Sustainability Policy and Promotion Structure｜NTT UD REIT Investment Corporation

In recent years, society has become more conscious of sustainability, and its significance has been strongly recognized also in the investment management industry.
In such a situation, NTT Urban Development Asset Management Corporation (UDAM), to which NTT UD REIT Investment Corporation (NUD) entrusts its asset management, has formulated a “Sustainability Policy” and has promoted initiatives contributing to the realization of a sustainable society.
As part of such efforts, from the perspective of ensuring the realization of medium- to long-term growth, we incorporate ESG considerations into all aspects of our asset management operations.
Specifically, we identify materiality (key issues) in all aspects of ESG and strive to address these issues. In terms of environmental initiatives, we set targets for greenhouse gas (CO₂) emissions, energy consumption, water consumption, etc., and consider and implement measures based on cost effectiveness to meet these targets. In terms of social initiatives, we are engaged in activities for building good relationships with our stakeholders such as communities and tenants as well as the improvement of engagement of officers and employees of the Asset Management Company. Furthermore, in terms of governance, we focus also on intangible aspects such as training toward the strengthening of the compliance system.
We will continue our outmost efforts to meet the expectations of our stakeholders including unitholders by contributing to the realization of a sustainable society through these initiatives as well as achieving stable asset management over the medium to long term.

President and CEO
NTT Urban Development Asset Management Corporation

Yasutake Horinouchi

NTT UD REIT Investment Corporation
Executive Director

Kazuhiro Kimura

What is Sustainability?

Sustainability, or the ability to be sustained, essentially means that “the state of the global environment can be maintained so that the human species can continue living toward the future.” In terms of corporate activities, it means taking action from a corporate standpoint to keep the global environment sustainable from the environmental and social viewpoints.

In the asset management business, reflecting the degree of commitment to ESG of a company as an investment target onto investment decisions and discussions with investors, etc. will lead to solution and improvement of environmental and social issues through the activities of the company. Moreover, it will contribute to the establishment of a sustainable society. As such, making investments with ESG awareness is called “ESG investing.”

Internationally, ESG investing has been advocated under the United Nation’s Principles for Responsible Investment (PRI), and is becoming widely accepted and signed by many institutional investors and management agencies on a global scale.

In Japan, the Government Pension Investment Fund (GPIF), the world’s largest pension fund, became a signatory to the PRI in September 2015. This became a trigger for the idea of ESG investing to spread quickly in the country.

Sustainability Policy

Based on the Sustainability Vision established by NTT Urban Solutions, Inc., UDAM pursues management that contributes to the realization of a sustainable society. From the perspective of placing investors’ medium- to long-term interests as our top priority, UDAM recognizes the importance of ESG awareness and incorporates it in all aspects of our real estate investment and management operations.

Global warming countermeasures
We will promote energy saving and reduction of greenhouse effect gas emissions in managing the investment assets.
Measures to preserve water resources and reduce waste
We will continuously work on water saving measures as well as reduction of waste and promotion of recycling.
Ensuring safety and security
We will promote BCPs (business continuity plans) for office buildings and implement disaster prevention measures at residential properties.
Internal implementation and initiatives for officers and employees
In order to implement the initiatives based on this Policy, we will educate and train officers and employees.
Coordination with outside stakeholders
We will coordinate with our tenants, property management companies and other stakeholders in an effort to enhance CS (customer satisfaction), as well as to achieve harmony with and vitalization of the local communities.
Information disclosure to investors, etc.
We will endeavor to proactively disclose information on our ESG awareness. Moreover, we will work to continuously obtain environmental certificates and assessments and disclose their details.
Compliance
We conduct corporate activities in accordance with environmental preservation-related laws and regulations, fully aware of the importance of corporate ethics and compliance.

Sustainability Policy (full text) PDF
(Asset management company: NTT Urban Development Asset Management Corporation)

Sustainability Promotion Structure

UDAM, the asset management company for NUD, has installed “Sustainability Promotion Committee” (the “Committee”) to review sustainability targets and measures, cooperate with the implementation thereof, etc. in accordance with the Sustainability Policy.
The Committee convenes at least twice a year to review concrete targets and measures, track the status of progress and instruct as required under the objective of promoting environmental awareness and other sustainability.
The President & CEO serves as the Chief Sustainability Officer (CSO), while the General Manager of Architectural and Environmental Engineering Department as the Sustainability Officer (SO).
The Sustainability Promotion Secretariat, which is a subordinate organization of the Committee, holds meetings of the Committee and the Sustainability Promotion Officers Meeting (Officers Meeting) and is in charge of the proceedings. The Officers Meeting formulates proposals for sustainability policies, short-term and medium- to long-term targets, performance management of targets, specific measures to achieve targets and such which the Committee will discuss or be reported to about.
The officers in charge of promotion in each department manage the progress of targets and measures and report to the secretariat as necessary. If the progress of targets and measures is not satisfactory, the Officers Meeting will work with the secretariat to consult with the committee on appropriate improvement measures.
The secretariat will provide the necessary support to the officers in charge of promotion when they implement measures.

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