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

Policy for ESG Initiatives

1.Reduction of environmental load and initiatives for climate change issues

• Promoting energy efficiency and reduction of GHG emissions
  By promoting efficient use of energy and introduction of energy-saving facilities etc., NBFM endeavors to reduce GHG emissions such as CO₂ through energy saving.
• Conserving water environment and improving waste recycling rate
  NBFM aims to conserve the water environment by initiatives for saving water such as the 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.
• Responding to climate-related issues
  NBFM identifies and assesses climate-related risks and opportunities and promotes its resilience by managing and mitigating those risks while taking actions to realize those opportunities.

2.Collaboration and engagement with various stakeholders

NBFM will collaborate and engage with officers and employees, tenants, property management companies, local communities and other stakeholders. At the same time, NBFM promotes various efforts to address social demand from its stakeholders as a member of society.

• Training of officers and employees
  NBFM recognizes that human capital is its largest asset and strives to create an employee-friendly and healthy work environment for individual officers and employees to fully exert their capabilities as well as promoting initiatives for human resource development through specialized education, training support, etc. In addition, NBFM aims to improve awareness of ESG by training its officers and employees through continuous implementation of education and encouragement of activities relating thereto.
• Collaboration with tenants, and initiatives for customer satisfaction improvement
  NBFM asks tenants for understanding and cooperation for environmental and social considerations in the use of the buildings and promotes green leases and other collaborative initiatives. In addition, NBFM strives to improve customer satisfaction through initiatives related to the enhancement of the level of tenants’ health and well-being, disaster prevention and business continuity plan measures.
• Cooperation with property management companies and business partners
  NBFM asks property management companies and other business partners for understanding and collaboration and promotes initiatives concerning environmental and social considerations in its supply chain.
• Contribution to the local community
  As a member of the community, in order to contribute to vitalization and development of local communities, NBFM will conduct engagement programs with the community in its portfolio asset.

3.Initiatives for governance

• Thorough compliance
  NBFM’s officers are to execute operation acknowledging that compliance is one of the most important agenda for the management, and proactively promote compliance as well as have officers and employees fully understand its importance.
• Establishment of governance structure and risk management structure
  NBFM strives to improve transparency of decision making and to avoid conflict of interest as well as to manage and reduce various operational risks (including climate-related transition risks and physical risks) by establishing Management Policies, Asset Management Guidelines and other standards and regulations that should be observed in the course of operation and developing an internal structure that enhances governance such as a Compliance Committee, Investment Review Meeting and Risk Management Meeting.
  In addition, we will strive to manage and mitigate various risks (including transition risk and physical risk related to climate change issues) in the conduct of our business.

4.Information Disclosure to Related Parties such as Investors, and Utilization of Environmental Certification and Evaluation

In accordance with the Policy, NBFM actively discloses its implementation status to related parties such as investors and tenants. This disclosure is aligned with international standards such as TCFD from the perspective of transparency and comparability. Environmental certification and evaluation such as GRESB and CDP are also used to actualize initiatives based on this Policy.

Environmental and Social Initiatives of the Mitsui Fudosan Group

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

Please refer to "ESG Report 2022" for the Mitsui Fudosan Group’s social, environmental and governance initiatives.