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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

ESG Promotion Committee & ESG Promotion Subcommittee

The ESG Promotion Committee, which includes the President and CEO of NBFM as its final decision maker, and ESG Promotion Subcommittee under it have been established to supervise and promote initiatives on climate change as well as other environmental and social initiatives based on NBFM’s Policy for ESG Initiatives. The Promotion Subcommittee meets at least once every three months to assess ESG risks and opportunities and consults on numerical targets and specific measures to reduce CO₂ with the Committee, which meets at least once every six months and decides specific targets and measures as the final decision maker. The Promotion Subcommittee reports on the progress of the decided targets and measures to the Promotion Committee at least once a year.

In addition, these targets and measures are shared with all officers and employees through briefings, shared folders, email, etc.

※Name Change to ESG Promotion Committee and Strengthening of Organizational Structure

Until now, NBF considered ESG issues through its Board for the Promotion of Environmental Consideration and Office for the Promotion of Environmental Consideration. However, recognizing the need to consider a wider range of perspectives than just the environment, such as improvement of tenant convenience, employee benefits and governance systems, it renamed these bodies and placed the President and CEO at the head to form an organizational structure that can implement the PDCA cycle to address all ESG issues.

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 Assessment" 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 2020 Assessment, NBF's initiatives were highly appreciated in both dimensions of "Management Component" and "Performance Component" as sustainability efforts, and it received a "Green Star", for the sixth consecutive year. NBF also received a "5-Star", the most superior rating, based on its overall GRESB Score ranking. In the 2020 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
Actual39th Period (2H/2020) 11,000yen
Forecast40th Period (1H/2021) 11,350yen
41th Period (2H/2021) 11,050yen
Portfolio Data
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
Financial Data
39th Period(Second-Half 2020)

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