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ESG Initiatives

ESG Report

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Message from the Executive Director

The stance of corporations in approaching environmental and social challenges, such as climate change, work reform, community vitalization are becoming important for investors as mid-to-long-term risk factors. At the same time, it is starting to be understood that addressing these challenges serves as a gateway for new value creation and business opportunities.

In the real estate investment and management sector which NBF belongs to, the importance of taking ESG factors into consideration in the operations as a whole is becoming widely recognized. This is based on the idea that ESG is essential for maintenance and improvement of asset value in the mid-to-long-term in light of strengthening regulations of various countries, the change in awareness of tenants leaning towards real estate with excellent environmental performance and comfort, etc., and NBF is in agreement with this view.

Under these circumstances, NBF’s asset management company NBFM stipulated the basic policy of “ESG Policy” in November 2017 , believing in the growing importance of considering ESG in operations overall, the necessary collaboration with stakeholders and the active and appropriate disclosure of such initiatives. Based on this policy, ESG initiatives such as the reduction of environmental load in portfolio management, considerations for stakeholders such as local communities and employees, etc. are being advanced.

The purpose of this Report is to make extensive disclosures to our investors regarding the ESG initiatives of NBF and NBFM and to gain their understanding.

NBF will endeavor to construct relationships of trust with its stakeholders by continuing to further enhance initiatives which take the ESG factors into consideration in its real estate investment and management as well as to make an appropriate disclosure of the results from them, fulfilling its responsibilities as a corporate citizen while also serving its mission of increasing asset value in the mid-to-long-term.

Koichi Nishiyama
Executive Director

ESG Initiative Policy

NBFM, has stipulated a basic policy for ESG initiatives. In addition, ESG initiatives are promoted in accordance with the policies and guidelines related to sustainability set by Mitsui Fudosan Co., Ltd, the main sponsor of NBF.

Policy for ESG Initiatives

NBFM established the basic policy of "ESG Policy" in November 2017 , stipulating the implementation of initiatives that are friendly towards the environment in its daily asset management operations as well as initiatives targeting stakeholders including investors, tenants, employees, business partners and local communities.

Basic Policy

NBFM, in recognition of the importance of ESG for carrying out real estate investment and management activities, strives to achieve asset management activities giving consideration to reduction of environmental load, improving security, safety and comfort and diversified collaboration and cooperation with various stakeholders, in line with "The Group Environmental Policy" and "Policy for Social Contribution Initiatives" established by the Mitsui Fudosan Group.

Environmental and Social Initiatives of the Mitsui Fudosan Group

Mitsui Fudosan Co., Ltd, the main sponsor of NBF, with its mission of "bringing affluence and comfort to urban living," establishes "The Group Environmental Policy" and "Policy for Social Contribution Initiatives."

Please refer to "ESG Report 2019" for the Mitsui Fudosan Group’s social, environmental and governance initiatives.

In-House System for Promoting ESG

Board for the Promotion of Environmental Consideration, etc.

In order to promote initiatives of environmental and social consideration based on NBFM’s stipulated "ESG Policy," NBFM formulated the Board for the Promotion of Environmental Consideration, etc. (hereinafter the "Promotion Board"), which is attended by NBFM’s President & CEO , as well as the Periodic Board by the Office for the Promotion of Environmental Consideration, etc. (hereinafter the "Office") organized below the Promotion Board. Regular meetings by the Office are held once every three months and numerical targets such as for the reduction of energy consumption as well as cases of initiatives to meet these targets are deliberated. The Office consults with the Promotion Board held once every six months and in which NBFM’s President & CEO determines specific targets, initiatives, etc. Furthermore, the Office gives progress reports and achievement reports regarding the determined targets, initiatives, etc. to the Promotion Board.

Targets and initiatives that have not been achieved are deliberated for incorporation into the next period’s targets and initiatives.

In principle, the contents of the determined targets and initiatives are shared among all executives and employees through the Promotion Board, Investment Review Meeting, Executive Board, or through disclosure in emails, etc.

Corporate Governance and Compliance System

NBFM to which asset management services are entrusted has established a governance structure such as with its Compliance Committee, Risk Management Meeting, Investment Review Meeting and Executive Board, and endeavors to thoroughly implement risk management and compliance in its operations and improve corporate governance on an ongoing basis.

External ESG Assessment

Participation in GRESB Real Estate Assessment

The "GRESB (Global Real Estate Sustainability Benchmark)" Survey is an annual benchmark survey for evaluating environmental, social and governance (ESG) considerations in the real estate sector, established in 2009 primarily by major European pension fund groups.

The characteristic of the GRESB Real Estate Assessment is that it evaluates sustainability efforts by real estate companies and REITs, etc., not of individual properties. During the 2019 Assessment, NBF's initiatives were highly appreciated in both dimensions of "Management and Policy" and "Implementation and Measurement" as sustainability efforts, and it received a "Green Star", for the fifth consecutive year. NBF also received a "5-Star", the most superior rating, based on its overall GRESB Score ranking. In the 2019 GRESB Public Disclosure Level evaluation scheme, the initiatives of NBF were highly evaluated in both dimensions of our proactive information disclosure practices in connection with environmental and sustainability initiatives, and NBF received an "A", the most superior rating.

NBF will disclose information on its ESG activities to investors through GRESB assessment while utilizing the assessment results as an opportunity to improve its initiatives.

Distribution Per Unit
Actual38th Period (1H/2020) 10,986yen
Forecast39th Period (2H/2020) 11,000yen
40th Period (1H/2021) 11,000yen
Portfolio Data
Number of
Properties
74
Asset Size(Total Acquisition Price) 1,167.6billion yen
As of Aug.17, 2020
Occupancy Rate 99.1%
As of Aug. 31, 2020
Financial Data
38th Period(First-Half 2020)

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