Green Finance

Green Finance Framework

In order to ensure that the proceeds are used solely for projects with positive environmental impact, NUD has established the following green finance framework (“Framework”) and procures and manages the proceeds in accordance with this Framework.

Third-Party Evaluation

In order to make sure that the Framework is in compliance with
(1) the Green Bond Principle 2021 established by the International Capital Market Association (ICMA),
(2) the Green Loan Principles 2023 established by the Loan Market Association (LMA) and others
(3) the Green Bond Guidelines 2022 established by the Ministry of the Environment of Japan
(4) the Green Loan and Sustainability Linked Loan Guidelines 2022, NUD had the Framework evaluated by a third-party institution, the Japan Credit Rating Agency, Ltd. (“JCR”), and received the highest status of “Green 1 (F)”

JCR Green Finance Framework Evaluation

Use of Proceeds

NUD designates two targets for the use of proceeds from the Framework, namely green buildings with a certain certification standard and properties with a certain level of energy-saving capabilities. For details, please see “Eligibility Criteria.”

Eligibility Criteria

The green eligible assets are selected from assets which meet the standards of either 1 or 2 below.

1. Green Buildings

Properties that have acquired or are scheduled to acquire certification from either of the following third-party institutions

•  3 to 5 stars of the DBJ Green Building Certification
•  B+ to S rank of CASBEE for Buildings (New Construction/Existing Buildings/Renovation) or CASBEE Real Estate Certification
•  The following rank of BELS Certification
  •  2016 Standard: 3 to 5 stars (excluding existing non-conformed buildings)
  •  2024 Standard:
    • Nonresidential buildings: level 4 to 6
    • Residential buildings with renewable energy facilities: level 3 to 6
    • Residential buildings without renewable energy facilities: level 3 to 4
•  Silver to Platinum rank of LEED Certification (for LEED BD+C, v4 or later)

※ Properties for which BOMA360 Performance Program (BOMA360) is acquired are included, assuming acquisition of the above certifications.

2. Energy-Saving Functions

Properties with an energy reduction rate (ERR) of 30% or more.

Management of Proceeds

Proceeds from green finance are scheduled to be allotted to funds for the acquisition of green eligible assets or to refinancing of said assets promptly after procurement of the proceeds or at an otherwise early stage. The proceeds will be managed as cash or cash equivalents until their allotment is determined.

With regard to the management of the balance during the period prior to redemption or repayment of green finance and unallocated proceeds in case of sale of asset targeted for use of proceeds or temporary unallocated proceeds generated due to damage, etc., portfolio management (a method of management in which it is confirmed in each fiscal period that the total green finance balance does not exceed the upper limit of green eligible liabilities (total acquisition price of assets satisfying eligibility criteria multiplied by total assets LTV)) will be applied.

Reporting

The status of fund appropriations procured through green finance will be updated yearly as long as the balance remains.

（1）Reporting on the Status of Fund Appropriations

The status of fund appropriations procured through green finance will be disclosed and updated yearly on NUD’s website as long as the balance remains.

Status of Fund Appropriations from Green Bonds

This table can be scrolled sideways.

As of April 30, 2025

Green Loan Allocation Status

This table can be scrolled sideways.

As of April 30, 2025

（2）Balance of Proceeds from Green Finance

The total acquisition price of green eligible assets (“total of green eligible assets”), green eligible liabilities and balance of proceeds from green finance will be reported annually as long as there is a balance of funds procured as green finance.

This table can be scrolled sideways.

As of April 30, 2025

As of April 30, 2025

Total of green eligible assets	218,291 million yen
Total assets LTV	48.0%
Green eligible liabilities (Total of green eligible assets multiplied by total assets LTV)	104,780 million yen
Balance of proceeds from green finance	18,400 million yen
Of this, balance of proceeds from green bonds	3,200 million yen
Of this, balance of proceeds from green loans	15,200 million yen

（3）Impact Reporting

• Number of green eligible assets
• Number, type and certification level of environmental certification of acquired assets
• The following quantitative indices regarding green eligible assets
  (Disclosed within the scope of NUD’s energy management rights)

• Amount of energy consumption
• Amount of CO2 emissions
• Amount of water consumption

Please click here for details regarding quantitative indices