Initiatives for Climate Change
Climate Change
- The Paris Agreement was adopted at the 21st session of the 21st Conference of the Parties to the 1992 United Nations Framework Convention on Climate Change (COP21) in December 2015, and the entire world began to move toward a decarbonized society.
- The Paris Agreement is an international treaty that aims to keep global warming below 2℃ with efforts to limit it to 1.5 throughout the world by the latter half of the 21st century.
- Europe is leading with standards and policies for a decarbonized society. In Japan as well, environmental initiatives such as climate change issues have become a major topic, with the goal of zero CO2 emissions by 2050.
Climate Change Initiatives-Support for TCFD
NBFM revised its Policy on ESG Initiatives in February 2021 to clarify stronger efforts to address climate-related issues and, by agreeing with the TCFD, assess the financial impact of future climate change risks and opportunities and assertively disclose activities.
Governance and risk management system
In compliance with the “Rules on ESG Initiatives,” NBFM has organized an “ESG Promotion Committee” with its President and CEO as the head of committee. It monitors risks and opportunities related to ESG no less than once a year at the “ESG Promotion Committee,” and the head of committee decides the implementation of measures for the management and reduction of such risks and opportunities as well as the establishment of goals and KPIs.
Climate-related risks related to NBF
NBFM considered the climate-related risks that may have a financial impact when it comes to NBF’s real estate investment management business across the group, and identified the risks related to businesses as described in the following chart.
Type of risks |
Category | Timeframe(*1) | Identified risks |
---|---|---|---|
Transition | Policy/legal regulation |
Long-term |
|
Technology | Short-term |
|
|
Market | Long-term |
|
|
Reputation | Short-term Long-term |
|
|
Physical | Acute | Short-term Long-term |
|
Chronic | Short-term Long-term |
|
- Short-term = by 2030; long-term = by 2050
As for climate-related risks that are believed to have a particularly significant impact on businesses, NBF is making efforts to understand the status of such risks as well as implementing initiatives and strategies to manage such risks, as described in the following section.
Transition risks
a.Risks related to policy and legal regulation
Status of risks |
NBF has become a business operator subject to domestic regulations including the Act on the Rational Use of Energy, Act on Promotion of Global Warming Countermeasures and the regulation of total (pollutant) load control by Tokyo Metropolitan Government as a business operator that consumes more than a certain amount of energy and emits a large amount of GHG, and is obligated to report energy saving and GHG emissions as well as improve and reduce them. If such obligations are violated, penalties including administrative guidance, a maximum fine of 1 million yen or less and announcement of violation will be imposed. |
---|---|
Other initiatives for management and reduction of risks |
As a response to such initiatives, NBF is currently sequentially improving the energy-saving performance of properties to achieve decarbonization, and plans to record about 2 billion yen of countermeasure construction costs in approximately 10 years. On the other hand, there is a possibility that the reduction obligation will not be achieved with the current plan if energy consumption and GHG emissions associated with it exceed the assumption as of now or the level of reduction obligation is tightened based on policies due to the impact of climate change. In such cases, there is a risk that costs for additional countermeasure construction and purchase of emission credits will be required. We believe that such risks may become apparent within the next 10 years when based on the policy goal of achieving carbon neutrality by 2050. |
Case example |
Reduction of CO2 emissions through systematic introduction of LED
|
b.Risks related to change in the real estate market
Status of risks |
|
---|---|
Initiatives for management and reduction of risks |
|
Case example |
Improvement of portfolio performance and building age through property replacements |
Large-scale property replacement cases conducted in the 33rd and 34th periods

c.Risks related to the greening of the financial market
Status of risk |
|
---|---|
Initiatives for management and reduction of risks |
|
Case example |
First issuance of ESG Report by a J-REIT
Proactive acquisition of Green Building Certification and Assessment
|
Physical risks
a.Damage to buildings caused by natural disasters
Status of risks |
|
---|---|
Initiatives for management and reduction of risks |
|
Case example |
Construction work to improve Back-up electricity supply
|
b.Business continuity of NBF upon the occurrence of climate disasters
Status of risks |
|
---|---|
Initiatives for management and reduction of risks |
|
Case example |
Proactive use of telework
![]() Remote conference |
c.Change in the behavior of building users due to chronic change in climate patterns
Status of risks |
|
---|---|
Initiatives for management and reduction of risks |
|
Case example |
Periodic monitoring of real estate leasing market
|
Indicators and goals
For detail, Please refer to ‘’Environmental Targets‘’