News Release

Nomura Asset Management Becomes First in Japan to Incorporate
GHG Absorption Disclosures in ESG Scoring
Tokyo, February 18, 2022—Nomura Asset Management Co., Ltd. (NAM), the core company
within the Investment Management Division of Nomura Group, today announced that it has revised
its in-house ESG score to incorporate greenhouse gas (GHG) absorption into the factors used toassess the GHG emissions of Japanese corporations. NAM is the first asset managementcompany in Japan1 to incorporate GHG absorption when assessing ESG factors.
NAM determines a company’s ESG score through research and analysis of approximately 100
non-financial factors related to Environmental, Social, Governance, and SDG issues, thereby
assessing the company’s corporate value from an ESG perspective. The assessment factors are
subject to annual review and are used to inform investment decisions, guide new productdevelopment, and supplement client reporting.
As more companies implement GHG absorption measures and related disclosure, there is growing
demand for these initiatives to be reflected in investors’ ESG assessments. NAM has revised its
ESG assessment of Japanese companies to subtract2 a company’s disclosed GHG absorption
amounts from its GHG emissions. The amount of GHG absorbed includes: (1) “Removal” of GHG
directly from the atmosphere via means such as afforestation or CCUS3, (2) “Avoided emissions”
via a company’s own technology, products, or initiatives, and (3) “Offset” via carbon credits.
Achieving net zero GHG emissions is a necessary step to addressing climate change. Net zerorefers to a net total of zero emissions after the amount of GHG absorbed is subtracted from theamount emitted. After a company has reduced its emissions to the maximum extent possible,absorption measures are necessary to offset the remaining emissions.
Last year, NAM announced that it would refer to investee company disclosures regarding GHG
absorption in order to achieve its 2050 net zero goal and 2030 interim target4.
As a responsible institutional investor, NAM will continue to address ESG issues while working tosecure its place as the Japanese asset manager preferred by clients globally.

ends

Based on NAM’s own research.
A maximum of 20% of the emissions data provided by Institutional Shareholder Services is set as the GHG absorption amount to be
subtracted from GHG emissions.
3
CCUS: Carbon dioxide Capture, Utilization, and Storage.
4Please refer to “Nomura Asset Management Sets 2050 Net Zero Goal and 2030 Interim Target for Greenhouse Gas Emissions fromInvestments” published on October 25, 2021. https://global.nomura-am.co.jp/media/pdf/20211025_DAD76C23.pdf
NAM will not use data regarding GHG absorption for its 2050 net zero goal or 2030 interim target.
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NomuraNomura is a global financial services group with an integrated network spanning over 30 countries and regions. Byconnecting markets East & West, Nomura services the needs of individuals, institutions, corporates and governments
through its three business divisions: Retail, Wholesale (Global Markets and Investment Banking), and Investment
Management. Founded in 1925, the firm is built on a tradition of disciplined entrepreneurship, serving clients withcreative solutions and considered thought leadership. For further information about Nomura, visit www.nomura.com.