Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

CSR Report

2018

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

Table of contents
CSR Promotion Foundation

Message from the CEO ............................................................ 3
Message from the CSR Committee Chairman ...... 9

Human Capital............................................................................90
Health and Safety of Employees .....................................................91

The Nomura Real Estate Group's Stance on CSR

Promotion of Diversity......................................................................97

CSR Management..............................................................................13

Creating Fair Work Environments with Meaningful Work .......102

Business and CSR ...............................................................................19

Improving Human Capital ............................................................108
Ensuring Supplier Safety ...............................................................112

SpecialFeatureNomura Real Estate Groupʼs.............27
Contribution to SDGs

Management Structure......................................................115
Compliance .....................................................................................116
Risk Management...........................................................................121

Four Key Themes for CSR

Human Rights .................................................................................124

Safety and Security ..................................................................32

Improving Supplier Management ...............................................128

Raise Safety and Security Quality in Design and Construction ........33
Raise Safety and Security Quality in Operations and Management ......37

Contributions to Local Communities and Society....132

Implement Measures to Increase Lifespan and Improve Durability ......41
Ensure Safety and Security During Disasters.................................44

Environment ................................................................................48

Editorial Policy ..........................................................................136

Enhancing Environmental Management ......................................49

Basic Data ......................................................................................138

Responses to climate change..........................................................54

Index for ESG Investors ......................................................141

Efficient Use of Water Resources.....................................................61
Consideration for Biodiversity .........................................................63

GRI Content Index ..................................................................144

Appropriate Resource Use and Pollution Prevention.......................68

Third-Party Comments .......................................................160

Community...................................................................................72
Consideration for Communities and Support for Revitalization............73

Health and Well-being ..........................................................79
Responding to an Aging and Diversifying Population and Supporting Health.......80
Improving Customer Satisfaction and Comfort ...........................85

E xter nal eval uat i on

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

CSR

Message from the CEO
We provide richness in everyday life, work, anrelationships to help solve social issues incountries and cities. That is the duty of the reestate industry.

The Nomura Real Estate Group Mission Creating New Value, Real Value to provide
richness in everyday life, work, and relationships
Our Group Vision

New Value, Real Value
Integrating all that is precious to people and communities, we build cities dynamic stages that connect
today with tomorrow s possibilities and embrace every moment of life s pursuits. We create new value,social value, and, above all, real value.

With my background in securities and finance, I inevitably focus on the profitability that comes from realestate. It is obvious that profitability is an essential part of increasing corporate value, but I believe thatthe most important part is the history and ideas that have been connected to a piece of land or a building.
I think that the real estate industry s mission is to contribute to the future by creating new value in linewith the times and making use of what we have generated so far.

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Resolving social issues from country to country

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

The real estate industry is one that affects and is affected by many factors, either directly or indirectly.
These factors include a country s or city s economy, demographics, business performance, society, andenvironment. With continuing globalization, these influences are growing in a situation where information
spreads quickly. That is why I firmly believe that the real estate industry should be at the forefront when it
comes to tackling social issues for countries and cities as well as for the people s everyday life, work, andrelationship.
I feel that international society requires actions to promote stronger responsibility for corporate businessactivities such as the Sustainable Development Goals (SDGs), which were established by the United
Nations in 2015. In turn, providing richness in everyday life, work, and relationships will help solve social
issues in countries and cities. I believe that to be the duty of the real estate industry.

It is crucial to grow through the expansion of business opportunities in both the maturedomestic markets and the growing overseas markets.
The domestic market, which is the main market of the Group, is already a mature market, and concerns
are rising that market scale will shrink over the long term amid the declining birth rate and aging
population. At the same time, specifically because Japan is a mature market, the requirements are of ahigh level and the social issues are even more complex. In this sort of market, it is important to focus on
corporate growth by working at the forefront of tackling social issues, expanding business opportunities,
and continuing to refine our strengths and expertise.
In Japan, I am focused on changes in lifestyle. The population ofJapan has declined for the seventh consecutive year from 2010,
while the proportion of people aged 65 and over account for
27.7%*1 of the total population, marking a record high and showing
a rapid shift to a super-aged society. Combined with such factors as
an expected decline in the working age population, thisdemographic shift is receiving global attention as an issue fordeveloped countries. In the future, cutting-edge technologies, suchas robots and AI, as well as the employment structure changes, will
be necessary to maintain economic activity. Both factors will bear astrong influence on lifestyle.
Against that backdrop, we should look at the ratio of working
couples in Japan. The ratio of dual-income households was 32.8%
of the population in 2000, increasing to 40.6% in 2017*2. Further,looking at trends in female participation in the workforce, the M
curve has been improved considerably, but there is still much room
for improvement if we look at other countries around the world. In
4Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Japan, a country where the labor force is shrinking, the success of
women in the workplace is directly connected to national strength. I
believe that both the country and industry are entering an era
where working couples will make up the greater part of theworkforce by creating a women-friendly working environment.
Another factor to look at is the number of senior workers. While themega trend of population decline is receiving all the attention, in
terms of the next 10 to 20 years we should be more focused on the
rapid increase in the number of senior citizens. Thanks todevelopments in medicine, life expectancy is rising. That, coupledwith higher pension eligibility ages, has resulted in a greater
motivation among senior citizens to work. Japanese companies are
generally responding by extending or abolishing retirement ages inorder to secure this labor force.
Furthermore, as the number of dual-income households increases,
so does the importance of shorter commuting and greater
convenience because of the need to balance work and life in alimited timeframe. To accommodate the growing elderly
population, the demand for urban-type compact towns isincreasing because shopping, hospitalization, entertainment, andother services can be reached within walking distance.
Changes in lifestyle have led to transformation in the way people
live and work, not only in metropolitan areas but also in regionalcore cities. I fully believe that our abundance of upcoming
redevelopment and rebuilding projects and our urban-typecompact towns, the result of efforts made over many years, are a
key solution to these social issues.
*1. Ministry of Internal Affairs and Communications, Current Population Estimates asof October 1, 2017
*2. Ministry of Internal Affairs and Communications, Labor Force Survey 2018

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

The rebuilding of buildings constructed under old earthquake resistance standards is a key
growth market that helps resolve social issues.
We are not just tackling social issues related to lifestyle changes
issues related to offices and logistics are also a priority. An exampleof these social issues is earthquake resistant buildings under oldstandards. Much of the urban infrastructure in the Tokyo
metropolitan area was developed to meet the needs that arosefrom the Tokyo Olympic construction boom in 1964. Even now,
more than 50 years later, the 23 wards of Tokyo have small andmedium-sized old earthquake resistant buildings spreading over a
total area of about 5.12 million m² (1.55 million tsubo). As a result of
the 2011 Great East Japan Earthquake, the awareness of issues
related to safety and security has increased, but the progress ofredevelopment and rebuilding remains slow. On the other hand,looking at business opportunities, we can assume with confidence
that the demolition of old buildings will accelerate as small andmedium-sized building owners grow older, subsequently leading tobusiness succession and the inheritance of these buildings. Smalland medium-sized companies, which employ 70%*3 of Japanesepeople, are performing steadily and the demand for humanresources is strong. As a result, demand is growing for our PMO
buildings, which provide safety and security. Amid these conditions,
there is a great business opportunity and an opportunity to solvethese social issues.
*3. Ministry of Economy, Trade and Industry, 2018 White Paper on Small and Medium
Enterprises in Japan

In growing overseas markets, we must identify our strengths.
When we expand our perspective to the world, the United States, Europe, and other areas have matured
real estate markets like Japan. In addition, there are also areas like Southeast Asia that are experiencing
growth in their real estate markets right now. With regard to the Group s overseas expansion, we areworking carefully to determine what people in these areas want and what we can provide for them. I feelthat we are ready to accelerate further growth of our overseas business.
I believe there are three important factors in our overseas business potential; city power, local developers,
and our strengths.
In terms of city power, we will focus on per capita GDP, especially in the Asian region. Since economic
growth potential has a direct tie to business opportunities, city power becomes a major prerequisite indoing overseas real estate business.
As for local developers, we will make sure to confirm in advance whether we respect each other and how
6Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)we spread responsibilities to future benefit of both of us in order to build win-win relationships. Because
the real estate business is primarily a local business, we would consider not only volume of future realestate pipeline but also the corporate culture of potential partners.
Finally, regarding our strengths, we can develop properties as well as provide our after-service expertise.
Our ability to perform this role will be a great advantage, particularly in countries and regions where there
is no practice for planning regular and long-term repairs on buildings in advance.
Changing viewpoints to Europe and other countries where real estate markets are mature, I believe that toenter the investment management business primarily through M&A gives more advantages than directly
taking on real estate development in order to gather information for future business and acquire knowhow. This approach can add to the potential for business development that comes afterward. We willcontinue to examine the characteristics of various countries and cities, assess the risks, and set our
initiatives accordingly.

We will accelerate our ESG initiatives, an indispensable key to Company growth.
More and more investors consider Environmental, Social and Governance (ESG) implications when they
make investments, as represented by Japan s Government Pension Investment Fund (GPIF), signing on to
the United Nations Principles for Responsible Investment (PRI) in 2015. I believe ESG initiatives are an
indispensable key to our sustainable growth with our wide range of stakeholders.
With regard to governance, our Board of Directors received various third-party opinions and suggestions in
the process of evaluating the effectiveness of our Board.
In addition, many institutional investors have appreciated our adopting of a monitoring-type board. Inorder to newly address the SDGs in terms of the environment and society, we have formulated policies
and goals in line with our four existing key CSR themes: Safety / Security, Environment, Community, andHealth and Well-being. This formulation is based on the recognition that global sustainability will have amajor influence on our business. By adopting these international initiatives we will further contribute to
the resolution of social issues and the enhancement of future economic value through proper businessactivities.
In regard to the social aspect of human resource management, we had previously made efforts to reform
work style and promote diversity. However, in December 2017, we received corrective recommendations
and guidance from the Labor Standards Inspection Office regarding the Discretionary Working System forManagement-Related Work for Nomura Real Estate Development. Furthermore, we consider the death ofan employee, recognized as a work-related accident by authorities, to be a serious matter. I strongly
declare that employees are the Group s most important resource and that such a tragic event should
never occur again. We aim for health and wellbeing management, so that all personnel work creatively
with a healthy body and mind, which will lead to sustainable corporate growth.

7Sustainable growth through resolving social issues

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

Our Group companies collaborate with each other, sincerely caring about people s everyday life, work,and relationships and also providing various real estate-related services in our drive to achieve our Group
Vision. I believe the Group enjoys a high reputation in society. All our employees follow a highly regarded
five-point list of What We Value taking a client-first approach; creating new value based on originalideas; always being a challenger; acknowledging our growth with society; and, we have add, promoting
health and well-being at work. I am convinced that these five values are important elements in realizing
the sustainable growth of corporate value for the Group going forward.
In addition to tackling the social issues of Japan, we are also listening to the voices of people who live,
work, and stay in other countries and cities. I intend to ensure the Group s business will contribute toresolving their social issues and achieve sustainable growth. To all our shareholders and otherstakeholders, we appreciate your continued understanding and support.
September 2018

Eiji Kutsukake

President and Representative Director, Group CEO

Nomura Real Estate Holdings, Inc.

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

CSR | The Nomura Real Estate Group s Stance on CSR

Message from the CSR Committee Chairman
To solve environmental and social issues in thisbusiness meansto meet the needs of customers
and society. Promotion of CSRleads to thedevelopment of products and services andthecreation of new business.

Seiichi Miyajima

Executive Vice President
and Representative Director
Group COO

Promotion of Wellness Management for the Physicaland Mental Well-being of Our Employees Our Most Important Resource
On December 25, 2017, Nomura Real Estate Development Co., Ltd., a Group company of Nomura Real
Estate Holdings, received corrective recommendations and guidance regarding the Discretionary Working
System for Management-Related Work from the Labor Standards Inspection Office, which presides over
the Company s headquarters and its four regional business offices. This matter is being taken as a serious
issue, and we will make full efforts to carefully undertake labor management and improve working
conditions so that no such incident occurs again, and to regain the trust of our shareholders and otherstakeholders.
To this end, in April 2017 the Group established the Workstyle Reform Promotion Committee, and as its
chairman, I have focused on improving productivity, reducing working hours, and enhancing work-lifebalance. We have identified and analyzed impeding factors against the reforms in each business and have
set in place the personnel systems and policies to balance work and private life, which are functional
regardless of time and place.
Moreover, we understand the importance of top management and senior officers to thoroughly discuss
issues with employees and to steadily implement the necessary measures to improve working conditions.
For this reason, top management and senior officers have held around 40 meetings with employees tohear their opinions directly and discuss topics such as working environments and labor conditions. Basedon these discussions, we are now progressing with activities that will lead to concrete measures.
To underscore this point, our employees are our greatest resource, and their health and well-being are
indispensable to the Group s sustainable growth. We are promoting wellness management so that all
employees are able to stay mentally and physically healthy and work proactively.

The Changing Business Environment Surrounding the Group and the Related Risks andBusiness Opportunities
9Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

At present, corporate earnings are recovering in Japan underpinned by sustained low interest rates andlow inflation amid an ideal economy. In the real estate market, market cap rates are falling and real estate
prices are rising. In addition, construction costs are increasing. The volume of transactions have beensustained however, and the market continues to be steady. On the other hand, looking at the future ofJapanese society shows us a variety of social problems, including its shrinking economy due to population
decline and low birthrate and aging population, as well as an insufficient number of workers. The naturalenvironment is another issue to consider, with global warming leading to the growing threat of climatechange and natural disasters.
With the adoption of global frameworks such as the Sustainable Development Goals (SDGs) and the Paris
Agreement, businesses are expected to strengthen their commitment to addressing environmental andsocial issues surrounding society. While taking on such serious issues comes with risks, I believe that
resolving these issues as a part of our business activities serves to meet the needs of customers andsociety, leads to the development of goods and services, and creates new business opportunities.
Falling demand in the Japanese economy due to the population decline is becoming a serious issue, but
at the same time we are also seeing values and lifestyles become more diversified. Meeting these needs
will allow us to differentiate our goods and services from other companies and raise our level ofcompetitiveness. As for the decrease in available labor, major innovations are already underway, throughwork style reforms that improve productivity, and labor force substitution with IoT and AI.
As we pursue global initiatives such as the SDGs and the Paris Agreement, we are making efforts to bolster
our environmental awareness, disaster prevention functions, and business continuity plans.
Environmental awareness tends to lead to progressively higher costs. These efforts, however, also lead tothe development of low-carbon, environmentally conscious goods and services. These developments canprovide new value by being environmentally and people friendly, and through the economic benefits
delivered to customers and society.
Local revitalization and compact city development are being promoted in order to breathe life into local
communities. But regardless of whether the target is a city center or a rural area, we are focused on
developing a multifunctional and highly convenient urban-type compact town, where people can live,
work, communicate, and interact. This type of compact town contributes to the rejuvenation of local
communities. These various projects are our starting point and as laid out in our Group Vision we build
cities dynamic stages that connect today with tomorrow s possibilities, we hope the residents will
embrace every moment of life s pursuits by creating communities and managing these projects.
Through our business activities, we will fulfill our corporate social responsibility.

A Year of Strengthening CSR and ESG Initiatives
The Nomura Real Estate Group analyzed and identified social issues and decided upon four key themes for
CSR as focal points for our initiatives. These key themes are Safety/Security, Environment, Community,and Health and Well-being. Additionally, we have established two CSR Promotion Foundations: Human
Capital, and Management Structure, which encompasses corporate governance, compliance, and othermanagement issues.
To achieve a sustainable business, nothing is more important than the health of its employees, and it isabsolutely essential that they perform their duties with vitality. In addition, implementing work style10Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)reforms helps to increase productivity, maintain work-life balance, and provide employees with more time
for their private life. This in turn creates self-satisfaction in their work and life and motivation for selflearning. In this way, I am confident that the Company will expand through the self-development of its
employees, and that this sort of positive cycle will increase corporate value and lead to sustainablegrowth.
In the fiscal year ended March 31, 2018, in order to enhance our CSR and ESG activities on a Groupwide
level, we shared our Group policy with all employees to ensure that everyone has this policy in mind when
conducting their daily business activities. As part of this, each business unit has established its own
concrete goals rooted in our key themes and the Sustainable Development Goals (SDGs). To set thesegoals, we need to quantify their related elements because in some fields, we are unsure about our current
stance toward the targets we will set. Thus, we will measure our position and establish our objectives.
Moreover, to further our CSR and ESG efforts, we require cooperation not just within the Company but
from our business partners and suppliers. With this in mind, we formulated our Group CSR Procurement
Guidelines in the fiscal year ended March 31, 2018, and will begin its implementation in the fiscal year
ending March 31, 2019. The Group s businesses, ranging from development and construction to operationand management, demand a variety of technologies and services, and this requires cooperation witharchitecture companies, construction companies, service providers, and other business partners andsuppliers. It is important to bear in mind environmental and social issues throughout the entire supply
chain while staying rooted in the Group CSR Procurement Guidelines. We hope for the understanding andcooperation of our business partners and suppliers in this regard.
In the fiscal year ending March 31, 2019, we will ramp up our response to environmental issues evenfurther. We have already set up an environmental subcommittee led by the officers responsible for quality
management and architectural design. This subcommittee is reviewing other measures such asenvironmental management systems and medium- to long-term reduction plans for energy consumption
and CO2 emissions. As we carry out these efforts, we will employ a PDCA (Plan-Do-Check-Act) cycle,
requiring us to first assess our position as a company, set our goals, review results and factors, and then
set new goals. This will serve our efforts as we work to bring our CSR and ESG initiatives to a new level.

Increased Value for Stakeholders and Ensuring Group Growth
Connecting with stakeholders is very important for companies to achieve sustainable growth. Since we area real estate business, we are responsible for urban planning and service management, and our
stakeholders cover an extremely wide range of supporting industries. For that reason, we are constantly
making efforts to continue creating new value alongside a wide range of stakeholders. In capital markets,
investments emphasizing ESG are getting popular, meaning that it is important to promote our investment
activities through ESG initiatives and proper disclosure. I would like to both contribute to society throughactive efforts in our business practices toward CSR and ESG and respond to the needs of investors,
shareholders, and other stakeholders.
Going forward, we will continue to take on new challenges and changes in order to gain the trust and meetthe expectations of our stakeholders going forward as a highly unique and attractive corporate group.

Promise with Stakeholders
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CSR | The Nomura Real Estate Group s Stance on CSR

CSR Management

CSR Management and CSR/ESG Policies and Objectives of the Nomura Real EstateGroup
The Group established a CSR Committee chaired by the executive vice president of Nomura Real
Estate Holdings, which deliberates on and determines CSR policies, action plans, and so on. The
Committee comprises directors, executive officers, and external directors selected by the Board of
Directors of Nomura Real Estate Holdings and the results of its investigations are reported to theBoard of Directors and reflected in management plans and business activities.
We also established the CSR Promotion Council, a subordinate organization to the CSR
Committee, which is comprised by directors and so on of each business unit and group company.
The Council carries out action plans and raises CSR awareness within Group companies.
In fiscal 2017, CSR Committee and CSR Promotion Council meetings were held seven times. We
established Group Policy and material issues as part of the four key themes and two promotion
foundations and set specific targets linked to the SDGs and our business activities.
In line with these policies, we will follow the PDCA cycle and promote CSR activities.

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N o m u r a Real Estate Holdings, Inc. C S R 2018(PDF for printing)

The Nomura Real Estate Group's Policy on CSR/ESG
CSR
Theme

Group Targ ts · Indicators

Material Issues

Group Policy

U印rades lo environmental managemenl

知uclng en昭j\lUS8

Effecttve utilization ot viater resources
如tSideralion for blodiver拭y

Im郎細d managCll面i qualily alldeゅafl{jingafter-sales紐rvlce

lnlt峨Ives for Ion抑l e匹Increaseddurablllty

Pr的ding 01 10c1g life and lliQh durability畑UCIS
and services

Saretya11ds釦ritylndlsa諜祁

細ndln, Idisaster pr鉛aredness

c:are for commun紺es and support for
m叫allね1ioo

ぃ園

Ellpandlng of planning and de均nforr割laliza血n 01 communities

淑蜘ing暉al加螂of communi函in
叩erations即d management

Im匹螂匹orner satisfactloo a吋comfOlt

Pron10Ung communication to 1m叩vecus1omer
saiisf如tion．．．．．．．．．．．．．．．．．．．．．．、

園謳

Res

Promoting un細.al design-------------------------------------------------Sup釦ing heal1h and Inc/easing佃allhy life
似面ta四四1se to aging population andd細sl!y and sup印rtrG涵th

Improving comfon········· · ··· ···．．．．．．．．．ー·-•··•·一—· •一•-=··-=··"-'··
Promotlng taking of paid leave........．—......
·- .... ...．．ー・....

Health即d safety of細P切函

Pr函nnng0\呵m'Ork

匹·

Promobng active
pat面 切women.. ·-·-··
Supporting Childcare and nursing care
P(OrIl0[Ing柚rtng or函匹andoeopre袖dlsabllities····•····•·········

··一

·····

···························

Pro畷/)fl of diversity

CreatiOn o/ lair a旧（即細1ng虹収郎畑...lmplementi吋fair蕊況S匹nta心compensation.....＊—▼ ●●●ー・・ ・ ・ ・ー・・・ー・・・ー・..

Improvements to旧man capital

晒nc呵切ltlva痴oJ human capital

lrnprovlng emploi-ee saおfac函召

Pr8VEnUng1'10rk-relali!d accidents
Promo伽g涵0頃h physical andmental healt/1 manag細ent

Complying wilh CSR'procorement炉ldelines

・ー・．．．．..

Su印fier satety蕊1 11g uppl1er safei,,·-・・・ー・・・・

Observi哨compllance reouiremenls

Compnance

1mp1ementtng lllO/Ougn nSK mana釦enl

Risk manageme川

lmplemenll叩四ough human rlghts training

Hum n ri前15

Comoliance 1v!th CSR procurement guidelines

lmp<oved sup訓ler management

14

國謳目

EnsurifJ1l aiverslty In Board of Directors

叩at釘畑rnaoce

曰Com灼I閲with design and construcliO!islan由rds and quality manuals

日

占ー

G

em-on」ISThe Nomura Real Estate Group即motes Ille
Sl四thenfll!I ol complla印e as well as risk
昨罪1gementa面corporate governance,
recognlzing that they am I叫紅血t management
1uauJa6euell'J\ss函for the realization of a sust出nable sod瑯畑continuatlO ol buslnessactiviues, andiltcreased COll)O{ale value. Italso CQndUcts its
business知tivitl邸叫1hms露t forlhe hum印
rights.of allpoop! , including customers. local
communities, emplayees. and suppliers.

Improved quality of safety/security In Dl)CraUon
andmana雰ment

PromoUngu況af曲暉sticl
certified Ii血r

囚』加Nomura Real Estate Group aims ltJprovi由訳llness managemenl so lhal allItsexecu!Jv邸
andemp切統scan叩OUI their＼町ken呵geuaIIyandlnoooopI邪心I and niental health,呻ich leads to sustainable corPOCate gr01血In面s viay, ttcontri加tes to Ille reali2atiQ11 of a-s1deo 辿stainallle soc試y. the oonlinuallon of businessactl囁ies，躙l心easedcof)l()暉value. The
Gr叩p also promotes the ocet1pa11ona1 safety
u
e
L
I
J
n
H
suo!)epuno:1 and health malolenance of ifs empl叩38Sand
SIJ叩如3•「ecognizlng畑1hosemaltersare
important mana齢rr,enl Issues. AJso. recognl加9
Iha! Ille伽novauoos brought aboul切d油rsity細Jmportant for the con Un幽creation o, new旧lue,
血eGroupし'10rks \a promote diversity and C/llateuo,ioEedoML fairand reward囮叩rゆlaces so !flat humancapital with a var両· of perspecttves a泊ways of訓nklng,r卵r11less of their aurlbules. can fully
dernonslrafe tbet pcrsonalltles皿d capablllti邸

Improvedsafelyi露uriりind岱匂nano
C011St1uctlon

Reducing waste discharge...........................•一•-,---··············

︒

︒

s

11\e Nomura Real Estate G叩p recogniZes唸I
tho declining birth rate a叫aging population.
g1曲llzatlon．狐d the diversification of indlvl血al面uesand Ill邸l'jfesare fmportant social Issues
此aII叩nlcates 1Ylth staKe加I幽豆nd郎油1es
orodUcts and serv!c邸foi a healthy and comfortable Illato all如s of pooplq, r暉叫esso/ I函狐由匹．in that呵．ltre如tsdi叱rsityand
conJrlbutes to加realization of a heal町and凍gorousぬCiely,

陶北暉I water心傘/>i;qulring biodlve!sity cert皿ication
1幽収'C/ JHEP ISEGESJ

園国・響—--------··--··---··—ー・・-------------------------..

含The Nomura Real Estate Group reoognlzes 1hat
community dyslunct切and r紀uced叫aTity, llllO
Ille related畑咄erung ol communllles due to試 u s 氾 as I畑declining bit1h rate and匈ing
四Illa如and tile increase lo曲numbe! of
vaclll1けwellings are importllnt social issues.
The Gcoup IOSぽs connections with customer&
and IOCal communities曲dsum応ttie nurlurlng
olcommmil8SW瞑ans ol btJildlng design
1nllla枷ゞ，and 叩erallonal叩 ces.Tor叩gh
ll1e認measures、It ls promo!ing smooth mutual
asslsta匹loemergen函狐dmmmunIty
revltaliza恥n．印d凶1tri加Ung lo畑reaiaぬnof aの叩即11ive society.

·
·
·

E
x
n
o
::1

....

Reducing CO, emissions

Pro叩伽g solar l)Olver generalion

池匹Ing \ocl匹tee湘ngB

ゆ 匹 t e ulillz.all()llol resources aoo
pollution control
The Nomura Real Estate Groop面ognlZeS tbaLbuilding and infrasuocture det蜘8IIonand叩叫岱cenee,m卯ced u巾an funct如 ，and
R 1nmased皿皿 I disasters匹I呵双ねnlsocnI` issues. Itconlr,bules to lhe reall2abon of tha safety
l:IS:'.>JOQJ and security of custom的；and I四I communtt,es>
墨 1hr叫h lhe provision OI匹duClS諏i函函易 ba況don卯り砂臼quality m叩a佃皿訓andSU迦碑U心llldeve加ment. ltalso promoles
saEa4.1.>
Ille creation of窯,rf(and livipg environmenls 1n
曲ゆ加slness aiid dally IM叩can conlinue ev仰111times of em町氾ncy,

脳ulrlng 01 a如l1Cedel1Vi叩mental
management te!lilication(O印Gr匹、Building, LEED. CASBEE, etc.)·····.. .......

一

The Nomura Real Estate Group 1即ognizes加lclimate change, the depletion of natural reso皿蕊u and廿1eco知sing of eoosystems are.lmponan1
9 SOClal ISSll岱．lt如"il)uteslOIhefeaIlzaIlono
ヒ a sustainable society th叩gh environ面mtallyE
ビ Irfendlyurban年lopment, Including ene,切l>saving and low-carbon lnibalives as well as Ille
3u useol ren辛l函rgy and叩pr叩rlate utiliza on
01 reSOUfces. ItalSo co暉加s with envlromnentaJ
laws.O「cfinances. and regulal血ns,8叫promotes
appr叩nate enl'JfOn虚暉al management

Related S D G s

Process of Determining the Four Key Themes

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)In fiscal 2015, the Group s four key themes were determined through the following process.

Step 1.Broad Investigation of Social Issues
Social issues were broadly identified by making reference to international frameworks such as the
GRI G4 Guidelines and ISO 26000. Candidate key themes were selected from among those social
issues that are closely related to the Group s business.

Step 2. Provisional Determination of Key Themes for the GroupThe CSR Committee discussed the degree of impact of the candidate themes mentioned above on
the Group s business (relevancy and magnitude of risk) and provisionally determined the key
themes.

Step 3. Identification of Key Themes for Stakeholders
Questionnaire surveys and interviews were conducted to ask major stakeholders which social
issues the Group should address. Themes believed to be important to stakeholders wereidentified.

15

Step 4. Determination of the Four Key Themes

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Based on the perspectives of both stakeholders and the Group, candidate themes were mapped
according to their importance and the four key themes were selected.

In regard to the four key themes, social issues, primary reasons, the Group s approach, and related
strategies and so on were clarified.

16

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)17

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

Process of Determining the CSR/ESG Policies and Objectives

Step 5. Identification of Related Businesses and Operations
Following interviews with business divisions, business and operations related to the Four Key
Themes were identified and investigated with the business units.

Step 6. Evaluation and Clarification of Issues
Issues relating to the environment, society, and governance within international frameworks andresponsible investment were clarified.

Step 7. Determination and Approval of Policies and Targets
Following deliberation by the CSR Committee, the Groupwide CSR Objectives were
determined.The CSR Objectives were approved by the Nomura Real Estate Holdings Board of
Directors.

Dialogue with Stakeholders
The Group endeavors to engage in good-faith communications and build trusting relationships
with stakeholders.

18Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

CSR | The Nomura Real Estate Group s Stance on CSR

Business and CSR

Through its business activities, the Nomura Real Estate Group addresses social issues that requireconsideration and the expectations of stakeholders, and implements CSR initiatives.

Business Activities of the Nomura Real Estate Group19

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Business
Activities

Main Activities

Major
Stakeholders

Responses tomajor Social
IssuesAcquisitionof Land andProperties,
and Capital
Procurement

Investigationof properties
Real estateappraisal
Environmental
assessment
Negotiation
and bidding
Contract
execution
Capitalprocurement

Sellers,
brokers,
financial
institutions,investors, realestateappraisers,
employees,
etc.

Show
consideration,and support
therevitalizationofcommunities
Raise suppliermanagementlevelsetc.

20

RelatedSDGs

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Business
Activities

Main Activities

Major
Stakeholders

Responses tomajor Social
IssuesPlanning
and Designof Products

Administrationofquestionnaires
to customers
and local
communities
Planning ofproducts
DesignCustomers,
local
communities,
NPOs, design
companies,
government
agencies,
employees,
etc.

Increasesafety andsecurity
quality indesign andconstruction
Ensure safety
and security
duringemergencies
Show
consideration,and support
therevitalizationofcommunities
Respond to
population
aging anddiversity andsupporthealthIncreasecustomersatisfaction
and comfort
Raise suppliermanagementlevelsetc.

21

RelatedSDGs

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Business
Activities

Main Activities

Major
Stakeholders

Responses tomajor Social
IssuesManagementofconstruction

Construction
supervision
Quality control
Costmanagement
Briefings for
local residents

Customers,
local
communities,
construction
companies,
employees,
etc.

Increasesafety andsecurity
quality indesign andconstruction
Ensure safety
and security
duringemergencies
Show
consideration,and support
therevitalizationofcommunities
Responses toclimatechangeEfficient use
of waterresources
Appropriate
use of land
Appropriate
use ofresources
Ensuresupplier
safetyRaise suppliermanagementlevelsetc.

22

RelatedSDGs

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Business
Activities

Main Activities

Major
Stakeholders

Responses tomajor Social
IssuesSalesandtenantrecruiting

Marketing
Preparation of
website andpamphlets
Advertising
Explanation ofmaterial
matters
Contract
execution

Customers,
local
communities,
NPOs, judicial
scriveners,
employees,
etc.

Respond to
population
aging anddiversity andsupporthealthIncreasecustomersatisfaction
and comfort

etc.

23

RelatedSDGs

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Business
Activities

Main Activities

Major
Stakeholders

Responses tomajor Social
IssuesOperationand Investor
Returns

Fundformation
Property
management
Asset
management

Investors,
customers,
financial
institutions,
property
managementcompanies,
local
communities,
employees,
etc.

Increasesafety andsecurity
quality inoperations
andmanagement
Ensure safety
and security
duringemergencies
Show
consideration,and support
therevitalizationofcommunities
Responses toclimatechangeEfficient use
of waterresources
Appropriate
use ofresources
Raise suppliermanagementlevelsProperty
management
Asset
management

Customers,
local
communities,business

Increasesafety andsecurity
quality in

etc.

Operation
andManagement

24

RelatedSDGs

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Business
Activities

Main Activities

Major
Stakeholders

Management
and repair
works,
operation ofsports clubs
and senior
housing withservicesowners,serviceproviders,construction
companies,
employees,
etc.

etc.

25

Responses tomajor Social
Issuesoperations
andmanagement
Ensure safety
and security
duringemergencies
Show
consideration,and support
therevitalizationofcommunities
Responses toclimatechange,efficient use
of waterresources
Appropriate
use ofresources,
responses topopulation
aging anddiversity, andhealthsupportIncreasing
customersatisfaction
and comfort,
ensuring
supplier
safety, andraising

RelatedSDGs

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Business
Activities

Main Activities

Major
Stakeholders

Responses tomajor Social
IssuesRelatedSDGs

supplier
managementlevelsBrokerage
and CRE

Investigationof properties
Real estateappraisal
Environmental
assessment
Explanation ofmaterial
matters
Contract
execution

Customers,
brokers,
financial
institutions,real estateappraisers,
judicial
scriveners,
employees,
etc.

etc.

Show
consideration,and support
therevitalizationofcommunities
Respond to
population
aging anddiversity andsupporthealthIncreasecustomersatisfaction
and comfort

Responses to social issues relating to human capital and management structures are the CSR
promotion foundations, and therefore, are related to all business activities.

26

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

CSR

Special Feature: Nomura Real Estate Group sContribution to SDGs
Approach to the SDGs
Transforming our world: The 2030 Agenda for Sustainable Development was adopted at theUnited Nations Sustainable Development Summit held in September 2015. The globally sharedtargets set by this agenda are the Sustainable Development Goals (SDGs).
The Group, which established Our Group Vision in the form of the Group s Corporate Philosophy
and CSR Vision, is cognizant that achieving the SDGs is a crucial issue. We are contributing to therealization of the SDGs through measures addressing our four key themes: Safety/Security, theEnvironment, Community, and Health and Well-being.

Four Key
ThemesRelated SDGs

Safety/Security
Environment

Community

27

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Four Key
ThemesRelated SDGs

Health andWell-being

Contribution to the SDGs
The Group is contributing to the SDGs through the following activities, which are our measures toaddress the four key themes.

SDGs

Activities of the Nomura
Real Estate Group

Main Contribution Results (FY 2017)

Support health andpromote increases inhealthy lifespanDevelopment of properties with services
designed for seniors (cumulative): 125
units

Reduce water
consumption

Water consumption (intensity): 1.127
m³/m²-year

Installation of solar power
generating facilities

Solar power generating facility
installation rate at Landport logistics
facilities: 100%
Annual solar power output: 11.55 million
kWh

Reduce energy
consumption

Energy consumption (intensity): 0.049
kl/m² per year

Promote universal designs

Barrier-free and universal design
adoption rate in condominiums: 100%

28

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

SDGs

Activities of the Nomura
Real Estate Group

Main Contribution Results (FY 2017)

Expand and improve
designs that support
revitalization ofcommunities

New residential properties with
community contribution facilities: 4properties

Improvement of disaster
preparedness and security
countermeasures

Managed properties where disaster
preparedness training is conducted: 85%
Properties registered to take in persons
who are unable to return home during an
emergency: 3 properties

Reduce waste volumes

Waste discharge volume (intensity) 4.343
kg/m² per year

Responses to climatechangeCO2 emissions (intensity): 0.088 t CO2/m²
per year

Care for biodiversity

Properties that acquired biodiversity
certification (ABINC/JHEP/SEGES): 4
properties

Community revitalization
support

Number of meetings held withcondominium residents: 40
Number of meetings held with corporate
tenants in office buildings, etc.: 100
Number of community dialogue events
held: 29

29

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

Case Study: Contributing to the SDGs through longer building lifespans andimproved durability
Stagnation
Condominium
Improvement
Plans
Becoming anofIncreasingly
SevereSocial Issue
Even when a long-term improvement plan is established at thetime of construction, due to the aging of society and theincrease in vacant units in recent years as well as rising
construction costs and other factors, the collection of
improvement expenses is often delayed. Consequently, only
less than half of condominiums are able to carry out thesecond large-scale improvements as planned (according toMinistry of Land, Infrastructure, Transport and Tourism
investigations).
If building lifespans are reduced as a result, large volumes ofwaste will be generated.
The SDGs call for the development of sustainable cities anddrastic reductions in waste, and these are important issues tobe addressed by the Group.

Increasing Building Lifespans and Durability throughout Their Life Cycles
In response to these social issues, the Group is working to increase building lifespans anddurability throughout their life cycles.
Starting in fiscal 2017, we reviewed the improvement plans for completed PROUD condominiums
and launched the re: Premium long-cycle, large-scale repair service.
Under this program, the cycle for large-scale repairs, which is normally planned for every 12 years,
is extended to 16 to 18 years and ultra-long-term improvement plans extending up to 60 years
after the completion of construction can be formulated.
In addition, we created the Attractive30 service for newly-constructed condominiums in fiscal
2018.This service employs high-durability materials and construction techniques and introduces
re: Premium to lengthen the cycle of large-scale repairs.
By offering the re:Premium and Attractive30 services, the Group is reducing the psychological andeconomic burdens on customers, increasing the durability and extending the lifespans ofbuildings, and reducing waste.
30

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

Providing New Value to Society, the Environment, and Customers

These efforts to extend building lifespans and lengthen large-scale repair cycles contribute to thedevelopment of sustainable cities and reduction of waste and provide new value to customers.By
substantially cutting lifecycle costs, the psychological and economic burdens on customers are
reduced and future options are expanded regarding refurbishment of common areas andrenovation of exclusive areas.
Going forward, the Group will continue contributing to the realization of a sustainable society by
responding to social and environmental issues and providing products and services that are
valuable to customers.

31

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Priority theme

Safety and Security
The Nomura Real Estate Group is aware that the aging and obsolescence of buildings andinfrastructure, reductions in urban functions, and increases in natural disasters are importantsocial issues, and we are contributing to the safety and security of customers and communities
through the provision of products and services based on appropriate quality controls andsustainable urban development. We are also promoting the development of work and living
environments that can maintain business and life activities during emergencies.

Raise Safety and Security Quality in Design and Construction ........... 33
Raise Safety and Security Quality in Operations and Management......... 37
Implement Measures to Increase Lifespan and Improve Durability ........ 41
Ensure Safety and Security During Disasters .......................................... 44

32

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

CSR | Society | Safety and Security

Raise Safety and Security Quality in Design
and Construction
Approach and Policies
The Nomura Real Estate Group provides buildings and spaces that serve as the foundations forliving and business to customers (residents, tenant companies, and facility users), local
communities, and other stakeholders over the long term through a range of business activities
from design and construction to operation and management.
Deterioration of urban functions as a result of the aging and obsolescence of buildings andinfrastructure as well as the shrinking population and aging of society are significant concerns,
and as natural disasters including large-scale earthquakes increase in frequency, designing andconstructing safe and secure buildings and spaces is an important responsibility of the Group.
It is with this understanding that we are working to enhance the quality of safety and security indesign and construction, in collaboration with design and construction companies and othersuppliers as well as governmental agencies, by complying strictly with Design and Construction
Standards and Quality Manuals and implementing rigorous quality control.

Management
Management Structure
The officer responsible for quality management and architectural design has been put in charge ofthis issue for the Group, and we are working to enhance the quality of safety and security in designand construction.
In addition, the CSR Committee, which comprises Nomura Real Estate Holdings and Group
company directors and others and is chaired by the Nomura Real Estate Holdings executive vicepresident, deliberates on and decides related policies and action plans.
Starting in fiscal 2018, targets regarding enhancement of safety and security quality in design andconstruction were set, and the Committee is monitoring progress.

33

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Targets
To enhance the quality of safety and security in design and construction, the Group endeavors tocomply strictly with Design and Construction Standards and Quality Manuals and implement
rigorous quality control.

Compliance
with
DesignandandQuality
Construction
Standards
Manuals
To ensure the quality of safety and security inbuilding design and construction, the Grouphas formulated Design and Construction
Standards (structures, architecture,equipment, electrical) and Quality Manuals
and has established designs andspecifications for the following products that
PROUD Design and Construction Standards
have been developed in series.These(excerpts)
Standards and Manuals are distributed tosuppliers including design and construction
companies and are strictly complied with.
【Subject Products】

Residences: PROUD, OHANA,PROUD SEASON
Leased office buildings: PMO(Premium Midsize Office)Commercial Facilities: GEMS
Logistics Facilities: Landport
Condominiums: PROUD FLAT

34

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Supporting the Development of First-Class Architects

The Group supports the acquisition of the first-class architect qualification, to ensure safety andsecurity.As of April 1, 2018, Nomura Real Estate Development had 215 employees with first-classarchitect qualifications, comprising 16.73% of its total workforce.

Thorough Quality Control at Construction Sites
Implementation of Quality Control Inspections
Nomura Real Estate Development quality control engineers directly
perform inspections regarding compliance with Design and Construction
A quality control
Standards and Quality Manuals and confirm the status and progress ofinspection at aconstruction in every major phase of construction.
In addition, all accidents and problems that occur at construction sites are construction site
reported to quality control personnel and the officer responsible for quality
management and architectural design. Information regarding the details
and responses are shared at periodic meetings and on the Group intranet,and measures are taken to prevent reoccurrence.

PROUD Quality Conference
The Group holds the PROUD Quality Conference once a year to share information on quality
control technologies at condominium construction sites.At the conference, which is attended byarchitectural and quality control personnel from around the country, information on updates to
Design and Construction Standard and Quality Manuals as well as construction related issues isshared.

New Construction Progress Reports
With the aim of gaining the understanding of customers regarding building
safety and security, the Group has created a website for customers thathave signed purchase agreements and posts progress reports on new
Site for Contract
construction and explanations of the details of major aspects of theHolders
construction.

35

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

Performance
Promotion Measures

Fiscal 2017 performance against the set targets was as set forth below.

Comply with Design and Construction Standards and Quality Manuals
In fiscal 2017, the Leasing Business Unit (PMO leased office buildings, GEMS commercial facilities,
Landport logistic facilities, and PROUD FLAT condominiums) formulated and began applying new
Design and Construction Standards and Quality Manuals.
FY 2017

Compliance with Design and Construction
Standards and Quality Manuals in the housingbusiness

100%

Responses to Safety Issues
To ensure the safety of customers, if there is a violation of the Building Standards Act, Fire Service
Act, or other applicable laws and regulations or the Group s quality standards and so on, thenecessary countermeasures are promptly implemented.
In fiscal 2017, there were no significant safety-related violations of relevant laws and regulations
or internal standards.

36

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

CSR | Society | Safety and Security

Raise Safety and Security Quality in
Operations and Management
Approach and Policies
The Nomura Real Estate Group supports the lives and businesses of stakeholders including
customers (residents, tenant businesses, facility users) and local communities over the long term,even after the completion of construction, through operation and management.
As concerns rise regarding the aging and obsolescence of buildings and infrastructure and thedeterioration of urban functions due to the declining population and aging of society and natural
disaster such as large-scale earthquakes increase in frequency, ensuring safety and security evenafter the completion of construction is an important responsibility of the Group.
Based on this awareness, the Group works with suppliers and NPOs to improve the quality ofsafety and security in operation and management by raising management quality and enhancing
after-sales service.

Management
Management Structure
The officer responsible for quality management and architectural design has been put in charge ofthis issue for the Group, and we are working to ensure safety and security in product and service
operation and management.
In addition, the CSR Committee, which comprises Nomura Real Estate Holdings and Group
company directors and others and is chaired by the Nomura Real Estate Holdings executive vicepresident, deliberates on and decides related policies and action plans.
Starting in fiscal 2018, targets regarding enhancement of safety and security during operation andmanagement were set, and the Committee is monitoring progress.

37Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Targets
To raise the quality of safety and security in operation and management, the Group is working to
improve management quality and enhance after-sales service.

Compliance
with
Building
Management
Quality
Assessment
GuidelinesatManaged Properties
The Group formulated and complies with Building Management Quality Assessment Guidelines atmanaged properties. The guidelines contain more than 400 items that pertain to topics such as
quality control, legal compliance, and internal audits.

Enhancing Quality by Acquiring ISO Certification
The Group is working to acquire certification under quality-related international standards.
Nomura Real Estate Partners holds ISO 20000 international certification for IT service
management systems (ITSMS) for services provided to three data centers (as of the end of March,
2018): Yokohama Data Center #1, Yokohama Data Center #2, and the Osaka Data Center.
Nomura Real Estate Development has also acquired ISO 9001:2015 certification (an international
standard for quality management systems) for design management operations pertaining toimportant equipment and construction management operations conducted at the data centers.
Nomura Real Estate Partners has acquired ISO 9001 certification (an international quality
management system standard) for 21 properties in the office building segment and 19 complexes
in the condominium segment.
* For information regarding ISO 14001, see the environmental activity Promotion Framework .

38

Improving Safety and Security after Sales

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

Living Q Call Established
To help residents in its residential properties lead safe, secure, and comfortable lives, the Groupestablished Living Q Call, a 24-hour, 365-day, operator-supported hotline for responding torequests and consultations from residents.
【Details of Main Services】

Emergency services: water leaks, lost keys, etc.
Repair services: Repairs to various equipment items
Support services: Light bulb replacement, collection of bulky trash items, etc.

National Customer Conference Held
The Group holds the National Customer Conference once each year to enhance the quality ofafter-sales service in PROUD condominiums.Personnel responsible for after-sales service fromaround the country attend the conference to share information on complaints and issues that
arose during the year and discuss best practices.

Provision of Long-Term Repair Warranty Programs for Condominiums
The Group offers the NEXT PASS 10 service, a program that provides a 10-year repair warranty fordefects and malfunctions in condominiums, as well as the NEXT PASS 15, which extends thewarranty by an additional five years.
【Details of Main Services】

Extension of warranties on residential fixtures and equipment
Emergency response in case of breakdown or malfunction
Inspections and maintenance in the fifth and ninth years after purchase39

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Repair and Warranty Services for Transactions of Existing Residences
The Group offers repair and warranty services to encourage liquidity of existing residences andprovide safety and security to customers after a purchase.
【Details of Main Services】

Sold properties: Defect repairs and warranty for up to five years
Purchased properties: Repair and replacement warranty for defects in mainequipment within one year after purchase

Performance
Promotion Measures
Fiscal 2017 performance against the set targets was as set forth below.

Enhance Quality Control and Improve After-sales Service
FY 2017

Rate of compliance with Building Management
Quality Assessment Guidelines at managed
properties

100％
FY 201782％

NEXT PASS 10 application rate

Responses to Safety Issues
To ensure the safety of customers, if there is a violation of the Building Standards Act, Fire Service
Act, or other applicable laws and regulations or the Group s quality standards and so on, thenecessary countermeasures are promptly implemented.
In fiscal 2017, there were no significant safety-related violations of relevant laws and regulations
or internal standards.
40

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

CSR | Society | Safety and Security

Implement Measures to Increase Lifespan and
Improve Durability
Approach and Policies
The Nomura Real Estate Group designs and constructs building and spaces that serve as thefoundations of the lives and businesses of stakeholders including customers (residents, tenantbusinesses, facility users) and local communities over the long term through all aspects of its realestate and urban development business, and operates and manages properties after thecompletion of construction.
As concerns rise regarding the aging and obsolescence of buildings and infrastructure andincreases in natural disasters such as large-scale earthquakes, providing buildings and spaces thatare safe and secure throughout their entire life cycle is an important responsibility of the Group.
Based on this awareness, the Group works with suppliers such as design and construction
companies to increase the lifespans and durability of buildings.

Management
Management Structure
The officer responsible for quality management and architectural design has been put in charge ofthis issue for the Group, and we are carrying out measures to increase building lifespan anddurability.
In addition, the CSR Committee, which comprises Nomura Real Estate Holdings and Group
company directors and others and is chaired by the Nomura Real Estate Holdings executive vicepresident, deliberates on and decides related policies and action plans.
Starting in fiscal 2018, targets regarding enhancement of building life span and durability were set,
and the Committee is monitoring progress.

41

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Targets
To carry out measures that will increase the lifespans and durability of buildings, the Group strives
to provide products and services with long lifespans and high durability.

Measures to Lengthen Large-Scale Repair Cycles
In order to reduce the economic and psychological burdens on condominium residence andmanagement associations, the Group offers products and services intended to lengthen largescale repair cycles in order to reliably carry out large-scale repair plans.

Measures at Completed Condominiums
In fiscal 2017, the Group Launched re:Premium, a service that lengthens large-scale repair cycles
at completed PROUD condominiums.
Under this program, the cycle for large-scale repairs, which is normally planned for every 12 years,
is extended to 16 to 18 years, and ultra-long-term improvement plans extending up to 60 years
after the completion of construction can be formulated.

Measures at Newly-Constructed Condominiums
In fiscal 2018, the Group launched the Attractive30 service, which seeks to increase the lifespansand durability of newly-constructed condominiums.
The service employs high-durability materials and construction techniques and introduces there:Premium service to lengthen the cycle of large-scale repairs.

42Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

Performance
Promotion Measures

Fiscal 2017 performance against the set targets was as set forth below.

Provide products and services with long lifespans and high durability
In addition to promoting the re:Premium service, the Attractive30 service was launched in fiscal
2018.
FY 2017

Number of completed properties that offer there:Premium service

5 properties

43

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

CSR | Society | Safety and Security

Ensure Safety and Security During Disasters
Approach and Policies
The Nomura Real Estate Group supports the lives and businesses of stakeholders including
customers (residents, tenant businesses, facility users) and local communities over the long term
through all aspects of its business from design and construction to operation and management.
As abnormal weather and natural disasters increase in frequency as global warming and climatechange intensify, taking measures to ensure safety and security during emergencies has become
an important responsibility of the Group.
Based on this understanding, the Group collaborates with fire departments, governmental bodies,disaster preparedness experts, and others, to prepare for and prevent disasters including
implementation of drills pursuant to business continuity plans (BCP) and disaster preparedness
support, so that we can minimize the harm if a disaster occurs and maintain continuity in the lives
and businesses of stakeholders.

Management
Management Structure
The officer responsible for quality management and architectural design has been put in charge ofthis issue for the Group, and we are working to ensure safety and security during disasters.
In addition, the CSR Committee, which comprises Nomura Real Estate Holdings and Group
company directors and others and is chaired by the Nomura Real Estate Holdings executive vicepresident, deliberates on and decides related policies and action plans.
Starting in fiscal 2018, targets regarding enhancement of safety and security during disasters wereset, and the Committee is monitoring progress.

44Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Targets
The Group seeks to expand and enhance its safety preparedness measures to ensure the safety
and security of stakeholders during disasters.

Design and Construction in Preparation for Disasters
The Group provides for severe localized rain and flooding countermeasures in its quality manuals
and implements countermeasures after confirming hazard maps.
In addition, we attach hazard maps to the statements of material matters provided to purchasersof residences.

Disaster Preparedness Concept: Advances in Disaster Preparedness in Housing
The Group has established Disaster Preparedness in Housing as its disaster preparedness policy
for residential properties.
We are working to minimize harm and ensure safety and security during emergencies bypromoting self-help where residents help themselves through their own efforts and the efforts of
their family members, mutual assistance where residents are helped to the efforts of neighbors
and community members, and public support where support is provided by the police and fire
departments.

Disaster Response Headquarters Establishment Drills
Nomura Real Estate Holdings established a business continuity plan (BCP) in anticipation of amajor earthquake in the Tokyo Metropolitan region and conducts disaster response headquarters
establishment drills with the president serving as head of the headquarters once a year.

45Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

Implementationof EmergencyDrills
Communication Drills and Disaster Response
Headquarters Establishment

To ensure the safety and security of customers (residents, tenantbusinesses, and facility users) during a disaster and to prepare for the rapid
resumption of business by tenant businesses, Nomura Real Estate Partners
conducts monthly emergency communication drills and annual disaster
response headquarters establishment drills.
Disaster response【Overview of Disaster Response Headquarters Establishment
Drills】

headquarters
establishment drills

Confirmation of the disaster response headquarters
establishment process and details of measures
Confirmation of disaster response headquarters activities
according to the status of recovery
Assessment and tabulation of damage and managed
properties
Practice conveying information from management sites tothe disaster response headquarters

Supporting Disaster Preparedness at Managed Properties
As a part of its efforts to ensure safety and security during disasters, the Group provides disaster
preparedness support to residents, management associations, tenant businesses, and facility
users at managed properties (residences, office buildings, commercial facilities, logistics facilities,etc.).
【Main Support】

Implementation of disaster preparedness drills
Support organizing disaster supplies and forming and operating disaster
preparedness organizations
Development of disaster preparedness and response manuals
Support preparing firefighting and disaster preparedness plans
Distribution of disaster preparedness guidebooks46

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Establishment
businesses of disaster preparedness hubs for tenant

The Group established N-FORT (located in Chuo-ku, Tokyo) as a hub fordisaster preparedness and business continuity planning for PMO (Premium Emergency supplies
Midsize Office) office buildings.N-FORT provides manned responses and an stored at N-FORT
emergency power generator that can operate for 72 hours and is equippedwith emergency food for 2,000 persons. The facility reinforces BCP
throughout the PMO series of office buildings.

Performance
Promotion Measures
Fiscal 2017 performance against the set targets was as set forth below.
* Unless otherwise indicated, the scope of reporting is the Group.

Expansion and Enhancement of Disaster Preparedness and Security
Countermeasures
Disaster preparedness drills held at managed
properties
Number of facilities that can take in persons
who are unable to return home during a disaster

FY 201785％
3 properties

Taking in and Supporting Victims During a Disaster
The Shinjuku Nomura Building (Shinjuku-ku, Tokyo), Nihonbashi Muromachi Nomura Building(Chuo-ku, Tokyo), and Yokohama Business Park (Yokohama City, Kanagawa Prefecture) have been
designated temporary living accommodations for those who are unable to return home during adisaster and will take in such individuals if a disaster occurs.

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Priority theme

Environment
The Nomura Real Estate Group is aware of important social issues such as climate change,
natural resource depletion, and ecosystem destruction, and contributes to the development ofsustainable societies through environmentally-conscious community development including
measures to save energy and create a low-carbon society, use of renewable energy, andappropriate resource use.
In addition, we comply with environmental laws and regulations and implement appropriate
environmental management.
Enhancing Environmental Management ................................................ 49
Responses to climate change .................................................................... 54
Efficient Use of Water Resources ............................................................... 61
Consideration for Biodiversity .................................................................... 63
Appropriate Resource Use and Pollution Prevention ........................... 68

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CSR | Environment

Enhancing Environmental Management
Approach and Policies
As environmental problems including climate change, depletion of natural resources, anddestruction of ecosystems become increasingly severe, international frameworks such as the Paris
Agreement and the Sustainable Development Goals (SDGs) have been launched and responding
to environmental problems has become an urgent social issue.
The Nomura Real Estate Group enjoys various benefits obtained from the natural environment
through the real estate business and urban development but also imposes certain burdens on theenvironment through its business activities. In addition, the Group interacts with various
customers including residents, tenant corporations, and facility users over the long term, andconsequently we are aware that responding to environment problems that have substantial
impact on the lives and business of customers is an important duty of the Group.
It is based on this understanding that the Group established the Nomura Real Estate Group
Environmental Philosophy. We are working to raise awareness of environmental problems
throughout the Group and reduce environmental impact by complying with environmental laws
and regulations, conducting supplier management, and obtaining environmental certifications.
As a result of deliberations by the CSR Committee during fiscal 2017, we identified the following
five matters as particularly important issues, and we are working to step up our initiatives in theseareas.
Enhancing Environmental Management
Responses to climate change
Use water resources efficiently
Show consideration for biodiversity
Use resources appropriately and prevent pollution

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Nomura Real Estate Group Environmental Philosophy

Nomura Real Estate Holdings established the Nomura Real Estate Group Environmental
Philosophy as a guide for Group environmental measures. Based on the Philosophy, the Group
works in concert to address environmental issues and contribute to the realization of asustainable society.

Nomura Real Estate Group Environmental Philosophy
The Group believes that it has a duty to society to help pass the current naturalenvironment down to future generations. In accordance with that belief, we areworking to create communities and spaces in harmony with the environment, and weare pursuing the realization of ideal environmental quality.

Management
Management Structure
We are taking measures to improve group-wide environmental management under the leadershipof Nomura Real Estate Holdings executive vice president and Group COO.
In addition, the CSR Committee, which comprises Nomura Real Estate Holdings and Group
company directors and others and is chaired by the Nomura Real Estate Holdings executive vicepresident, deliberates on and decides related policies and action plans.
Starting in fiscal 2018, environmental management targets were set, and the Committee monitors
progress.

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Targets
The Group seeks to obtain environmental, green building certifications for new construction andowned properties (DBJ Green Building,*1 LEED,*2 and CASBEE*3).
*1 DBJ Green Building
A certification program development by the Development Bank of Japan to promote real estate development thatconsiders environmental performance, disaster preparedness, and security as well as social needs from diverse
stakeholders.
*2 LEEDA system developed and operated by the U.S. Green Building Council for granting certification to environmentallyconscious buildings.
*3 CASBEE, or Comprehensive Assessment System for Built Environment Efficiency, includes the certification programadministered by the Institute for Building Environment and Energy Conservation (IBEC) and local assessment programs
such as CASBEE Kawasaki, which are tailored and administered by local governments.

Environmental Management System
The Yokohama Office of Nomura Real Estate Partners Co., Ltd. acquired certification under ISO
14001, an international environmental management system, and is carrying out various initiatives
including waste reduction, resource recycling, and energy-saving measures.

CSR Procurement Guidelines Established
The Group established the Nomura Real Estate Group CSR Procurement Guidelines.The Group willcontinue its efforts with suppliers to address environmental issues.
【Nomura Real Estate Group CSR Procurement Guidelines (excerpts of environmental
sections)】
Consideration for the Environment

Endeavor to make continuous improvements for reducing environmental impacts
in order to build a sustainable society.
Comply with environmental laws and regulations in the countries and regions
where your business activities are carried out.
Endeavor to reduce emissions of greenhouse gases and contaminants and conserve
resources through the life cycles of goods, products, and services.
Endeavor to appropriately manage hazardous chemicals and reduce the amounts
used.
Endeavor to reduce and appropriately manage waste.
Endeavor to implement development and greening, taking into consideration thesurrounding environment and biodiversity.
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When procuring raw materials, take into consideration the conservation of
biodiversity and sustainable use of resources.In particular, when procuring woodand wood products, take due care not to use illegal logged timber and endeavor touse wood that has been produced by sustainable methods, such as recycled woodand certified wood.

Environmental Responses in the Design and Construction Stages
The Group undertakes environmental responses in the design and construction phases ofcondominiums, leased offices, and other structures in accordance with the Design andConstruction Standards and the Quality Manual.

Assessment of Environmental Performance in Condominiums
When developing PROUD condominiums, the Group requires project implementers to submit
Environmental Assessment and Challenge Sheets and to improve residential environmental
performance and quality.Revisions were made in fiscal 2017 to reinforce responses to social andenvironmental problems.
【Details of revisions (excerpts)】

Statement of primary energy consumption
Set a target of acquiring at least BELS★★★*
Comprehensively cover the four key themes for CSR: Safety/Security, theEnvironment, Community, and Health and Well-being
Promotion of community design and universal design*BELS stands for Building-Housing Energy-efficiency Labeling System, which was established by the Ministryof Land, Infrastructure, Transport and Tourism

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Performance
Promotion Measures

Fiscal 2017 performance against the set targets was as set forth below.
*Unless otherwise indicated, the reporting scope is the Group.

Acquisition of Green Building Environmental Certification
Acquisition rate of green building certification for newly-constructed propertiesType
FY 2017
Acquisition rate by newly-constructed officebuildings, retail facilities, logistics facilities, and100%
condominiums
List of Environmental Certifications Acquired (FY 2017)

Certification
name

Property

DBJ Green
Building【Office Buildings】
PMO Shibuya, PMO Tamachi Higashi, PMO Higashi-Shinbashi, PMO
Hatchobori Shinkawa, PMO Kyobashi Higashi【Retail Facilities】
GEMS Ebisu, GEMS Kayabacho, GEMS Jingu-Mae, GEMS Sangenjaya【Logistics facilities】
Landport Takatsuki【Rental housing】
PROUD FLAT Monzen-nakacho, PROUD FLAT Miyazakidai

LEED

Landport Takatsuki

Environmental Compliance
In fiscal 2017, the Group did not commit any violations of environmental laws and regulations in
the manufacture, sale, or management of its products and services. The Group also did not receive
any external indications of violations.
53Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

CSR | Environment

Responses to climate change
Approach and Policies
The Nomura Real Estate Group uses energy and natural resources in the course of conducting
business activities, and we are well aware that the substantial impact of climate change on
business continuity is a major management issue.
Stricter environment regulations and increased natural disasters resulting from climate change
will impede the continuation of business and lead to risks of higher material procurement costs
and construction expenses. Moreover, it is possible that operating costs including electricity fees
and insurance premiums will increase, with major impacts on customers including residents andtenant companies.
Based on this understanding, the Group is working with stakeholders including suppliers such as
design and construction companies as well as customers to carry out low-carbon and energysaving measures and promote efficient energy use and renewable energy utilization.
In addition, we are creating added-value business and contributing to the creation of sustainable
societies by providing products and services in response to these issues.

Management
Management Structure
Nomura Real Estate Holdings executive vice president and Group COO has been made responsible
for these issues for the Group, and the entire Group is working together to address climate change.
In addition, the CSR Committee, which comprises Nomura Real Estate Holdings and Group
company directors and others and is chaired by the Nomura Real Estate Holdings executive vicepresident, deliberates on and decides related policies and action plans.Starting in fiscal 2018,
climate change targets were set, and the Committee is monitoring progress.

54Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Targets
The Group has set the following three targets to address climate change.
Reduce CO2 emissions[Quantified Target]
30% Reduction in the Group s CO2 emissions (Scope 1, 2*) per floor area of
its real estate and business offices by 2030 from a 2013 baseline. (thetarget was set in March, 2019)*Scope: Scope of calculation and reporting for a company s CO2 emissions
Scope 1: Direct emissions from fuel combustion
Scope 2: Indirect emissions from the generation of purchased electricity andheat
Scope 3: Indirect emissions other than Scopes 1 and 2, for example, from use ofsold products, waste disposal, employee transportation, or business trips

Reduce energy consumption
Promote solar power generation

Responding to Physical Risks
When developing real estate, the Group confirms hazard maps and implements localized severerain and flooding countermeasures in accordance with quality manuals.
We also take measures to minimize damage and ensure the safety and security of customers
during disasters in accordance with business continuity plans (BCP).
We attach hazard maps to the Disclosure statement provided to housing purchasers.

ZEH Initiatives
The Group is developing net zero energy homes (ZEH*) in condominiums from the perspective ofcomprehensive environment impact reduction.
* Homes designed to achieve a net zero annual primary energy consumption by greatly improving the insulation
performance of the building envelope, installing highly efficient facilities and equipment to maintain the quality of theindoor environment, while substantially reducing energy consumption and then introducing renewable energy.

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Environmental Performance Assessments During Product Planning and Design

When developing housing, office buildings, retail facilities, logistics facilities, and so on, the Group
provides products and services that address climate change in accordance with the Design andConstruction Standards and the Quality Manual.
Thermal insulation performance rating: level 4* (the highest level), double-glazed windows (endpanel eco-glass), LED lighting fixtures, and other features are set as standard specifications for
PROUD condominiums.
With the aim of enhancing environmental performance, we prepared Environmental Assessment
and Challenge Sheets with environmental performance assessment points for thermal insulationand shielding, energy efficiency, use of natural energy, and other factors. When planning anddesigning products, checks are made mandatory to ensure that performance exceeds internal
criteria on these points.
* Thermal insulation performance rating: A housing performance evaluation system pursuant to the Housing Quality
Assurance Act. Levels indicate performance in the thermal environment.

Reduction of Chlorofluorocarbons
To reduce the use of ozone layer depleting chlorofluorocarbons, the Group established a quality
manual that requires the use of chlorofluorocarbon-free insulation and air conditioner
refrigerants.
Construction partners are also required to submit a Quality Control Check Sheet during
construction to confirm that only chlorofluorocarbon-free materials are used.

Procuring and supplying power efficiently
At PROUD condominiums, the Group provides the enecoQ energy management system, whichuses a service for purchasing high-voltage electric power for entire buildings and information andcommunications technologies (ICT) to curtail peak electric power consumption.
We also established NF Power Service Co., Ltd. as a group electric power procurement company,
and use the demand forecasting models developed for the enecoQ service to efficiently procure
electric power.

Environmental
Certification
andAdvanced
BusinesstoSupportEnergySavings
and Carbon Reduction
The Group is undertaking business intended to save energy and create a low-carbon society, andis pursuing the acquisition of environmental certifications.

56

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Nihonbashi Muromachi Nomura Building Certified as a Top-Level Office

The Nihonbashi Muromachi Nomura Building (located in Chuo-ku, Tokyo), developed by theGroup, was certified as a Top-Level Office under the Tokyo Metropolitan Environmental Security
Ordinance.

Initiatives at the PROUD Tsunashima SST Condominium
The PROUD Tsunashima SST (located in Yokohama City,
Kanagawa Prefecture), a condominium developed by theGroup, acquired LEED Gold certification and CASBEE
Yokohama S rank (self-assessment) for its initiatives to reducecarbon and save energy.

Initiatives at the Yokohama Nomura Building
The Yokohama Nomura Building (located in Yokohama City, Kanagawa
Prefecture), which was developed by the Group, received LEED CS
certification (Gold), CASBEE NC certification (S rank), and SEGES
certification.
【Environmental Features】

BCP performance was enhanced using a mid-story seismic
isolation structure, a dual-fuel emergency generator,*1 and acogeneration system.*2
Natural ventilation fans directly introduce outside air in
consideration of reducing air conditioning loads over the
medium term and business continuity during power outages.
Reinforcement of environmental performance (cogeneration
systems, rainwater use systems, etc.)*1 Generators that can generate electric power using medium-pressure gas andoil.Such generators have higher reliability during emergencies compared toconventional generators.
*2 A system that uses waste heat produced during gas electric power generation
as a heat source for building air conditioning.Such systems offer outstanding
energy-saving performance and can operate partial air-conditioning functions
even during power outages.
57

A cogeneration
systemNomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Yokohama Global Warming Countermeasures Award Winner
Nomura Real Estate Development won the Yokohama Global Warming Countermeasures Prize ofthe 25th Yokohama Environmental Activities Award for undertaking business with outstanding
global warming countermeasures.

Use of Renewable Energy
The Group is using the roofs of Landport logistics facilities to operate a solar
power generation business.
As of March 2018, solar panels were installed on a total of 12 buildings withannual output of 11.55 million kWh.

Landport Takatsuki

Purchase of Green Electric PowerThe Group purchases green electric power.In fiscal 2017, the Nihonbashi Muromachi Nomura
building (located in Chuo-ku, Tokyo) purchased 1 million kWh of power over the year.

Helping Customers Save Energy
The Group helps condominium residents and tenant companies to save energy.
For tenant companies, we provide systems that calculate total energy consumption andmonitoring systems that make it possible to see the amount of energy used, encouraging energy
savings. For condominium residents, we save energy using the enecoQ system, provide low-cost
electric power, and provide eco-information via a member newsletter.

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Performance
Promotion Measures

Fiscal 2017 performance against the set targets was as set forth below.
* Unless otherwise indicated, the reporting scope is the Group.

Reduce CO2 emissions

Reduce energy consumptionFY FY FY FY2014 2015 2016 2017

FY FY FY FY2014 2015 2016 2017

CO2 emissions(1,000t-CO2 per 131 130 133 140
year)
Emissions
intensity (t-CO2/m² 0.089 0.089 0.081 0.088
per year)

Energy use (1,000 65 69 74 77
kℓ per year)
Energy use
intensity (kℓ/m² 0.044 0.047 0.045 0.049
per year)* Environmental data covers facilities subject to reporting under the Act on the Rational Use of Energy (in the 2017 fiscal
year, 184 facilities with a total of 1,592,806.91 m2).

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

Promote solar power generation
FY 2017

Solar power generating facility installation rateat Landport logistics facilities
Electric power generated at Landport logistics
facilities

100%
11.55 million kWh/year

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

CSR | Environment

Efficient Use of Water Resources
Approach and Policies
The Nomura Real Estate Group uses large amounts of water resources in its business activities inJapan and overseas including the real estate business, urban development, and sports club
operation.
As shortages of water resources become increasingly severe around the world, there may besubstantial impacts on business in the future including risks in overseas business, higher costs forimported materials in conjunction with water shortages and water pollution, and difficulty
procuring water as a result of climate change and abnormal weather. The Group is aware that thisis a key management issue.
Based on this understanding, the Group is working with design and construction companies andother suppliers to make capital investments and provide products and services that lead to theefficient use of water resources.

Management
Management Structure
Nomura Real Estate Holdings executive vice president and Group COO has been made responsible
for this issue for the Group, and the entire Group is working together to promote the efficient use
of water resources.
In addition, the CSR Committee, which comprises Nomura Real Estate Holdings and Group
company directors and others and is chaired by the Nomura Real Estate Holdings executive vicepresident, deliberates on and decides related policies and action plans.
Starting in fiscal 2018, targets regarding efficient water resource use were set, and the Committee
is monitoring progress.

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Targets
The Group is working to reduce its water use.

Introductionof water-saving devices upon new construction and when
performing renovations
Water and hot water saving devices have been made standard equipment when developing
housing, office buildings, retail facilities, logistics facilities, and other structures in accordancewith its design and construction standards and quality manuals.
In addition, fixtures are systematically replaced with water-saving devices when performing
renovations.

Performance
Promotion Measures
Fiscal 2017 performance against the set targets was as set forth below.

Reduction in Water Use

FY 2014
1,449
0.986

Public water use (1,000 m³ per year)
Water use intensity (m³/m² per year)

FY 2015
1,463
1.007

FY 2016
1,397
0.870

FY 2017
1,766
1.127

* Environmental data covers facilities subject to reporting under the Act on the Rational Use of Energy (in the 2017 fiscal
year, 184 facilities with a total of 1,592,806.91 m2).However, data concerning waste volume and water use covers only
some facilities.(Waste volume: 114 facilities with 1,395,411.05 m2; water use 163 facilities with 1,566,969.01 m2)
62Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

CSR | Environment

Consideration for Biodiversity
Responses to climate change
In the course of constructing and demolishing building and procuring construction and raw
materials in real estate and urban development, the Nomura Real Estate Group has an impact onsurrounding natural environments and ecosystems. In many aspects such as the formation of
scenic views and creating comfortable living environments, we enjoy the benefits of the naturalenvironment and ecosystems, and the loss of biodiversity poses risks of harming the living andbusiness environments of stakeholders including customers (residents, tenant companies, andfacility users).
Based on this understanding, the Group works with design and construction companies and othersuppliers to minimize impacts on biodiversity through real estate development and materials
procurement that achieves harmony with nature.

Management
Management Structure
Nomura Real Estate Holdings executive vice president and Group COO has been made responsible
for these issues for the Group, and the entire Group is working together to address biodiversity.
In addition, the CSR Committee, which comprises Nomura Real Estate Holdings and Group
company directors and others and is chaired by the Nomura Real Estate Holdings executive vicepresident, deliberates on and decides related policies and action plans.
Starting in fiscal 2018, targets regarding consideration for biodiversity were set, and theCommittee is monitoring progress.

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Targets
The Group seeks to acquire biodiversity certification (ABINC,*1 JHEP,*2 SEGES*3) for new
construction and owned buildings.
*1 ABINC (Association for Business Innovation in harmony with Nature and Community) certification: A program thatassesses and certifies apartment buildings, office buildings, and other structures regarding efforts to create biodiversity
friendly green areas in accordance with the Guidelines for Sustainable Business Sites published by the Japan BusinessInitiative for Biodiversity (JBIB).
*2 JHEP (Japan Habitat Evaluation and Certification Program): A program that quantitatively assesses and certifies efforts
to contribute to the preservation and restoration of biodiversity operated by the Ecosystem Conservation Society Japan.
*3 SEGES (Social and Environmental Green Evaluation System series): A green certification program operated by theOrganization for Landscape and Urban Green Infrastructure to comprehensively and objectively assess social andenvironmental functions created from the preservation of corporate green spaces and environmental communication.
※

Consideration
Procurement for Biodiversity in Design, Construction, and Raw Materials
The Group established the Nomura Real Estate Group CSR Procurement Guidelines. Goingforward, we will work with suppliers to give consideration to biodiversity.
【Nomura Real Estate Group CSR Procurement Guidelines (excerpt of sections dealing withbiodiversity)】

Endeavor to implement development and greening, taking into consideration thesurrounding environment and biodiversity.
When procuring raw materials, take into consideration the conservation of
biodiversity and sustainable use of resources. In particular, when procuring woodand wood products, take due care not to use illegal logged timber and endeavor touse wood that has been produced by sustainable methods, such as recycled woodand certified wood.

Green Areas and Tree Planting in Consideration of the Surrounding Environment
The Group implements building site plans and tree planting plans in its real estate development
and urban development activities with consideration not just for the comfort of customers andlocal residents, but also for the surrounding environment and ecosystems.

64Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)【Main Points of Tree Planting Plans that Consider Biodiversity】

Improving green coverage rates through effective use of bushes and tall trees
Cool spots created by tall trees
Continuity with neighboring green areas and consideration for their ecosystems
Maintenance of vegetation and green areas by experts

Performance
Promotion Measures
Fiscal 2017 performance against the set targets was as set forth below.
* Unless otherwise indicated, the scope of reporting is the Group.

Acquisition of Biodiversity Certification (ABINC/JHEP/SEGES)
Number of Biodiversity Certifications Acquired in Fiscal 2017
Number of Certifications Acquired for Newly
Developed Properties

FY 20174

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List of Projects that Acquired Certification

Certification
Name

Property

ABINC【FY 2017】
・PROUD City Kichijoji (condominium in Mitaka City, Tokyo)
・Hino City Project (condominium in Hino City, Tokyo)
・Musashino Koganei Project (condominium in Koganei City, Tokyo)
PROUD Season Inagi Minamiyama【Ongoing】
・Yokohama Business Park (offices and other facilities in Yokohama City,
Kanagawa Prefectur
・PROUD Kokubunji (condominium in Kokubunji City, Tokyo)
・PROUD City Musashino Mitaka (condominium in Musashino City,
Tokyo)
・Roka Koen The Residence (condominium in Setagaya-ku, Tokyo)

JHEP【Ongoing】
・PROUD City Musashino Mitaka (condominium in Musashino City,
Tokyo)SEGES【Ongoing】
・Yokohama Nomura Building (office building in Yokohama City,
Kanagawa Prefectur
・PROUD City Urawa (condominium in Saitama City, Saitama
Prefecture)

PROUD City Musashino Mitaka Acquires ABINC and JHEP Certifications
The Group obtained ABINC certification (Association for Business Innovation in harmony with
Nature and Community) and AA rank certification under JHEP (Japan Habitat Evaluation andCertification Program) for PROUD City Musashino Mitaka (Musashino City, Tokyo) for plans thatgive consideration to the preservation of the abundant natural environment and ecosystems in
Musashino City.

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Musashino Forest Restored at PROUD Kokubunji

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

The Group is working to preserve and restore existing green areas on thesite of PROUD Kokubunji as the Musashino Forest.
When restoring the Musashino Forest, all the trees were surveyed, and a
The Musashino
decision was made to remove those trees that are invasive or do not suit
Forest prior tothe original ecosystem and to retain a total of 91 trees.In addition, trees that development
are frequently seen in the region were added to restore the forest as amodern satoyama where people can pass the time enjoyably.
These measures were implemented in accordance with ABINC (Associationfor Business Innovation in harmony with Nature and Community), and
ABINC certification was subsequently obtained.

Project
Park to Create Firefly Habitats in the Yokohama Business
The Group has been conducting an exhibit of Urban Design for Firefly
Habitats every year since 2008 at the Yokohama Business Park (YBP)
A nature observation(Yokohama City, Kanagawa Prefecture) in cooperation with Yokohama
program for local
National University and tenant companies.
children
Firefly observation events for local residents and hands-on rice planting
programs for local elementary school students are offered, and thebusiness park has become a site for considering and learning aboutbiodiversity and environmental problems together with local residents.
Yokohama Business Park acquired certification for consideration ofconserving biodiversity under ABINC certification program (urban/SC
version) of the Association for Business Innovation in harmony with Nature
and Community (ABINC).

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CSR | Environment

Appropriate Resource Use and Pollution
Prevention
Approach and Policies
The Nomura Real Estate Group uses considerable resources throughout the life cycles of buildings
in its real estate business and urban development business activities and necessarily disposes ofcertain waste materials.
In addition, the use of chemical substances in real estate can have an impact on the naturalenvironment as well as customers health. Accordingly, proper use is essential.
Against the backdrop of rising concerns regarding the depletion of natural resources and theperception of the generation of large amounts of waste and the resulting pollution as social issues,
the Group is aware that the appropriate use of resources and measures to reduce the amount ofwaste generated are its responsibility.
It is essential that these measures be undertaken not only by the Group independently, but incooperation with customers (residents, tenant companies, facility users), suppliers, and otherstakeholders.
The Group is working to reduce its environmental impact by reducing waste, properly managing
chemical substances, and appropriately using resources with consideration for sustainability.

Management
Management Structure
Nomura Real Estate Holdings executive vice president and Group COO has been made responsible
for these issues for the Group, and the entire Group is working together to promote appropriate
resource use and pollution prevention.
In addition, the CSR Committee, which comprises directors of Nomura Real Estate Holdings andGroup companies and others and is chaired by the executive vice president of Nomura Real Estate
Holdings, deliberates on and establishes related policies and action plans.
Starting in fiscal 2018, targets regarding appropriate resource use and pollution prevention wereset, and the Committee is monitoring progress.

68Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Targets
The Group has set the following two targets to promote appropriate resource use and pollution
prevention.
Reduction in Waste Discharge
Encourage the use of domestic / certified lumber

Responses Regarding Substances of Environmental Concern
The Group takes appropriate action to prevent environmental impacts and detrimental healtheffects caused by soil contamination and chemical substances.

Soil Contamination Surveys
When acquiring land, the Group investigates the history of use of the site, and if soil contamination
is suspected, hires specialists to conduct soil surveys.If soil contamination is found, we takeappropriate measures including removal and containment of the contaminated soil in accordancewith the Soil Contamination Countermeasures Act and other relevant laws and regulations.

Proper Management and Reduced Usage of Chemicals
When developing residences, office buildings, commercial facilities, and so on, the Group uses
construction materials with four-star ratings (the highest rating) for formaldehyde emissions inaccordance with its Design and Construction Standards and Quality Manuals.
In addition, we require that construction companies submit quality control check sheets andmeasure the five substances designated as specified measurement substances under the Housing
Quality Assurance Promotion Act (formaldehyde, toluene, xylene, ethylbenzene, and styrene) at
the time of completion of construction.

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Appropriate Asbestos Measures and Ongoing Monitoring
The Nomura Real Estate Group handles asbestos found during demolition work with the utmost
caution and care by cordoning of affected areas and ensuring regular third-party testing todetermine presence and concentration. We also conduct continuous monitoring to ensure that noproblems exist.

Reduction and Appropriate Management of Waste Discharge
The Group uses highly durable materials with long lifespans and implements appropriate
management and repair plans to increase the lifespans of buildings and reduce waste discharge
throughout the life cycles of products and services.

Collaboration with Suppliers
The Group established the Nomura Real Estate Group CSR Procurement Guidelines.Going forward,
we will continue working with suppliers to reduce impact on the environment.
【Nomura Real Estate Group CSR Procurement Guidelines (excerpts of related provisions)】

Endeavor to appropriately manage hazardous chemicals and reduce the amounts
used.
Endeavor to reduce and appropriately manage waste.
When procuring raw materials, take into consideration the conservation of
biodiversity and sustainable use of resources.In particular, when procuring woodand wood products, take due care not to use illegal logged timber, and endeavor touse wood that has been produced by sustainable methods, such as with recycledwood and certified wood.

70/Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Priority theme

Community
The Nomura Real Estate Group is cognizant of important social issues such as dysfunction andloss of vitality and weakening social ties in communities resulting from the low birthrate, aging
of society, increases in vacant residences, and other factors. Accordingly, we seek to foster ties
among customers and local communities and support community development throughconstruction and design related initiatives and operation and management services.Throughthese efforts, we are promoting effective mutual assistance during emergencies and therevitalization of regions and communities and contributing to the creation of harmonious
societies.

Consideration for Communities and Support for Revitalization ........ 73

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

CSR | Society | Community

Consideration for Communities and Support
for Revitalization
Approach and Policies
The Nomura Real Estate Group believes that communities that can function in a healthy mannerand take the initiative in urban development are essential for urban development that is sociallyand environmentally sustainable.
We are aware that, because of this, dysfunction and loss of vitality in communities as a result of
shrinking populations, low birth rates, the aging of society, increases in vacant residences,
depopulation, and other factors as well as the weakening of the foundations of urban life are
critical social issues.
Based on this awareness, the Group works with governmental bodies, NPOs, and suppliers to
expand plans and designs that can revitalize communities. We also support community
development and revitalization through initiatives in property operation and management.
When conducting urban development, we take into consideration the impact on the existing living
and business environments in the region and endeavor to create ongoing and trusting
relationships.

Management
Management Structure
The officer responsible for quality management and architectural design has been put in charge ofthis issue for the Group, and we are carrying out measures to consider and support therevitalization of communities.
In addition, the CSR Committee, which comprises Nomura Real Estate Holdings and Group
company directors and others and is chaired by the Nomura Real Estate Holdings executive vicepresident, deliberates on and decides related policies and action plans.
Starting in fiscal 2018, targets were set regarding consideration of and support for therevitalization of communities, and the Committee is monitoring progress.

73Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Targets
The Group has set the following two targets regarding consideration of and support for therevitalization of communities.
Expand and improve designs that support revitalization of communities
Operation and management that supports community revitalization

Plans and Designs that Revitalize Communities
The Group promotes plans and designs that support the development and community
revitalization so that customers including residents and tenant companies can develop
communities over the long term after they take up occupancy.

100 Design Techniques for Condominium
Communities
The Group formulated the 100 Design Techniques for
Condominium Communities (the “100 Design Techniques )through an industry-academia joint research project with thegraduate school of Japan Women s University and reflects
An inner courtyard designed based
them in condominium product planning.
on the 100 Design Techniques
The 100 Design Techniques organize plans and designs forrevitalizing communities based on the results of surveys on
the status of use of common areas in condominiums
developed by the Group and surveys of livability satisfaction.
The objective is to create comfortable communities whereresidents respect individual lifestyles of others and cansupport one another during emergencies such as in the eventof a disaster.

74

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Condominium Library with 7,000 Books
The Group established a library at the PROUD Ota Rokugo(located in Ota-ku, Tokyo) with the aim of promoting
communication among residents.
The library adopts a system of replacing books according to
the age composition and preferences of residents based on
the concept of a library that grows in tandem with residents.

The library has 7,000 books andother publications, the same scale
as a local public library

Tenant-Only Community Floors
At the Shinjuku Nomura Building (where our headquarters andseveral Group companies locate, in Shinjuku-ku, Tokyo) andthe Hamamatsucho Building (located in Minato-ku, Tokyo),
the Group created community floors for the exclusive use by
NEON, the community floor at theofficers and employees of tenant businesses and theGroup.The aim is to increase options for places for internal and Shinjuku Nomura Building
external interactions and working, and the spaces are used fordining, co-working, and holding events.

Building Communities through Urban Development
The Group believes that local communities that can function in a healthy manner and take theinitiative in urban development are essential for sustainable urban development.Based on this,the Group establishes tie-ups with NPOs, governmental bodies, and local communities starting in
the development stage to supports community development and revitalization.

Community-Driven Urban Development in Minamiyama
When developing PROUD SEASON Inagi Minamiyama and PROUD CITY Minamiyama (both locatedin Inagi City, Tokyo), the Group formed a tie-up with Area Management Minamiyama, a local
general incorporated association, to undertake community-driven urban development.We
implemented a variety of measures in cooperation with new residents, local landowners,
businesses, and shops.
75

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)【Objectives】

Enhance the appeals and value of the
Minamiyama Higashi region of Inagi City
Preserve green areas and develop the town andgreen spaces
Create a sustainable, recycling-based
community【Main Activities】
・Land use projects
・Satoyama restoration
Increase the town s asset projects
value and create
Restore forests, andattractive sceneryproduce wood pellets
・Agricultural experience (fuel) from thin trees
projects
・Park development
support projects
Conduct hands-on
agricultural projects that Utilize parks within theallow people to enjoy project site
Inagi s natural
・Community
environment
development support
・Green space
projects
development projects Create opportunities for
Plant trees in the town interaction through tieincluding trees along
ups with local community
roads
associations

Operation
Management that Supports
Communityand
Revitalization
The Group also holds social events for residents and tenantsbusinesses, issues newsletters and engages in other initiatives
to help customer communities function in a healthy mannerover the long term after taking up occupancy.In fiscal 2017, we A networking event for PMO tenant
held 40 pre-occupancy housewarming events at residences as businesses
well as 100 tenant networking events at office buildings.
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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Condominium Community Guide Released
The Group distributes the Condominium Community Guide to management associations. The
Guide is a pamphlet that includes know-how regarding community activities from planning to
execution.

Development of Communities With Local Ties
The Group works to develop communities with local ties so that customers including residents
and tenant businesses can form trusting relationships with local residents over the long term after
taking up occupancy.

PROUD Kokubunji
The Group made a plan to allow local residents to access toportions of the cafe, park, and forest at the PROUD Kokubunji
condominium to promote interaction between residents andthe local community.The cafe can be used as a space for social
interaction such as holding workshops, while the park can also Biyori multi-purpose café
function as a disaster preparedness site.

OUKAS Funabashi
The Group periodically makes the fitness gym and cafe at
OUKAS Funabashi, a senior housing facility with support
services, available to local residents as a hub for healthsupport and multi-generation social interaction.

77

Provision of Health Programs to
Local Residents

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Performance
Promotion Measures

Fiscal 2017 performance against the set targets was as set forth below.
* Unless otherwise indicated, the scope of reporting is the Group.

Expand and improve designs that support revitalization of communities
FY 2017

Newly constructed residential properties withfacilities that contribute to local communities*

4 properties* Results are for Nomura Real Estate Development

Measures in Operation and Management that Support Community Revitalization
FY 2017

Number of pre-occupancy housewarming
events held at residential properties
Number of networking events held for tenantbusinesses
Number of community social events held

40 events
100 events
29 events

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Priority theme

Health and Well-being
The Nomura Real Estate Group is aware that the declining birth rate, aging population,
globalization, and diversification of individual values and lifestyles are important social issues.
We engage in communication with stakeholders and provide products and services thatenable a wide range of individuals to lead healthy and comfortable lives regardless of personal
attributes.Through these measures, we are contributing to the realization of a healthy andvibrant society with mutual respect for diversity.

Responding to an Aging and Diversifying Population and Supporting Health ......... 80
Improving Customer Satisfaction and Comfort.............................................. 85

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

CSR | Society | Health and Well-Being

Responding to an Aging and Diversifying
Population and Supporting HealthApproach and Policies
The Nomura Real Estate Group creates the buildings and spaces that serve as foundations
supporting the lives and businesses of stakeholders including customers (residents, tenantbusinesses, facility users) and local communities and subsequently provides operation,
management, and services over the long term.
As ages, culture, language, and other structural elements change as a result of the low birthrate,
aging population, globalization, and diversification of individual values, and lifestyles andstakeholders become increasingly diverse, providing products and services that facilitate healthy
and comfortable living regardless of the varied attributes of users has become an important
responsibility of the Group.
Based on this awareness, the Group cooperates with suppliers, universities, healthcare
institutions, NPOs, and other organizations to support health and increases in healthy lifespan by
responding to the aging and diversifying population through the use of universal designs andengaging in the fitness business.

Management
Management Structure
The officer responsible for each business unit has been put in charge of this issue for the Group,
and we are carrying out measures to respond to the aging and diversifying population andsupport health.
In addition, the CSR Committee, which comprises Nomura Real Estate Holdings and Group
company directors and others and is chaired by the Nomura Real Estate Holdings executive vicepresident, deliberates on and decides related policies and action plans.
Starting in fiscal 2018, targets were set regarding responses to the aging and diversifying
population and supporting health, and the Committee is monitoring progress.

80Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Targets
The Group has set the following two targets to respond to the aging and more diverse populationand support health.
Promote universal designs
Support health and promote increases in healthy lifespanPromoting Universal Design
In addition to complying with laws and regulations such as the Act on Promotion of SmoothTransportation, etc. of Elderly Persons, Disabled Persons, etc., the Group established and follows
universal design standards to supplement its Design Standards and Quality Manuals. The Group
promotes universal design with the aim of providing products and services that can easily be usedby a wide range of individuals irrespective of not only disability, but also differences in age, body,and language.
【Seven Principles of Universal Design】

Equity: Facilities are equally usable by everyone
Diversity: Facilities can be used in a variety ofways
Simplicity: Methods of use are easy tounderstand
Perceptible information: Information is easily
conveyed
Safety: Facilities do not pose any risks
Efficiency: Facilities can be easily used with low
physical effort
Operability: Facilities are easy to operate

81

Examples of Universal Design

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Barrier Free and Quality of Life Guidebook
Nomura Real Estate Group and the Sonoda Lab of Meiji University Graduate
School created the Barrier Free and Quality of Life Guidebook under anindustry-academia joint research project. The Guidebook is used incondominium design.
The Guidebook identifies plans for seniors, wheelchair users, and thehearing or visually impaired from examples of custom-built condominium
designs and organizes key design points.

An example ofdwelling caring forseniors andwheelchair users

Resident Manuals for Foreign Residents
The Group distributed English, Chinese, and Korean
versions of a Resident Manual for foreign residents to
explain rules and etiquette when living in acondominium.

Chinese edition

Korean edition

Measures to Support Health and Promote Increases in Healthy Lifespan
The Group is responding to the aging population and increase demand for health care services
and contributing to the support of good health and increases in healthy lifespans of stakeholders
by operating fitness businesses that promote maintenance and improvement of physical function
and by developing senior housing with support services.

Development of Senior Housing with Support Services
The Group is undertaking development of OUKAS senior housing with support services topromote increases in healthy lifespans by seniors and help seniors achieve autonomy in their dayto-day lives.OUKAS Funabashi opened in fiscal 2017. By providing healthcare programs and otherservices not only to residents, but also to the local community, the facility is playing a role as a
hub for health support and multi-generation interaction for the entire community.

82

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)【Details of OUKAS Services】

24-hour monitoring system (confirmation ofsafety, general and health consultations,emergency response)
Installation of life rhythm sensors in eachresidence
Health checkups and counseling by experts
using information and communications
technology (ICT)
Provision of health promotion programs
through counseling
Provision of programs to maintain vitalfunctions and prevent illness
Provision of health programs for residents andthe local community

Health counseling using ICT

Promoting Increases in Healthy Lifespan through the Fitness
Business
At Megalos sports clubs, the Group created Club 100” based on the concept An exercise classof healthy until 100” and offers exercise programs and health seminars.As operated throughof the end of June 2018, a total of 3,315 members had registered.
outsourcing from a
Through outsourcing from local governments, the Group also offers
local government
exercise programs for individuals aged 65 years or older who are at risk ofdeterioration of vital functions.

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

Performance
Promotion Measures

Fiscal 2017 performance against the set targets was as set forth below.

Promoting Universal Design
The Group developed real estate in compliance with laws and regulations such as the Act on
Promotion of Smooth Transportation, etc. of Elderly Persons, Disabled Persons, etc. as well as
Design Standards and Quality Manuals.

Support health and promote increases in healthy lifespanFY 2017Development of senior housing with support
services (cumulative)

125 units

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CSR | Society | Health and Well-being

Improving Customer Satisfaction andComfortApproach and Policies
The Nomura Real Estate Group constructs buildings and spaces that serve as foundations for the
lives and businesses of stakeholders including customers (residents, tenant businesses, facility
users) and local communities and subsequently provides operation, management, and services
over the long term.
As social structures change and individual values and lifestyles diversify, communicating withstakeholders and providing products and services that reflect their opinions is an important
responsibility of the Group.We believe that this will lead not only to higher customer satisfaction,
but also the provision of socially and environmentally sustainable products and services.
Based on this awareness, the Group cooperates with suppliers, universities, healthcare
institutions, NPOs, and other organizations to raise customer satisfaction and comfort.

Management
Management Structure
The officers responsible for each business unit have been put in charge of these issues for theGroup and carry out measures to raise customer satisfaction and comfort.
In addition, the CSR Committee, which comprises Nomura Real Estate Holdings and Group
company directors and others and is chaired by the Nomura Real Estate Holdings executive vicepresident, deliberates on and decides related policies and action plans.
Starting in fiscal 2018, targets were set regarding improvement of customer satisfaction andcomfort, and the Committee is monitoring progress.

85

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Targets
The Group has set the following two targets to improve customer satisfaction and comfort.
Improve communication to raise customer satisfaction
Enhance comfort of customers

Integrated Development, Sales, and Management System
In an effort to provide high-quality products and services and raise customer satisfaction, theGroup has integrated development, sales, and management and provides integrated services
including land acquisition, architectural design, marketing and sales, and post-occupancy
management and after-services.The opinions of customers are reflected in business
improvements and product planning.

Communication for raising customer satisfaction
The Group communicates with customers through questionnaires and interviews.The results ofquestionnaires are used in business improvements and the next generation of products andservices.

86Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

Livability Satisfaction Survey
The Group conducted a Livability Satisfaction Survey of PROUD condominium residents one year
after they moved in.In fiscal 2017, approximately 2,000 households responded to the survey, andmore than 80% of customers indicated that they were extremely satisfied or satisfied.

Results of Livability Satisfaction Survey Reflected in Products and Services
The Group investigated improvement measures based on the opinions and requests expressed in
the Livability Satisfaction Survey, and some opinions and requests relating to design werereflected in Design and Construction Standards and Quality Manuals.
In fiscal 2017, we received opinions and requests relating to elevators, parking facilities, garbage
collection areas, and other common areas, and we investigated improvement measures.

Measures Towards Good Design Award
The Group undertakes measures towards Good Design Award with the aim of providing sociallyand environmentally sustainable products and services.
The Good Design Awards presented by the Japan Institute of Design Promotion are evaluated fromthe perspective of whether a design can enrich lives and society.
In fiscal 2017, the Group received awards for eight projects. This was the 16th consecutive year inwhich the Group won Good Design Awards.
【Award-Winning Projects】

Mi-Liful* Selected for Best 100
PROUD CITY Asagaya
PROUD CITY Kaga Gakuen-dori
PROUD Chiyoda-AwajichoLighting plan guidelines
Condominium library that grows with residents
PROUD FLAT Nakaochiai
BAYZ TOWER & GARDEN87

PROUD CITY Asagaya

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

Design Review Contest

Every six months, the Group invites outside architects and conducts a Design Review, an in-house
contest that recognizes residences with excellent plans and designs from among the detached andlease residences completed during that period.
【Evaluation Points】

Plan and design
Responses to social and environmental issues
Community development
Contribution to the local community

88

Lighting of detached houses
designed according to the Lighting
Plan Guidelines

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Performance
Promotion Measures

Fiscal 2017 performance against the set targets was as set forth below.
* Unless otherwise indicated, the scope of reporting is the Group.

Improve Communication to Raise Customer Satisfaction【Questionnaires Conducted in Fiscal 2017】
・Residential Development Business Unit
Livability Satisfaction Survey
After-Service Questionnaire・Leasing Business Unit
Tenant Business Satisfaction Survey
Leased Condominium Residents Survey

・Property & Facility Management Business
Unit
Condominium Board of Directors Questionnaire
Fitness Gym Customer Questionnaire
・Brokerage Business Unit
Contracting Party Satisfaction Survey

Improvements in Comfort
FY 2017
8 projects

Number of Good Design Awards Won

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Promotion Foundation

Human Capital
The Nomura Real Estate Group pursues Wellness Management so that every officer and employee can perform hisor her work in good physical and mental health and with enthusiasm, leading to sustainable corporate growth, sothat we can create a sustainable society, continue our business activities, and raise corporate value.We promote
Wellness Management with the understanding that ensuring the health and safety of employees and suppliers is
an important management issue.We are aware that innovation generated by diversity is important forcontinuously creating new value, and we strive to create fair work environments that promote diversity andfacilitate meaningful work so that human capital with varied perspectives and ways of thinking can demonstrate
their individuality and full capabilities regardless of individual attributes.

Health and Safety of Employees ....................................................................................................................................................91
Promotion of Diversity .....................................................................................................................................................................97
Creating Fair Work Environments with Meaningful Work .................................................................................................... 102
Improving Human Capital ........................................................................................................................................................... 108
Ensuring Supplier Safety............................................................................................................................................................... 112

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CSR | Society | Human capital

Health and Safety of Employees
Approach and Policies
The Nomura Real Estate Group is aware that the physical and mental health and safety of
employees are essential for a company s business to grow continuously and sustainably.Based on
this understanding, we made working with enthusiasm and achieving wellness a part of theWhat We Value Nomura Real Estate Group Action Guideline, and we undertake Wellness
Management so that all employees can perform their work in good physical and mental healthand with enthusiasm.
In addition, the Nomura Real Estate Group Code of Action provides that the Group will strive tomaintain and improve sound and pleasant workplace environment. Accordingly, we implement
comprehensive health and safety management, take measures to prevent overworking andoccupational accidents, and take other action to establish workplace environments that ensure
employee mental and physical health and safety, and engage in communications to raiseawareness and educate employees.

Group Policy on Wellness Management
The Nomura Real Estate Group pursues Wellness Management so that every officer and employee
can perform his or her work in good physical and mental health and with enthusiasm, leading tosustainable corporate growth.
Top management continuously disseminates information regarding the above policy and works toraise understanding and steadily put the policy into practice.

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Management
Management Structure

The Nomura Real Estate Holdings officer responsible for the Group Human Resources Department
has been put in charge of this issue for the Group and carries out measures relating to employee
health and safety.In July 2018, the Wellness Promotion Section was established in the Nomura
Real Estate Holdings Group Human Resources Department. The Department works to reinforce
measures for ensuring the health and safety of employees.
In addition, the CSR Committee, which comprises Nomura Real Estate Holdings and Group
company directors and others and is chaired by the Nomura Real Estate Holdings executive vicepresident, deliberates on and decides related policies and action plans.
Starting in fiscal 2018, targets were set regarding employee health and safety, and the Committee
is monitoring progress.

Targets
The Group has set the following four targets regarding employee health and safety.
Prevent overwork
Encourage employees to take paid vacation time
Implement comprehensive health management covering the physical and mental
health of employees
Prevent industrial accidents

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Health and Safety Improvements by Management

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

The officers responsible for human resources divisions at each Group company create
opportunities for dialogue with employees and take measures to improve workplaceenvironments.
In fiscal 2018, the Nomura Real Estate Holdings president and vice president held some 40
meetings with employees to discuss reducing working hours, raising productivity, and helping
employees achieve a good work-life balance.

Management of Statutory Overtime Work
Each month, the Nomura Real Estate Holdings Board of Directors receives reports on and confirms
the status of compliance with Article 36 agreements (agreements made pursuant to Article 36 of
the Labor Standards Act regarding overtime work and work on rest days) of each Group company.
In addition, the Nomura Real Estate Development Board of Directors receives reports on working
hours and the status of employees taking paid vacation time in each division and sharesinformation on related issues each month.

Health and Safety Risk Management
The Group endeavors to identify issues relating to employee health and safety in advance.
Nomura Real Estate Development holds wellness conferences once every three months. The headsof divisions and departments who are supervisors share information regarding employees who
require health care with the responsible officers and officer responsible for the Human Resources
Division.In addition, the responsible officers take measures to determine the health and safety
status of the heads of divisions and departments who are supervisors and share information
regarding issues with the Human Resources Division.

Improving Health Management
The Group requires employees to undergo thorough medical examinations and checkups, andestablished a physical and mental health consultation hotline within the Health Consultation
Office, which is staffed by full-time physicians and nurses, to provide access to outside specialists
for consultations. The Group takes measures to support the good physical and mental health of its
employees.
In fiscal 2017, the rate of employees undergoing medical examinations and checkups was 100%.

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

Prevent Overwork

As a part of the work style reforms that the Group initiated in fiscal 2017, we are implementing avariety of programs intended to prevent overwork by employees.
【Main Measures】

Working hours made visible
No overtime days created
Quitting time declaration program
PCs turned off at 8 p.m.
Various measures to encourage employees to take vacation time such as allowing
employees to take the day off on their birthdays

In addition, employees who work more than a certain number of hours in a single month arerequired to check their physical condition using a Cumulative Fatigue Self-Diagnosis Checklist andprovide feedback to a supervisor. Other measures are also taken to ensure good health such as
meeting with an industrial physician.

94Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

Performance
Promotion Measures

Fiscal 2017 performance against the set targets was as set forth below.
* Unless otherwise indicated, the scope of reporting is the Group.

Prevent overwork
Items
Average statutory overtime
work (hours/month)*1

FY 2016

FY 2017

24.46

19.66

Encourage employees to take paid vacation time
Items
Paid vacation time use rate(%)*2

FY 2016

FY 2017

58.62

59.55

Implement comprehensive health management covering the physical and mental
health of employees
Items
Checkup and medical
examination rate (%)*1

FY 2016

FY 2017100

100

FY 2016

FY 2017

0

1

-

0.38

Prevent industrial accidents
Items
Number of employee
occupational accidents
resulting in death*1
Absentee rate (%)*195

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)*1 Not including Nomura Real Estate Asia Pte. Ltd., Nomura Real Estate Hong Kong Limited, and Nomura Real EstateConsulting (Beijing) Co., Ltd.
*2 Nomura Real Estate Development results

Responses to Incidents
On December 25, 2017, the Nomura Real Estate Development Head Office and four regional offices(Kansai Branch, Nagoya Branch, Sendai Branch, and Fukuoka Branch) received a recommendation
for corrective action and guidance from the Labor Standards Inspection Offices with jurisdiction
regarding the discretionary work system for planning work that applied to some employees.
We take this matter extremely seriously and are conducting comprehensive labor-management
and taking measures to improve workplace environments so that this type of incident does notoccur again.
For further details, refer to Appropriate Labor Management and Measures for Improving
Workplace Environments .

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CSR | Society | Human Capital

Promotion of Diversity
Approach and Policies
The Nomura Real Estate Group believes that innovation generated by diversity is essential for thecontinuous creation of new value for society.
Accordingly, we established the Nomura Real Estate Group Code of Action,* which stipulates
respect for fundamental human rights and prohibits discrimination and harassment. We also
conduct diversity management to ensure equal hiring and employment for all persons regardlessof individual attributes so that all employees can fully demonstrate their diverse individuality andcapabilities.
In addition, the Nomura Real Estate Holdings Basic Corporate Governance Policy provides that theBoard of Directors shall be made up of diverse directors with varied knowledge, experience, andskills.
* The Nomura Real Estate Group Code of Conduct provides in Article 20 that the Group shall respect the fundamental
human rights 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, and so on.

Management
Management Structure
Nomura Real Estate Holdings established the Group Human Resources Department, and theofficer responsible for the Group Human Resources Department has been put in charge of thisissue for the Group and carries out measures relating to diversity.
In addition, the CSR Committee, which comprises Nomura Real Estate Holdings and Group
company directors and others and is chaired by the Nomura Real Estate Holdings executive vicepresident, deliberates on and decides related policies and action plans.
Starting in fiscal 2018, targets were set regarding diversity, and the Committee is monitoring
progress.

97

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Targets
The Group has set the following three targets regarding diversity.
Promote employment of women
Promote diverse work styles
Hire and utilize diverse human capital

Promoting Work Style Reforms and Diverse Working Styles
In April 2017, the Group established the Nomura Real Estate Group Work Style Reform Promotion
Committee with the group COO as its chair and business unit heads and others as members.The
Committee implements the following measures to achieve employee happiness and corporate
growth.
【Main Measures】
・Promoting diverse work styles
・Establishing telecommuting programs (including working from home)*・Creating satellite offices
・Expanding flex time working programs*
・Encouraging employees not to work on holidays and to take vacation time・Setting regular days off at sales offices*・Encouraging employees to take leave such as making employee birthdays a day off
・Raising awareness regarding shorter working hours
・Making working hours visible
・Creating work end time declaration program
・Establishing no overtime days
・Introducing productivity assessments*
・Turning off PCs at 8 p.m.
・Support for childcare and nursing care・Creating staggered commuting time programs*
・Creating job position transition programs*
・Subsidizing a portion of babysitter expenses
・Creating paternity leave programs** New personnel programs created in fiscal 201798

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

Women s Empowerment Initiatives

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.As of April 1, 2018,
women accounted for 29.71% of employees, 5.33% of managers, and 15.01% of junior managers.** Junior managers are candidates for promotion to manager in the near future.

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 child care or familycare.We provide information on and raise awareness of these programs on the Group intranet and
the Primer on Achieving a Good Work-Life Balance and are working to create workplaceenvironments that facilitate the use of these programs.
【Main Programs】

Childcare leave
Family care leave
Holiday childcare support program and subsidies for a portion of babysitter
expensesPaternity leave program
Reduced working hours for family care

Promoting the Hiring of Persons with Disabilities and Seniors
The Group actively hires persons with disabilities and seniors.
As of April 1, 2018, the Group employed 127 persons with disabilities, equal to 1.88% of the total
workforce.
In addition, we employed 404 employees aged 60 years or older (excluding part-time employees)

99Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

Performance
Promotion Measures

Fiscal 2017 performance against the set targets was as set forth below.
* Unless otherwise indicated, the scope of reporting is the Group.

Promote employment of women
Items
Female employee ratio(%)
Female manager ratio(%)
Female junior manager ratio(%)
Separation rates by sex(%)

FY 2015

FY 2016

FY 2017

27.74

28.60

29.75

4.81

5.38

5.45

-

14.8

15.08

-

-

Men: 3.57
Women: 4.46

Promote diverse work styles
Items
Childcare Leave Takers (men)Rate of reinstatement afterchildcare leave(%)
Nursing Care Leave Takers

FY 2015139（0）FY 2016
119（2）FY 2017
86（3）

-

-

92.59

1

2

4

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Hire and utilize diverse human capital
Items
Number of employees aged 60
years or older
Number of foreign employees
Rate of employment of
persons with disabilities(%)

FY 2015

FY 2016

FY 2017

383

434

404

-

7

14

1.85

1.97

1.90

* The rate of employment of persons with disabilities for fiscal 2017 is as of June 1, 2018.The rate covers Group companies
subject to the disabled persons employment system.

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CSR | Society | Human Capital

Creating Fair Work Environments with
Meaningful Work
Approach and Policies
The Nomura Real Estate Group believes that creating fair work environments where employees
can perform meaningful work is essential for employees to demonstrate their individuality andmaximum capabilities.
Accordingly, we promote the creation of workplace environments where employees can work withreassurance by pursuing fair employee evaluations and remuneration and equitable social
benefits and by respecting fundamental rights such as the freedom of association and right tocollective bargaining.We listen to the opinions of employees and strive to be a company where
employees can work with passion and find their work meaningful.

Management
Management Structure
Nomura Real Estate Holdings established the Group Human Resources Department, and theofficer responsible for the Group Human Resources Department has been put in charge of thisissue for the Group and carries out measures relating to the creation of fair work environmentswith meaningful work.
In addition, the CSR Committee, which comprises Nomura Real Estate Holdings and Group
company directors and others and is chaired by the Nomura Real Estate Holdings executive vicepresident, deliberates on and decides related policies and action plans.
Starting in fiscal 2018, targets were set regarding the creation of fair work environments withmeaningful work, and the Committee is monitoring progress.

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

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Fair Evaluations and Remuneration

The Group implements fair employee evaluation and remuneration programs by creating
mechanisms for the opinions of employees to be heard by human resource divisions andsupervisors and for communicating with employees.
・Target Management System
The Group introduced a target management system so that employees can take the initiativein their jobs and work with managers and supervisors towards achieving their targets.Everysix months, employees set their own targets with advice from supervisors, and bonuses arepaid 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 every six
months.
・Evaluation of Superiors and Career Development
Once a year, Nomura Real Estate Development employees complete a questionnaire
regarding the skills, performance, personality, and so on of their supervisors and submit thequestionnaires 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, andeven at Group companies that do not have labor unions, labor representatives and officers
responsible for human resource divisions hold periodic meetings and work to improve theworkplace environment.
Currently, Nomura Real Estate Development and Nomura Real Estate Partners have labor unions,and the labor union membership rate among career-track personnel is 46.78%.

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Communication with Employees
The Group communicates with employees so that employees can gain an accurate understandingof company policies regarding labor standards.Explanations are made to employees during theirinitial training regarding employment rules, personnel evaluation systems, and social benefits.
Rules, regulations, and so on are posted on the Group intranet so that all personnel can checkthem at any time.

Provision of Social Benefits
The Group provides various social benefits to employees such as childcare and family care
support and an employee shareholding program with the aim of creating fair work environmentswith meaningful work.
Main Social Benefits Provided by Nomura Real Estate Development
Social Benefits

Overview

Maternity leave

Six weeks prior to childbirth (14 weeks in the case of a multiple
pregnancy) and eight weeks after childbirth (with pay)

Childcare leave

Until the child reaches the age of three years

Family careleave to care forchildrenPreschool children: 5 days/year for one child and 10 days/year for two or
more children

Family careleave

Up to one year in total

Volunteer leave

Five days for volunteer activities related to a severe natural disaster

Mental healthsupport

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

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Social Benefits

Overview

Measures toensure good
healthAppointment of nurses and industrial physicians, implementation of
personnel interviews and medical examinations

Rehiring elderly
workers

Up to age 65 (one-year extensions)

Retirement
benefitprogram*

Payment of retirement benefits pursuant to a defined benefit pension
plan

Healthinsurance
association

High medical expenses, lump-sum childbirth benefit, injury and disease
benefit, comprehensive medical examinations, etc.

Allowances

Family allowance, reassignment allowance*, reassignment withoutfamily 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 is measured on a five-rank scale with regard to (1) sense of fulfillment concerning
work, (2) sense of adaptability concerning work, (3) satisfaction with the workplace, (4)satisfaction with superiors, and (5) loyalty to the company. In fiscal 2017, the total satisfactionlevel was 3.81 and the response rate was 95.1% (1,930 out of 2,028 eligible employees responded).
【Typical Questions】

Work (level of satisfaction, sense of burden, characteristics)
Workplace (issue, interpersonal relationships)
Superiors (issues, interpersonal skills)
Company (top management, personnel policies, organization)
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Fostering a Corporate Culture that Encourages Challenges
Nomura Real Estate Group Awards Presented

The Group has presented the Nomura Real Estate Group Awards since 2016 to foster a corporate
culture where employees are willing to tackle the challenges of value creation through innovation,encourage group-wide tie-ups, and raise individual and organizational motivation. Under thisprogram, exceptional businesses, products, and services of the year are recognized. In fiscal 2017,
award winners include the OUKAS senior housing with support services and the Attractive30
service that extends the life spans of condominiums and reduces the costs of large-scale repairs.
【Evaluation Criteria】

Reform and innovation
Increase in customer satisfaction
Group-wide tie-ups
CSR activities and social contribution
Continuity and perseverance

The OUKAS team, first placewinner of the Group Award 2018

Business Idea Proposal Program
In November 2017, the Group launched the Business Idea Proposal
Program, which allows all employees to propose new businesses, products, Business proposal
or services that go beyond the boundaries of their ordinary work at any
competition fortime.There were 24 entries in fiscal 2017, and 14 projects are currently instart-up companies
operation.
A start-up company business proposal competition was also held in fiscal
2017, and proposals for future collaboration were received from fivecompanies.

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Performance
Promotion Measures

Fiscal 2017 performance against the set targets was as set forth below.

Raise employee satisfaction
Nomura Real Estate Development Employee Satisfaction Survey Results

Items
Percentage of satisfied
employees (%)
Employee satisfaction level (5point scale)
Number of responses/numberof eligible employees
Response rate (%)

FY 2016
Men: 47.6
Women: 27.8
Overall: 41.1
Men: 3.91
Women: 3.61
Overall: 3.81

FY 2017
Men: 45.9
Women: 32.2
Overall: 41.5
Men: 3.88
Women: 3.66
Overall: 3.81

1,648∕1,738

1,930∕2,028

94.8

95.1

Responses to Legal and Other Violations
On December 25, 2017, the Nomura Real Estate Development Head Office and four regional offices(Kansai Branch, Nagoya Branch, Sendai Branch, and Fukuoka Branch) received a recommendation
for corrective action and guidance from the Labor Standards Inspection Offices with jurisdiction
regarding the discretionary work system for planning work that applied to some employees.
We take this matter extremely seriously and are conducting comprehensive labor-management
and taking measures to improve workplace environments so that this type of incident does notoccur again.
For further details, refer to Appropriate Labor Management and Measures for Improving
Workplace Environments .

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CSR | Society | Human Capital

Improving Human Capital
Approach and Policies
The Nomura Real Estate Group is aware that employees are a crucial management resource forcorporations and that human capital development is extremely important for continuous
corporate growth.Based on this understanding, the Group seeks to carry out the What We Value
Nomura Real Estate Group Action Guideline, and works to improve human capital.
We offer programs to enhance the qualifications and capabilities of each Group employee so thatevery employee can perform his or her work as a professional with a high degree of specialization.
The What We Value Nomura Real Estate Group Action Guideline

Client-first approach
Creating new value based on original ideas
Always being a challenger
Acknowledging our growth with society
Working with vigor and achieving wellness

Nomura Real Estate Development Basic Human Development Policies

Proactive medium-to-long-term human development that provides a focus forcareers
Human development that responds to change over time, fosters innovation, andsupports future management

108Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

The Qualities and Skills Nomura Real Estate Development Looks For

Professionalism: The ability to perform duties professionally in any field
Determination: The willingness and ability to work proactively based on personalconviction and to continue working until results are achieved
Judgment: Strategic thinking and decision making that exhibit an awareness ofconditions in the workplace and that lead to specific plans that produce results
Emotional intelligence: The understanding of personality characteristics andfeelings, and communication ability that maximizes potential within an
organization
Adaptability: A flexible outlook with the ability to think outside the box, and theenergy to create new value
Versatility: A range of skills such as analytical management and the ability todiscern changes in societyManagement
Management Structure
Nomura Real Estate Holdings established the Group Human Resources Department, and theofficer responsible for the Group Human Resources Department has been put in charge of thisissue for the Group and carries out measures for improving human capital.
In addition, the CSR Committee, which comprises Nomura Real Estate Holdings and Group
company directors and others and is chaired by the Nomura Real Estate Holdings executive vicepresident, deliberates on and decides related policies and action plans.
Starting in fiscal 2018, targets were set regarding the improvement of human capital, and theCommittee is monitoring progress

Targets
The Group seeks to reinforce human resource development so that it can further improve humancapital.

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)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 human resources development and best practices
and implement group-wide measures for human capital improvement.

Training Framework
The Nomura Real Estate Group promotes the You Can Do It (YCDI) skill development program
based on the idea that each employee should be a professional with a high degree of
specialization.
YCDI helps employees acquire real estate-related certifications, such as real estate transaction
specialist and real estate appraiser, and provides a variety of programs, including classes inlanguage, finance, and law, that are aimed at enabling employees to acquire a range of skills
necessary for a professional.

110Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

Performance
Promotion Measures

Fiscal 2017 performance against the set targets was as set forth below.
* Unless otherwise indicated, the scope of reporting is the Group.

Training Participation Performance
Items
Training hours per employee
Training expense per employee

FY 201712.53 hours¥59,482* Covers only mandatory training and does not include open and selective training or You Can Do It (YCDI) skill
development programs.

Group Joint Training
1
2
3
4
5
6
7
8
9

Training title

Subject ranks

New employee introductory
training
Newly promoted managerial
employees
Manager training
Newly promoted division
manager training
Group synergy training

Number of implementing
companies

Newly-hired employees

7 companies

Managerial employees

9 companies

Managers

4 companies

Division managers

1 company

Each Group company
Employees in their
Second-year training
second year
Employees in their third
Third-year training
year
guidance
Problem solving skill training Vocationalclass
New employee follow-up training Newly-hired employees

8 companies

111

8 companies
8 companies
6 companies
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CSR | Society | Human Capital

Ensuring Supplier Safety
Approach and Policies
The Nomura Real Estate Group performs important processes from materials procurement to civilengineering, 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 by raising awarenessregarding health and safety, performing checks, and implementing preventive measures.
In addition, the Nomura Real Estate Group CSR Procurement Guidelines (the CSR 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, and we require suppliers to implement comprehensive health and safety
management.

Management
Management Structure
The officers responsible for each business unit have been put in charge of this issue for the Groupand carry out measures to ensure supplier safety.
In addition, the CSR Committee, which comprises Nomura Real Estate Holdings and Group
company directors and others and is chaired by the Nomura Real Estate Holdings executive vicepresident, deliberates on and decides related policies and action plans.
Starting in fiscal 2018, targets were set regarding ensuring supplier safety, and the Committee ismonitoring progress.

112Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Targets
The Group works to ensure the safety of suppliers in accordance with the CSR Procurement
Guidelines and Construction Safety and Security Guidelines.

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 business.The
Group conducts health and safety training for construction contractors to raise awareness, andperforms inspections in major building construction processes to ensure the safety not just of
suppliers, but also of neighboring residents and local community members.
【Outline of the Construction Safety and Security Guidelines】

Prompt reporting duties
Individual and company information management
Crime prevention standards
Pre-construction checks
Temporary work plan checks
Accident prevention measures for demolition work
Accident prevention measures for heavy machinery work

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 &Safety with business partner companies.

Nomura Real Estate Partners holds the Supplier Council Meetings on Health &SafetyNomura 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 2017, theseCouncil Meetings were attended by 95 companies and 75 companies, respectively. Health andsafety awards were presented and announcements were made regarding worksite health andsafety measures.
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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Nomura Real Estate Heating and Cooling Supply Hosts Supplier Conferences on
SafetyNomura 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 2017, the Conference was attended by
19 companies.

Performance
Promotion Measures
Fiscal 2017 performance against the set targets was as set forth below.
Items
Number of companies
attending the Supplier Council
Meetings on Health & Safety of
the Property & Facility
Management Business Unit

FY 2016

FY 2017

191

188

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Promotion Foundation

Management Structure
The Nomura Real Estate Group is aware that reinforcing compliance and implementing risk management andcorporate governance are key management issues for establishing a sustainable society, continuing businessactivities, and increasing corporate value. Accordingly, we undertake these activities. Further, the Group conducts
its business activities while respecting the human rights of all people including customers, local communities,
employees, and suppliers.

Compliance ..................................................................................................................................................................................... 116
Risk Management .......................................................................................................................................................................... 121
Human Rights ................................................................................................................................................................................. 124
Improving Supplier Management.............................................................................................................................................. 128

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CSR | Management Structure

ComplianceApproach and Policies
The Nomura Real Estate Group has positioned compliance with laws, regulations, corporate codesof conduct, and so on as a key management issue and formulated the Nomura Real Estate Group
Code of Action as a compliance guide. In addition, Nomura Real Estate Holding established a Risk
Management Committee and Group Legal/Compliance Department, conducts ongoing educationand training for officers and employees throughout the Group, and provides advice, guidance, andsupport to Group companies.

116

The Nomura Real Estate Group Code of Action

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

The Nomura Real Estate Group has formulated a Code of Action to define fundamental rules thatGroup officers and employees must adhere to.

Ethical codes of Nomura Real Estate Group

Chapter 1 General provisions
Chapter 5 Relationship with officers andemployees
Article 1 (Purpose)
Article 2 (Positioning)
Article 20 (Respect for human rights ofArticle 3 (Definitions)
officers and employees)
Article 4 (Revision or abolition)
Article 21 (Maintenance and improvement ofwork environment)
Chapter 2 Basic position
Article 22 (Prohibition of insider trading)
Article 5 (Awareness and behavior as a
Article 23 (Sincere business activities)
member of society)
Article 24 (Operational records and reports)
Article 6 (Respect for basic human rights) Article 25 (Management of company assets
Article 7 (Observance of compliance)
and information)
Article 8 (Consideration for the global
Article 26 (Reporting illegal or unethicalenvironment)
behavior)
Article 9 (Corporate social responsibility) Chapter 6 Relationship with society
Chapter 3 Behavior that gains customer
Article 27 (Disclosure of corporate
trust
information)
Article 10 (Providing highly safe, high-quality Article 28 (Offering entertainment or gifts to
products and services)public officials etc.)
Article 11 (Description of and risks relating to Article 29 (Exclusion of anti-social forces)
goods and services)
Article 30 (Construction, operation,
Article 12 (Customer consultation, response improvement of internal control for proper
to complaints)
business execution)
Article 13 (Appropriate disclosure tocustomers and provision of information) Chapter 7 Miscellaneous provisions
Article 14 (Management of customer
Article 31 (Preparation of guidelines)
information)
Article 32 (Use of guidelines)
33 (Application to overseas
Chapter 4 Maintaining a fair relationship Article
subsidiaries
and affiliates)with business partners
Article 15 (Implementation of faircompetition and fair trade)
Article 16 (Implementation of highly
transparent transactions)
Article 17 (Offering moderate entertainment
or gifts for business partners)
Article 18 (Infringement of intellectual
property rights and prohibition ofunauthorized use)
Article 19 (Management of information on
business partners)
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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Management
Compliance Promotion Framework

Nomura Real Estate Holdings has established a Risk Management Committee and Group
Legal/Compliance Department to develop and implement a framework for compliance. In
addition, Compliance Officers, Compliance Leaders, and Compliance Promotion Officers havebeen appointed at Group companies to ensure compliance throughout the Group.
The Nomura Real Estate Group Compliance Structure

Policy on Political Participation
In cases where the Group supports the activities of a political organization or makes politicalcontributions, we act in compliance with relevant laws and regulations such as the Political Funds
Control Law and the laws and regulations of each country and check our actions under the Group
Code of Action.

118

Policies on the Preventing Bribery and Corruption

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

The Group Code of Action provides, with regard to receipt or provision of entertainment or gifts
from or to business partners, Nomura Real Estate Group officers and employees shall not request,
provide, or receive entertainment or gifts incompatible with sound business practices or common
sense and the details of entertainment, money, or goods given or received shall be reported anddocumented. The Code further provides, No officer or employee shall use their professional
position to request or accept benefits or favors from a business partner.
The Group complies with the Guidelines for the Prevention of Bribery of Foreign Public Officials
established by the Ministry of Economy, Trade and Industry and formulated its own Policy on thePrevention of Bribery of Foreign Public Officials, which can be found on the Group website.In
accordance with this policy, the Group formulated the Regulations on the Prevention of Bribery ofForeign Public Officials and the Anti-Bribery Guidelines and has established specific internal
procedures relating to the provision of entertainment, gifts, invitations, and donations to foreign
public officials and the use of agencies and so on. The Group also conducts periodic training on
the prevention of bribery for officers and employees in overseas business units.

Policy on Fair and Open Competition and Appropriate Transactions
The Nomura Real Estate Group Code of Action sets forth rules on maintaining fair relationships
with business partners. The areas covered by the rules include fair competition and transactions
as well as transparency. Moreover, in the selection of business partners we strive tocomprehensively and fairly assess a wide range of factors, including quality, price, track record,
and reliability.

Guidelines on Social MediaThe Nomura Real Estate Group s Guidelines on the Use of Social Media state that use of social
media must exhibit an awareness of the individual s position as a member of society andexemplify a high level of ethics following the norms of society at all times when posting, regardlessof whether such posting is for personal or professional reasons.
As a part of our compliance training program, we implement periodic measures intended to raiseawareness and provide information on areas of caution and risks relating to the posting
information on social media.

119Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Excluding Anti-Social Forces from Business Relationships

The Nomura Real Estate Group has established a provision within its Code of Action that prohibits
business transactions with anti-social forces or related organizations. It is our strict policy to
exclude anti-social forces from our business relationships.
In line with this policy, we issued a manual that details specific responses and have designatedresponsible departments and appointed personnel responsible for preventing improper requests
to ensure organizational responses by Nomura Real Estate Holdings and each Group company. In
addition, we consult and coordinate with legal counsel, the police, and other specialized externalorganizations to ensure that anti-social forces are excluded from involvement in our businessactivities and to prevent any harm caused by such anti-social forces.

Complying with Regulatory Requirements and Raising AwarenessIn order to comply with all regulatory requirements and raise awareness, the Group formulated
the Compliance Program and conducts training and other measures throughout the year.
【Main Programs】

Compliance Hour: Distributed online every other month.In fiscal 2017, theattendance rate was 100%.
Compliance Training: Group training for different professional ranks.In fiscal 2017,training was conducted 34 times.

Compliance Violation Results
In fiscal 2017, there was one serious violation relating to compliance in the Group.

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CSR | Management Structure

Risk Management
Approach and Policies
The Nomura Real Estate Group is aware that establishing a basic policy on risk management andensuring the soundness of management through appropriate risk management and operations
are key management issues.
Accordingly, the Group established a basic policy and specifies risk categories and management
and operational structures in its Risk Management Regulations. In addition, the Risk Management
Committee was established in accordance with these regulations. The Committee conducts
regular risk monitoring, assessment and analysis, takes preventive measures, responds at thetime of occurrence, and implements countermeasures to prevent reoccurrence after theoccurrence of a risk.

Management
Risk Management Regulations
The Group established the Risk Management Regulations to set forth fundamental mattersrelating to risk management and perform appropriate risk control and operations. The
Regulations set forth the basic policy on risk management, identify key risks, and specify
management and operational structures and so on.
【Key Risks】

Risks likely to have a major impact on Group management
Risks likely to have a major impact on society
Risk of litigation or other serious problems
Other major risks that should be managed by the Group
Risks relating to changes in the business environment
Risks relating to changes in financial markets
Risks relating to natural disasters
Risks relating to compliance
Risks relating to governmental responses
121Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Risks relating to reputation
Risks relating to quality
Risks relating to Internet and Intranet
Risks relating to data breaches
Risks relating to information systems
Risks relating to anti-social forces
Risks relating to labor management
Risks relating to human rights and harassment
Risks relating to fraud by employees, and other compliance matters

Risk Management Committee
To deliberate on key risks, Nomura Real Estate Holdings established the Risk Management
Committee, which comprises directors, executive officers, and others from the Company andGroup companies designated by the Board of Directors. The Committee meets monthly andmonitors, assesses, and analyzes risks in accordance with the Risk Management Regulations andRegulations on Deliberative Bodies. The Committee also deliberates on preventing the occurrenceof risks that the Group encounters in conjunction with corporate management and businessdevelopment and on responses and countermeasures for the prevention of reoccurrence whenrisks do occur.
In addition, the Group Risk Liaison Committee, made up of directors, executive officers, and othersof Group companies appointed by the chairman of the Risk Management Committee, sharesinformation on intra-Group risks and response policies.
The Risk Management Committee and Group Risk Liaison Committee each meet, in principle,
every other month and at other times as necessary and report on the details of their deliberations
to the Board of Directors at least once every three months.
Individual Group companies have also established committees on risk management and conduct
appropriate risk management according to the details of their particular business operations.

Risk Management Relating to Society and the Environment
The Group is also aware of risks relating to social and environmental issues.The Risk Management
Committee deliberates on significant events and issues relating to society and the environment aswell as countermeasures and reports on the details of its deliberations to the Board of Directors atleast once every three months.
The Committee also reports on the details of its deliberations to the CSR Committee, which ismade up of directors and others from Nomura Real Estate Holdings and Group companies and ischaired by the Executive Vice President of Nomura Real Estate Holdings.
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Risk Management Process

The Group established the Risk Occurrence Information
Transmission Guidelines in accordance with the Risk
Management Regulations and has established procedures forpromptly conveying information relating to unforeseen events
to management.

Inquiries Desks
Inquiries Desks have been set up at Nomura Real Estate Holdings and at each Group company inorder to respond quickly and appropriately when a problem with a product or service is found.
Significant information gathered by the Inquiries Desks is reported to the Risk Management
Committee and shared within the Group, and measures to prevent reoccurrence are implemented.

Business
EmployeeContinuity
Safety Plan Established for Emergencies, Confirming Officer and
BCP Formulation
The Group formulated a business continuity plan (BCP) and in anticipation of a major earthquake
in the Tokyo Metropolitan region. The plan provides for the chain of command during an
emergency and the allocation of duties for the continuation of business as well as theestablishment of structures that can respond even at night and on days off and holidays so thatthe impact of a disaster can be minimized.
In addition, a disaster response headquarters establishment drill is conducted once a year withthe president of Nomura Real Estate Holdings as the head and other members of the Disaster
Response Headquarters participating. During the drills, implementation of initial responses
specified in the business continuity plan (ensuring the safety of officers and employees,
establishing a chain of command, and restoring business) is confirmed and other actions are taken
to prepare for a disaster or other emergency.

Confirming the Safety of Officers and Employees
The Group introduced a safety confirmation system that uses the Internet and email to rapidly
determine the status of harm to and safety of officers and employees during an emergency.Safety
confirmation drills for Group officers and employees are conducted four times a year. In fiscal
2017, the participation rate in these drills was 100%.
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CSR | Management Structure

Human Rights
Approach and Policies

The Nomura Real Estate Group conducts business while respecting the dignity and fundamental
human rights of all stakeholders including employees. In addition to complying with the laws andregulations of all countries in which we conduct business activities, we strive to engage inbusiness while supporting and respecting international norms on human rights including theInternational Bill of Human Rights, which sets forth common standards to be achieved by all
people, the Declaration on Fundamental Principles and Rights at Work of the International Labor
Organization (ILO), which specifies fundamental rights in labor (the freedom of association, theright to collective bargaining, prohibition of compulsory labor, effective elimination of child labor,
and elimination of discrimination in hiring and employment), and the United Nations Guiding
Principles on Business and Human Rights.

Management
Management Structure
The Nomura Real Estate Holdings executive vice president and Group COO has been put in chargeof this issue for the Group and carries out measures regarding respect for human rights.
In addition, the CSR Committee, which comprises Nomura Real Estate Holdings and Group
company directors and others and is chaired by the Nomura Real Estate Holdings executive vicepresident, deliberates on and decides related policies and action plans.
Starting in fiscal 2018, targets were set regarding respect for human rights, and the Committee ismonitoring progress.

Human Rights Due Diligence Study Group CreatedNomura Real Estate Holdings participates in the Human Rights Due Diligence Study Group, which
is made up of three general contractors, which are suppliers to the Group, and five real estatedevelopers (including Nomura Real Estate Holdings).
The group was established to fulfill the responsibility of companies to avoid infringing on thehuman rights of others and address adverse human rights impacts with which they are involved
required by the Guiding Principles of Business and Human Rights. The group plans to exchange
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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)information with experts from NGOs and other organizations, study international human rights
standards and the human rights initiatives expected of business enterprises, and conduct surveys
and researches on methods of identifying and addressing impacts on human rights.

Targets
The Group conducts human rights training to disseminate its thinking on respect for human rights.

Responses to Human Rights Issues
The Group set up the Nomura Real Estate Group Human Rights Desk as a point of contact for
consultation on human rights issues and the Sexual and Power Harassment Hotline as an external
point of contact for consultations on issues of harassment, and the Group takes appropriate
action with regard to these issues.
In fiscal 2017, there were 42 consultation matters relating to human rights.

Human Rights Training
To deepen understanding on human rights, the Group makes use of opportunities such as rankspecific training to conduct human rights education.The human rights training conducted in fiscal
2017 is described below. A total of 2,467 persons participated in this training.
In addition, the Harassment Prevention Guide is distributed to all employees to inform personnel
about the prohibition of discrimination and harassment and other matters.The Guide contains
provisions requesting understanding of and consideration for LGBT individuals.
* LGBT: An initialism that stands for lesbian, gay, bisexual, and transgender. A general term for sexual minorities.

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Performance
Promotion Measures

In fiscal 2017, human rights training was conducted a total of 12 times throughout the Group, with
5,877 persons attending.
Training ConductedTraining Type

TargetParticipantsParticipation Rate
(Participants/Target
Participants)

Human rights topics
coveredGroup training
for new
employees

New employees

100% (268/268
persons)

Solving assimilation
problems

Group-widetraining for
newlyappointed
Group
managers

Newly-appointed
managers

98% (148/151
persons)

Solving assimilation
problems

Group-wide training

Nomura Real Estate Development
Human Rights
Training

Management
positions

83% (273/327
persons)

Solving assimilation
problems

Human Rights
Training

Management
positions

83% (273/327
persons)

Understanding of andconsideration for LGBT
individuals

Human Rights
Training

Newly-appointed
leaders

94% (58/62 persons)

Understanding of andconsideration for LGBT
individuals

126

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Training Type

TargetParticipantsParticipation Rate
(Participants/Target
Participants)

Human rights topics
coveredHuman Rights
Training

New employees

100% (58/58
persons)

Preventing harassment

Nomura Real Estate Life & Sports
Human Rights
Training

Newly-hired
recent graduates

100% (21/21
persons)

Preventing harassment

Human Rights
Training

Newly-appointed
managers

95% (18/19 persons)

Preventing harassment

Human Rights
Training

All employees
and part-timeworkers

94% (1,642/1,738
persons)

Preventing harassment

Human Rights
Training

All employees
and part-timeworkers

97% (1,736/1,789
persons)

Preventing harassment

Nomura Real Estate Amenity Service
Human Rights
Training

Employees andtemporary
personnel

85% (60/71 persons)

Preventing power
harassment

Human Rights
Training

Cleaning staff

100% (1,322/1,322
persons)

General human rights
and preventing
harassment

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CSR | Management Structure

Improving Supplier Management
Approach and Policies
The Nomura Real Estate Group conducts its business in cooperation with various suppliers
including design and construction companies and construction contractors in all business areas.
Because of this, the Group believes that initiatives throughout the supply chain are essential for
implementing effective measures to address social and environmental issues, and we establishedthe Nomura Real Estate Group CSR Procurement Guidelines (the CSR Procurement Guidelines ).
We request that suppliers apply the Guidelines to their business activities with regard to eight
topics: compliance, respect for human rights, fair business activities, consideration for theenvironment, ensuring and improving quality, ensuring information security, whistleblowing
systems, and creating business continuity plans.
Going forward, we will continue to improve supplier management in accordance with the
Guidelines.

Management
Management Structure
The Nomura Real Estate Holdings executive vice president and Group COO have been put incharge of this issue for the Group and carries out measures to improve supplier management.
In addition, the CSR Committee, which comprises Nomura Real Estate Holdings and Group
company directors and others and is chaired by the Nomura Real Estate Holdings executive vicepresident, deliberates on and decides related policies and action plans.
Starting in fiscal 2018, targets were set regarding improvement of supplier management, and theCommittee is monitoring progress.

128

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Targets
The Group seeks to improve CSR procurement and supplier management in accordance with the
CSR Procurement Guidelines.

Nomura Real Estate Group CSR Procurement Guidelines. Establishment of Compliance Structures①Respect all social norms and relevant regulations, as well as agreements and promises, inall countries and regions where business activities are carried out, and understand therequirements of the international community and conduct corporate activities based on
appropriate business practices and corporate ethics.
Ⅱ. Respect for Human Rights②Respect the dignity and basic human rights of all people, including customers, suppliersand employees, and do not engage in discrimination or harassment for reasons of race,
ethnic group, age, religion, beliefs, gender, nationality, social status, existence of disability,
gender or sexual orientation, gender identity, physical features, existence of illness, or any
other reason.
③In addition to ensuring equal employment opportunities, comply with labor-related laws
and regulations and rules of employment, implement appropriate labor management, andwork to maintain and improve sound and pleasant working environments.
④Along with carefully managing safety and health and preventing industrial accidents,
endeavor to maintain physical and mental health and create well-ordered workplaces.
⑤Do not engage in unfair labor practices such as forced labor and child labor, and endeavor
to take appropriate care to ensure that such unfair labor practices do not occur in suppliers.
⑥Give consideration to culture and customs as well as local residents and communities inregions where business activities are conducted.
Ⅲ. Fair Business Activities⑦In relationships with public employees and the like (including deemed public employees
and foreign public employees), maintain sound relationships and do not provide
entertainment or exchange gifts in ways that conflict with the National Public Service Ethics
Act and Regulations and related national and local laws and regulations, etc.
⑧Do not request, give, or receive from suppliers entertainment or gifts that deviate fromsound business customs and social norms.
⑨Exclude all relationships with anti-social forces and groups that pose a threat to social
order and security or obstruct fair economic activities. Also, resolutely challenge and totally
reject any transactions with or unreasonable demands by such forces or groups.
Ⅰ

129

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Comply with anti-monopoly, prevention of unfair competition and intellectual property
rights legislation and related laws and regulations, and endeavor to treat suppliers,
competitors, and others fairly, without engaging in acts constituting abuse of a dominantmarket position, blocking of transactions or other such conduct.
⑪Do not infringe or improperly use copyright, patents, trademark rights, design rights, orother intellectual property rights.
⑫Do not participate in money laundering, embezzlement, fraud or any other form of corrupt
conduct.
⑬Carry out appropriate disclosure to customers and society and also endeavor to provide
necessary information in an appropriate manner.
Ⅳ. Consideration for the Environment⑭Endeavor to make continuous improvements for reducing environmental impacts in orderto build a sustainable society.
⑮Comply with environmental laws and regulations in the countries and regions wherebusiness activities are carried out.
⑯Endeavor to reduce emissions of greenhouse gases and contaminants and conserve
resources through the life cycles of goods, products, and services.
⑰Endeavor to appropriately manage hazardous chemicals and reduce the amounts used.
⑱Endeavor to reduce and appropriately manage waste.
⑲Endeavor to implement development and greening, taking into consideration thesurrounding environment and biodiversity.
⑳When procuring raw materials, take into consideration the conservation of biodiversity andsustainable use of resources. In particular, when procuring wood and wood products, takedue care not to use illegal logged timber and endeavor to use wood that has been producedby sustainable methods, such as recycled wood and certified wood.
Ⅴ. Ensuring and Improving Quality㉑Create appropriate quality management and quality assurance systems for the goods,
products and services provided, and in addition to ensuring the required quality, work toconstantly improve quality.
㉒Correctly identify diverse needs and endeavor to provide goods and services that arefriendly and beneficial to societies seeking safety and quality.
㉓In providing goods, products and services, take into consideration the convenience andcomfort of users through universal design and other such measures.
㉔In keeping with the demands of society in relation to ethical procurement, recognize theimpact that business activities in the supply chain have on the environment and society, andendeavor to disclose that information as necessary.
Ⅵ. Ensuring Information Security㉕Give careful consideration to the handling of personal, private and confidential
information, and establish management systems to enable the appropriate management and⑩

130Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)protection of such information. Also, avoid improper and unauthorized use and disclosure of
information by taking thorough measures to prevent the leakage of information.
Ⅶ. Whistleblowing Systems㉖In addition to creating whistleblowing structures for the prevention or early detection ofproblems, protect whistleblowers confidentiality and seek to make it widely known toemployees that whistleblowers will be protected from retaliation and other disadvantageous
treatment.
㉗Make the significance and methods of use of the Suppliers Helpline established by the
Nomura Real Estate Group widely known to all employees involved in the Group s business.
Ⅷ. Creating Business Continuity Plans㉘Endeavor to establish risk management systems in preparation for the occurrence ofdisasters by creating business continuity plans (BCPs) and other measures.

Improving Supplier Capabilities and Enhancing Quality
The Group works to enhance quality throughout the supply chain by holding Safety Conferences
and study groups for suppliers that address issues such as quality and the environment.
Nomura Real Estate Development distributes Design and Construction Standards and Quality
Manuals to construction companies and designers and provides information relating to them byholding periodic briefings and so on in order to achieve safety and security through appropriatequality control.
In addition, Nomura Real Estate Partners holds annual meetings of the East Japan Supplier
Council Meetings on Health & Safety and West Japan Supplier Council Meetings on Health & Safety
where it presents commendations to excellent companies and conducts training on health andsafety.

Performance
Promotion Measures
The Group formulated the CSR Procurement Guidelines (Japanese and English versions) in April
2018. Since fiscal 2018, we have conducted briefings for domestic and overseas suppliers
regarding the Guidelines and have confirmed the status of responses through questionnaire
surveys and other means.

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CSR | Society

Contributions to Local Communities andSociety
Approach and Policies
The Nomura Real Estate Group maintains relationships with local communities in all aspects of its
business from development and construction to operation and management in the pursuit ofsustainable urban development. We are aware that contributing to the communities where we
conduct business is essential for business continuity.
We also believe that social contribution is a part of our responsibility as a corporate citizen, andwe provide support for earthquake recovery and youth development.

Support for Earthquake Reconstruction Efforts
Implementationof Rikuzentakata City Center Reconstruction
Plan
Geo-Akamatsu Co., Ltd. awarded a contract to formulate an urban
revitalization plan for Rikuzentakata City, Iwate Prefecture. The company, Opening of theworking in cooperation with local government, local chambers of
Takatacommerce, and the Urban Renaissance Agency, is restoring and conducting Abasse
shopping center
operations in urban areas, contributing to reconstruction from the Great
East Japan Earthquake.

132

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Reconstruction Support Events Held

NREG Toshiba Building Co., Ltd. periodically conducts sales of local
specialty products at the Hamamatsucho Building (located in Minato-ku,
Tokyo) as events supporting reconstruction from the Great East Japan
Earthquake and Kumamoto Earthquake.
【Fiscal 2017 Results】
April (Iwate, Fukushima, Aomori, and Miyagi Prefectures): Attended
by approximately 1,625 persons
October (Iwate, Fukushima, Kumamoto, and Miyagi Prefectures):
Attended by approximately 1,495 persons

Sales of specialty
products from
Kumamoto andother regions

Kayabuki-no-sato ProjectWith the goal of creating connections between urban residents and ruralcommunities, where populations are dwindling and growing older, and toteach children in urban areas about the environment, Nomura Real Estate Kayabuki-no-sato
Development practices eco-friendly rice growing at the base of Mt. Tsukuba. ProjectThis industry-government-academia project is conducted in collaboration
with the Tsukuba Green Tourism Association, Tsukuba City, and the
University of Tsukuba. In fiscal 2017, the Group and tenant businessemployees and their family members participated in rice planting andharvesting.

Initiatives for Youth Development
Support the UN Refugee Support Campaign
The Group supports the activities of the UNHCR, the United Nations Refugee Agency, by providing
its facilities to the United Nations Refugee Support Campaign free of charge. The campaign
collects donations to purchase vaccines and tents for refugees. In fiscal 2017, support wasprovided by 59 persons and the equivalent of ¥1.698 million was donated over the course of the
year.
133

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Participation in Career University s Summer Class Course

Nomura Real Estate Development participates in the Career University* Summer Class conductedby NPO Career Cruise with the aim of supporting young people in building their careers. The class,which is for university freshmen and sophomores, includes programs such as real estatedevelopment games and property tours. This program was awarded the Best Feedback Award by
NPO Career Cruise for two consecutive years starting in fiscal 2017.
* Career University
An initiative conducted by NPO Career Cruise aimed at helping university students build their careers. Other supportingorganizations including companies and government agencies provide educational seminars covering various specialized
fields.

Internship Program
Nomura Real Estate Development takes in university undergraduate andgraduate students as interns every year. In fiscal 2017, the company
conducted internship programs a total of four times in Tokyo and Osaka,with 68 students participating. The program provides opportunities toexperience practical real estate operations such as product planning at
actual planning site and accompanying personnel during marketing
activities.

Internship program

Fully-Clothed Swimming Classes Held for Elementary School Students
Nomura Real Estate Life & Sports has been conducting classes to teachelementary school children how to swim while fully clothed as a means ofpreventing water accidents since fiscal 2010. In fiscal 2018, a total of 2,478
children participated.
Number of participants in fully-clothed swimming classes
Participants

2013

2014

2015

2016

2017

1,100

1,250

480

977

2,478

134

Fully-clothedswimming classes

Swimming Lessons for Asthmatic Children

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

At the request of Nagoya City, Nomura Real Estate Life & Sports has been providing swimming
lessons for asthmatic children at Megalos Chikusa 24 since fiscal 2014. A total of 33 children
learned how to swim in 2017.

Social Contribution through Support for Sport
Official
partnerof the Japanese Para-Sports
Association(JPSA)As a company that identifies with the philosophy of theJapanese Para-Sports Association (JPSA), of fostering
inclusion to make society a place where everyone can benefit
from the value of sports, Nomura Real Estate Holdings enteredinto an official partner agreement with the JPSA.

Support for para-athletes
Nomura Real Estate Partners supports wheelchair track and field athlete
Yuki Nishi, a certified Tokyo Athlete, to encourage para-athletes bypromoting better understanding of sports for the disabled.
With the goal of developing the next generation of para-athletes, Nomura
Real Estate Life & Sports signed a Facility Use Agreement for para-athlete
training and provides spaces for training.

Certified as Tokyo Sports Promotion Companies
Nomura Real Estate Partners and Nomura Real Estate Life & Sports wereagain certified by the Tokyo Metropolitan Government as 2017 Tokyo Sports
Promotion Companies as in the previous year. Under this program, theTokyo Metropolitan Government certifies companies that encourage
employees to participate in sports and provide support for sports events,and so on.

135

Yuki Nishi

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CSR

Editorial Policy
This CSR site was created to provide stakeholders with an accurate understanding regarding the
CSR approaches and activities of the Nomura Real Estate Group.
Reporting focuses on the CSR key themes determined by the CSR Committee taking into
consideration the opinions from stakeholders: the environment, safety and security, communities,
and health and well-being as well as human capital and management structure which are thefoundations of the Group s business.
We have endeavored to disclose information that meets expectations, giving consideration tointernational CSR frameworks and requests from investors and ratings organizations.

Scope
Nomura Real Estate Holdings, Inc. and its 25 Group companies* Percentage of operating revenue accounted for by organizations subject to reporting: 100%
* Unless indicated in a footnote or otherwise, the scope of data reported on this CSR website is the organizations subject toreporting specified above.

Group Companies:
Nomura Real Estate Development Co., Ltd., Nomura Real Estate Asset Management Co., Ltd., Nomura Real
Estate Urban Net Co., Ltd., Nomura Real Estate Partners Co., Ltd., NREG TOSHIBA BUILDING Co., Ltd.,
Nomura Real Estate Life&Sports Co., Ltd., Nomura Real Estate Heating and Cooling Supply Co., Ltd., GeoAkamatsu Co., Ltd., Nomura Real Estate Reform Co., Ltd. (merged with Nomura Real Estate Partners Co.,
Ltd. in August 2018), Nomura Real Estate Wellness Co., Ltd., Nomura Real Estate Hotels Co., Ltd., Nomura
Real Estate Amenity Service Co., Ltd., NREG TOSHIBA BUILDING FACILITIES Co., Ltd., PRIME X Co., Ltd., NF
Power Service Co., Ltd., First Living Assistance Co., Ltd., NOMURA REAL ESTATE HONG KONG LIMITED,
Nomura Real Estate Consulting (Beijing) Co., Ltd., NOMURA REAL ESTATE ASIA PTE. LTD, Midosuji Mirai
Development LLC, UNJ Properties LLC, Shinjuku Mirai Development LLC, Toranomon Real Estate Co., Ltd.,NREAM Investors America, LLC, HCMC office investment Limited

Referenced Guidelines
Global Reporting Initiative (GRI), Sustainability Reporting Standards
ISO 26000, Guidance on Social Responsibility136

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Reporting Period
Fiscal 2017 (from April 1, 2017 to March 31, 2018)* Certain information on activities before fiscal 2016 and outlooks after fiscal 2018 is also provided.

Reporting Cycle
Updated
September 2018

Next Update
September 2019

Statements on the Site
・On this site, Nomura Real Estate Holdings refers to Nomura Real Estate Holdings, Inc. and the
Nomura Real Estate Group refers to Nomura Real Estate Holdings, Inc. and the Group s 25 member
companies.
・Personal titles and company names in this report have been abridged.
・This site contains forward-looking statements about the plans, strategies and performance of
Nomura Real Estate Holdings, Inc. and its consolidated subsidiaries. These statements are nothistorical facts, and they include assumptions and judgments that are based on information
currently available to us. As such, future activities and results may differ from those mentioned
herein.

Contact Information for Inquiries
Corporate Communication Department
Nomura Real Estate Holdings, Inc.
Email:hd-cc@nomura-re.co.jp

137Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

CSR

Basic Data
Corporate Overview
Corporate Name

Nomura Real Estate Holdings, Inc.

Head Office

Shinjuku Nomura Building, 1-26-2 Nishi-Shinjuku, Shinjukuku, Tokyo 163-0566, Japan

Business Overview

The Nomura Real Estate Group s main business comprises
Residential Development Business, Leasing Business,
Investment Management Business, Property Brokerage & CRE
Business, Property & Facility Management Business
Please refer to the link for details.

Activity Area

Japan, China, Thailand, Vietnam, Philippines and Singapore

Capital¥ 117,072,789,750 (as of March 31, 2018)

Number of Employees

6,636 (as of March 31, 2018 on a consolidated basis)

Suppliers

The Nomura Real Estate Group s main suppliers include
design and construction companies, service providers, and soon

Number of Group
Companies

43 affiliated companies (25 consolidated subsidiaries, and 18
affiliates and unconsolidated subsidiaries accounted for using
the equity method)* There have been no major changes in the above data following fiscal 2017 in relation to organization structure, ownership,or scale.
138

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Financial Status

on a consolidated basis

Employment Data
Numbers of Employees (as of April 1)
FY2016
Employees
6,485

FY20176,728

FY2018
6,931

Men
Women
(Female employee
ratio (%))

4,686
1,799

4,804
1,924

4,869
2,062

27.74

28.60

29.75

Permanent employees
Temporary employees

5,190
1,295

6,006
722

6,173
758

* The number of employees excludes persons dispatched outside the Group, and includes persons dispatched to the Group.

139

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New Graduate Employees and Female Employee Ratio (Employment Start Date of April 1)
FY2016FY2017FY2018New employees
274
247
256
Men
167
166
168
Women
107
81
88
Female employee ratio
39.05
32.79
34.38
(%)

140

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CSR

Index for ESG Investors
Item

Environment

PolicyManagement

Results

Environmental
Policies andManagement







Climatechange

Water use

Pollution andresources

Biodiversity







Green building

Environmental
managementClimatechange Society

Product safety
and quality

Design andconstruction

Design andconstruction

Design andconstruction

Operations
andmanagement

Operations
andmanagement

Operations
andmanagement





141









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Item

PolicyManagement

Results

Longerlifespans,increased
durability Longerlifespans,increased
durability Longerlifespans,increased
durability Disaster
responses 

Disaster
responses 

Disaster
responses 

Laborpractices

Human rights







Development
and retentionof humancapital

Health andsafetySocialcontribution



―



Community Community Community 

Diversity 

Diversity 

Diversity 







Socialintegration
Customer
relations
GovernanceCorporate
Governance



142

―

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Item

PolicyManagement

Results

Risk
Management





―

Prevention ofcorruption







Tax
transparency
Supply chain
management

Please refer to page 33-34 of Financial Report 2018

Overall Overall Overall 

Safety 

Safety 

Safety 

CSR
materiality



Stakeholder
engagement



Action Guideline 

Conduct
standards

Code of Action 

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CSR

GRI Content Index
This CSR site was prepared by making reference to the GRI standards (2016).

Disclosure
102: General Disclosures (2016)
102-1 Name of the organization
102-2 Activities, brands, products, and services
102-3 Location of headquarters
102-4 Location of operations
102-5 Ownership and legal form
102-6 Markets served
102-7 Scale of the organization
on employees and other102-8 Information
workers

Basic Data
Basic Data
Basic Data
Basic Data
Basic Data
Basic Data
Basic Data
Basic Data
Business and CSR

102-9 Supply chain
10210
10211

Location

Basic Data

Significant changes to the organization and Basic Data
its supply chain
Precautionary Principle or approach

Risk Management
Responses to climate change
144

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Disclosure

Location
Use resources appropriately and prevent
pollution

10212
10213

External initiatives-

Membership of associations

Top commitment

10214

Statement from senior decision-maker10215

Key impacts, risks, and opportunities

CSR Management

10216

Values, principles, standards, and norms of
behavior

CSR Management

10217

Mechanisms for advice and concerns about
ethicsHuman Rights

10218

Message from the CSR Committee Chairman

ComplianceCorporate Governance
CSR Management

Governance structure

Corporate Governance
CSR Management

10219

Delegating authority

10220

Executive-level responsibility for economic, CSR Management
environmental, and social topics
Corporate Governance

10221
10222

Consulting stakeholders on economic,
environmental, and social topics-

Composition of the highest governancebody and its committees

Corporate Governance Report

Corporate Governance145

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Disclosure
10223
10224
10225
10226
10227
10228
10229
10230
10231
10232
10233
10234
10235
10236

Location

Chair of the highest governance body

List of directors

Nominating and selecting the highest
governance body

Corporate Governance Report

Conflicts of interest-

Role of highest governance body in setting
purpose, values, and strategy

CSR Management

Collective knowledge of highest governance body
Evaluating the highest governance body s
performance-

Identifying and managing economic,
environmental, and social impacts

Risk Management

Effectiveness of risk management processes Review of economic, environmental, andsocial topics

Risk Management

Highest governance body s role insustainability reporting-

Communicating critical concerns

Risk Management

Nature and total number of critical concerns Remuneration policies

Corporate Governance Report

Process for determining remuneration

Corporate Governance Report146Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Disclosure
10237
10238
10239
10240
10241
10242
10243
10244
10245
10246
10247
10248
10249
10250

Location

Stakeholders involvement in remuneration Annual total compensation ratio-

Percentage increase in annual totalcompensation ratio-

List of stakeholder groups

CSR Management

Collective bargaining agreements

Create fair and meaningful workplaces

Identifying and selecting stakeholders

CSR Management

Approach to stakeholder engagement

CSR Management

Key topics and concerns raised

CSR Management

Entities included in the consolidated
financial statements

Basic Data

Defining report content and topic
Boundaries

Editorial Policy

List of material topics

CSR Management

Restatements of information-

Changes in reporting

Editorial Policy

Reporting period

Editorial Policy
147

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Disclosure

Location

102- Date of most recent report
51
102- Reporting cycle
52102- Contact point for questions regarding thereport53
102- Claims of reporting in accordance with the
GRI Standards
54102- GRI content index
55
102- External assurance
56
Material topics

Editorial Policy

Explanation of the material topic and its
103-1 Boundary

CSR Management103-2 The management approach and its

Enhance environmental management

components

Editorial Policy
Editorial Policy
GRI content index
GRI content index-

Responses to climate change
Use water resources efficiently
Show consideration for biodiversity
Use resources appropriately and prevent
pollution
Raise safety and security quality in designand construction
Raise safety and security quality inoperations and management

148

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Disclosure

Location
Implement measures to increase lifespanand improve durability
Ensure safety and security during
emergencies
Show consideration, and support therevitalization of communities
Respond to population aging and diversity
and support health
Raise customer satisfaction and comfort

103-3 Evaluation of the management approach
201: Economic Performance (2016)-

economic value generated and201-1 Direct
distributed-

implications and other risks and201-2 Financial
opportunities due to climate change

Responses to climate change

benefit plan obligations and other201-3 Defined
retirement plans

Create fair and meaningful workplaces

assistance received from201-4 Financial
government-

202: Market Presence (2016)of standard entry level wage by
202-1 Ratios
gender compared to local minimum wage-of senior management hired
202-2 Proportion
from the local community-

203: Indirect Economic Impacts (2016)149

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Disclosure

Locationof the material topic and its
103-1 Explanation
Boundary

Show consideration, and support therevitalization of communities

management approach and its
103-2 The
components

Show consideration, and support therevitalization of communities

103-3 Evaluation of the management approach-investments and services
203-1 Infrastructure
supported

Show consideration, and support therevitalization of communities203-2 Significant indirect economic impacts

Show consideration, and support therevitalization of communities

204: Procurement Practices (2016)
204-1 Proportion of spending on local suppliers
205: Anti-corruption (2016)-assessed for risks related to205-1 Operations
corruption-

and training about anti205-2 Communication
corruption policies and proceduresComplianceincidents of corruption and205-3 Confirmed
actions taken

Compliance

206: Anti-competitive Behavior (2016)
206-1 Legal actions for anti-competitive behavior, Complianceanti-trust, and monopoly practices
301: Materials (2016)
301-1 Materials used by weight or volume301-2 Recycled input materials used-

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Disclosure

Location

products and their packaging
301-3 Reclaimed
materials-

302: Energy (2016)of the material topic and its
103-1 Explanation
Boundary

Responses to climate change

management approach and its
103-2 The
components

Responses to climate change

103-3 Evaluation of the management approach-

consumption within the302-1 Energyorganization

Responses to climate change

consumption outside of the302-2 Energyorganization

302-3 Energy intensity
302-4 Reduction of energy consumption

Responses to climate change

in energy requirements of
302-5 Reductions
products and services

Responses to climate change

Responses to climate change

303: Water (2016)of the material topic and its
103-1 Explanation
Boundary

Use water resources efficiently

management approach and its
103-2 The
components

Use water resources efficiently

103-3 Evaluation of the management approach303-1 Water withdrawal by source

Use water resources efficiently

sources significantly affected by
303-2 Water
withdrawal of water

151

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Disclosure

Location303-3 Water recycled and reused
304: Biodiversity (2016)-of the material topic and its
103-1 Explanation
Boundary

Show consideration for biodiversity

management approach and its
103-2 The
components

Show consideration for biodiversity103-3 Evaluation of the management approach

-

304-1

Operational sites owned, leased, managed
in, or adjacent to, protected areas and areasof high biodiversity value outside protected
areas

impacts of activities, products,304-2 Significant
and services on biodiversity

Show consideration for biodiversity304-3 Habitats protected or restored

-

304-4

IUCN Red List species and national
conservation list species with habitats inareas affected by operations-

305: Emissions (2016)of the material topic and its
103-1 Explanation
Boundary

Responses to climate change

management approach and its
103-2 The
components

Responses to climate change

103-3
305-1
305-2
305-3

Evaluation of the management approach-

Direct (Scope 1) GHG emissions

Responses to climate change

Energy indirect (Scope 2) GHG emissions-

Other indirect (Scope 3) GHG emissions-

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Disclosure

Location

305-4 GHG emissions intensity
305-5 Reduction of GHG emissions

Responses to climate changeof ozone-depleting substances
305-6 Emissions(ODS)

Responses to climate changeoxides (NOx), sulfur oxides (SOx),
305-7 Nitrogenand other significant air emissions-

Responses to climate change

306: Effluents and Waste (2016)of the material topic and its
103-1 Explanation
Boundary

Use resources appropriately and prevent
pollution
Implement measures to increase lifespanand improve durability
Use resources appropriately and prevent
pollution

management approach and its
103-2 The
components

Implement measures to increase lifespanand improve durability

103-3 Evaluation of the management approach
306-1 Water discharge by quality and destination-

306-2 Waste by type and disposal method

Use resources appropriately and prevent
pollution306-3 Significant spills
306-4 Transport of hazardous waste-bodies affected by water discharges
306-5 Water
and/or runoff

-

-

-

307: Environmental Compliance (2016)

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Disclosure

Locationwith environmental laws
307-1 Non-complianceand regulations

Enhance environmental management308: Supplier Environmental Assessment (2016)
Enhance environmental management
Responses to climate changeof the material topic and its
103-1 Explanation
Boundary

Use water resources efficiently
Show consideration for biodiversity
Use resources appropriately and prevent
pollution
Enhance environmental management
Responses to climate change

management approach and its
103-2 The
components

Use water resources efficiently
Show consideration for biodiversity
Use resources appropriately and prevent
pollution

103-3 Evaluation of the management approach-

suppliers that were screened using308-1 Newenvironmental criteria

Raise supplier management levels

environmental impacts in the308-2 Negative
supply chain and actions taken-

401: Employment (2016)
401-1 New employee hires and employee turnover154

Basic Data
Promotion of diversity

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Disclosure
401-2

Location

Benefits provided to full-time employeesthat are not provided to temporary or parttime employees

Create fair and meaningful workplaces

401-3 Parental leave
402: Labor/Management Relations (2016)

Promotion of diversity

notice periods regarding
402-1 Minimum
operational changes-

403: Occupational Health and Safety (2016)403-1

Workers representation in formal joint
management-worker health and safetycommittees

Health and safety of employees

403-2

Types of injury and rates of injury,
occupational diseases, lost days, andabsenteeism, and number of work-related
fatalities

Health and safety of employeeswith high incidence or high risk of403-3 Workers
diseases related to their occupation-and safety topics covered in formal
403-4 Healthagreements with trade unions-

404: Training and Education (2016)
hours of training per year per
404-1 Average
employee

Improve human capitalfor upgrading employee skills and Improve human capital
404-2 Programs
transition assistance programs

404-3

Percentage of employees receiving regularperformance and career development
reviews

405: Diversity and Equal Opportunity (2016)
155-Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Disclosure

Locationof the material topic and its
103-1 Explanation
Boundary

Respond to population aging and diversity
and support health
Raise customer satisfaction and comfort
Respond to population aging and diversity
and support healthmanagement approach and its
103-2 The
components

Raise customer satisfaction and comfort

103-3 Evaluation of the management approach-of governance bodies and405-1 Diversity
employees

Promotion of diversityof basic salary and remuneration of405-2 Ratio
women to men-

406: Non-discrimination (2016)of discrimination and corrective
406-1 Incidents
actions taken

Human Rights

407: Freedom of Association and Collective Bargaining (2016)
407-1

Operations and suppliers in which the rightto freedom of association and collective
bargaining may be at risk

Human Rights

408: Child Labor (2016)
and suppliers at significant risk408-1 Operations
for incidents of child labor

Human Rights

409: Forced or Compulsory Labor (2016)
and suppliers at significant risk409-1 Operations
for incidents of forced or compulsory labor

410: Security Practices (2016)
156

Human Rights

Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Disclosure

Location

personnel trained in human rights
410-1 Security
policies or procedures

Human Rights

411: Rights of Indigenous Peoples (2016)of violations involving rights of
411-1 Incidents
indigenous peoples-

Incidents of violations involving rights of indigenous peoples
412-1

Operations that have been subject tohuman rights reviews or impact
assessments-

training on human rights policies 412-2 Employee
or procedures

412-3

Significant investment agreements andcontracts that include human rights clauses or that underwent human rights screening

413: Local Communities (2016)of the material topic and its
103-1 Explanation
Boundary

Show consideration, and support therevitalization of communities

management approach and its
103-2 The
components

Show consideration, and support therevitalization of communities

103-3 Evaluation of the management approach

-

413-1

Operations with local community
engagement, impact assessments, anddevelopment programs

Show consideration, and support therevitalization of communities

413-2

Operations with significant actual andpotential negative impacts on local
communities-

414: Supplier Social Assessment (2016)
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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Disclosure

Locationof the material topic and its
103-1 Explanation
Boundary

Raise supplier management levels

management approach and its
103-2 The
components

Raise supplier management levels

103-3 Evaluation of the management approach-

suppliers that were screened using
414-1 Newsocial criteria

Raise supplier management levels

social impacts in the supply chain 414-2 Negative
and actions taken

415: Public Policy (2016)415-1 Political contributions
416: Customer Health and Safety (2016)

Raise safety and security quality in designand constructionof the material topic and its
103-1 Explanation
Boundary

Raise safety and security quality inoperations and management
Implement measures to increase lifespanand improve durability
Ensure safety and security during
emergencies

103-2 The management approach and its

Raise safety and security quality in designand construction

components

Raise safety and security quality inoperations and management
Implement measures to increase lifespanand improve durability
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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Disclosure

Location
Ensure safety and security during
emergencies

103-3 Evaluation of the management approachof the health and safety
416-1 Assessment
impacts of product and service categories

416-2

Raise safety and security quality in designand construction
Raise safety and security quality inoperations and management

Incidents of non-compliance concerning thehealth and safety impacts of products and services

417: Marketing and Labeling (2016)
for product and service
417-1 Requirements
information and labeling-

Incidents of non-compliance concerning
product and service information andlabeling-of non-compliance concerning
417-3 Incidents
marketing communications

-

417-2

418: Customer Privacy (2016)
418-1

Substantiated complaints concerning
breaches of customer privacy and losses ofcustomer data-

419: Socioeconomic Compliance (2016)
with laws and regulations
419-1 Non-compliancein the social and economic area

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CSR

Third-Party Comments
Yoshinao Kozuma
Emeritus Professor, Sophia University
After leaving the doctoral program at the Sophia University Graduate School of
Economics, Professor Kozuma became a research assistant at the Nagoya
Institute of Technology and attended Limperg Instituut, the Inter-University
Institute for Accounting and Auditing in the Netherlands, as a guest researcher.
He became an associate professor at the University of Shizuoka, and then took
up his current position as emeritus professor at Sophia University after firstworking as an associate professor and then as a professor in the Faculty of
Economics at the university. He has held successive positions as the chair or
member of various CSR- or environment-related advisory panels, researchsocieties, etc. for the Ministry of the Environment; the Ministry of Economy,
Trade and Industry; the Ministry of Land, Infrastructure, Transport and Tourism;
the Ministry of Agriculture, Forestry and Fisheries; the Cabinet Office; and theJapanese Institute of Certified Public Accountants. He is currently the chair ofthe Ministry of the Environment s Committee to Revise the Environmental
Accounting Guidelines. He specializes in accounting and non-financial reporting.
His recently published works include Carbon Labelling for Visualizing CO2
Emissions (Chuokeizai-sha, Inc.) and Assurance on Environmental Reports(Dobunkan Publishing Co., Ltd.).

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

1. Responses to Social Issues

The Nomura Real Estate Group selected safety and security as one of its CSR key themes, andwithin that theme, the Group set measures to increase building lifespans and durability as amaterial issue.
Both the re:Premium service launched in fiscal 2017 and the Attractive 30” service launched infiscal 2018 are initiatives in this area and provide benefits to customers, society, and the Nomura
Real Estate Group, strongly raising awareness regarding the change in attitudes towards abusiness model intended to create a sustainable society.
Although these two services differ in that re:Premium is intended for previously-constructedcondominiums and Attractive 30 is for newly-constructed condominiums, both are services forlengthening the cycle of large-scale repairs, and we can expect that they will both be effectivemeans of addressing a social problem in the downstream segment of the value chain, i.e., theobsolescence of condominium buildings.
The provision of these services will be useful for alleviating the psychological and economic
burdens on customers and maintaining asset values and will also contribute to the SDG goals ofcreating sustainable cities and communities and responsible production and consumption, raising
the possibility of successfully building strong social infrastructure.
These types of initiatives expand social trust in the Nomura Real Estate Group and support theGroup s sustainable growth. I look forward to further implementation of highly innovative
initiatives in the future.

2. Supply Chain Management Commenced
The Group established CSR Procurement Guidelines, an area of concern, and plans to begin
implementation in fiscal 2018.
The businesses conducted by the Nomura Real Estate Group include some areas with highpotential human rights risks in the supply chain. Adoption of the CSR Procurement Guidelines will
be useful in managing those risks.
The Guidelines include whistleblowing systems and are expected to demonstrate a certain level of
effectiveness at supplier business sites as well. Initially, enforcement will take the form of
encouraging compliance by suppliers by responding to questionnaires, but it would be desirable if
ultimately suppliers are urged to establish human rights due diligence systems.

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)

3. Promoting Wellness Management

The Group declared the implementation of wellness management as a fundamental policy of thework style reforms initiated in fiscal 2017. At the core of this initiative, various measures have been
implemented to prevent overwork, and I expect that wellness management will effectivelyfunction to create healthy workplaces that facilitate work.
Amidst these reforms, however, Nomura Real Estate Development received a recommendation forcorrective action and guidance regarding the discretionary working system for planning work, amatter of considerable concern. I hope that the implementation of wellness management will leadto the prevention of reoccurrence of this type of event, and request that going forward,
countermeasures be reinforced on an ongoing basis.

4. Future Issues
There are no targets or reference values relating to results regarding contribution to the SDGs, andconsequently, the degree of progress is unknown and it is not possible to determine whether theGroup s initiatives are actually making a contribution. Also, little improvement has been seen in
environmental data other than waste, and the reasons for this are not explained. A further issue isthe ongoing failure to achieve the target rate for employment of disabled persons. These are allareas where improvement is desirable.

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Nomura Real Estate Holdings, Inc. CSR 2018(PDF for printing)Response to the Third-Party Comments
The Nomura Real Estate Group is deeply grateful to Professor Kozuma for his valuable
opinions regarding the Group s CSR efforts since fiscal 2014.
Last year, Professor Kozuma pointed out that our CSR procurement criteria are not clear, andin response, the CSR Committee has been discussing this issue since fiscal 2017. In April 2018,
we adopted the Nomura Real Estate Group CSR Procurement Guidelines, and we are
addressing supply chain management including human rights.
Professor Kozuma also indicated that data concerning targets and results management isinsufficient. To address this issue, the CSR Committee and CSR Promotion Council
deliberated and set policies and targets for the Four Key Themes and Two Promotion
Foundations, and we started disclosing that information in the CSR report this fiscal year. We
will undertake CSR measures in tandem with management strategies while carrying out
PDCA.
Thanks to this year s third-party comments, we have reaffirmed our awareness that switching
to a business model intended to provide benefits to customers, society, and the Group andcreate a sustainable society will lead to sustainable growth by the Group. To do this, we placeparticular importance in the physical and mental wellbeing of employees and are conducting
effective wellness management. Going forward, we will address the issues that Professor
Kozuma has pointed out.
In the future, the Nomura Real Estate Group will continue its efforts to create new value forsociety through our business activities.
Seiichi Miyajima
Executive Vice President and Representative Director, Group COO, Nomura Real Estate
Holding Inc.
Chair, CSR Committee, Nomura Real Estate Group

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