for employees’ careers, NBFM focuses on the development of cross-sectoral human resources with wide vision, ideas and leadership that are not limited to the industry or domain.
【Examples of training by position/rank】
FY2017 and FY2018(As of the end of February), record of the training support program is as follows.
【Utilization status of the program】
Number of utilization | Rate of the employees who utilized the program | Average grant per user: | |
---|---|---|---|
FY2017 | 18 | 77% | 49,500 yen |
FY2018 | 14 | 54% | 88,691 yen |
FY2019 | 12 | 33% | 65,276 yen |
NBFM regularly conducts career interviews with all employees. All employees have an interview with their superior and directors. This program provides them with an opportunity to talk about their career formation, receive feedback on their performance and discuss requests to the company.
NBFM has established a transparent system for setting targets and providing appraisal feedback through proper communication between superiors and subordinates such as in conducting interviews at the beginning of periods (setting targets), mid-period interviews (checking progress and giving advice) and interviews at the end of periods (feedback of appraised results).
Rate of interviews with directors(All employees) | |
---|---|
2017 results | 100% (23 out of 23) |
2018 results | 100% (23 out of 23) |
2019 results | 100% (23 out of 23) |
Furthermore, as described in the above “Cross-Sectoral Human Resources Development Program,” NBFM focuses on the development of human resources with wide vision, insight and ideas that are not limited to the industry or domain and human resources with leadership, by allowing access to trainings and educational opportunities appropriate for employees’ careers.
NBFM strives to enhance not only individual capabilities but also organizational capabilities by following regular management training programs to enable employees to demonstrate their skills to the fullest.
【Examples of programs】
・Creation of workplaces without harassment (June 2020,All employees(include temporary employees))
・Training to enhance understanding towards LGBT (July 2020,All employees(include temporary employees))
・Training on labor laws and health management(September 2020,All employees)
・Training to prevent insider trading(November 2020,All employees(include temporary employees))
・Training on ESG and SDG trends(November 2020,All employees(include temporary employees))
NBFM promotes development of specialized skills of existing employees through the aforementioned education/training programs while also continuing to hire new recruits in order to secure proper personnel timely to accommodate the business situations and changes in its organizational status. Furthermore, NBFM seeks longer employee retention and improved productivity through provision of sufficient benefit and welfare programs and establishment of a comfortable working environment to enable employees to continue working with peace of mind.
As part of these human resources strategies, NBFM takes in human resources from numerous sponsors and other entities with various backgrounds, aiming to realize sophisticated asset management through utilization of their highly specialized expertise as well as improvement of know-how in operations.
【The number of human resources taken in from sponsors】
*As of june 30, 2020
Employees in managerial positions seconded from the sponsors, Mitsui Fudosan Co., Ltd. and Sumitomo Life Insurance Company, possess expert know-how as well as organization management skills nurtured through continuously participating in seconding companies’ human resources development programs and thus have contributed to NBFM from both aspects of asset management and vitalization of the organization.
[Career Programs of Mitsui Fudosan Co., Ltd.]
Human Resources Management/ESG Report 2019
At NBFM, the board of directors and general shareholders’ meeting oversee executive appointments and successions. Other managerial appointments and successions are discussed and determined by the Executive Board members including the CEO. We have prepared and implemented a human resource scheme, which allow us to select appropriate management candidates from NBFM and our sponsors, as well as smoothly transfer the businesses and duties.
While NBFM currently does not hire new graduates, our sponsors regularly do graduate recruitment. NBFM accepts seconded junior employees who have completed the training of the sponsor’s human resource development programs. For detailed information on graduate recruitment, please refer to the above “Career programs of Mitsui Fudosan Co., Ltd.”
Recognizing human resources as its greatest assets, NBFM aims to create environments where its employees can work with peace of mind. NBFM strives to establish and operate a more attractive and fruitful management system in health and safety initiatives such as for work life balance, health of employees, personnel management and risk management by fulfilling regulatory standards, introducing an early work shift system, establishing recommended paid vacation days and such to create a corporate culture that is conducive to work. Furthermore, NBFM has worked to further improve job satisfaction and create environments that are more conductive to work by setting up a cross-sectional work reform review team this fiscal year to exchange opinions and discuss programs for better work styles that benefit both the company and the employees.
NBFM recognizes its employees to be as its greatest resource. As such, it measures the satisfaction level of its employees and conducts employee satisfaction surveys every year as part of its efforts to establish excellent relations between employees and the company. With this, NBFM checks degrees of satisfaction towards assigned responsibilities and the working environment, requests for introduction of programs in the company, etc. (response rate of 100%). NBFM strives to establish better working environments based on the survey results.
【Case examples】
A system has been introduced whereby all employees including temporary employees can freely express a wide range of opinions related to personnel affairs, working environment and other matters anonymously (suggestion box “meyasubako”). The expressed opinions will be conveyed to those with management responsibility as needed.
In addition, employee interviews by directors are conducted once a year to give every employee an opportunity to clarify their requests concerning various internal systems of the Company as well their personal career vision.
Moreover, NBFM has established contact points inside and outside of the company for internal reports based on a whistleblower protection rule, thereby establishing a system in which violation of the human rights of employees, business partners and other parties as well as fraudulent or wrongful acts can be reported anonymously to a compliance officer (in the case of matters regarding a compliance officer, then to the CEO) or an external law firm. The rule prohibits creating any disadvantage for whistleblowers through efforts to protect whistleblower information and by prohibiting retaliatory action, while making it mandatory for companies to decide and implement appropriate measures for the reported issue.
In addition, if the whistleblower is disadvantaged as a result of their consultation or whistleblowing, they may report this to the contact points for internal reports. After receiving such a report, the contact points shall promptly take corrective measures related to the disadvantage and strive to protect the whistleblower.
The various benefit and welfare programs listed below have been established to create a working environment in which employees can continue to work in comfort and with peace of mind.
【Programs provided】
In September 2019 when the office was relocated, NBFM created the workspace giving considerations to employee well-being.
・Expanded internal communication areas (gathering places for relaxation or informal meeting)
・Initiatives to prevent the spread of infection for Covid-19
Installation of employee assistance programs to provide safe work environment
Initiatives for Employees | Providing a safe work environment |
---|---|
・Establishment of telework implementation regulations ・Encourage staggered commuting ・Compensation for work at home and shorter hours ・Control of attendance at work |
・Enhanced internet teleconferencing system ・Installation of online approval system ・Installed acrylic partitions in open spaces ・Regular door knob disinfection ・Made antiseptic dispensers and “Ziaino” available ・Circumspect social(1m spacing with wearing masks) |
NBFM has established a labor and management agreement (a “36 Agreement”) and conducts the following programs to reduce excessive working hours and overtime work.
・Monitoring working hours and consulting with employees
・Notifying employees and superiors of employees who may be working long hours
・Utilizing a system that restricts computer usage
・Using Premium Fridays to have early finishing days
・Encouraging taking at least two paid holidays at a time
NBFM’s basic policy is to not only comply with but exceed minimum wage rules in labor laws.
There were no serious violations of labor standards between January 1, 2020, and December 31, 2020.
In order to secure human resources with high-level knowledge and experience over the long term, improvement of internal systems including benefit and welfare programs and other schemes has been conducted. As a result, human resources for maintaining stable fund management have been secured.
Item | 2017 | 2018 | 2019 | |||
---|---|---|---|---|---|---|
Total number of employees | 23 | 23 | 24 | |||
(Number of regular employees) | 13 | Male 12 Female 1 |
13 | Male 12 Female 1 |
15 | Male 13 Female 2 |
Percentage of women | 7.7% | 7.7% | 13.3% | |||
Average employment period | 8.2 years | 8.4 years | 7.7 years | |||
Rate of used portion of paid vacation | 60.7% | 69.5%(*) | 78.8% | |||
Rate of use of medical examinations | 100% | 100% | 100% | |||
Employment of People with Disabilities | 0 | 0 | 0 | |||
(Number of seconded employees) | 10 | 10 | 9 | |||
Number of newly hired employees | 1 | 1 | 4 | |||
Number of retired employees | 1 | 1 | 4 | |||
Employee turnover rate in the fiscal year | 4.3% | 4.3% | 16.7% | |||
Temporary Employee | 12 | 10 | 9 |
(*) In this report, indication of “All employees” means entire employees including regular employees and seconded employees mentioned above. In addition, although temporary employees are not in direct employment relationship with NBFM, some of the initiatives for NBFM employees shown in this report target temporary employees as well.
Targeting all regular employees, NBFM introduced a “Employee stock purchase plan (ESPP)” in which employees can acquire investment units of NBF. With the introduction of this system, it is anticipated that employees will be more focused on improving the performance of NBF, which is believed to contribute to continuous growth of NBF and enhancement of investor value. Furthermore, NBFM provides financial incentives to employees utilizing the system in an endeavor to further enhance its benefit programs for employees.
NBF and NBFM have adopted their sponsor Mitsui Fudosan’s Mitsui Fudosan Group Sustainable Procurement Standards and Mitsui Fudosan Group Human Rights Policy.
They support and respect the basic labor rights established in the ILO Declaration on Fundamental Principles and Rights at Work. The declaration establishes the following labor principles:
・Effective approval of freedom of association and collective bargaining rights
・Prohibition of all forms of forced labor
・Effective abolition of child labor
・Elimination of discrimination in hiring and work
Based on the above, NBF and NBFM have established the table below in a Compliance Manual and instill their policy on human rights in all employees, including temporary employees, through compliance training, etc.
Topic | Policy and Initiatives |
---|---|
Freedom of association and collective bargaining rights | NBF and NBFM support and respect freedom of association and the right to collective bargaining. |
Prevention of child labor and forced labor | There has never been child labor or forced labor at NBF or NBFM, but a contact point has been established for reporting should there be a potential violation. |
Prohibition of discrimination, harassment or other unfair treatment in the workplace | NBF and NBFM prohibit discrimination or unfair treatment based on race, nationality, hometown, religion, belief, gender, age, disability, sexual orientation, gender identity, education, marriage status, employment type or any other reason not related to business roles. Any harassment, whether sexual, from a position of power or otherwise, is also not allowed in the workplace. |
Harassment (sexual, from a position of power, etc.)
・Regular training on harassment and discrimination
・Establishment of contact points inside and outside of the company for harassment
Training
・Types of harassment (from a position of power, sexual, maternity), examples of speech or actions that are harassment and how to respond (whistleblowing, prohibition of disadvantageous treatment, etc.)
・Better understanding LGBT diversity and personal preference without discriminating
NBF is engaged in initiatives for development of local communities as well as improving security and safety.
As a part of local communities, NBF holds initiatives such as lunchtime concerts, seasonal events, water sprinkling programs for cooling down and local cleanup programs.
Due to the impact of the Covid-19, events are being cancelled and non-contact events are being held in FY2020. From next year onwards, we will continue to consider holding events while taking into account the status of the Covid-19 and other factors.
NBF performed major renovations on Mandatory Housing Spaces* to improve the living-environment quality. [Kowa Nishi-Shinbashi Bldg. B]
*Some municipalities require such spaces for the purpose of securing their resident population and improving living-environment.
Toranomon Kotohira Tower was developed with consideration to protect Kotohira-Gu shrine, a regional historic property located in the area, and designed to be a mixed-use building including the shrine office.
Supporting Minato-ku Regional Disaster Prevention Plan, NBF provides some parts of leasable spaces of the following buildings as storehouses for emergency materials for free of charge.
In NBF's capital investment decision making process, the status of the building's compliance with the Barrier-Free Law, accessibility for people with disabilities, accessibility to public transportation around the property, etc. are mandatory items to be confirmed. These items are periodically confirmed through engineering reports and other documents obtained during the consideration stage and post-investment monitoring phases, and if there are issues or room for improvement, specific measures are discussed during the operation stage. Through these inclusive efforts, we aim to provide a building that is comfortable for all office users.
【Examples of Construction to Increase Tenant Comfort (Shinjuku Mitsui Building No. 2, 2020】
【Contents】
Expansion of kitchenettes and installation of built-in counters for garbage bins
Includes expanded hot water supply room with indicators to avoid overlapping use
Installation of air purification equipment
Sanitizer Stations
【Contents】
Extension of ramp width and installation of handrails
Improvement of interior signage
Automation of service entrance doors
(for wheelchair accessibility and COVID-19 safety)
【Contents】
・Effective use of surplus bicycle storage
Contributes to the community and adds income
Together with its exclusive property management company NBFOM, NBF conducts building management that aims to enhance tenant satisfaction. Customer satisfaction surveys are conducted every year in order to understand the real thoughts, level of satisfaction and needs of tenants, and PDCA cycles are established to promptly reflect the challenges found in surveys and points to be improved.
A survey was not taken in FY2020 on account of the burden on tenants amid the COVID-19 pandemic.
【FY 2019 CS Survey on Operation and Management Services in Office Properties】
【Response to the Result of CS Survey: An Example】
・NBF Toyosu Canal Front:Enhancing User-friendliness of the Common Space through the Layout Change
In order to promote initiatives of environmental and social consideration in its supply chain, NBF established “Green Procurement Manual.” In line with this manual, NBF requests newly selected and existing business partners in the supply chain (property management companies, etc.) to understand and cooperate on its initiatives of environmental and social consideration.
ESG Initiatives
Actual39th Period (2H/2020) | 11,000yen |
---|---|
Forecast40th Period (1H/2021) | 11,350yen |
41th Period (2H/2021) | 11,050yen |
Number of Properties |
75 |
---|---|
Asset Size(Total Acquisition Price) (Contract base) |
1,367.5billion yen |
As of Mar. 25, 2021 |
Occupancy Rate | 97.6% |
---|---|
As of Feb. 28, 2021 |