SUSTAINABILITY

REP RT
2

23

Corporate Sustainability Report 2023

GOAL

Nomura AssetManagement’s
Sustainability

Strengthening theinvestment chain

GOAL

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

Corporate Principles
Nomura Asset Management’s primary mission is to offer professionally managed investment products that correspond to thediverse needs of our diverse client base. We aim to deliver the best possible investment performance, backed by an exceptional
level of client service.

Maximizing
Value

Confidence andResponsibility
Advanced
Expertise

Nomura Asset Management aims to maximize added
value for our clients’ investments through our totalcommitment to highly professional research andportfolio management operations spanning a wide
range of asset classes and global markets.

In an industry where knowledge, expertise andintegrity are of paramount importance, Nomura AssetManagement relies on the skill and professionalism
of its people – these are our most vital assets. By
nurturing professional career development andencouraging specialization within our various businessareas, we can harness the creativity and vitality of ourstaff for the benefit of our clients and for the long-term
growth of our business.

ESG Statement

At Nomura Asset Management, we understand theimportance of high ethical standards, and our fiduciary
duty is therefore central to our relationships with ourclients. We strive to earn the lasting confidence of ourclients while acting with a clear sense of corporate
responsibility wherever we do business.

Nomura Asset Management will seek
to develop products that address
the needs of a sophisticated global
client base, by applying the mostadvanced investment technology
available.

We continually augment andstrengthen our research andinvestment capabilities; our risk
management and compliancesystems are thorough, and we excel
at providing comprehensive andcarefully tailored client services.

These qualities enable us to adapt
and respond rapidly to changing
needs and circumstances.

The most recent version can be found here.
https://global.nomura-am.co.jp/responsibility-investment/pdf/esg_statement.pdf

Nomura Asset Management formulated an ESG Statement in March 2019 based on our corporate philosophy and our aim to achieve customer-first business operations. We thenrevised the ESG Statement in both 2021 and 2022.
The ESG Statement was formulated in order to share with stakeholders our ESG-related activities and direction, as well as our policy for addressing both environmental and social
risks, and is based on our aim to realize a sustainable, prosperous society.
Our ESG Statement expresses how, as a responsible institutional investor, we require portfolio companies to manage their businesses with an emphasis on ESG, and clarifies ourpolicy of managing our own business with an emphasis on ESG.

Nomura Asset Management

Sustainability Report 2023

01

GOAL

Nomura AssetManagement’s
Sustainability

02

Contents / Nomura Group’s mission

03

CEO Message
Sustainability timeline

05

Corporate Sustainability Initiatives

06

Sustainability Advisory Board
Messages from outside experts

07

Realizing a desirable society
through the investment chain08

Key issues (materiality) for
realizing the investment chain

09

Materiality-Solving social problems through investment-

10

Materiality-Sustainability as a company-

11

Materiality KPIs

21
22

GOAL

Strengthening the investment chain
Provision of excellent products and services that
help customers build wealth13

Promotion of financial and economics education
Support for regional revitalization

PAGE

GOAL

PAGE

12

15

16

17

24

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

GOAL

Realizing a society in whichhuman rights are respected
17

DEI&B
(Diversity Equity Inclusion & Belonging)

18

DEI&B
-Promoting the active participation of women-

19

DEI&B
-Diversity promotion-

20

DEI&B -Human resources development- /Creating a work environment that fosters well-being

GOAL

Enhancing corporate value
through governance
21

PAGE

04

PAGE

PAGE

12

01

Corporate Principles / ESG Statement

PAGE

PAGE

01

Nomura Asset Management’s
Sustainability

Strengthening theinvestment chain

GOAL

Globalinitiatives

Company
information

Nomura Group’s mission

We help to enrich society
through our expertise incapital markets
Nomura Group’s mission has remained unchanged since its founding
in 1925.
Nomura Asset Management, a Nomura Group company, strives torealize sustainable, prosperous society by helping clients build wealthas a responsible institutional investor. True to Nomura Group’s founder
Tokushichi Nomura II’s aim to “Enrich the nation through the securities
business,” our mission has been to help create a prosperous society
based on our management vision of “Achieving sustainable growth byhelping solve social issues.”

Corporate Governance Strengths

Global initiatives
22

Sustainability initiatives in NAM’s global
network

23

Sustainability initiatives at asset managementcompanies with which NAM has a capital alliance

Company information

About this report
This report has been published to inform all of our stakeholders
about our actions related to corporate sustainability as a company.

Responsible Investment Report24

Company outline

We have published the Responsible Investment Report tohelp individual investors, portfolio companies, domestic
and international institutional investors and asset owners
better understand our initiatives as an institutional investor.

Realizing a healthy global environment
16

Achieving a Decarbonized Society /Preservation of Natural Capital

The Responsible Investment Report can be found here.
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf

Nomura Asset Management

Sustainability Report 2023

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GOAL

Nomura AssetManagement’s
Sustainability

Strengthening theinvestment chain

GOAL

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

CEO Message

Our aim is to continue to be an asset
management firm that makes the world abetter place both by helping clients build
wealth and by solving social issues

President & CEO

Hiroyasu
Koike

As a responsible institutional investor, Nomura
Asset Management aims to both help clientsbuild up assets as well as realize a sustainable,
prosperous world. Our clients’ needs havecontinued to become increasingly diverse. With thegrowing demand for a higher level of added-value in
asset management services, our goal is to continue
to be an asset management firm that makes theworld a better place by evolving into an asset
management solutions provider and thereby win the
support of clients around the world.
In addition to providing our clients withinvestment returns, we are also proactively working
to achieve sustainability over the medium- tolong-term, an effort which includes a focus on ESG.
Sustainability is an important management issue
that supports the investment chain (the virtuous
cycle of investment). We not only ask our portfolio
companies to enhance their corporate value, but
we also demand that they emphasize sustainability
in their management approach. Moreover, we areadvancing sustainability efforts in our own business
operations as well.
Examples of this include establishing targets andadvancing measures to achieve net zero in our own
offices, as well as the creation of donation schemes
utilizing the corporate version of the hometown tax
system to support regional revitalization.
With respect to the investment chain, it is criticalto keep the virtuous cycle of investment going. The
role of asset management firms like Nomura AssetManagement, which manage clients’ precious

financial assets, is more than simply assessing themarket value of portfolio companies.
Another important role for asset management
firms is engagement, which refers to the processof fully understanding the business environment
portfolio companies operate in, and proactively
urging them to both enhance their own corporate
value and grow sustainably. At Nomura AssetManagement, our Engagement Department
possesses expertise in this domain, and engages
in effective dialogue with portfolio companies fromthe viewpoint of an institutional investor, while also
encouraging them to work toward the SDGs. By
starting the investment chain and keeping it going,
we aim to realize both sustainable growth anda prosperous society, which will in turn help ourclients build wealth.
We also believe it is important to widen thescope of our asset management in order to allow
even more people to enjoy the benefits of thisvirtuous cycle of investment. The investment chain
philosophy exists at the core of the financial andeconomics education we put significant effort into.
Nomura Asset Management has been engaged
in the asset management business globally since
our founding in 1959. Looking ahead, our diverse,
highly-professional personnel will continue tocontribute to society by leveraging their talents andindividuality to provide wide-ranging solutions. Asa firm, we will march forward, aiming to be Japan’s
leading asset management firm preferred by clientsaround the world.

Nomura Asset Management

Sustainability Report 2023

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GOAL

Nomura AssetManagement’s
Sustainability

Sustainability
timeline
Please refer to Pages 13-18 of our Responsible
Investment Report for information on initiatives.
Responsible Investment Report 2022
https://global.nomura-am.co.jp/responsibility-investment/pdf/
ri_report_2022.pdf

GOAL

Strengthening theinvestment chain

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

GO FURTHER

2022

2021
Our efforts

Our efforts

 ateriality publishedM2050 Net Zero Goal and 2030 Interim
Target related to greenhouse gases
emissions of managed assets establishedEngagement Department establishedESG Statement revised ustainability Development Department, Net Zero Strategy
S
Department establishedSustainability Advisory Board createdMateriality KPI announced
Asset Management Women’s Forum network secretariat launched
ESG Statement revised

Key initiatives we are involved in, etc.

Women in ETFs signed

2020
Key initiatives we are involved in, etc.

Our efforts

 et Zero Asset Managers initiative (NZAM) signed
NCDP, Partnership for Carbon Accounting Financials(PCAF), Access to Nutrition Initiative, GRESB signed

2017

2018
Our efforts

Our efforts

 roxy voting results disclosed
P
individuallySelf-evaluationof stewardship
activities disclosed

Key initiatives we are involved in, etc.

2019
Key initiatives we are involved in, etc.

Our efforts

 he International Corporate GovernanceT
Network (ICGN) and The Asian Corporate
Governance Association (ACGA) signed

 SG StatementEformulated

 alaysian Stewardship CodeM
adopted2016
Key initiatives we are involved in, etc.

 esponsible Investment
R
Department and Responsible
Investment Council establishedConflict of Interest Management
Policy formulated

2001

Our efforts

 roxy Voting
P
Committee
established

Key initiatives we are involved in, etc.

 CFD endorsedTAccess to Medicine Index, Climate Action
100+, 30% Club Japan (Investor Group), Japan
Stewardship Initiative (JSI), and Farm Animal
Investment Risk and Return (FAIRR) signed

2015
Our efforts

START onation scheme to helpD
regional revitalization
launched
Asset Management ResearchCenter established tewardship Codes in Singapore, Hong Kong
S
and Taiwan adopted
UK Office acquired Tier1 evaluation from UK
FRC(UK FRC: Abbreviation for the Financial
Reporting Council in the United Kingdom)

2004

Our efforts

Our efforts

 esponsible Investment Group and ESG
R
specialists establishedStewardship Committee integrated into
Responsible Investment Committee SG Committee reorganized into Responsible Investment CommitteeEProxy Voting Committee reorganized into Stewardship Committee

2010
Our efforts

 anagement of SRI Index FundM
commenced
Management of governance fundcommenced

2014

Key initiatives we are involved in, etc.

Japanese version of the Stewardship Code adopted

2011

2012

Key initiatives we are involved in, etc.

Our efforts

Key initiatives we are involved in, etc.

Key initiatives we are involved in, etc.

UK Stewardship Code adopted

 SG Committee (nowE
the Responsible
Investment Committee)
established nited Nations-supported Principles forU
Responsible Investment (UN PRI) signed

 rinciples for Financial Action forP
the 21st Century (financial action
principles targeting a sustainable
society) signed

Nomura Asset Management

Sustainability Report 2023

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GOAL

Nomura AssetManagement’s
Sustainability

Strengthening theinvestment chain

GOAL

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

Corporate Sustainability Initiatives
In April 2022, we established the Sustainability
Development Department to further promotemanagement emphasizing sustainability as an asset
management firm and to enhance our sustainabilityrelated communication both internally andexternally. Also, in addition to senior management’s
evaluations of the outcomes of our efforts related tosustainability activities that contribute to improving
the sustainability of society, we have establisheda Sustainability Development Committee whichholds quarterly meetings attended by all executive
officers, where members deliberate about initiatives
aimed at solving challenges.
The Company has also established a
Sustainability Advisory Board, which meets twicea year, for the purpose of receiving advice andcriticism about our sustainability efforts froman outside perspective in light of trends aroundthe world. The Sustainability Advisory Board iscomprised of three independent outside directors
and two outside experts.
In FY2022, our main achievements in Companywide sustainability promotion were describing in
our ESG Statement our vision of the sustainable,
prosperous society we aim to realize and publishing
our materiality KPIs in order to promote companywide sustainability.

Revision of ESG Statement
Following repeated discussions throughout ourorganization, we revised and published our ESG
Statement, which now describes with clarity our
vision for the society we are striving to realize as
an asset management firm. (Please read about our
vision for society on P.07 .)Materiality KPIs
We established indicators to measure the outcomeof initiatives for each item in the materiality weannounced in 2021, and monitored progress eachquarter. We then established and announced
materiality KPIs for those initiatives that are very
important for our key stakeholders and for which weare able to disclose performance values each year
after setting medium- to long-term targets.
(Please refer to P.11 for our materiality KPIs.)

Outlook for 2023
Utilizing the systems and mechanisms that havebeen further developed since the establishmentof the Sustainability Development Department, we
will reinforce our efforts so that people throughout
the firm take a personal interest in working on
initiatives aimed at resolving our materiality. In
this Corporate Sustainability Report, and in thesections of our corporate website related tosustainability, we will communicate our efforts inan easy-to-understand manner and highlight ourstrengths and commitments, so that stakeholders
both inside and outside the Company are able
to gain a strong understanding of Nomura AssetManagement’s approach.

Sustainability Development Department
Oversight

Board of Directors

Oversight

Reports

Business execution
Executive Management Committee

Sustainability Development Committee

Departments

Advice/evaluation

Sustainability Advisory Board

Board members
Chairperson

Seiichiro Yamamoto
Deputy-Head ofCorporate Unit
(Treasury & Controller’s
Department, Sustainability
Development Department, Human
Resources Department, AssetManagement Research Center)

Riyo
AzechiIndependent outside director /Board of Directors Chair

Masako Egawa

Yumiko Miwa

Chancellor, Seikei Gakuen

Professor, Department ofCommerce, Meiji University

Akiko Kimura

Ryoji Maeda

Independent outside
director

Independent outside
director

Nomura Asset Management

Sustainability Report 2023

05

GOAL

Nomura AssetManagement’s
Sustainability

Strengthening theinvestment chain

GOAL

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

Sustainability Advisory Board

Messages from outside experts
I hope that NAM personnel
will take a personal interestin sustainability and enhance
the firm’s performance

I would like to see Nomura
Asset Management lead
global asset management
firms in ESG

Masako Egawa

Yumiko Miwa

Chancellor, Seikei Gakuen
Visiting Researcher, Center for Advanced Research on Finance, The University of Tokyo
Outside Director, Mitsui & Co., Ltd.
Outside Director, Mitsubishi Electric Corporation

I spent my career working in M&A andcorporate finance at a foreign-capital
investment bank until I was in my
40s. During those years I had limited
involvement with asset management
firms and knew only a little bit about
Nomura Asset Management. As amember of the Sustainability Advisory
Board, I have been impressed by
the Company’s earnest commitment
to sustainability. In addition, I canappreciate the emphasis on research
and analysis that is typical of a Nomura
Group company. ESG investing still
has a relatively short history, and there
are many themes to be studied andanalyzed, such as the relationshipbetween sustainability and long-term
corporate value. I would like to see
Nomura Asset Management shed lighton these kinds of topics while also
putting them into practice.
In the ESG Statement revised in
2022, the Company added “Equity” and“Belonging” to “Diversity and Inclusion”
as particularly important ESG issues,

thereby creating “Diversity, Equity,
Inclusion and Belonging (DEI&B).”
This change impresses upon me theCompany’s global-orientation anddesire to be at the forefront of change.
The Company has also establisheda KPI to increase the ratio of women
working as department heads and inother managerial positions to at least
40% by FY2030.
It is important that everyone in the
Company take a personal interest in
working to achieve the goals of the ESG
Statement and the KPIs.
While expressing its commitment
to sustainability, senior management
must also advance initiatives thattake root in day-to-day actions,such as engaging in ongoing internal
discussions and creating detailed actionplans. I would like to see everyone in
Nomura Asset Management sharean understanding that enhancing
diversity will bolster the Company’s
performance, and work to achieve thefirm’s sustainability goals.

Professor, Department of Commerce, Meiji University
Outside Director, Eisai Co., Ltd.
Outside Director, Pigeon Corporation

We are now in an era where it is
impossible to separate sustainability
from financial and corporate activities.
From a geological point of view, weare said to have now entered the ageof the Anthropocene, where tracesof human activity are impacting the
Earth’s geological features, and wemust seriously think about ESG from asustainability perspective.
Ever since the 2008 financial crisis,
the public has expressed a highdegree of dissatisfaction with thefinance industry. This has promptedme to think about sustainability froma finance angle. Finance is actuallyan effective means of resolving global
environmental and social issues.
Challenging the finance community
in today’s world, Nobel Prize-winningeconomics professor Robert Shiller
said, “Finance is not merely about
making money. It’s about achieving
our deep goals and protecting
the fruits of our labor. It’s about
stewardship and, therefore, about

achieving the good society.”*
Nomura Asset Management is a
top-class asset management firm inJapan and is in a position to lead thefinance industry in helping achieve“our deep goals” that Robert Shiller
wrote about.
In the 2022 revision of the
ESG Statement, Nomura AssetManagement clarified the virtuous
cycle of investment and the important
issues that should be solved torealize it. I look forward to seeing theCompany lead the way in ESG, bothin Japan and overseas, in order toachieve social goals such as regional
revitalization, net zero, and theempowerment of women.

*Robert J. Shiller
Finance and the Good Society

Nomura Asset Management

Sustainability Report 2023

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GOAL

Nomura AssetManagement’s
Sustainability

GOAL

Strengthening theinvestment chain

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

Realizing a desirable society
through the investment chain
NAM’s vision for society

Higher investment
returns-Excerpt from Nomura Asset Management’s
ESG StatementWe seek to realize a sustainable, prosperous society
in which the rich natural environment is preserved,
diverse human capital is utilized, economic
development is driven by technological innovation,
human rights are respected, and well-being is
promoted. It is a society in which ESG issues
are addressed and the SDGs are achieved.

Enhancement ofcorporate value

Prosperous
society

Clients(individual investors,
pension funds, etc.)

ReportingFunding,
monitoring

Portfolio
companies

The investment chain
we strive to achieve

ESG
ESG is the acronym for Environment,
Social and Corporate Governance.

(virtuous cycle of investment)

NomuraAsset
Management

SDGs
SDGs is the acronym for Sustainable
Development Goals. The SDGs are a
set of sustainable development goals forthe world to achieve by 2030, adopted
by the United Nations in 2015.

Analysts

About the Investment Chain(virtuous cycle of investment)

The investment chain is the cycle whereby investors
invest in companies, and those companies enhance theirmedium- to long-term value, thereby increasing profits,with the accompanying increase in dividends andwages ultimately being returned to households.

Portfolio
managers

E SG
ESG specialists

gr
Int e

g
E ng aa tiemyP r oxEnhcor ancemepor
ate vant of
lue
Inc
rea
sed
So
susta
lvi
inabilityngeso n v ir o n
cia
l is s m e n t al a n dues(practice desirable
management)

on

en

t

i
Vot

ng

Nomura Asset Management

Sustainability Report 2023

07

GOAL

Nomura AssetManagement’s
Sustainability

GOAL

Strengthening theinvestment chain

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

Key issues (materiality) for
realizing the investment chain
4 Goals and NAM’s Materiality

Strengthening the Investment Chain

Realizing a Healthy Global
Environment

Realization of a Society in Which
Human Rights are Respected

Corporate Value Improvement
through Governance

Provision of excellent products
and services that help clientsbuild wealth

Promotion of responsible
investment

Achieving a decarbonized society

Promotion of DEI&B (Diversity
Equity Inclusion & Belonging)

Sufficient display of corporate
governance functions

Enhancement of investment
capabilities and client
convenience through digitalization

Promotion of financial andeconomics education

Preservation of Natural Capital

Creating environments
where employees can workwith well-being

Enhancement of internal
control systems

Support for regional revitalization

Materiality selection process

STEP 02

Analysis

STEP 04

Decision/announcement

In light of Nomura Group’s Management Vision and our corporate
principles, we select topics for materiality after repeated internal
discussions on the importance and impact of candidate issues and theefforts to solve them.
We decide and announce our materiality following a suitability checkby the Executive Management Committee. We review and adjust ourmateriality, as necessary, based on changes in the environment, progressin our businesses, reports to the Board of Directors, and advice from theSustainability Advisory Board.

 educing the impact ofR
demographic change

More important

STEP 03

Selection

We determine candidate issues for materiality through hearings withinternal departments, while considering the degree of impact on ourbusiness activities and the amount of impact on society.

Materiality map
Importance to society

STEP 01

List creation

In order to realize the virtuous cycle of investment (investment chain) that
we are targeting, we make a list of the issues we feel we should focus
on based on the environment surrounding our company as well as ourbusiness activities.

Extremely important

We announced our materiality in our Responsible Investment Report2020. Following thorough internal discussions about how to solve
our materiality and based on advice from the Sustainability Advisory
Board, in FY2022 we established and announced KPIs, and havebeen further advancing our business management with an emphasis
on sustainability as an asset management firm. Going forward, we willcontinue to monitor our progress and accelerate our efforts towards
achieving our vision, as we aim to realize a sustainable, prosperous
society.

Handling of natural disasters
Closing the wealth gap
 andling of conflicts andH
political instability

ImportantMore important

Extremely important

Importance to NAM

Nomura Asset Management

Sustainability Report 2023

08

GOAL

Nomura AssetManagement’s
Sustainability

Strengthening theinvestment chain

GOAL

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

Materiality - Solving social problems through investment Goal

Materiality
Provision of excellent products
and services that help clients build
wealthObjectives

We will respond to clients’ various asset management needs, andprovide excellent investment performanceIn addition to traditional assets, expand investment in areas such as ESG andalternative investments, and further improve asset allocation capabilities
D evelopment and provision of products and services for customers at various
life stages

Through stewardship activities, we will continue to support portfolio
companies’ corporate value enhancement and social value creation

 nhancement of ESG integration to incorporate non-financial information intoE
the investment processP roactive promotion of ESG engagement based on ESG perspectives andimportant topics

Realizing ahealthy global
environment

Strengthening theInvestment Chain

Promotion of responsible
investment
Goal

Realization ofa society inwhich humanrights arerespected

Corporate
Value
Improvement
through
Governance
Enhancement of investment
capabilities and client conveniencethrough digitalization

Key initiatives

Targeting the shift to a sustainable decarbonizedsociety, we will use engagement and other means
to encourage portfolio companies to combat
climate change.

 nhancement of the level of investment with respect to climate change risksEand opportunities
U se of engagement with portfolio companies to have them incorporate climatechange initiatives into their management strategies

We will demand that portfolio companies
have management strategies that take thesustainability of natural capital into account.

 se of engagement with portfolio companies to have them incorporateUinitiatives aimed at the coexistence of natural capital and their business into
their management strategies

We will promote DEI&B in portfolio companies,
in order to continuously create added value by
allowing diverse human resources to display theirabilities and individuality

 romotion of diversity and inclusion through engagement with portfolio
P
companies
E stablishment and management of Japan Empowering Women Select Index
ETF

Our portfolio companies will improve productivity
and create high value-added services by creatinga high-quality work environment

 eveloping and managing investment strategies that focus on the performanceDof companies that are good places to workR ealization of decent work through engagement with portfolio companies

We will promote the thorough functioning ofcorporate governance in order for portfolio
companies to achieve their established corporate
philosophies and management targets

 ngagement with portfolio companies with the aim of enhancing corporateEgovernanceD isciplined proxy voting in accordance with the proxy voting guidelines

We will utilize cutting-edge technologies to the maximum extent
possible and provide clients with even more investment opportunities
and added value nhancement of UI/UX for digital content and utilization of DX to cultivate newEbusiness domains

Please refer to the Responsible Investment Report for
details about how we promote responsible investment.

Responsible Investment Report 2022
https://global.nomura-am.co.jp/responsibility-investment/pdf/ri_report_2022.pdf

Nomura Asset Management

Sustainability Report 2023

09

GOAL

Nomura AssetManagement’s
Sustainability

Strengthening theinvestment chain

GOAL

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

Materiality - Sustainability as a company Goal

Strengthening theInvestment Chain

Realizing ahealthy global
environment

Materiality

Objectives

Key initiatives

Enhancement of investment
capabilities and client conveniencethrough digitalization

We will utilize cutting-edge technologies to the maximum extent
possible and provide clients with even more investment opportunities
and added value

Development of investment methods utilizing AI, alternative data, and other means

Promotion of financial andeconomics education

In order to familiarize potential customers with investment trusts, wewill promote financial and economic education and work to expand theinvestor baseEnhancement of education/training that will lead to the promotion of wealth building

Support for regional
revitalization

We will work with regional financial institutions to create a strong
movement for regional revitalization originating from regional financial
institutions

 artner with regional financial institutions to launch donation schemes utilizingP
the corporate version of the hometown tax systemH olding ESG forums with regional financial institutions to discuss regional
revitalization and consider ESG

Achieving a decarbonizedsociety

Strive to achieve carbon neutrality with the aim of transitioning to asustainable, decarbonized society

Preservation of Natural Capital

Advance efforts to conserve natural capitalIntroduction of job-grade personnel systemD evelopment and appointment of diverse professional human resources
S upport for balancing work and childcare/nursing care
Continuous implementation of training and workshops to raise awareness of DEI&B

Creating environments where
employees can work with wellbeing

We will aim to realize high productivity and create highvalue-added services by developing a work environment that
promotes employee well-being.

 orrection of long working hours
CS trengthen communication with management to promote flexible work styles
and increase employee engagement (willingness to contribute to the company)
E ducation targeting improvements in health literacy
U nderstanding employees’ health status and conduct mental health checks
Implementation of measures to prevent communicable diseases

Sufficient display of corporate
governance functions

We will promote the sufficient functioning of corporate governance inorder to achieve our corporate philosophies and management targets.

 doption of a monitoring model as a Company with Audit & Supervisory CommitteesAA ppointments of independent outside directors possessing expertise in
specialized fields
C reation of various committees

We will work to strengthen and enhance our internal control systems
and conflict of interest management framework in order to protect ourclients’ assets and earn their unwavering trust

 onstruction of an internal control system based on three lines of defenseCMonitoring of market risk, credit risk, operational risk, etc., by various committeesEnhancement of the conduct risk management system
Construction of a robust crisis management system
Strengthening the conflict of interest management system
Creation of the Fund Management Council and the Responsible Investment Council,
and appointment of independent outside experts as members of both councils
Ensure independence of decision-making and personnel in investing and research(Diversity Equity Inclusion & Belonging)

Corporate Value
Improvement
through
GovernanceU tilization of environmentally-friendly and socially-friendly products

We will promote DEI&B within Nomura Asset Management, in order tocontinuously create added value by allowing diverse human resources todisplay their abilities and individuality

Promotion of DEI&B

Realization of asociety in whichhuman rights arerespected

R eduction of Nomura Asset Management’s CO 2 emissions, with the aim ofachieving carbon neutrality

Enhancement of internal control
systems

Nomura Asset Management

Sustainability Report 2023

10

GOAL

Nomura AssetManagement’s
Sustainability

GOAL

Strengthening theinvestment chain

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

Materiality KPIs
E
RO

MISS
I

O

N

Customer-centric business operations

ZE

In January 2023, we established key performance indicators (KPIs) for our materiality in order to measure the results andfurther increase the transparency of our ESG and other sustainability initiatives.

We have set KPIs based on the philosophy of continuously (investment years) providing
customers (assets under management) with better investment products (investment
performance) that help them build wealth.

KPI

Greenhouse Gas Emission Reductions
We have established targets for greenhouse gas emission reductions in order to realize adecarbonized society.

KPI

Investment trusts (Japan)

3.0

Current
statusOverall: 3.2

managed assets by 2050
2030 interim target 
55% portfolio coverage ratio ofassets managed by NAM with
SBT certification

Fundmark*1 balance weighted rating

Continuously above

Achieve net zero greenhouse gas emissions from

As of March 31, 2023

Details can be found here
https://www.nomura-am.co.jp/corporate/service/cobo/kpi.html *Japanese website only

Current
status

KPI

Actively managed investment trusts (Japan)
Average 3-year and 5-year Sharpe ratios*2 for each asset type

By 2030, NAM will transition to using 100% renewableenergy- sourced electricity and achieve net-zerogreenhouse gas emissions Current
statusCurrent
status

As of December 31, 2022

*S BT stands for Science Based Targets, which are greenhouse gas reduction targets
scientifically-consistent with Paris Agreement targets

We are also measuring the following as indicators to gauge our active management
capabilities, with the aim of bolstering our investment capabilities

Goal

36.4%

60.3%

As of March 31, 2023

Continuously exceed the industry average

We support the goals of the Paris Agreement, the international framework on climatechange, and have joined NZAM, a global initiative comprising asset managementcompanies that aims to achieve net zero greenhouse gas emissions from portfolio
companies by 2050. In addition to achieving this goal as a responsible institutional
investor, we will promote our own efforts as a company, and aim to achieve carbon
neutrality with the target of transitioning to a sustainable, decarbonized society.

Continuously exceeded the industry average for five of the six asset types,
both for the 3-year and 5-year average As of March 31, 2023

Active management strategies offered globally
Ratio*3 of competitively advantaged strategies based on 3-year and 5-year
Sharpe ratios.
Have at least 1/3 of our strategies continuously be within the top 1/3 comparedto our competitors

Current
statusAlthough it is less than 1/3 for the 3-year average, it is greater than 1/3
for the 5-year average As of March 31, 2023

4

0%

Goal

Ratio of female department heads
The empowerment of women is an important part of our DEI&B initiatives, and we haveestablished a target for women in managerial positions.

We aim to strengthen the investment chain by achieving these KPIs.
*1 U
 sing investment performance results for investment trusts sold in Japan, Nomura Research Institute,Ltd. performs comparisons and analysis of the performance of each product. Nomura Research Institutecategorizes investment trusts in line with the investment strategy and investment reality (approximately 300
Fundmark categories), compares the investment trusts’ performance (risk-adjusted returns) within eachcategory, and publishes an evaluation using a five-step ranking (Fundmark rating).
*2 Based on the Fundmark database provided by Nomura Research Institute, Ltd. Investment trust performances for
NAM and the industry averages (risk-adjusted return) have been compiled by NAM for each asset class.
*3 B ased on eVestment’s database, which is widely used as an investment performance analysis platform byinstitutional investors around the world. NAM has computed and compiled rankings within categories forrisk-adjusted return in eVestment.

KPI

At least

40% by FY2030

Current
status23.7%

As of April 1, 2023

As part of our vision for FY2030, we aim to have women naturally be involved in alldecision-making processes, and to be recognized as a company that is leading the way inempowering women in the workplace. In October 2022, we formulated an action plan toachieve this goal.

Nomura Asset Management

Sustainability Report 2023

11

GOAL

Nomura AssetManagement’s
Sustainability

GOAL

Strengthening theinvestment chain

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

Provision of excellent products and services
that help customers build wealth
ESG assets under management (AUM)

Investment trusts for defined contribution (DC) pension plans*As of March 31, 2023

*As of March 31, 2023

1.312 trillion

Assets undermanagement¥

This is the total AUM of Nomura Asset Management’s investment
strategies that are considered ESG strategies based on factors
such as the relevant country/region’s ESG regulations and/or
customer guidelines. This number includes the AUM of Japanese
investment trusts, UCITS and other overseas investment funds, anddomestic and overseas segregated accounts.
For Japanese investment trusts, we define “ESG funds” as thosethat actively utilize ESG integration, engagement/proxy voting, andthat actively utilize other sustainable strategies as defined by GSIA.

January – December 2022%

*UCITS: Acronym for funds satisfying the standards of the EU directive*As of March 31, 2023

*As of March 31, 2023

1.287trillion ¥1.262 trillion¥

Enhancement of investment capabilities and client
convenience through digitalization
Number of academic papers andpresentations at academic conferences

Total number of engagement topics(total number of meetings)

topics (1,010 meetings)

20.6

Alternative investments AUM

Engagement meetings

2,424

Domestic
share

UCITS* balance

Promotion of responsible investment - Engagement track record in Japan -Ratio bytopic

2.0trillion

¥

Ratio

Numberof topics

Business strategy

16%

397

Financial strategy

15%

361

ESG-related meetings

69%

1,666

Environmental
SocialGovernance
Proxy voting-related

19%
14%
28%
7%

470
343
679
174

Total

48

*FY2022 track record

Number of AI applications

11

4

Utilized as key
signal in investment
domainUsed as reference
data in active
management

2,424

Nomura Asset Management

Sustainability Report 2023

12

GOAL

Nomura AssetManagement’s
Sustainability

Strengthening theinvestment chain

GOAL

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

Promotion of financial and economics education
Aiming to solve social issues through asset management, we are working to provide information to people of all ages.
Utilizing the asset management knowledge we have cultivated over the years, we hold seminars on asset building using investment trusts and we visit classes toteach students, as we work to create opportunities for people to think about asset management as a means to grow their money.
In addition, we are also focusing on providing support to companies that distribute our investment products so that investors can gain an even deeper
understanding of the philosophy behind asset management as well as learn more about financial products and services.

Asset Management ResearchCenterInvestment education programs

TOPIC
Information provided using SNS and other tools

Money Growing Research Institute
The Money Growing Research Institute has content fora wide range of people, including those who want tolearn about investing, people who want to utilize asset
management, and those who are worried about theirfinancial life after retirement.

Asset Management Research Center

This internal group was established in 2020 todisseminate information based on the asset
management-related insights and know-how
we have accumulated over the years in an easyto-understand manner. The Asset Management
Research Center disseminates information mainly
on such research topics as basic research on
capital markets, basic research on personal
financial assets and wealth building, and thepromotion of investment education.

Development of proprietaryinvestment experience game
We have developed “Tsumitate GO!,” anexperience-based game for people to enjoy learning
about the unique characteristics of installment
investing. Through the game’s presentations andother features, players experience installment
investing and deepen their understanding of thismethod of investing which involves investing a fixedamount on a regular basis.

Tie-up with QuizKnock

We appointed QuizKnock’s Takushi Izawa as our“asset building ambassador” and provide “moneygrowing seminars” with QuizKnock to help people
learn about asset management in a fun andinformative manner. As a first step in learning about
asset management using investment trusts, we areproviding a nationwide on-site class called “Money
Growing Caravan” and disseminating videos
with QuizKnock on the YouTube channel “Money
Growing Research Institute.”

Website*Japanese website only

YouTubeYouTubeFacebook

NAM’s SNS

Twitter*Q uizKnock is a media organization managed by baton Co., Ltd that combines entertainment and learning. Takuji Izawa, the University of Tokyo Quiz King, is the central figure in the show, which provides content
that helps people understand various topics based on the concept of “learning that begins with having fun.”Instagram*Click on the icon to go to each web page.

Nomura Asset Management

Sustainability Report 2023

13

GOAL

Nomura AssetManagement’s
Sustainability

Strengthening theinvestment chain

GOAL

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

Promotion of financial and economics education

Sending instructors touniversities and high schools
Education/training provided
in FY2022

Education/training programs forfinancial institutions
Education/training provided
in FY2022
Number of participants

Number of participants

8,813

peopleNumber of hours

131

hours

Since FY2005, we have been sending employees
as lecturers to more than 500 universities to provide
sponsored lectures. The total number of students
who have taken these classes now exceeds 60,000
students. We also accept students for internships,
provide work experience programs for high school
students, and hold lectures and seminars forteachers.

20,329peopleNumber of hours“New Support Project” to spread
investing to support causes
We are working to spread the idea that investing
can be a force for solving social issues, and thatpeople are supporting something through theirinvestment activity. We are mainly communicating
to those without investment experience thatinvesting is a force for solving social issues,and encouraging them to think about investingin a new light and become interested in it. The
main purpose of this project is informing people
that they can use investing as a way to support

something (which is important to young people)
which will both make society more prosperous
and help them build wealth.

2,097

hours

Number of online contents

1,302

We are working to further deepen customers’
understanding of financial products and services
by providing consulting to financial institutions
that distribute our products. We provide support
through lectures and workshops given by highlyspecialized instructors as well as online content,
including programs that establish themes, such as
goal-based themes, and that provide support bothin terms of theory and real-word application.

“ETFs are the next step in investing– NEXT FUNDS are ETFs –“ Promotion
We are providing information so that many people
can learn about ETFs (exchange-traded funds)
and individual investors can invest in them. Media
personality Kazlaser introduces ETFs and NAM’s
ETF series “NEXT FUNDS.”
NEXT FUNDS is the unified brand for the ETF
series that we manage. NEXT FUNDS stands for“Nomura EXchange Traded FUNDS,” whichrefers to Nomura’s ETFs, and also expresses ourcommitment to develop the next generation offunds.
Details can be found here.
https://nextfunds.jp/special/next_step/fund/*Japanese website only

Nomura Asset Management

Sustainability Report 2023

14

GOAL

Nomura AssetManagement’s
Sustainability

GOAL

Strengthening theinvestment chain

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

Support for regional revitalization
We aim to realize a sustainable, prosperous society through our asset management business. We believe that regional revitalization is an important issues to be solved in order torealize this vision. In 2020, we established a donation scheme utilizing the tax system to support regional revitalization (corporate version of hometown tax).
Japan is facing the problems of population decline and a super-aging of society, and each region is working together with the government to create a self-supporting andsustainable society, making the most of its own distinctive characteristics.
By working to solve social issues through asset management, we will connect the hopes of investors and Japan as a whole, and contribute to solving issues with the aim ofrevitalizing regional areas.

Donation scheme for regional revitalization

Introduction of projects

We donate a portion of our revenue according to the amount of sales of our ESG investment strategy
products (applicable funds) to SDG-related projects carried out by local governments in prefectures
throughout Japan.

Investment

Customer

Won
award

Investment

Fund

Revenue
Investment
directions

Assets invested in

Revenue
Trust fee

We wereawarded the
FY2022 Minister’sPrize related to thecorporate version of thehometown tax system!
https://www.nomura-am.co.jp/
news/20230120NAM.pdf

Kokorozashi Project

TASUKI ProjectWorking together with customers
and/or regional financial institutions
to revitalize regional areas

Working with Nomura Securities onregional revitalization*Japanese website only

Nomura Asset Management

Details can befound here

Kokorozashi Project
https://www.nomura-am.co.jp/special/kokorozashi/*Japanese website only

TASUKI Project
https://www.nomura-am.co.jp/special/tasuki/*Japanese website only

Donation

Total assets of funds
covered by the
donation scheme

SDG projects implemented byregional public entities

Investors (customers)
contribute to efforts aimed
at regional revitalization
by holding these funds

POINT

POINT

POINT

Promote regional
revitalization with regional
financial institutions andregional public entities

Make donations
utilizing corporate
version of thehometown tax system

137.0

App.¥

As of March 31, 2023

bn

195.0

¥
Cumulative total
amount donated

ESG-related meetings held with regional financial
institutions to discuss regional revitalization and ESG

mn

FY2020 – FY2022

17

times

FY2022 track record

Nomura Asset Management

Sustainability Report 2023

15

GOAL

Nomura AssetManagement’s
Sustainability

Strengthening theinvestment chain

GOAL

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

Achieving a Decarbonized Society /Preservation of Natural Capital
As a member of Nomura Group, we are proactively working to address environmental issues based on Nomura Group’s Environmental Policy.
Aiming to realize a decarbonized society as quickly as possible, our offices are implementing energy conservation measures and other initiatives aimed at reducing greenhousegas emissions to net zero, while we are also implementing programs that help each and every employee consider the environment in their personal behavior and actions.

Our roadmap to achieve a decarbonized society
2022

Ratio of renewableenergy used at key
offices globally

2030

2050

100%

Over 50%

by 2030(Scope 1, 2 *1)

Decarbonization ofmanaged assets

Environmentally-friendly
initiatives

Contributeto thedecarbonizationof society

Achieve net-zero greenhouse gas emissions from managed assets
by 2050(Scope 3 *2)*1 S
 cope 1: Direct emissions of greenhouse gases from a company’s own operations Scope 2: Indirect emissions associated with electricity, heat and steam supplied by another entity*2 Scope 3: The emissions of other companies that are related to a company’s business activities.

TOPIC

Efforts by NAM offices to achieve net-zero emissions
We are working to reduce the environmental impactof our business activities by procuring renewable
power to the extent possible at each of our offices.
In FY2022, renewable power accounted for 60.3%
of our global electricity consumption. Going forward,

we will continue to work to both conserve energy
and increase our procurement of renewable energy,
thereby accelerating our efforts to power our offices
with 100% renewable energy. Our plan is to haverenewable energy power all of our offices by 2030.

NAM UK100%

NAM Tokyo
NAM Shanghai0%

NAM EUNAM USA

89.3%

Use of Green Power certificates
By using renewable energy via partnerships
with the owners of the office buildings ouroffices are located in, as well as through theuse of Green Power certificates, 89.3% of
the electricity used by our offices in Japan isderived from renewable energy. By acquiring
Green Power certificates, which represent
the environmental benefits of electricity
generated by clean energy, our offices are
deemed to have used renewable energy.

100%

NAM Taiwan
1.9%

47.2%

NAM Malaysia
0%0%Globalrenewableenergy ratio

NAM Singapore

60.3 %NAM Hong Kong

In addition to using renewable energy, we areadvancing other initiatives to reduce our impact
on the environment, such as by reducing paper
consumption and using eco-friendly products.
Reducing environmental impact from theuse of paper
All of the copy paper we purchase is environmentallyfriendly, and we have achieved a green purchasing
ratio of 100% for copy paper. In addition, the amount ofprinting paper we purchased in FY2022 was 60.7% lower
than in FY2019. In FY2022, factors such as an increasein the ratio of employees coming to work in our offices(following the work-from-home-centered working styleduring the height of the COVID-19 pandemic) resulted in
an upward trend in the amount of printing, but we willcontinue our efforts to reduce paper printing going forward.

Elimination of plastic use
We have already switched from using plastic file folders
to paper file folders, ended the use of PET bottle drinks
for visitors, distributed drink mugs in an effort to end theuse of plastic cups in the office, and gave our employees
eco-friendly bags to use for shopping in stores near ouroffice buildings. By considering the environment for theseand other items that our people use on a daily basis, we
are working to spark change in both the awareness andbehavior of our personnel.

Green Power mark –Certificate of use of green
power in Japan0%* NAM USA, NAM UK: All electricity used by Nomura Group
companies in these regions already comes from renewables

Nomura Asset Management

Sustainability Report 2023

16

GOAL

Nomura AssetManagement’s
Sustainability

Strengthening theinvestment chain

GOAL

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

DEI&B (Diversity Equity Inclusion & Belonging)
In accordance with the Nomura Group Corporate Philosophy and Code of Conduct, we respect the diversity and different values of our executives and employees, and strive
to improve long-term corporate value by building healthy working environments in which all executives and employees can demonstrate their full potential regardless of theirnationality, race, gender, gender identity, sexual orientation, creed, social status, whether or not they have a disability, or any other attribute. We are promoting “DEI&B,” adding“Belonging” to go one step beyond “DEI” which has become widely pursued around the world.
“Belonging” refers to a state in which an employee is respected and feels comfortable that they are in a place where they can make the most of their individuality, a state thatis created after diversity and inclusion are promoted. Furthermore, it is necessary for senior management and employees to share a sense of purpose to achieve sustainableimprovement of corporate value and to foster a sense of unity.

Certifications from externalorganizations
Our efforts to promote diversity have been certified
and highly recognized by outside organizations.
Kurumin
Recognizing the outcomes of NAM’s continuous initiatives
aimed at helping employees balance work and childraising,for two consecutive periods since FY2019 NAM has
received certification from the Minister of Health, Laborand Welfare based on Japan’s Act on Advancement of
Measures to Support Raising Next-Generation Children.

TOPIC

01

COLUMN

Events featuring outside experts

NAM has been granted use of the “Tomonin” logo from
the Ministry of Health, Labor and Welfare for our efforts toestablish a work environment that enables employees topursue their careers while balancing their work and family
nursing care.

Initiatives to increase belonging

From the perspective of ESG and SDGs, we want our employees to view corporate sustainability
goals as a personal matter, recognize the issues in our company and solve them, thereby

Aiming to deepen the mutual understanding of diversity among employees and create acomfortable working environment for all of NAM’s employees, we interviewed employees withrealizing sustainability overall for NAM. We invited experts and held events to raise the level ofunderstanding and awareness about this.

diverse backgrounds and published these interviews on our internal website.
Interview with persons withdisabilities about working style

Topic for 1st event

Global human rights issues and efforts to address them
-Using the power of investment to solve social issues-

Speakers

Tomonin

02

COLUMN

We used an online tool with subtitles to ask
questions about ways in which they are creative atwork and what they normally feel as they work. We
then shared this interview with other employees.

Forum about men taking
childcare leave

Kanae Doi
Japan Director, Human Rights Watch

We held a forum regarding men participatingin childraising and balancing raising children
with work

Seiichiro Yamamoto
Chairperson, Board of Directors

PRIDE Index
NAM received the gold award (the highest rank) in the
PRIDE Index 2022, an evaluation index in Japan for LGBTQ+
initiatives in the workplace.

Topic for 2nd event

Gender equality

2022 Certified Health & Productivity
Management Outstanding Organization(White 500)
NAM was recognized as a “Health & Productivity
Management Outstanding Organization 2023 (“White 500”)(large corporation category)” by the Ministry of Economy,
Trade and Industry (METI) and the Nippon Kenko Kaigi forthe second year in a row and the fourth time overall. NAM
was among the top 50 companies within the White 500.

Gold Award in the Gan-Ally Award 2022
NAM won the Gold Award in the Gan-Ally Award, a nongovernmental project organized by Gan Ally Bu. Gan Ally
Bu’s aim is to create workspaces, and a wider society,where cancer patients can thrive while receiving treatment.
Gan means cancer in Japanese.

Speakers
Mari Miura
Professor, Sophia University

Topic for 3rd event

Speakers
Masako Egawa

Yumiko Miwa

Chancellor, Seikei Gakuen

Professor, Faculty of Commerce, Meiji University

We introduced some employees who arebalancing family nursing care and work while
utilizing flex-time, telecommuting and family
nursing care leave.

Coming to work at NAM
from another industry
We created opportunities to make new discoveries
about NAM based on what they view as NAM’s
strengths and things they were surprised byafter changing jobs and coming to work at NAM
from another industry.

In order to deepen mutual understanding between executives and employees, we carried out
various initiatives aimed at revitalizing communication vertically, horizontally, and diagonally.
1on1

Conduct-related events

Employees meet one-on-one with their supervisors,
where in addition to discussing issues related to theirwork progress, they also have an opportunity to talkhonestly about work-related problems and worries,
as well as about their careers.

As part of our efforts to foster good conduct
in compliance with the Code of Conduct,
employees become conduct influencers andengage in various informational activities targeted
to employees. We held lectures to hear aboutsocial contribution activities from NPOs, solicited
opinions among employees on good conduct andbad conduct within the company, and made it anopportunity to become aware of our behavior andculture that can get overlooked in our daily lives.

Employee mixers

NAM as viewed by outside experts

Interviews about balancing
family nursing care and work

We hold mixers for executives and employees
across business lines, thus encouraging
communication between executives andemployees of other departments with whom they
have few opportunities to interact on a daily basis.

Nomura Asset Management

Sustainability Report 2023

17

GOAL

Nomura AssetManagement’s
Sustainability

Strengthening theinvestment chain

GOAL

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

DEI&B -Promoting the active participation of womenNAM’s greatest asset is our human resources, which is the source of our competitiveness and innovation. Leveraging diversity in management, including different ways of thinking
and different values, is essential for the sustainable growth of NAM. In particular, the active participation of women employees is essential for the sustainable growth of ourcompany, and we have formulated an action plan to contribute to the creation of new value and the sustainable development of our company.

Action plan for the Act on Promotion of Women’s Participation
and Advancement in the Workplace
Period of plan

October 1, 2022 March 31, 2031
Numerical targets based on policy

Target for “providing opportunities related to work life for women workers”
Goal

01

Ratio of women among newgraduate hires Maintain at

40% or higher

Goal

02

46.7% April 2023 class of new hires

Increase ratio of women indepartment head positions to at least

23.7%

03

15

Set a target ofvacationdays taken per person per year

82.7%

Goal

04

Ask the head of the Human Resources
Department! The background behind establishinga KPI for the ratio of women department heads
NAM has established a KPI of at least a 40% ratio of womendepartment heads by FY2030. We asked the head of the Human
Resources Department about how NAM arrived at this decision.

Q Why did you set the KPI higher than the government’s target ofachieving a 30% ratio of women in positions of leadership?

A As a responsible institutional investor, we are in a position

to ask portfolio companies to respond to ESG through ourengagement activities. We believe it is necessary to promote
the active participation of women based on the recognition thatdiverse perspectives and values can be a strength in securing
sustainable growth for our own company as well. The figure of
40% was determined in light of our situation while also taking
global trends into account.

40%

As of April 1, 2023

Targets for “establishing a hiring environment that
contributes to balancing occupational life and home life”
Goal

TOPIC

Q Is this target achievable?
A Currently, the ratio of women employees in NAM is about 35%, but
this percentage is increasing year after year. In addition to hiring
and appointing women, we are focusing on advancing projects
centered on female employees, developing women throughselective training programs, and fostering awareness amongfemale employees themselves. We believe these efforts will allow
us to achieve this target.

100

Have
% of men employees
take special leave during and after
spouses’ or partners’ childbirth /childcare leave

FY2022

Q Was establishing the KPI a smooth process?

93.8%

FY2022

A We spent a lot of time discussing why we chose to establish

this KPI and whether it is achievable. The background behind
our establishing a KPI and the measures to achieve it aredescribed above. We believe it is important to gain everyone’s
understanding about the KPI established through these
discussions, and about how we are committed as a company,
including through messages to employees sent from NAM’spresident. We are building a system to offer ongoing support for
women employees to be involved in decision-making, and thisis widely understood within the company.

Other data
Wage gap between men and women

67.2

%

The low proportion of women in
managerial positions is the main
reason for the difference. We believethat the wage gap will contract in
the process of realizing the goals of
the Action Plan for the Promotionof Women’s Participation andAdvancement in the Workplace.

Track record of men employees taking
childcare leave

111.5

%

The ratio of childcare leave taken
by men is the total of special
leave during and after spouses’ or
partners’ childbirth, childcare leaveand pre- and post-natal leave

Q What is the ultimate goal?
A

Head of Human Resources
Department

Rika Demizu

Diverse human resources are a source of competitiveness andinnovation. From the perspective of gender diversity, we aim tohave women participate in all decision-making processes as amatter of course.

Nomura Asset Management

Sustainability Report 2023

18

GOAL

Nomura AssetManagement’s
Sustainability

Strengthening theinvestment chain

GOAL

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

DEI&B -Diversity promotionInternal projects

Project

F

Cross-industry project

Project

Initiatives across theasset management industry toGpromote theempowerment of women

Project F was initially launched
Project G started in September 2022 as an in-house project to engage in discussions about creating
In the spring of 2022, we launched the Assetas part of our effort to promote thea workplace environment where diversity is respected and which leads to the company’s growth,Management Women’s Forum network secretariat
active participation and promotion ofand to make proposals to senior management. Nine people of different genders and ages, fromwith three other companies in order to support the
women in NAM. Currently, the project
different departments and with varied work backgrounds volunteered and regularly held
promotion of women’s participation as part of D&I in theconsists of seven core members anddiscussions within the group about issues such as growth challenges for NAM by allowing all
asset management industry. With the cooperation of theInvestment Trusts Association, we held two events aimed atfour mentors. At the time of its launch,
employees to play an active role and by incorporating diverse perspectives, and initiatives
helping women build careers unbound by gender, connecting
the goals were to launch a new fund into become an ideal company. In addition, they conducted interviews and went onwith others who share the same worries and goals, as well
April 2022 and then to try things that the
tours to study examples of actions by other companies, and also conducted
as sharing their thoughts. Approximately 740 people in total
members had no previous experience with,questionnaires and roundtables with NAM employees to hear diverse
attended these events, and we will continue holding these types
such as marketing. As employees of an asset
opinions within the company, which were then incorporated into concreteof activities going forward.
management company, we freely discussed themeasures. In addition to making proposals at the Executive Management
value we wanted to deliver by providing the fund,Committee, they also reported to the Board of Directors.
without being limited to only the active participation
In FY2023, they will begin working to turn their proposals
of women. The result was a fund to develop the next
into reality, starting with building an internal network andgeneration of business executives in Japan.
other grassroots measures. They will continue to recruit
The “F” in the project name comes from three ideas: (1)additional activity members and create a culture change
Fans (investment is support); (2) Fun (investment is fun); andmovement in a manner that allows many employees(3) Future (investment creates the future). These three ideas
to participate.
were our pillars in both creating the fund and marketing it.
Currently, we are working on digital marketing thatemphasizes providing investors with an investment experiencethrough active funds and a sense of participation. Most recently,
we conducted a participatory project to determine the fund’s nameFirst event
Second event
using Twitter’s voting function. Around 1,000 people voted, and“Passion Archipelago” was decided on as the name. In addition, in
August 2022
Prior to International Women’s Day on March
May 2023, we provided
Held online event
8, we positioned February 2023 as Assetan investment report forManagement Women’s Month and held aPart I
the fund’s beneficiaries,
total of three programs
Panel Discussion
and we were able to deliver
Overcoming obstacles women face inthoughts and messages
2/13 Online
the workplacefrom the fund’s managers. We
Learn about career management to maximize women’sPartII
active participation
will continue to assume newWorkshops
dividedinto
three
topics-Essential knowledge and tips for managers with staff who arechallenges going forward.
(discussions among participants)

working while raising children-

Topic A
Career breaks: How to advance one’s career after
a period of time away from work
Topic B
Gaining the understanding of others: Developing
trust with one’s superiors at work
Topic C
People managers: Should you aim for amanagement role?

2/17 In person

Roadmap for developing women leaders-A workshop for those responsible for promoting the active
participation of women in the workplace, where they learned about
and discussed specific industry initiatives-

2/28

Online

Women’s career design-A look at the concerns of each age group as well as reskilling!-

Nomura Asset Management

Sustainability Report 2023

19

GOAL

Nomura AssetManagement’s
Sustainability

DEI&B -Human resources developmentIn order to become the leading company chosen by customers, it is importantto adapt to the changing times and establish a foundation that enables
sustainable growth. As an asset management firm, human resources are ourmost important bedrock assets, and we aim to solidify this foundation by
developing our human resources.

Strengthening theinvestment chain

GOAL

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Creating a work environment that fosters

Globalinitiatives

well-being

Requiredtraining

Learn the mindset, basic knowledge and skills of an asset management firm employee,
thereby building the foundation for thriving at work
(Rank-based training, ethics training, department-based training, etc.)

Under the Group-wide health and productivity management goal, which aims toensure that all people working at Nomura are in a state of physical, mental, andsocial well-being, NAM has established and is promoting guidelines in order toachieve this overarching goal.
In FY2023, we will formulate and promote guidelines aimed at rectifying long
working hours, encouraging employees to take vacation days and otherleave benefits, and maintaining and improving employee health.
NAM has introduced a flex-time work system and a work-at-home system to enable
flexible working styles.
With respect to achieving internal KPIs, we monitor each department’s efforts toachieve these KPIs on a company-wide basis, and promote initiatives to realize
improvement based on the status of each department.

Selective
training

Training for people to acquire the mindset, experience and management skills that will form
the foundation for being appointed to a new role
(People training, management training, experience working in other departments, etc.)

FY2023 Nomura Asset Management Well-Being Guidelines

Elective training

Reflecting their own career plans, employees have opportunities to grow as professionals inline with their individual aptitude(e-learning, language learning, Nomura Business Academy, etc.)

Development system with a focus on selective and elective training

Support for
attainingcertifications

Securities analyst (CMA), U.S. securities analyst (CFA), financial planner (FP), etc.

01
Rectify long working hours
Goal

Education and training programs we offered
in FY2022

Employee certification
As of March 31, 2023

Total number of people who
participated in training

4,524
11,495
112,000

CMA

Hours of training

CFA

Training costs per employee

¥

FP

466
61
112

Company
information

We aim to maintain employee health and promotehealth and productivity management by eliminating
long working hours while improving productivity
through operational ingenuity and process reviews.

KPI
KPI

All employees
Managers

Working time intervals
At least

8 hours

Overtime work
Less than

60 hours/month

Overtime work

KPI

Non-managers

KPI

Annual paid leavedays/year
Take at least

Less than

45 hours/month02
Encourage employees totake vacation days, etc.
Goal

By getting sufficient rest both physically andmentally, and making their private lives more
fulfilling, employees will be able to work withenergy and enthusiasm

KPI
KPI

15

5 consecutive business days of annual paid leave
at least

once

Percentage of men taking childcare vacation/
childcare leave

100%

03
Maintaining and improving
employee health
Goal

By being both physically and mentally healthy, each
employee can fully demonstrate his/her abilities andindividuality, and play an active role in the company

KPI

KPI

Ratio of employees who
undergo health exams(regular health exam/comprehensive
medical exam)

Ratio of employees who
attend mental health training

100%
100%

Please refer to the following for details about each KPI.
https://www.nomura-am.co.jp/special/sustainability/data.html*Japanese website only

Nomura Asset Management

Sustainability Report 2023

20

GOAL

Nomura AssetManagement’s
Sustainability

GOAL

Strengthening theinvestment chain

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

Corporate Governance Strengths
As an asset management firm entrusted with managing customers’ assets, we always act in the interests of our customers and strive to increase the independence andtransparency of our business management in order to earn customers’ unwavering trust.
To that end, as a company with an Audit and Supervisory Committee, we delegate a significant amount of authority related to decisions on important business execution to
executive directors appointed by the Board of Directors. These executive directors are responsible for business execution, while the Board of Directors mainly supervises
management alongside the Audit and Supervisory Committee.

Management OversightBusiness execution

Robust conflict of interest management system

In addition to a Board of Directors, NAM has an Audit and Supervisory
Committee, and these bodies supervise executive directors to ensure
they are conducting business operations appropriately. The chairpersonof the Board of Directors is an independent, outside director, and efforts
are made to ensure that Board of Directors meeting discussions are lively,
including by determining the priority agenda items in advance based on
discussions with the company president. The following initiatives are also
being carried out.

Executive directors responsible for business execution are selected
for their sufficient capabilities based on their knowledge, experienceand other attributes, based on the opinions of members of the
Audit and Supervisory Committee. In addition, NAM has adopted
an executive officer system, appointing persons with high levelsof expertise and experience as executive officers and delegatingsome of the executive functions to these executive officers, thereby
achieving more efficient business management.

To ensure that we never engage in business operations that prioritize
our own interests or the interests of other Group companies over theinterests of our customers, we have established a system to ensure
the independence of operations and research as part of our conflictof interest management policy. Anticipating the changing times andaccompanying needs, we are continuously making organizational
reforms, and have established a robust system, including theappointment of a Chief Conflict Officer.

INITIATIVE
Bolstering independence
NAM appoints persons who are sufficiently
independent from Nomura Group, to which NAM
belongs, as independent outside directors, and also
as members of the Audit and Supervisory Committee.

Enhancing management independence andtransparency

Our conflict of interest management policy can be found here
https://www.nomura-am.co.jp/conflict/*Japanese website only

In April 2021, we increased the number of independent outside
directors from two to three, and appointed them as the chairpersonof the Board of Directors, chairperson of the Audit and Supervisory
Committee, and member of the Audit and Supervisory Committee,
respectively. This is part of our efforts to further improve theindependence and transparency of our business management.

Independent outside directors As of April 1, 2023

Strengthening conflict of interest management
NAM has established a meeting body made up ofa majority of independent outside directors andothers who are independent from the Company,
and this meeting body verifies the following from thestandpoint of fulfilling our fiduciary duty

Stewardship activities including proxy voting
Operation and management of investment trusts

Board ofDirectors

Seiichiro Yamamoto

Akiko Kimura

Ryoji Maeda

Chairperson of the Board of
Directors

Chairperson of the Audit andSupervisory Committee

Member of the Audit andSupervisory Committee

Audit andSupervisory
Committee

3 of the 8 directors are

independent outside directors

The chairperson is anindependent outside director,
and a majority of members are
independent outside directors

Attorney-at-Law

Nomura Asset Management

Sustainability Report 2023

21

GOAL

Nomura AssetManagement’s
Sustainability

GOAL

Strengthening theinvestment chain

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

Sustainability initiatives in NAM’s global network
NAM is a global asset management company operating in more than 10 countries and regions.
By promoting sustainability activities globally, we aim to meet the expectations for solving social issues and realize a sustainable, prosperous society.

United Kingdom

Malaysia

Donations through investment

Social contribution activities

In December 2022, Nomura Asset Management U.K.
Limited donated $50,000 to charity: water, a charitythat works to bring safe drinking water to people whoneed it. A portion of the management fees received by Irish
UCITS fund “Nomura Funds Ireland plc” were used for thisdonation. The plan is for this donation to be used by schools
in Niger and community projects in Ethiopia.

United Kingdom
Germany

In June 2022, as part of its “contribution to asustainable future,” Nomura Asset Management
Malaysia Sdn.Bhd. participated in the volunteer activitiesof the NPO Team Selangor which held a “plogging” event (anactivity that combines jogging and picking up garbage) on the
Kedongdon River, one of the most beautiful rivers in the stateof Selangor. It is estimated that volunteers picked up a total ofmore than 80kg of garbage during this event.
According to the United Nations Environment Program
World Conservation Monitoring Center (UNEPWCMC), Malaysia
is recognized as one of the countries with the most diverse
natural areas in the world. Efforts to conserve ecosystems
contribute to thesustainability of many
nature-dependent
economic activities in
Malaysia.

Germany

Environmental initiatives
We have set a goal of net zero GHG emissions
at our offices by 2030 (see page 11), and arepromoting the use of renewable power globally. In
particular, Nomura Asset Management Europe KVG mbH
has been using renewable power for more than 10 years.**Nomura Asset Management Europe KVG mbH had been purchasing
renewable power until the end of September 2022, but due to difficulties
in procurement due to the situation in Russia and Ukraine, the company
temporarily suspended purchases of renewable power, but then resumed
purchasing renewable electricity from April 2023.

Malaysia

TOPIC
Women’s active participation inoverseas offices
Women also play an activerole in NAM’s overseas offices.

Ratio ofwomen
managers in

Ratio ofwomen
employees in

25%

40%

overseas offices

overseas offices

As of March 31, 2023
*Excludes the Taiwan officeNomura Asset Management

Sustainability Report 2023

22

GOAL

Nomura AssetManagement’s
Sustainability

Strengthening theinvestment chain

GOAL

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

Sustainability initiatives at asset management companies
with which NAM has a capital alliance
The two asset management companies that Nomura Holdings owns a stake in have long been working to realize sustainability through their core businesses.
NAM partners with these asset management companies to contribute to the realization of a sustainable, prosperous society through sustainable investment.

Prosper With PurposeTM

Our vision is to see investment
in land use and forestry as
central to the transition to asustainable future.

In addition to providing profits from investments to its customers, ACI isworking to create a better society by investing in companies that can solve
social issues and by providing funds for the activities of a cutting-edge
research institution.

Jonathan Thomas

Mark Rogers

President, Chief Executive Officer

American Century Investments (ACI)Throughout its nearly 60-year history, ACI has been ahigh-quality active investment manager with a focus
on delivering strong investment performance andbuilding strong, long-term relationships with its clients.

New Forests Pty Limited (New Forests)

Nomura Holdings has formed a strategic alliancewith ACI, which includes taking an ownership stakein ACI. NAM effectively leverages ACI’s expertise toprovide investment solutions.

ACI returns corporate profits to society through beneficial projects
The Stowers Institute for Medical Research, a
non-profit organization established by ACI’s founder,
is ACI’s controlling shareholder, and uses shareholder
dividends to make a positive impact on people’s
health. The Stowers Institute for Medical Research
focuses on foundational biomedical research, suchas molecular biology and cell biology, to discover thecauses of hereditary diseases, and conducts research
to find the keys to treatment and prevention.
The Stowers Institute for Medical Researchuses dividends from ACI as operating funds to
conduct foundational medical research to help
the many people who are waiting for treatments
to be developed.

American Century
Investments(Asset managementcompany)
Stowers Institute for
Medical Research is ACI’s
controlling shareholder

Chief Executive Officer

Shareholder
dividends
Since 2000
Total: ¥1.8 billion

New Forests is an Australian-headquartered
manager of nature-based real assets, whose
vision is to provide long-term, stable investment
returns for investors to achieve a sustainable
future by managing forests and other land assets,with a focus on the circular bioeconomy and local
communities. New Forests currently has A$10.7

Acquire, manage, and operate forest assets with consideration
for the local environment
New Forests is the world’s second largest forest
asset management company and manages a rangeof forest and land related funds across Australia
and New Zealand, the United States, Africa andSoutheast Asia.
The company manages a diversified portfolio ofsustainable timber plantations and conservation

Forest funds
Stowers Institute for
Medical Research(Foundational biomedical
research institution,
non-profit organization)

billion in assets under management, managing over
1.2 million hectares. Nomura Holdings, Inc. has
acquired a 41% stake in the company, and Nomura
will be able to offer a new class of asset. In addition,
Nomura is focusing on creating related businesses
by acquiring industry knowledge and expertise in
the areas of forest resources and carbon credits.

New Forests(Asset managementcompany)

Forestmanagement andoperations

areas, carbon and conservation finance projects,
agriculture, timber processing and infrastructure.
It supplies forest certified products (products thatmake use of forests in a sustainable manner) to
Asia, and focuses on the environmental value offorests by delivering carbon credit and other nature
related benefits.

Materials
purchasers(papermaking/construction materials,
carbon credits, etc.)

Investors(dividends)

Receives a portion of ACI’s
earnings as shareholder
dividends

Nomura Asset Management

Sustainability Report 2023

23

GOAL

Nomura AssetManagement’s
Sustainability

Strengthening theinvestment chain

GOAL

GOAL

GOAL

Realizing a society
Enhancing
Realizing a healthy
in which humancorporate value
global environment
rights are respected through governance

Globalinitiatives

Company
information

Company outline
Nomura Asset Management’s strengths by the numbers (as of March 31, 2023)

Nomura Asset Management’s strengths as seen by our “first in
the industry” and “first in Japan” initiatives
Nomura Securities Investment Trust establishedEstablished1959

Share of Japan ETF
marketNo.1

44%

Assets under management

Global workforce

69.1trillion

1,506 people¥

Market share of Japanesepublicly-offeredinvestment trusts

No.1

26.8%

UCITS AUM

Leading Japanesecompany

1959

Nomura Investment Management established1981

Established Nomura Asset Management bymerging Nomura Securities Investment Trust andNomura Investment Management(name changed to current name in November 2000)

1997

Compiled by Nomura Asset Management, based on data from The Investment Trusts Association, Japan.

Company nameShareholder

Nomura Asset Management Co., Ltd.
https://www.nomura-am.co.jp/
Nomura Holdings, Inc. (100%)

Business activities

Business related to investment advisory, agency business andinvestment management business

Financial instrument operator
numberKanto Finance Bureau Director (Financial Instruments) No. 373

Member Associations

The Investment Trusts Association, Japan
Japan Securities Investment Advisers Association
Type II Financial Instruments Firms Association

Entered into a business
partnership with ACI(American Century Investments)

2015

Established Wealth Square(through the merger of Nomura Fund Research
and Technologies and Nomura Research Institute)

2016

1968

Launched the industry’s first monthly
investment-type equity fund1972

Launched Japan’s first 100%
foreign equities fund1980

Began managing Japan’s firstindex fund1995

Launched Japan’s first ETF

1999

Launched Japan’s first private-placement
investment trust2001

Launched Japan’s first in-kindcreation type ETF

2007

Launched Japan’s first ETF using credit
linked bonds

2008

Became first Japanese asset manager toobtain an Islamic investment business license(Established Nomura Islamic Asset Management)

2016

Established Japan’s first department
dedicated to responsible investing

2019

First merger of publicly-offered equity
investment trusts in Japan

2022

First in Japan to reflect a companies’
disclosed greenhouse gas emissions into
corporate evaluations
Launched Japan’s first multi-asset ETF

Nomura Asset Management

Sustainability Report 2023

24

Risks and costs-Japan Next-Generation Managers Fund-

Investment risksThis fund invests in equities, etc., and may experience a
decline in net asset value due to the impacts of a decline
in the share prices of constituent stocks and/or impacts
from the insolvency or deterioration in the financial
condition of companies issuing the stocks held by thefund. In addition, when investing in assets denominatedin foreign currencies, the net asset value may decline
due to exchange rate fluctuations. Therefore, investors’
investment principal is not guaranteed, and losses
may occur due to a decline in the net asset value.
An investment trust is different than money held in asavings account.
*For details, please refer to “Investment Risks” in the fund prospectus.
(As of June 2023)

Subscription Commission
None.
*T he subscription commission is subject to change. For details,
please contact the distribution company.

Management Fee (Trust Fee)
The amount obtained by multiplying the fund’s net asset
value by 1.089% per year (0.99% per year exclusive oftaxes). The amount will depend on the period of time thecustomer owns the fund.
Other Expenses and Fees
Other expenses and fees include brokerage commissions
on transactions involving portfolio securities, expenses
required to keep foreign currency-denominated assets,
costs paid to auditors for fund audits, and taxes related
to the fund, which are all paid as they occur, during theperiod in which the customer owns the fund.
*T hese costs vary according to management conditions andother factors, so details on rates and upper limits, etc., cannot
be provided in advance.

Partial Redemption Charge (upon cash out)
The amount found by multiplying the per unit NAV by 0.3%.
The total of the above expenses cannot be provided, as it
depends on the period of time the customer owns the fund.
*For details, please refer to the “Fund Costs and Taxes” sectionof the fund prospectus.

Trade name

Nomura Asset Management Co., Ltd.

Financial
instrument operator

Director of Kanto Local Finance Bureau(Financial Instruments Firms) No. 373

Member
Associations

The Investment Trusts Association, Japan
Japan Investment Advisers Association
Type II Financial Instruments Firms Association

https://global.nomura-am.co.jp/