Nomura Real Estate Holdings, Inc. Sustainability 2021 (PDF for printing)

Promotion Foundations

Human Resources

The Nomura Real Estate Group aims to provide wellness management so that all its executives
and employees can carry out their work energetically and in good physical and mental health,which leads to sustainable corporate growth. In this way, it contributes to the realization of asustainable society, the continuation of business activities, and increased corporate value. The
Group also promotes the occupational safety and health maintenance of its employees andsuppliers, recognizing that those matters are important management issues. Also, recognizingthat the innovations brought about by diversity are important for the continued creation of
new value, the Group works to promote diversity and create fair and rewarding workplaces sothat human resources with a variety of perspectives and ways of thinking, regardless of their
attributes, can fully demonstrate their personalities and capabilities.

Health and safety of employees .......................................................... 120
Promotion of diversity .................................................................. 128
Creation of fair and rewarding workplaces ........................................... 134
Improvements to human capital.............................................................. 141
Supplier safety ...................................................................... 147

117

Human resourcesGroup Policy
The Nomura Real Estate Group aims to provide wellness management sothat all its executives and employees can carry out their work
energetically and in good physical and mental health, which leads tosustainable corporate growth. In this way, it contributes to the realizationof a sustainable society, the continuation of business activities, andincreased corporate value. The Group also promotes the occupationalsafety and health maintenance of its employees and suppliers,
recognizing that those matters are important management issues. Also,
recognizing that the innovations brought about by diversity and inclusion
are important for the continued creation of new value, the Group works
to promote diversity and create fair and rewarding workplaces so thathuman resources with a variety of perspectives and ways of thinking,regardless of their attributes, can fully demonstrate their personalities
and capabilities.

Management
In July 2020, for the purpose of promoting wellness, work style reforms and diversity in an integrated manner, theGroup established the Group Wellness Promotion Council, which comprises Nomura Real Estate Holdings andGroup company presidents and others and is chaired by the Nomura Real Estate Holdings president and Group
CEO. Each Group company will also establish a similar council. The Group will create a system under which
Nomura Real Estate Holdings and each company will discuss wellness measures and work together so that a
unified Group message can be delivered and each company’s efforts can be shared.
In addition, the Sustainability Committee, which comprises Nomura Real Estate Holdings and Group company
directors and others and is chaired by the Nomura Real Estate Holdings president and Group CEO, deliberates
and decides on policies and action plans related to safety and health, promotion of diversity, creation of fair andrewarding workplaces, and improvements to human capital and supplier safety and reports to the Board of
Directors. The committee also sets annual targets and monitors progress for diversity, supplier safety and othergoals.

118

Health and Safety of Employees

Promotion of diversity & inclusion

Approach and Policies

Approach and Policies

Management

Management

Targets and Results

Targets and Results

Initiatives

Initiatives

Creation of Fair andImprovements to Human Capital

Rewarding Workplaces
Approach and Policies
Approach and Policies

Management

Management

Targets and Results

Targets and Results

Initiatives

Initiatives

Supplier Safety

Approach and Policies
Management
Targets and Results
Initiatives

119Health and Safety of Employees

Approach and Policies

Group Policy (Human Resources)

To realize the Wellness Management set forth in the Group Policy, the Nomura Real Estate Group Action
Guideline provides the statement “working with enthusiasm and achieving wellness.” In addition, theNomura Real Estate Group Code of Action provides that the Group will strive to maintain and improvesound and pleasant workplace environments. Accordingly, we implement comprehensive health andsafety management and take measures to prevent excessive workloads, long working hours, andoccupational accidents.

Management

Management (Human Resources)

With regard to safety and health, in accordance with the Health Management Regulations, a healthmanagement body, such as a group of occupational health physicians, has been established, a healthcommittee is formed, regular medical checkups including complete physical examinations arethoroughly carried out, measures are taken to protect the health of employees whose overtime work
exceeds a certain number of hours, and external audits (legal examinations) are conducted once every
three years. In this manner, safety and health management measures are being strictly implemented.
No Group office has obtained the ISO 45001 certificate, which is a standard for occupational health andsafety systems.

120

Targets and Results

Targets

当The Group has set the following four targets for employee health and safety.
Target 1. Preventing Overwork

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Rate of employees

Target 2. Promoting the Taking of Paid Leave％（12 days a year） Application for Nomura Real Estate Development only
Target 3. Promoting thorough Physical and Mental Health Management・・・・・・Rate of employees
who underwent medical examinations and checkup 100％
Target 4. Preventing Work-related Accidents・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Absentee rate 0%*

to take paid vacation 60※ The above quantitative targets are set to be achieved by FY2030.
Results

Result 1. Preventing Overwork
Items
AverageGroup

statutory
overtime work

Nomura Real(per person:

Estatehours/month)

Development*1

FY2017FY2018FY2019FY2020

19.66

14.07

13.51

9.99

―

12.1

10.45

12.06

FY2017FY2018FY2019FY2020

―

47.31

61.19

56.14

59.55

54.93

62.62

60.58

Result 2. Promoting the Taking of Paid Leave
Items
Group

Rate of paid

Nomura Realleave taken(%)

Estate*1Development

Result 3. Promoting thorough Physical and Mental Health Management
Items

FY2020Rate of employees who
underwent medical

Nomura Real Estate

examinations andDevelopment*1

checkups (%)

121

100

Result 4. Preventing Work-related Accidents
Items

FY2017FY2018FY2019FY2020

1

0

0

0

―

―

0

2

LTIFR*2

―

0*1

1.29

3.43

LTIR*3

―

―

0.60

1.34

0.38

0.37

0.29

0.41

Number of work-related
accidents resulting in death of an
employee
Number of work-related
accidents resulting in death of acontractor

Absentee rate (%)(Target: 0.0%)※1 Results at Nomura Real Estate Development (excluding contractors)※2 (Number of occupational accidents resulting in lost days/Total work time) × 1,000,000※3 (Number of fatalities and lost-days injured persons/Total work time) × 1,000,000 (excluding contractors)
For more details, see the ESG data (society).

Initiatives

Measures for Health and Safety Improvements by Management

The Group provides opportunities on a regular basis where the Nomura Real Estate Holdings president
and executive vice president meet directly with employees to share workplace issues regarding the work
climate and their employment and to improve workplace environments. In fiscal 2020, 11 meetings were
held to discuss reducing working hours, raising productivity, and helping employees to achieve a goodwork-life balance. We examined proposals and opinions expressed at these meetings and improved thepersonnel system. In this manner, these meetings are promoted as measures to ensure the health andsafety of employees.

122

Work-Related Risk Management and Legal Compliance

The Group complies with work-related laws and regulations in each country and is establishing a system
for managing and improving situations. In particular, with regard to working hours, the Group strives toreduce overtime work. Each month, the Nomura Real Estate Holdings Board of Directors receives reports
on and confirms the actual situation of overtime and status of compliance with the Article 36 agreement(an agreement made pursuant to Article 36 of the Labor Standards Act regarding overtime work andwork on rest days) of each Group company. Regarding companies and cases with pending issues related
to compliance with the Article 36 agreement, we consider responses and take improvement measures.
In addition, the Nomura Real Estate Development Board of Directors receives reports each month on
working hours and the status of employees taking leave in each division and shares information on
related issues while also taking improvement measures.

Prevent Overwork

The Group is implementing a variety of programs intended to prevent overwork by employees.
Main Measures

・ Reduce work and implement outsourcing based on operational reviews
・ Make use of AI and RPA・ Promote the introduction of mobile PCs
・ Promote telecommuting programs, staggered work shift, and flextime programs
・ Promote the use of satellite offices
・ Set time limits on computer use
・ Send overtime alerts
These measures are important for preventing overwork.
In addition, employees who work more than a certain number of hours in a single month are required tocheck their physical condition using a Cumulative Fatigue Self-Diagnosis Checklist and provide feedback
to a supervisor. Other measures are also taken to ensure good health such as consulting with anindustrial physician.

Enhancement of Health Management

The Group has adopted several initiatives for detecting employee health risks at an early stage andhelping them maintain their health and safely perform their duties.

123

Further Improvement of the Medical Checkup System

人The Group requires that all employees undergo complete physical examinations and medical
checkups. We encourage those who may need a second checkup arrange for one and follow up on thestatus of their checkup. In fiscal 2020, the rate of physical examinations and medical checkups ofNomura Real Estate Development was 100%. In the coming fiscal years, we will continue striving toachieve a 100% physical examination and medical checkup rate across the Group to safeguard the healthof our employees.

Implementation of Stress Check Tests
The Group regularly monitors the mental health status of its employees through stress check tests andprovides mental health training to help reduce stress levels.
Items
Stress check
response rate (%)
Main training
programs(including elearning)

FY2019FY2020

FY2021

88.5

88.7

87.5

Wellness training

Mindfulness seminar

Mindfulness seminar

Wellness seminar

Mental health training

Mental health training

Stress coping seminar

Self-management training

Line care training forfor new employees

managerial employees

Strengthening the Harassment and Health Consultation System
The Group established a physical and mental health consultation hotline as well as a power harassment
and sexual harassment hotline that provide employees access to outside specialists for consultations inaddition to the Health Consultation Office within the Group, which is staffed by full-time physicians andnurses. The consultation service is available to employees and their family members.

Physical and mental health consultation hotline
Consultations on issues related to the workplace, family, women’s health, and LGBT issues can bearranged with external counselors by phone or email.
Power harassment and sexual harassment hotline
Consultations on harassment within the company can be made with outside counselors by phone.
Consultations can also be made anonymously.

124

Information Sharing and Training on Health and Safety

The Group holds monthly Group Personnel Division Meetings attended by persons in charge of humanresources at Group companies. At the meetings, participants share information on relevant laws andregulations including the Labor Standards Act, working conditions of each Group company, and theimportance of labor management and safety and health. In addition, we provide safety and healthtraining, such as explanations on the Labor Standards Act and other relevant laws and regulations andmethods of labor management, on many occasions including during the training of newly promoted
managerial employees.

Response to the COVID-19 Pandemic

Based on the following approach, the Group takes measures to respond to infectious diseases in order toprevent infection and the spread of infection, and it fulfills its social responsibilities by continuing andmaintaining required business activities.

・ The Group places priority on ensuring the safety and security of customers, business partners, andofficers as well as employees and their family members.

・ To fulfill our responsibilities for providing goods and services necessary for daily life, as well as our
corporate social responsibilities, the Group maintains business activities after taking action to reduce
infection risks.
The Group has implemented measures for employees to contain the spread of infection, including
staggered commuting, working from home, telecommuting, online conferences, and thoroughmeasures to prevent the spread of infection within the office, such as social distancing seating
arrangements.
(As of the end of August 2021)
For more details, refer to:

The Group’s Response to the COVID-19 Pandemic (Japanese only)1252021 Health & Productivity Management Award (Large Enterprise Category)Wellness Management, promoted by the Group has been highly
regarded, and as a result, Nomura Real Estate Holdings, Nomura Real
Estate Development, Nomura Real Estate Asset Management, Nomura
Real Estate Urban Net (currently, Nomura Real Estate Solutions Co., Ltd.),
and Nomura Real Estate Life #38; Sports were recognized as 2021
Certified Health #38; Productivity Management Outstanding
Organizations (large enterprise category), which are selected jointly by
the Ministry of Economy, Trade and Industry of Japan and Nippon Kenko
Kaigi. In addition, Nomura Real Estate Solutions, Nomura Real Estate
Holdings, Nomura Real Estate Development, and Nomura Real Estate
Capital Management were also recognized among the White 500
enterprises (large enterprise category) in the 2021 Certified Health #38;
Productivity Management Outstanding Organization Recognition
Program. This program recognizes enterprises that have implemented
outstanding initiatives to promote health and productivity management
based on efforts to address local health issues and health improvement
initiatives promoted by Nippon Kenko Kaigi.

Responses to Incidents

In 2017, the Nomura Real Estate Development head office and four regional offices (Kansai, Nagoya,
Sendai, and Fukuoka branches) received a recommendation for corrective action and guidance from theLabor Standards Inspection Offices with jurisdiction regarding the discretionary work system forplanning work that applied to some employees. We take this matter extremely seriously and are
conducting comprehensive labor-management while taking measures to improve workplaceenvironments so that this type of incident does not occur again. Nomura Real Estate Development is
implementing the following measures for appropriate labor management and improving workplaceenvironments.

1261. Complying thoroughly with laws and regulations
2. Top management and directors are sharing issues with employees and striving to establish
relationships of trust and improve workplace environments
3. Implementing the following measures to ensure health:(1) Raising awareness of health issues of officers and employees(2) Officers and supervisors are thoroughly monitoring the health condition of employees(3) Further improvements are being made to systems for health consultation and medical checkups
Each Group company confirms their situation and continues to promote efforts to improve it in fiscal
2019 and thereafter.
For further details, refer to the following.

Our actions regarding appropriate employment management and improvement of working
environment

127

Promotion of diversity & inclusion

Approach and Policies

Group Policy (Human Resources)

To facilitate the creation of innovation generated by diversity, as recognized in the Group Policy, weestablished the Nomura Real Estate Group Code of Action* as a means of promoting diversity
management that allows all employees to fully demonstrate their individuality and unique capabilities.
In addition, the Nomura Real Estate Holdings Basic Corporate Governance Policy provides that the Boardof Directors shall be made up of diverse directors with varied knowledge, experience, and skills.

※ The Nomura Real Estate Group Code of Conduct provides in Article 20 that the Group shall respect the fundamental humanrights of officers and employees and shall not engage in discrimination or harassment on the basis of race, ethnicity, age,religion, creed, sex, nationality, social status, disability, pregnancy, childbirth, childcare leave, family care leave, sexual
preference, gender identity, etc.

Management

Management (Human Resources)

Targets and Results

Targets

The Group has set the following three targets regarding diversity and inclusion.

・・・・・・・・・Manager and junior manager ratio 20％
Target 2. Promote Diverse Work Styles・・・・・・・・・・・・・・・・・・Childcare leave ratio 100%
Including
Target 1. Promote the Empowerment of Women*the Group’s own holiday system

・・・・・・Employment of persons with disabilities

Target 3. Hire and Utilize Diverse Human Resources
ratio 2.4%

※ The above quantitative targets are set to be achieved by FY2030.
128

Results

Result 1. Promote the Empowerment of Women
Items

FY2016FY2017FY2018FY2019FY2020

28.60

29.75

30.76

30.61

31.83

ー

ー

10.05

10.33

11.19

5.38

5.45

5.58

6.14

6.78

14.8

15.08

16.07

15.87

18.27

32.79

34.38

36.82

44.77

41.97

Female employee ratio(%)
Manager and junior（ ）Manager ratio（%）

manager ratio*1 %Junior manager ratio（%）

Ratio of female newgraduates hired*2 (%)※1 Manager and junior manager ratio : Female manager and junior manager / All manager and junior manager.
※2 Figures indicate the number of employees hired during each fiscal year (employees who have joined the company by April ofthe following calendar year).

Result 2. Promote Diverse Work Styles
Items
Childcare leave
takers (men)

FY2016FY2017FY2018FY2019FY2020

119 2

（）

148 3

（）

178 6

（）

253 10（ ）289 28

―

92.59

91.46

92.08

96.23 100

2

4

4

7

6

（ ）

Rate ofreinstatement
after childcare（ ）leave (men) (%)
Nursing careleave takers

Result 3. Hire and Utilize Diverse Human Resources
Items

FY2016FY2017FY2018FY2019FY2020

7

14

16

114

140

1.97

1.90

1.96

2.02

2.05

Number of
foreign*1

employees
Rate ofemployment of
persons withdisabilities (%)*2※1 The number of foreign employees does not include the number of foreign technical intern trainees employed.
※2 The rates of employment of persons with disabilities for fiscal 2017 and thereafter are as of June 1 of the following fiscal year.
Other rates are as of April 1 of the following fiscal year. The rate covers Group companies subject to the Employment Rate
System for Persons with Disabilities.

For more details, see the ESG data (Society).
129

Initiatives

Initiatives for Empowering Women

The Group is working to empower women in the workplace based on the belief that leveraging diverse
perspectives in business is a key to creating new corporate value.

Female Managers
We are striving to raise the ratio of female managers to increase opportunities for female employees sothat they play more active roles and to establish an organization that incorporates diverse perspectives.
As of March 31, 2020, the ratio of female managers was 6.78%.

Holding Seminars for Female Employees
The Group conducts a seminar for newly promoted
managerial employees as key personnel to develop a work environment that takes into consideration
health issues specific to women and promotes appropriate management. In fiscal 2020, the seminar washeld online with the participation of 135 people. In addition, the Group holds a health seminar for female
employees to help them gain knowledge about their health so they can appropriately deal with healthissues that may arise. In fiscal 2020, the seminar was not held due to the COVID-19 pandemic, but
approximately 780 people participated in fiscal 2021.
In addition, Nomura Real Estate Development has been conducting Women’s Life & Career Training(work-life balance training) for female career-track employees (professional level 1) under the age of 30
since fiscal 2020, with a total of 15 people participating. Every year, Nomura Real Estate Development
and Nomura Real Estate Solutions each send one female specialist employee to join the Wagaku(Japanese studies) introductory course, organized by the Wano Kokoro Forum, to broaden theirknowledge and heighten their cultural literacy so they can work with new perspectives.

130

Seminar for Female Employees

Seminar pamphlet

Support for Childcare and Nursing Care

The Group has instituted personnel programs that make it possible for employees to continue working
even after certain life events such as childbirth or the need to provide childcare or family care. We
provide information on and raise awareness of these programs on the Group intranet, etc., and areworking to create workplace environments that facilitate the use of these programs.
We have recently been designing these programs to allow female as well as male employees to freely
take childcare or other leaves and smoothly return to work afterward. In fiscal 2020, the male to female
ratio of the 102 employees who returned to work after childcare leave was 100% for males and 95.06%
for females.

Main Programs that Support Childcare and Nursing Care

Childcare leave

Regardless of gender, employees can take leave for childcare until their childturns three years old (also available to those with less than one year’s service).

Reduced working

Regardless of gender, employees can work a reduced number of hours until

hours for childcare

their child is in the third grade of elementary school.

Nursing care leave

Employees can take a leave in installments of up to a total of three years to care
for a family member requiring nursing care.

Reduced working

Employees can work reduced hours for up to three years to care for a family

hours for nursing caremember who requires nursing care.

Holiday childcare

Assistance for covering childcare costs on weekends and holidays is available forsupport*1

employees who need to work on weekends and holidays.

131Paternity leave
programs for male
employees*2
Maternity bonus*2

Male employees can use their annual paid leave to take a five-day leave of up to
six months after the birth of their child.

A maternity bonus is paid from the Welfare Mutual Aid Association.

Underlined text: Statutory programs※1 Applicable to Nomura Real Estate Development and some other Group companies※2 Applicable to Nomura Real Estate Development only

Hiring Seniors and Supporting Work Styles

To provide opportunities for senior employees to continue applying their wealth of experience and skills
as a driving force of business growth, the Group provides employment extensions based on thereemployment program for those who have reached retirement age and wish to continue working. It
ensures employment opportunities up to the age of 65 at the employee’s request. Moreover, some Group
companies have established employment programs in which employees can work even after the age of
65 at the employees’ request, supporting work styles that meet the needs of seniors.

Promoting the Hiring of Persons with Disabilities

As of June 1, 2021, the rate of employment of persons withdisabilities was 2.05%. Since fiscal 2021, the Group has been
cooperating with a company that supports the employment of
persons with disabilities to provide opportunities to work at anindoor farm facility. In this way, we strive to be more proactive
when hiring these individuals. For fiscal 2021, we have set ourtarget rate of employment of persons with disabilities at 2.4%,
which is higher than the legally mandated rate of 2.3%, andare thereby strengthening our readiness to hire them.

132

Working at An Indoor Farm Facility, IBUKI

Promoting the Understanding of LGBTQ Issues

As part of diversity management, the Group supports initiatives for better understanding LGBT people
and fosters a corporate culture that recognizes diverse values.
In December 2020, we held a panel discussion entitled “LGBT in the Workplace” for all Group executives
and general managers of Nomura Real Estate Development to develop an awareness from theperspective of psychological safety in the workplace.
We will improve our workplace environment so that LGBT people can bring their authentic selves andwork with peace of mind.

Hiring Diverse Human Resources

When hiring, the Group ensures that no disadvantages are directed at any one’s personal background or
beliefs, including race, ethnicity, nationality, age, gender, sexual orientation, gender identity, disability,
religion, creed, or social status. We also accommodate employees’ religious practices and conduct withina certain framework. In addition, we hire and support human resources who can effectively engage at a
global level regardless of nationality, race, religion, or other personal characteristics so that humanresources with diverse values can demonstrate their individual abilities to the fullest and spark newvalue. We are actively hiring local human resources especially in China, Hong Kong, Thailand, Singapore,
and Vietnam, where Group companies are located, to strengthen our overseas strategies so that we canquickly and accurately identify and reflect the different needs of each country and region in our business
operations.

Representative Major Efforts to Secure Diverse Human Resources

Hiring global humanresources

・ Hiring local human resources at overseas subsidiaries
・ Participating in recruitment events for international students
・ Holding job fairs and screenings for international students from overseas
universities

Hiring female
employees

Hiring persons withdisabilities

・ Holding events for female students by female employees of the Group on thetheme of work styles and career development

・ Collaboration with a company that supports employment of persons withdisabilities

133

Creation of fair and rewarding workplaces

Approach and Policies

Group Policy (Human Resources)

To create fair and rewarding workplace environments as outlined in the Group Policy, we pursue fair
employee evaluations, remuneration including a guarantee of living wages, and equitable social
benefits, and respect fundamental rights, such as the freedom of association and the right to collective
bargaining. Furthermore, we signed the UN Global Compact in May 2019 to enhance the protection of
employees' rights and make work more fulfilling for employees. We will comply with the four labor
principles of the UN Global Compact and take additional measures.

Management

Management (Human Resources)

Targets and Results

Targets

To create fair workplaces with meaningful work, the Group strives to raise employee satisfaction.

134

Results

Improvement in Employee Satisfaction
Nomura Real Estate Development: Results of Employee Satisfaction Survey
Items
Employee satisfactionlevel (five-point scale)

FY2017FY2018FY2019FY2020

3.81

4.03*

4.05

3.96

Number of
responses/number of

1,930／2,0282,013／2,066／2,113／2,259

2,067

2,209

eligible employees
Response rate (%)

95.1

97.4

97.8

97.8

※ Beginning in fiscal 2018, “Satisfaction with the workplace” is used as the reference index.
Turnover Rates
Items

FY2017FY2018FY2019FY2020Turnover rates (total)* (%)

3.85

3.99

5.13

4.78

Male (%)

3.57

2.49

4.69

4.84

Female (%)

4.46

6.57

5.99

4.79

3.40

3.54

4.43

3.88

Turnover rates for personalreasons (%)※ Turnover rates include the number of employees retired at the mandatory retirement age.
Average Tenure of Employees*
Items

FY2019Average tenure of employees―（12.40）(total) (years)―（14.71）―（8.42）

Male (years)
Female (years)※ Figures in parentheses indicate the performance of Nomura Real Estate Development.
For more details, see the ESG data (Society).

。

135

FY2020（10.42 11.88（））
7.90（8.56）

11.53 13.90

Initiatives

Fair Evaluations and Remuneration

To ensure equity in working conditions, the Group does not differentiate remuneration on the basis ofgender. Moreover, it operates fair employee evaluation and remuneration programs by creating
mechanisms whereby the opinions of employees can be heard by human resource divisions andsupervisors and for communicating with employees. As for wages, the Group complies with laws andregulations that set minimum wages in each country and pays reasonable salaries that allow employees
to maintain a certain standard of living in accordance with the consumer price index of their country or
region. In fiscal 2020, the average annual salary of Nomura Real Estate Holdings was 10.12 million yen.

Target Management System
The Group introduced a target management system so that employees can take the initiative in theirjobs and work with managers and supervisors toward achieving their targets. Every six months, allemployees set their own targets with advice from supervisors, and bonuses are paid based on the
degree of achievement of those targets. In addition, reviews of the abilities and conducts that serve as
the basis for promotions and raises are also conducted regularly to maintain fairness and strengthen
employee motivation.

Evaluation of Superiors
Once a year, Nomura Real Estate Development employees complete a questionnaire regarding the skills,
performance, personality, etc., of their supervisors and submit the questionnaires to the Human
Resources Division.

Creating Fair Work Environments

Labor-Management Dialogues
The Group respects employees’ freedom of association and the right to collective bargaining, and even at
Group companies that do not have labor unions, labor representatives and officers responsible forhuman resource divisions hold periodic meetings and work to improve the workplace environment.
As of April 1, 2021, Nomura Real Estate Development, Nomura Real Estate Partners, UHM, and someoverseas subsidiaries have labor unions, and the labor union membership rate among Group employees
is 49.58%.
136

Understanding and Disseminating Policies on Labor Standards
To ensure that all employees can gain an accurate understanding of company policies regarding labor
standards, the Group provides documents or explanations regarding employment rules, personnel
evaluation systems, and social benefits in Japanese, or in English, if necessary, to employees, including
those of overseas Group companies, during their initial training.

Promoting the Hiring of Local Human Resources and Ensuring They Play Active Roles

Considering business characteristics, the Group places emphasis on connections with local communities
across the country and carries out recruitment activities in those places. Some Group companies havealso established programs where the workplace can be selected from across the country or locally sothat employees can choose diverse work styles based on their work-life balance.

Provision of Social Benefits

The Group has established and is working to enhance employee social benefit programs, such as
childcare and family care support and an employee shareholding program, so that employees can enjoy
their lives as members of society with peace of mind at every stage of their lives so they can develop
fulfilling life plans.

Main Social Benefits Provided by Nomura Real Estate Development
Social Benefits
Maternity leave

Overview
Six weeks prior to childbirth (14 weeks in the case of a multiple pregnancy) andeight weeks after childbirth (with pay*)

Childcare leave

Until the child reaches the age of three years

Family care leave to

Preschool children: five days/year for one child and ten days/year for two orcare for children

more children

Family care leave

Up to one year in total

Volunteer leave

Five days for volunteer activities related to a severe natural disaster

Mental health support

Health Consultation Office, Physical and Mental Health Consultation Office,appointment of an industrial physician of psychosomatic medicine

Measures to ensure

Appointment of nurses and industrial physicians, implementation of personnel

good healthinterviews and medical examinations
137

Rehiring elderly
workers

Up to age 65 (one-year extensions)Payment of retirement benefits pursuant to a defined benefit pension plan

Retirement benefit(Nomura Real Estate Development’s contract-type defined benefit pension plan),

program*payment of contributions by Nomura Real Estate Development, at no cost to
employees

Health insurance

High medical expenses, lump-sum childbirth benefit, injury and disease benefit,

association

comprehensive medical examinations, etc.

Allowances

Family allowance, reassignment allowance, reassignment without family
allowance, housing subsidies, etc.

※ Only career-track employees are eligible.

Implementation of Employee Satisfaction Survey

Nomura Real Estate Development conducts an employee satisfaction survey every year. The survey
collects suggestions to management and employee opinions on work and the workplace. Satisfaction ismeasured on a five-point scale with regard to (1) sense of fulfillment concerning work, (2) satisfaction
with the workplace, (3) satisfaction with superiors, (4) loyalty to the company, (5) development in themarket, and (6) sense of being stuck in the same routine at work, as well as regarding the understanding
and practice of work style reform and wellness management. In fiscal 2020, the response rate was 97.8%(2,209 out of 2,259 eligible employees responded). Issues regarding employee satisfaction and work
style reforms, which were obtained from the survey, are reported to officers and higher-level
management at each headquarters conference and provided individually to a supervisor so that theresults are actively used.

Fostering a Corporate Culture that Encourages Challenges

Nomura Real Estate Group Awards Presented
The Group has presented the Nomura Real Estate Group Awards every year since 2016 to foster a
corporate culture in which employees are willing to tackle the challenges of value creation throughinnovation, strengthen Group synergy, and raise individual and organizational motivation. Under thisprogram, exceptional businesses, products and services of the year are recognized. In fiscal 2010, award
winners included a promotional YouTube video created in the Residential Development Business Unit asa means for raising brand recognition among young people.

138

Evaluation Criteria

・ Reform and innovation
・ Improvement in customer satisfaction
・ Group synergy
・ Sustainability
・ Continuity and perseverance
Grand Prize Winning Team

Business Idea Proposal Program
Beginning in 2017, the Group launched the Business Idea Proposal Program (commonly called“NEXPLORER” within the Group), which allows all employees to propose new businesses, products, orservices that go beyond the boundaries of their ordinary work at any time. There has been a total of 60
entries (including nine in 2020), with six projects under consideration and five having already beencommercialized or realized. TOMORE and PRE KITCHEN, which are currently in service, are primary
examples that have been realized through this program.

A shared house and office business that

A side-dish service offered at a fixed price andoffers a new real and virtual space where

using the common use areas ofpeople work, live and enjoy time with theircondominium buildings to meet thefriends in an age where more and more

residents’ needs. The concept of the service ispeople are open to different ways of working.

to enrich the minds of child-rearing families

Click here for details on

through daily meals.

TOMORE

Click here for details on(Japanese only)(Japanese only)139

PRE KITCHEN

Responses to Legal and Other Violations

In 2017, the Nomura Real Estate Development head office and four regional offices (Kansai, Nagoya,
Sendai, and Fukuoka branches) received a recommendation for corrective action and guidance from theLabor Standards Inspection Offices with jurisdiction regarding the discretionary work system forplanning work that applied to some employees. We take this matter extremely seriously and are
conducting comprehensive labor-management while taking measures to improve workplaceenvironments so that this type of incident does not occur again. We will continuously promote measures
to improve workplace environments in fiscal 2018 and thereafter.

For further details, refer to the following.

Our actions regarding appropriate employment management and improvement of working
environment
Health and Safety of Employees

140

Improvements to Human Capital

Approach and Policies

Group Policy (Human Resources)

To promote the Wellness Management set forth in the Group Policy, the Group seeks to carry out the“What We Value” Nomura Real Estate Group Action Guideline and works to improve human capital. We
offer human development programs to enhance the qualifications and capabilities of each Group
employee so every employee can perform his or her work as a professional with a high degree of
specialization.
Nomura Real Estate Development Basic Human Development Policies

・ Proactive mid- to long-term human development that provides a focus for careers・ Human development that responds to change over time, fosters innovation, and supports future
management
Qualities and Skills Nomura Real Estate Development Looks For

・ High level of specialization and execution ・ Diverse viewpoints and values ・ Broad perspectives
・ Business formation skills ・ Organizational management skills

Management

Management (Human Resources)

Targets and Results

Targets

The Group seeks to reinforce human development so that it can further improve human resources.

141

Results
Results for Training Participation*１
Items

FY2020Training hours per employee*2 (hours)

9.87

Total training hours*2 (hours)

20,063

Investment in training per employee (yen)70,462

Total training expense (thousand yen)

143,180Return on investment in employee skill

1.56

development*3 (%)
Return on investment of human resources*4 (10010.42

million yen)

※1 Performance for Nomura Real Estate Holdings and Nomura Real Estate Development※2 Covers only mandatory training and does not include open and selective training or e-learning courses.
※3 Calculated using the following formula: Return on investment in employee skill development = Turnover rates/Total training
expense (100 million yen).

※4 Return on investment of human resources = (Operating revenue − (Selling and general administrative expenses − Personnel
expenses))/Personnel expenses.

Group-wide Training Performance
Number of

Number oftraining

implementing

hours

companies

Newly-hired employees

28

8

297

New employees

14

8

297

14

7

234

14

7

221

Managers*

14

8

135

Senior managers

14

8

28

General managers

70

5

10

Training title

1

2

New employee
introductory training
New employee followup training

3

Second-year training

4

Third-year training

5

Training for newly
promoted managers

Subject ranks

Employees in theirsecond year
Employees in their third
year

Number ofparticipants

Training for newly
6

promoted senior
managers
Training for newly

7

promoted generalmanagers※ After 13 years of service (generally)142

Reference: Performance of Nomura Real Estate Development’s Training Other Than Groupwide Training
Number ofTraining title

Subject employees

training
hours

（1）

Fourth-year training

Employees in their fourth
year

（2）

Fourth-year career design

Employees in their fourth

training

year

（3）

Fourth-year career（4）

management training

Professional level 1 training

year holding section chief

Professional level 1
positions*1

training

positions

Leader training

Leaders*2（7）

Second-year leader career

Leaders in their second

design training

year

（8）

Second-year leader career
management training

55

11

55

7

55

7

48

4

15

7

47

12

53

7

53

positions

Professional level 1（6）

7

Employees in their fourth

Women’s career and life（5）

Number ofparticipants

Leaders in their second
year holding section chief
positions※1 After 7 years of service (generally)※2 After 9 years of service (generally)
For more details, see the ESG data (Society).

143

Initiatives

Group Personnel Division Meetings Held

The Group holds monthly Group Personnel Division Meetings attended by officers responsible forhuman resources and managers of human resource divisions of Group companies. Participants
exchange information and opinions regarding the personnel system, human development, and eachcompany’s recruitment situation and wellness measures, and they share best practices in order toimplement Group-wide measures for improvements to human capital.

Training Framework

In terms of human resource development, the Group has implemented personnel systems anddevelopment programs that promote growth. For some rank-specific training programs, according toqualification grade and stage, training is carried out on a Group-wide basis.
Nomura Real Estate Development has established N-COLLEGE, a self-skills development system for
employees, which provides programs to study for real estate-related certifications for professionals,
such as real estate notaries, real estate appraisers, and first-class architects, and programs covering
general business skills such as those related to finance and language study. In addition, the Residential
Development Division provides specialized training and knowledge sharing opportunities regarding
product strategies and quality control for technical employees, including Building Knowledge Courses,
Landscape Workshops, and the PROUD Quality Conference, so that each employee can perform higher
level duties and acquire a broad range of knowledge and experience.

144

■Training Programs for Career-track Employees■Training Programs (Career-track Personnel in Administrative Jobs)

145

■Training Programs (Specialist Personnel/Particular Specialist Personnel)■Training Programs (Operations Personnel)

Incentive from a Long-Term Perspective

The Nomura Real Estate Group introduced ESOP Trust for Granting Stock for employees of Nomura Real
Estate Holdings and Group companies from fiscal 2019. The aim is to foster a sense of belonging to, andinvolvement in the management of the Group among the Group employees so as to enhance their
enthusiasm and morale to improve performance and increase share price over the long term. The Groupencourages the purchase of treasury stock through this program.

News Release146

Supplier Safety

Approach and Policies

Group Policy (Human Resources)

Under the policies set forth in the Group Policy, the Nomura Real Estate Group performs important
processes from materials procurement to civil engineering, building construction, repair construction,and so on with the cooperation of various suppliers including design and construction companies,
contractors, and their service providers. Accordingly, we are aware that ensuring the safety of suppliers
at construction sites is an important issue and we take measures to prevent accidents and disasters byraising awareness regarding health and safety, performing checks, and implementing preventive
measures. In addition, the Nomura Real Estate Group Procurement Guidelines (the “Procurement
Guidelines”) provide that

suppliers shall “carefully manage health and safety and prevent industrial

accidents, endeavor to maintain physical and mental health, and create well-ordered workplaces,” andwe require suppliers to implement comprehensive health and safety management. Furthermore, thehealth and safety standards set forth in the Procurement Guidelines are equivalent to those applied to
employees of the Group.

Nomura Real Estate Group Procurement Guidelines

Management

Management (Human Resources)

Targets and Results

Targets

The Group works to ensure the safety of suppliers in accordance with the CSR Procurement Guidelines
and Construction Safety and Security Guidelines.
147

Results

Number of Supplier Safety Conferences Held
Items

FY2017FY2018FY2019FY2020

188

198

198

12*

Number of companies attending
the Supplier Council Meeting on
Health & Safety and the SupplierConference on Safety※ In fiscal 2020, some of the meetings were cancelled or significantly downsized and held online to help contain the spread of the
COVID-19 pandemic.

Violations by Suppliers
In fiscal 2020, with regard to ensuring supplier safety, which is monitored by the Sustainability
Committee, there were no significant incidents of violations of laws and regulations.

For more details, see the ESG data (Society).

Initiatives

Ensuring Safety of Construction Sites

The Group established the Construction Safety and Security Guidelines to prevent accidents anddisasters at demolition and new construction sites in the residential development and commercial realestate businesses. Moreover, the Group obtains a construction plan and a Safety and Security Check
Sheet based on the guidelines from construction contractors as its suppliers and confirms that the safety
and security of project workers has been adequately safeguarded. The Group is also working to ensure
the safety not just of suppliers but also of neighboring residents and local community members byholding construction briefings for construction companies prior to construction, raising awareness ofhealth and safety issues, and performing inspections in major building construction processes.
Outline of the Construction Safety and Security Guidelines

・ Prompt reporting duties
・ Pre-construction confirmation
・ Temporary work plan checks
・ Accident prevention measures for demolition work・ Accident prevention measures for heavy machinery work
・ Precautions by type of construction work (building frames, finishing work and installation work)
・ Safety and Security Check Sheet148Supplier Council Meetings on Health & Safety Held

With the aim of implementing comprehensive safety management systems and raising awarenessregarding health and safety, the Group regularly holds Supplier Council Meetings on Health & Safetywith business partner companies.

Nomura Real Estate Partners holds the Supplier Council Meetings on Health & Safety
Nomura Real Estate Partners annually holds the East Japan Supplier Council Meetings on Health & Safety
and the West Japan Supplier Council Meetings on Health & Safety. In fiscal 2020, Council Meetings were
held online by the executive companies due to the COVID-19 pandemic, with seven and five companies inattendance, respectively, to report on the results of joint safety patrols and share safety and quality
initiatives (note: 183 companies attended these meetings in fiscal 2019).

Nomura Real Estate Heating and Cooling Supply Hosts Supplier Conferences on Safety
Nomura Real Estate Heating and Cooling Supply Co., Ltd. holds an annual Supplier Conference on Safety
where outstanding business partners are presented awards and the Health and Safety Management
Plan for the current year is explained. In fiscal 2020, the conference was not held, as a countermeasureagainst COVID-19 (note: 15 companies attended the conference in fiscal 2019).

149