Sustainability Policy
The Asset Management Company formulated its “Sustainability Policy” in April 2016, and set the materiality for NAF in February 2020.
To improve medium- to long-term unitholder value, NAF, together with the Asset Management Company, will continue to promote investment based on environmental, social and governance considerations.
1.Basic Policy
Based on an awareness that achieving a sustainable society is essential for NAF’s sustainable growth, the Asset Management Company works to ensure asset management operations that consider the reduction of the environmental load and collaboration with various internal and external stakeholders.
In addition, based on an awareness that corporate governance is also a key issue, the Asset Management Company works to ensure thorough compliance and the establishment of risk management structures.
When promoting the aforementioned issues, the Asset Management Company refers to the various Group policies on sustainability prescribed by its sponsor Mitsui Fudosan Co., Ltd. (”Mitsui Fudosan”) and where necessary proceeds with the Code of Conduct for execution of asset management operations.
- The Group Environmental Policy
- Health and Productivity Management Declaration
- Mitsui Fudosan Group’s Human Rights Policy
- Policy for Social Contribution Initiatives
- Mitsui Fudosan Group Compliance Policy
2.Reduction of Environmental Load
Promoting energy-savings and reduction of CO2 emissions
The Asset Management Company promotes efficient use of energy in asset management while aiming to purchase energy-saving equipment, etc. and working on initiatives to reduce CO2 emissions through energy savings.
Promoting the conservation of the water environment and waste reduction
We implement initiatives for conservation of the water environment such as through saving water and the purchase of water saving equipment. In addition, The Asset Management Company works on initiatives to reduce toxic substances, saving resources and reducing waste.
3. Diverse Affiliation and Collaborations with Various Internal and External Entities
Unitholders and investors
NAF strives to promote timely and appropriate information disclosure and dialogue with unitholders and investors to foster mutual understanding and trust through disclosure documents such as securities reports and press releases, briefings for analysts, and briefings for individual investors, etc. In addition, NAF also makes efforts to disclose information concerning sustainability management in response to environmental certification systems, etc.
* Please see“Policies on Customer-Oriented Business Conduct” established by the Asset Management Company.
Tenants
NAF strives to implement disaster prevention measures by improving response times during emergencies and strengthening preparedness during normal times at rental apartments, the major assets for which it manages investments, in an effort to enhance the safe and secure living environments. At the same time, NAF aims to improve customer satisfaction of tenants and other users by enhancing the level of comfort of the living spaces.
Officers and employees
The Asset Management Company recognizes that human resources are its most valuable assets and strives to create a comfortable and friendly working environment that takes into consideration the health of officers and employees in order for them to fully exert their capabilities as well as promote initiatives for developing capabilities through training and other measures. In addition, the Asset Management Company aims to improve the awareness of its officers and employees by continuously conducting educational activities on compliance and sustainability.
Supply chains
As part of monitoring property management companies (“PM companies”) and other business partners concerning the execution status of operations that are carried out on a regular basis, NAF confirms the status of sustainability-related initiatives of the PM companies and other business partners, and by requiring them to be understanding and cooperative with respect to sustainability, promotes initiatives in its supply chains.
Local community
As a member of the local community, NAF endeavors to contribute to the vitalization and development of local communities where the assets it manages are located and to disclose information on such efforts.
4. Initiatives for Governance
Thorough compliance
The Asset Management Company has established an organizational structure that should secure compliance with laws and regulations and implement fair transactions at any time. At the same time, the Asset Management Company works to ensure that its officers and employees will act based on high ethical values to win the trust of its stakeholders.
Establishment of risk management structure
The Asset Management Company has established a proper risk management structure to appropriately manage a variety of risks for the purpose of avoiding or minimizing risks in conducting asset management.
5. Information Disclosure to Stakeholders Such as Investors
The Asset Management Company endeavors to proactively disclose this policy and its performance based on the policy, etc. to investors and other stakeholders.
In-House Structure for Promotion of Sustainability
The Asset Management Company has established internal rules for promoting sustainability for the sake of implementing the Sustainability Policy. Based on these rules, the President & CEO has been designated as the person with overall responsibility for sustainability promotion and the respective chief officers of divisions in charge of the relevant measures (Chief Investment Officer or Chief Financial Officer) assume responsibility for executing individual measures related to sustainability promotion.
In addition, the Asset Management Company has established the Sustainability Promotion Office (the “Office”), which is composed of four general managers from each team of the Asset Management Company and personnel appointed by the general managers. It serves as a body for setting objectives and formulating implementation plans concerning NAF’s promotion of sustainability.
Objectives and implementation plans formulated by the Office are deliberated and decided upon at the Investment Committee, which includes the Asset Management Company’s President & CEO serving as the ultimate decision maker. Meanwhile, such objectives and implementation plans are shared by the Office with all officers and employees. The Office reports to the Investment Committee twice a year, in principle, regarding the objectives and progress achieved in carrying out the implementation plans. It is furthermore subject to a management review by the Asset Management Company, which reports to the Board of Directors of NAF.
Rules Concerning Promotion of Sustainability
Aiming to increase the effectiveness of the promotion of sustainability, the Asset Management Company has established the “Rules Concerning Structure for Promotion of Sustainability,” which outlines basic policies and specific procedures for the continuous monitoring and reduction of energy consumption, CO2 emissions, water consumption, and waste quantities, as well as basic policies and specific procedures for cooperation (green procurement, etc.) with external parties.
Sustainability Risk Evaluation
The sustainability risks of the Asset Management Company are periodically evaluated with the purpose of appropriately identifying and understanding the sustainability risks of the Asset Management Company.
If significant sustainability risks are discovered based on the evaluation results, the Office will propose improvement measures aimed at reducing such risks.