NRI is involved in sustainable finance (finance for a sustainable society) as one of our unique ESG initiatives. Through sustainable finance, we strive to diversify financing methods, improve the stability of financing, and create new value with our stakeholders to address environmental and other social issues, contributing to the creation of a sustainable future.
What is NRI Green Bond?
In order to realize our corporate philosophy of "Dream up the future", NRI engages in environmental,
social and governance activities to create company value.
As one of these activities, NRI issued a Green Bond (Nomura Research Institute, Ltd. 3rd series
unsecured corporate bonds).The purpose is to activate the green investment market in Japan and to be
a leader in realizing a sustainable future.
The outline of NRI Green Bond
| Bond Name |
NRI Green Bond (Nomura Research Institute, Ltd. 3rd series unsecured corporate bonds) |
|---|---|
| Issue Date |
16th of September 2016 |
| Redemption period |
10 years |
| Total amount of the issuance |
¥10 billion |
| Determination date of issue terms |
9th of September 2016 |
| Use of proceeds |
The net proceeds of the bond will be used to finance the acquisition of trust
beneficiary rights with part of Yokohama Nomura Building as the trust asset, and
capital investment pertaining to the building. |
| Credit Rating |
AA- (Rating and Investment Information, Inc.) |
| Second party opinion(*1) |
-
*1:
The second party independent opinion of Vigeo Eiris which evaluates environmental,
social and governance issues, regarding NRI Green Bond aligned with Green Bond
Principles(*).
*Green Bond Principles: The guideline regarding Green Bond Issuance is written by Green Bond Principles Executive Committee which is facilitated by ICMA (International Capital Market Association).
http://www.icmagroup.org/Regulatory-Policy-and-Market-Practice/green-bonds/green-bond-principles/
The NRI Green Bond as noted above obtained an "R&I Green Bond Assessment"(*2) of the highest grade GA1 ("Green bond proceeds are used to invest in projects with environmental benefits to a significant degree") from Rating and Investment Information, Inc. on 9th of September 2016.
Download(PDF)
Green Bond Assessment
FileSize:244KB
- *2: "R&I Green Bond Assessment" is R&I's opinion regarding the extent to which the proceeds from the issuance of green bonds are used to invest in projects with environmental benefits, and it is expressed on a five-point scale of GA1 (significant degree) to GA5 (limited degree).
This information has been disclosed only for the purpose of publicly announcing the issuance of debt securities by Nomura Research Institute and not for the purpose of soliciting investment or engaging in any other similar activities.
About the Partial Sale of Trust Beneficiary Rights and Determination of New Allocation
NRI sold the trust beneficiary rights in the Yokohama Center (Yokohama Nomura Building) (*1) acquired with NRI Green Bonds (3rd series unsecured corporate bonds), and continues to manage the proceeds of the sale in a dedicated account until allocation to an eligible green project.
The proceeds have been allocated for the six following projects selected as green projects.
(1) Osaka Data Center II (O2DC) Floor Expansion Project (approx. ¥4.8 billion)
The Osaka Data Center II Floor Expansion Project (“O2DC Floor Expansion
Project”)(*2) was selected for new allocation in July 2021, with the proceeds being
allocated according to the progress of construction work, and the allocation was completed at the
end of 2023.
(2) THE STAR Implementation Project (approx. ¥3.3 billion)
The project for implementing “THE STAR” shared online services at Mizuho Securities Co.,
Ltd. (“STAR Implementation Project”)(*3) was selected for new allocation in
July 2022, and proceeds were allocated for part of NRI’s development expenses, etc. pertaining
to this in December 2022.
(3) Osaka Data Center II (O2DC) Solar Panel Project (approx. ¥50 million)
The project for installing solar panels at the Osaka Data Center II (“O2DC Solar Panel
Project”) was selected for new allocation in July 2022, with the proceeds being allocated upon
completion in December 2022.
(4) NRI-CTS Project (approx. ¥ 1.4 billion)
“NRI-CTS” is a carbon tracing system developed by NRI for the efficient and timely
realization of tracing of information on GHG emissions in the supply chain of companies
(*4). Due to NRI-CTS contributing to the future reduction of carbon in customers and
society, NRI selected the project for R&D and system and service development for this (NRI-CTS
Project) for new allocation in April 2023. We will allocate proceeds including additional
development expenses for enhancement, etc. according to the progress of this project. Approximately
0.4 billion yen has been allocated as of March 2024.
(5) Tokyo Data Center I (T1DC) Solar Panel Project (approx. ¥100 million)
The project for installing solar panels at the Tokyo Data Center I was selected for new allocation
based on the Green Bond Framework that specified construction and acquisition of renewable energy
generation facilities as eligible green projects. The allocation of proceeds was performed upon
completion of the construction in March 2024.
(6) Osaka Data Center II (O2DC) Administration Building Solar Panel Project (approx. ¥50
million)
The project for installing solar panels at the administration building of the Osaka Data Center II
was selected for new allocation based on the Green Bond Framework that specified construction and
acquisition of renewable energy generation facilities as eligible green projects. The allocation of
proceeds was performed upon completion of the construction in March 2024.
In April 2024, we also adopted the following projects as new appropriation recipients.
(7) Project for Promoting the Creation and Distribution of Forest-Derived J-Credits (approx.
¥300 million)
As part of our efforts for promoting the creation and distribution of forest-derived J-credits, we
plan to build a system for making applications more efficient via the automatic creation of
applications detailing information on target forests, and infrastructure for recording information
on CO2 absorption, etc. on a blockchain. Because this project is expected to promote the creation
and distribution of forest-derived J-credits and contribute to the decarbonization of our customers
and society in the future, we selected this R&D and system/service development project (the
Project for Promoting the Creation and Disribution of Forest-Derived J-Credits(*5)) for new
allocation. We will allocate proceeds for the expenses of this project according to the progress of
the project.
Approximately 8.7 billion yen of proceeds have been allocated to the above green projects as of March 31, 2024, and all the allocation of proceeds are expected to be complete with the NRI-CTS Project and Project for Promoting the Creation and Distribution of Forest-Derived J-Credits. The status of allocation of funds and the effect of environmental improvement of the projects will be reported in the ESG Data Book every year until the bonds are redeemed.
-
*1
Environmental certification obtained by Yokohama Center (Yokohama Nomura Building)
- CASBEE (Comprehensive Assessment System for Built Environment Efficiency) S Rank
- LEED Gold
- DBJ Green Building certification 5 stars*
- SEGES (Social and Environmental Green Evaluation System)
- *2
Osaka Data Center Ⅱ
(O2DC) 2nd Building
O2DC 2nd Building is a data center with environmental management technology and security knowledge developed through data center operations spanning the half century since NRI was founded in 1965.
It utilizes the Double-Deck System, patented by NRI, and other techniques to reduce environmental impact such as minimization of cooling load and efficient processing*.
O2DC provides a top quality service level** which ensures security and safety to NRI’s various clients from finance and other industries.
*Please refer to the following link for information on the techniques used to reduce the environmental impact, such as the double-deck system (PUE design value of O2DC after expansion: Less than 1.5)
https://www.nri.com/en/sustainability/materiality/esg/environment/greenstyle.html#green_of_nri
**Equivalent to tier 4 of the JDCC Data Facility Standard - *3
THE STAR
Implementation
Project
“THE STAR” is a joint usage service for the comprehensive back office system provided to retail brokerage firms by NRI (*). In THE STAR Implementation Project in Mizuho Securities, the power consumed by the system was reduced by approximately 25% (**) compared to before its implementation.
*See the following link for details on THE STAR.
https://www.nri.com/en/service/solution/the_star.html
**Comparison of average maximum vales for two days in specific month before and after implementation - *4
NRI-CTS
See the following links for details.
https://www.nri.com/en/news/info/20211215_1.html
https://www.youtube.com/watch?v=0USJanefLe4 (in Japanese) (External site) - *5
Project for Promoting the Creation and DistributionCirculation of Forest-Derived
J-Credits
See the following links for details.
https://www.nri.com/jp/news/info/cc/lst/2024/0221_1 (in Japanese)
https://www.nri.com/-/media/Corporate/en/Files/PDF/sustainability/management/esg/20240221_ESGsession02_2_en.pdf
（This information is current as of June 3, 2024.）
NRI Sustainability-Linked Bonds
NRI considers efforts to address environmental problems including climate change and pollution to be
a common global issue and is engaged in ESG initiatives geared toward increasing its corporate
value.
After becoming the first business enterprise in Japan to issue green bonds in September 2016, NRI is
following up with another signature ESG initiative by issuing NRI Sustainability-Linked Bonds (*1)
(Nomura Research Institute, Ltd., 8th series unsecured straight corporate bonds) as outlined below.
Based on the NRI corporate philosophy of “Dream up the future,” NRI
Sustainability-Linked Bonds will be a vehicle through which NRI can further stabilize its financing
and diversify its fundraising methods. The bonds will also be a way for NRI to co-create new value
with stakeholders in addressing social issues such as environmental problems and contribute to
creating a sustainable future society.
Overview of NRI Sustainability-Linked Bonds
| Name | NRI Sustainability-Linked Bonds (Nomura Research Institute, Ltd., 8th series unsecured straight corporate bonds) |
|---|---|
| Payment date | Friday, March 26, 2021 |
| Tenor | 12 years (with early redemption clause) |
| Issue amount | 5 billion yen |
| Determination date of issuance terms | Friday, March 19, 2021 |
| SPTs（*2） |
|
| Rating | AA- (Rating and Investment Information, Inc. (R&I)) |
| Second party opinions（*3） | Second party opinion V.E (Vigeo Eiris) Second party opinion (Rating and Investment Information, Inc.) |
| Framework | Framework |
- *1: Bond instruments for which the conditions change depending on whether the issuer achieves predefined sustainability/ESG objectives. Issuers of Sustainability-Linked Bonds are thereby committing explicitly to future improvements in sustainability outcome(s) within a predefined timeline. Specifically, Sustainability-Linked Bonds are financial instruments based on assessments of future performance according to Key Performance Indicators (KPIs) and Sustainability Performance Targets (SPTs) determined beforehand by the issuer. The conditions of the bonds change depending on whether the SPTs set as numerical targets to be achieved for the KPIs are achieved.
- *2: ESG targets based on the business strategy of the issuer which determines the terms of the Sustainability-Linked Bonds.
-
*3:
The second party independent opinions of V.E (Vigeo Eiris) and Rating and Investment
Information, Inc. that the NRI Sustainability-Linked Bonds are aligned with the
Sustainability-Linked Bond Principles(*).
*Sustainability-Linked Bond Principles (2020 edition): Guidelines published by the International Capital Market Association (ICMA) in June 2020 which recommend structuring features, disclosure, reporting, and other aspects of sustainability-linked bonds
https://www.icmagroup.org/sustainable-finance/the-principles-guidelines-and-handbooks/sustainability-linked-bond-principles-slbp
This information has been disclosed only for the purpose of publicly announcing the issuance of debt securities by NRI and not for the purpose of soliciting investment in any type of securities or engaging in any other similar activities.
Status of KPIs
| KPI | Unit | Base line | Target | Progress |
|---|---|---|---|---|
| FY2013 | FY2030 | FY2023 | ||
| NRI Group GHG emissions (Scope1 + 2) | 1,000t-CO2 | 108 | 30 | 8 |
| Renewable energy utilization rate in data centers | % | - | 70 | 100 |
- Note 1) Among what is calculated in Scope 2, electricity usage is for the NRI Group as a whole, while cooling, steam, and heat are for group companies headquartered in Japan.
- Note 2) Limited assurance was received from Ernst & Young ShinNihon LLC for the progress of KPIs.