NBFM stipulates the following in its "ESG Policy"

1. Promoting energy efficiency and reduction of CO₂ emissions

By promoting efficient use of energy in real estate investment and management activities and pursuing introduction of energy-saving facilities etc., NBFM endeavors to reduce CO₂ emissions through energy saving.

2. Preserving water environment and improving waste recycling rate

NBFM aims to preserve the water environment by initiatives for saving water and introduction of water-saving devices. NBFM also makes an effort to promote 3R (reduce, reuse and recycle) for resource saving and improving waste recycling rate.

3. Responding to climate-related issues and improving adaptability

In addition to initiatives for contribution to climate change mitigation, NBFM identifies climate change risks and opportunities in NBF’s real estate investment and management and promotes management and reduction efforts for these to increase NBF’s and NBFM’s organizational resilience to climate change-related shifts in the global environment and socio-economic structures.

Environmental Targets

Based on the above approach, NBFM has set a target of reducing energy-based CO₂ emissions by 46% or more from that in 2013 as a base by 2030 as a new environmental indicator in FY2021 and intends to promote initiatives addressing climate-related risks and opportunities.

Indicators	(unit)	Relationship with Climate Initiatives
CO2 emissions intensity reduction (kg-CO2/m2)	2013-2030 46％ or more	Enhance environmental performance of portfolio, reduce carbon dependence: Relates to transition risks (regulatory risks, market risks)

Environment Management System / PDCA Cycle

NBFM established its own environment management system and implements a PDCA cycle every year in order to manage the environmental load of its real estate portfolio such as energy consumption, CO₂ emissions, water consumption, waste generation, etc. and achieve its targets.