[Part 2] Tokyu Fudosan Holdings: Partnering with Nomura and Creating Value Through Environmental Management

In December 2025, Nomura Securities supported Tokyu Fudosan Holdings in the issuance of Japan’s first climate/nature-linked bond. In the first installment of this two-part series, we explained how Nomura Securities developed the bond proposal through discussions with Tokyu Fudosan Holdings.

In this second part, we speak with Ms. Suzuka Saku of Tokyu Fudosan Holdings and Dr. Hideyuki Takada of Tokyu Land about the company’s initiatives.

Why did Tokyu Fudosan Holdings choose Nomura Securities as its partner? And what value does the company hope to create through environmental management under its “WE ARE GREEN” initiatives? This article offers further insights into the background behind Japan’s first climate/nature-linked bond.

We asked Ms. Suzuka Saku of Tokyu Fudosan Holdings’ Group Finance Department why Nomura was selected as the partner for this issuance, and what her thoughts were on the proposal.

We chose Nomura Securities as our partner for this bond issuance because of  its prompt, client-focused approach to sharing information. Mr. Yamaguchi, who handled the project, was very responsive and contacted us as soon as the nature finance guide was issued. Nomura was the only company to share that information with us so quickly, and without that email, this issuance may not have taken place.

Nomura also consistently anticipated our needs and made proposals from our perspective. Many of the company’s ideas provided us with new viewpoints and insights we had not considered before.

At Tokyu Fudosan Holdings, we are confident that our environmental initiatives are among the best. However, it has been difficult to communicate our three key environmental priority areas— decarbonization, biodiversity, and a circular society—to investors.

Until now, our bond issuances have mainly focused on decarbonization. This time, we were also able to communicate our biodiversity initiatives, and our next challenge is how to effectively convey our efforts toward a circular society.

Tokyu Fudosan  Holdings’ financial policy is quite unique. We set a target for ESG bonds to account for more than 50% of total bond issuance by the end of fiscal 2025, and we achieved 62%. We are also now working toward a target of more than 70% by the end of fiscal 2030.

Noboru Goto, the first president of Tokyu Land, coined the philosophy “Do not build anything taller than the palm trees” while overseeing a development project in Palau. At the heart of Tokyu Fudosan Holdings’ environmental management is the pursuit of development that is truly beneficial to local communities, while coexisting with the environment and local people. We are now at the stage of clearly communicating that philosophy.

Also, from a monetization perspective, more people are starting to recognize the added value these efforts create. Under our “WE ARE GREEN” philosophy, we will continue to look for ways to resonate with investors.

Next, we asked Mr. Hideyuki Takada, Deputy General Manager of the Environmental Planning Department in the Urban Business Unit at Tokyu Land, who holds a PhD in environmental studies, about Tokyu Fudosan Holdings’ approach to environmental issues and the background behind it.

At Tokyu Land, we conduct biodiversity surveys four times a year at 12 of our major facilities in the Shibuya and Harajuku areas. Our goal is to create an ecological network that serves as a hub for birds, insects, and other living creatures by incorporating vegetation similar to the rich greenery found around Meiji Jingu Shrine and Yoyogi Park. Two examples are the commercial facilities “Omokado” and “Harakado,” located at the intersection of Omotesando and Meiji-dori. We have also successfully enabled great tit nesting in “Omohara no Mori,” a green space on the rooftop of Omokado.

We believe that places where living things can thrive are also comfortable for people. Because of this, we believe biodiversity in urban areas can help improve tenant wellbeing and, over time, increase the value of real estate and the city as a whole. 

For example, in office buildings, studies have shown that creating greener,  more comfortable spaces can help employees be more productive, reduce absences, and make it easier for tenant companies to recruit employees. If we can make our facilities more attractive and improve tenant satisfaction, that may lead to longer leases and future partnerships.

In addition, more comfortable commercial facilities can attract more people and increase sales. If more people learn about our biodiversity efforts and want to work with us, that could also lead to new business opportunities. We hope to advance these initiatives together with tenants and partner companies.