Index

Daiwa Securities Group Inc.

Our strategy for achieving SDGs

Our strategy for achieving SDGs
Message from CEO

Daiwa Securities Group's Management Vision"Vision ����" and Materiality���

SDGs report ����Social Contribution Activities

Financial Education and Research���Children's Smile Project

���
���

For Your Dreams - Daiwa Securities GroupWhy Daiwa Securities Group is Working

Statements��to Support Children

Daiwa Securities Group SDGs Declaration

��Daiwa Securities Group Future Support

Structure of SDGs Promotion
Stakeholder Engagement

Initiatives through Business Activities
Role and Social Responsibilities of����the Securities Business��

and Distribution��Issuance of Green Bonds

��

Action through Product Development
SDGs Finance

Providing Analysis/Proposals on the Economy,
Society, and Investment Information

Support for Creating Our Future Society
For the Development of Financial and

��

��
��

Capital Markets

��

Corporate Governance��Corporate GovernanceCompliance���Risk Management

���Prevention of corruption
Environmental and Social Policy Framework

IT Strategy and Management of Systems Risk
Addressing social issues

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���

Respect for Human Rights

���Supply Chain Management

���Providing Quality Service to Customers
Engagement with Shareholders and Investors
Workforce Statistics
Hiring Initiatives

Diversity and Inclusion

Human Resource Development and

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���

Health Management

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Fund

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Fund for Bright Future���

Daiwa Securities Group Child Support

Basic Policy for Social Contribution Activities
Support for culture and the arts

Contribution through Foundations and NPOs
Kopernik Program

Corporate Citizenship Initiatives

Environmental Initiatives

Environmental Management / Initiatives

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���
���
���
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for Environmental Load Reductio���Carbon Declaration���

Based on the TCFD Recommendations ����)���

The Daiwa Securities Group Net Zero
Response to Climate Change (Disclosure
Governance
Strategy

Risk Management

Metrics and Targets

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ESG Information Index���

Third-Party Evaluations

���Participation in Initiatives
GRI Content Index
Editorial Policy

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Communication with Employees

Bonds Child Support Group Sustainable���

Skill Enhancement
Work-Life Balance

Disparity in children's environments

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Please refer to the SDGs site (https://www.daiwa-grp.jp/english/sdgs/) for the latest information.

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IndexDaiwa Securities Group Inc.

SDGs report ����* This report is current as of November ��, ����.
* Detailed data related to SDGs and ESG are collected separately in SDGs Data Edition.
SDGs Data Edition

https://www.daiwa-grp.jp/english/sdgs/data/pdf/daiwa_sdgs_data_����.pdf* As a digest version of the SDGs Report, we also publish "SDGs Booklet," a compact and easy-to-understand summary of
our way of thinking about the SDGs and the details of various initiatives.
SDGs Booklet

https://www.daiwa-grp.jp/english/sdgs/data/pdf/daiwa_sdgs_en_booklet_����sec.pdf

SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

Others

Our strategy for achieving SDGs
Fulfill our role as a securities
company to achieve the SDGs.

Seiji Nakata

President and CEO, Daiwa Securities Group Inc.
Message from CEO

September 2015
Adopted SDGs (Sustainable Development Goals)
The SDGs (Sustainable Development Goals) are the 17 common goals of humankind that were created by UN member countries,
various organizations and people, and adopted by the United Nations in 2015. It has been promised that each country will actively
work to achieve these goals. Daiwa Securities Group considers the SDGs to be important goals that give direction to the world, and willapproach social issues as an important common language when conducting business in Japan and overseas.
Statements

February 2018
Established "SDGs Promotion Committee"
In 2018, we established the SDGs Promotion Committee chaired by Seiji Nakata, President and CEO. External committee members
always participate to bring in fresh ideas and cutting-edge information from outside the company, and we are making Group-wide
efforts to contribute to the SDGs.
Structure of SDGs Promotion3

SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersApril 2018
Formulation of "Medium-Term Management Plan (FY2018-FY2020)'Passion for the Best' 2020"
In our Medium-term Management Plan "Passion for the Best" 2020, the basic policy is to "provide high value-added solutions throughour No. 1 quality consulting capabilities" and "provide new value as a hybrid comprehensive securities group." We aim to be a "pioneerin the financial and capital markets that creates the future," which creates a virtuous cycle of expanding customers' assets and growing
the companies that drive the Japanese economy.

May 2018
Announcement of "Daiwa Securities Group SDGs Declaration (Passion
for SDGs 2018)"
The SDGs Promotion Committee has clearly stated that we will actively promote initiatives that contribute to the SDGs through ourGroup business in the "Daiwa Securities Group SDGs Declaration (Passion for SDGs 2018)."

Daiwa Securities Group SDGs Declaration (Passion for SDGs 2018)

May 2019
Announcement of SDGs Materiality and SDGs Promotion Action Plan
In order to promote the SDGs in the entire Group, we believe that not only top-down promotion but also bottom-up efforts byemployees are important, and we solicited a wide range of SDGs-related initiatives and ideas from employees. When soliciting ideas,
we incorporated two perspectives: Forecasting that considers what we can do now, and Backcasting that considers what we can dobased on the "ideal image" of the Group in 2030, the deadline for achieving the SDGs. As a result, for Forecasting we gathered morethan 4,200 ideas not only from the headquarters departments, but also from branch offices in Japan, Group companies, and overseas
bases. In the Backcasting approach, about 120 volunteers gathered through internal recruitment and made a proposal for therealization of the Group's “Vision 2030”.
We identified issues from this bottom-up initiative, and summarized them by collating them with the demands from society, which we
uncovered through communication with stakeholders and the knowledge of outside experts. Then, after discussions at the SDGs
Promotion Committee, we finalized the "Daiwa Securities Group's Priority Issues (SDGs Materiality)."
Furthermore, from this bottom-up initiative, we identified the matters that should be focused on to solve the priority issues, andcompiled the "Passion for SDGs 2019 -Daiwa Securities Group Action Plan-."4

SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersMay 2020
Announcement of SDGs Promotion KPIs for FY2020
We have only 10 years left before 2030, the deadline for achieving the SDGs. Aiming to build a “Daiwa version of an SDG value chain”
that generates a sustainable flow of funds, in order to accelerate the initiatives of our SDGs promotion action plan, we have set SDGs
promotion KPIs for each action theme for this fiscal year, and have started trial operation. Based on these KPIs, we monitored thestatus of progress and made revisions if necessary, aiming for full-scale operation in the following fiscal year and beyond.

April 2021
Announcement of the management vision “Vision 2030”and theMedium-term Management Plan (FY2021-FY2023) "Passion for the Best"
2023
Moving forward to 2030, we formulated and announced the management vision “Vision 2030” in May 2021 for all executives andemployees to share what Daiwa Securities Group wants to be and what the Group should be, and to work as one on the creation ofshared values. “Vision 2030” takes as its core concept “From savings to SDGs” and, through this Vision, the Group intends to realize theSDGs by creating a sustainable capital cycle.
The Medium-term Management Plan "Passion for the Best" 2023 maps out strategies for the first three years toward the realization of“Vision 2030”.
Daiwa Securities Group will continue to contribute to the creation of a sustainable and prosperous society.

Daiwa Securities Group’s management vision “Vision 2030” and Materiality5

SDGs report 2022

Our strategy forachieving SDGs

FY2018-FY2020
Previous Medium-Term
Management Plan
Basic Policies
Providing high value added
solutions through the use of
our “Quality No. 1”
consulting capabilities
Providing new value as anintegrated securities groupwith a hybrid business model

Digital transformation

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

Others

FY2021-FY2023

FY2021-FY2023 New Medium-Term Management Plan
“Passion for the Best” 2023

The best partner for co-creating the future～Be with you～
Basic Policies
Achieving “Customer First” &“Quality No.1”

Creation of a new capital
recycling system through a
hybrid strategy

Maximize value
and benefits to all
stakeholders

Pursuing the best mix of digital and real
Initiatives in sustainability

Corporate strategy

Financial & capital/Risk management/
Compliance/HR/Overseas

In the Medium-term Management Plan "Passion for the Best" 2023, we have incorporated an SDGs perspective as the basis of ourbusiness strategy, and have continued to adopt and will further strengthen the basic policies of “achieving Customer First & Quality
No.1” and “creating a new capital recycling system through a hybrid strategy.” In light of the increased importance of promotion ofdigital transformation (DX), we have also set “pursuing the best mix of digital and real” as the third pillar.
In addition to these three basic policies, we have established the slogan of staying close to customers and becoming “The best partner
for co-creating the future -Be with you-.”
We will further step up our sustainability initiatives, including SDGs and ESG initiatives, and corporate strategies at head officedivisions as the foundations that support individual strategies.

SDGs(Sustainable Development Goals）

International goals up to 2030 adopted by the United Nations Summit in September 2015. 17 goals and 169 targets were set
to realize a sustainable world. The SDGs question the ideal state of not only developing countries but also advanced
countries including Japan, and pledge that "No one will be left behind" in the process of the initiatives.

6

SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersMessage from CEO

Seiji Nakata
President and CEO
Daiwa Securities Group Inc.

In FY2021, Daiwa Securities Group set out the management vision “Vision2030” and announced their “Net Zero Carbon Declaration” that includes
reduction targets for greenhouse gas emissions.
In recent years, transition finance has attracted attention as a financing mean
towards transition to a carbon-neutral society. Support for the financing ofcompanies' efforts to solve social issues, including transition finance, is one of
the important missions of a comprehensive securities group.
In May 2022, Daiwa Securities Group marked it's 120th anniversary. In its long history,
the Group has fostered the pioneering spirit of continuously implementing new
innovations. We will continue to evolve with the times, and unite as one to create a newsustainable capital cycle towards realizing the SDGs.

Message from the Head of SDGs

Keiko Tashiro
Executive Head of Overseas Operations,
Head of SDGs and Think Tank
Daiwa Securities Group Inc.

In the world surrounding us, there are still a large number of social issues that are
unresolved, and companies are expected to take further action towards 2030—the target
year for the SDGs.
Against this backdrop, we have positioned "Vision 2030," as a set of action guidelines
and are encouraging all employees to "own" SDGs. We are also exploring ways in which,
we as the Daiwa Group can contribute in achieving the SDGs.
As the importance of ESG based corporate evaluation increases, the move to develop auniversal standard for sustainability disclosure is gaining momentum.
Utilizing our SDGs website, we will endeavor to improve our disclosure to reflect thedevelopment of our activities.
We will continue our challenge in hope of meeting your expectations.

7

SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersDaiwa Securities Group’s Management Vision “Vision 2030” andMateriality"Vision 2030" –From savings to SDGs–
Daiwa Securities Group has outlined its goals in “Vision 2030,” which is rooted in its Corporate Principles and the Daiwa Spirit; 2030 isalso the year by which it seeks to realize the SDGs.
Vision 2030 takes as its core concept “From savings to SDGs” and, through this Vision, the Group intends to realize the SDGs by creatinga sustainable capital cycle.

Vision 2030—From savings to SDGs—Concept Video
Corporate Principles
The Daiwa Spirit8SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

Others"Vision 2030" and materiality
In “Vision 2030,” Daiwa Securities Group identified priority areas and priority issues it should focus on as “Materiality.”priority areaspriority issues

years of life

Realization of a society where everyone canspend 100 years of life affluently

Innovation

Innovation that enriches society Promote andrealize your own transformation

Green & Social

Promoting the transition to a carbon-freesociety and realizing a resilient society

1. Support for household asset formation and conservation toward
the realization of a prosperous 100-year life
2. Realization of local revitalization with private funds
3. Financial support for economic growth in Asia
4. Support for accelerating corporate metabolism toward therealization of innovation that enriches society
5. Reform of business portfolio to create new added value
6. Leading social transformation as a one-of-a-kind financial
platformer
7. Promotion of green finance to support the realization of a carbonfree society
8. Development and provision of new financial products and services
that contribute to the realization of a sustainable society

Foundation of sustainable management
Diversity & Inclusion

11. Strengthening a sound and highly transparent management base
12. Leading the maintenance and development of financial and capital
markets
13. Creating a beautiful global environment that will lead to the next
generation
14. Realization of a better future community / society

0-Strengthening the foundation that supports
sustainable corporate management-

0

9. Fostering human resources who can provide added value
10. Building an organization where everyone can play an active roleby acknowledging diverse personalities

1

Realization of a society where everyone canplay an active role by acknowledging diverse
personalities

9

SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersDaiwa Securities Group Key Performance Indicators (KPIs)
The Medium-term Management Plan "Passion for the Best" 2023 maps out strategies for the first three years of Vision 2030 andincorporates KPIs for managing progress as it seeks to achieve its vision.

KPIs and Key Areas Related to KPIs (Targets to achieve in FY2023)
Performance

Financial KPIs

ROE
10% or higher
Ordinary income¥200 billion or more

Human Resources
Number of Digital IT
Master200 personnel or more
Number of CFP and CMA
Non-financial 3,000 personnel or more
KPIs

Wealth Management
Business
Retail Division asset
based revenue ratio
50% or higher*1

Wealth Management
Business
Daiwa Securities assets
under custody (AUC)¥90 trillion or more

*1. 4Q, FY2023*2. By 2030
*3. FY2025
10

Hybrid Strategy

Financial Base

Hybrid-related ordinary
income¥50 billion or more
Hybrid-related ordinary
income ratio
Around 25%

Consolidated total
capital ratio
Maintain at 18% orhigherSustainability
SDGs bond league table
In top 3
ʼOuen(Supporting)ʼ term deposits balance¥200 billion or more
Balance of investment in SDGs-related business¥150 billion or more
Ratio of women on the boards of directors
30% or higher*2
Ratio of women in management positions
25% or higher*3
Employee satisfaction Maintain at 80% or higher

SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersMateriality Identification Process
Daiwa Securities Group identified important environmental and social issues in the formation of its medium- to long-term Vision. The
Group also identified “Materiality (priority areas and priority issues)” based on the requests of society it understood throughcommunication with shareholders as well as the Group’s impact on society.
The Group seeks to achieve “Vision 2030” by managing progress based on KPIs initiatives in order to improve the Group’s value andrealize a sustainable society.

Identification Process
Incorporating the SDGs perspective as the basis of our business strategy

Previously

In 2018, Daiwa Securities Group established the SDGs Promotion Committee, chaired by President
and CEO Seiji Nakata. It subsequently formulated the “Passion for SDGs -Daiwa Securities Group
Action Plan-,” which detailed the Group’s commitment to actively contributing to SDGs through its
businesses.

Understanding and assessing environmental and social issues

STEP1

Based on its Corporate Principles, and taking into consideration various international frameworks(GRI, ISO 26000, SASB, TCFD, etc.), international initiatives such as the UN Global Compact, indicesestablished by ESG evaluation organizations, and issues raised by governments and economic
organizations, Daiwa Securities Group identified important environmental and social issues thatmight either provide opportunities or pose risks.
It then drew up a long-list of 65 issues which it could engage with in order to strengthen its
management foundations.

Dialogue with internal and external stakeholders

STEP2

Through communications with both internal and external stakeholders, the Group evaluated theimpact and the importance to society of the environmental and social issues it identified in Step 1.
To this end, it consulted with outside members of the SDGs Promotion Committee and internal
experts on which priority issues and directions it should focus on in the medium and long term. The
Group also engaged in dialogue with SDGs Promotion Managers at various headquarters and Group
companies, and with young employees who will comprise the heart of the Group’s workforce in 2030,
on the topic of what goals it should set for 2030.

11

SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersFormulation of the Materiality (draft)

STEP3

Based on the results of the evaluations outlined in Step 2, Daiwa Securities Group identified 10 issues
it should engage with through its businesses, and 4 issues it should engage with in order tostrengthen its management foundations.
The Group then discussed what opportunities and risks the formulated Materiality (draft) would
present and pose.

Discussions and decisions made by the management

STEP4

The Materiality (draft) was discussed by outside directors, outside members of the SDGs Promotion
Committee, and the management at Board of Directors, Executive Committee of the Group, and SDGs
Promotion Committee meetings.
Vision 2030, including Materiality, was resolved at the Board of Directors meeting. At the same time, aset of KPIs was drawn up to manage the progress of Materiality initiatives.
Going forward, the Materiality will be continually revised, according to international trends inenvironmental and social issues, changes in business environments, and feedback from both internaland external stakeholders.

Taking on Materiality and realizing Vision 2030
Going forward

Representatives of various headquarters and Group companies will carry out progress management,seek to understand issues, and implement related measures.
The state of progress will be regularly monitored by the management at committees, including theSDGs Promotion Committee and Board of Directors.

Click to see the dialogue.

12

SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersStatements
Introducing Daiwa Securities Group's various statements.

Management
Corporate Principles
Management Policy

Daiwa Spirit [PDF: 80 KB] (Japanese)
Daiwa Securities Group's Management Vision "Vision2030"·Materiality

Basic Policy on Stakeholder Engagement

SDGs/ESG in general
Daiwa Securities Group’s SDGs Declaration

Daiwa Asset Management Co. Ltd. "Sustainability Policy"(including "Environmental Policy" and "Human Rights Policy")(Japanese)
Daiwa Real Estate Asset Management Co.Ltd. "Policy
Regarding ESG"
Daiwa Capital Markets Europe Ltd. "Corporate Social
Responsibility"

Daiwa Asset Management Co. Ltd. "ESG Investment Policy"
Daiwa Capital Markets America Inc. "Corporate Social
Responsibility"

Environment
Environmental Vision, Environmental Principles, and Basic Environmental Policies
The Daiwa Securities Group Net Zero Carbon Declaration
Response to Climate Change (Disclosure Based on the TCFD Recommendations 2022)
Our Approach to Green Procurement

13

SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersSociety
Customer support
Basic Policy on Customer-first Operations
Daiwa Securities Group
Daiwa Securities Co. Ltd. (Japanese)
Daiwa Asset Management Co. Ltd.(Japanese)
Daiwa Real Estate Asset Management Co.Ltd.
Daiwa Corporate Investment Co., Ltd. (Japanese)
Daiwa Next Bank, Ltd (Japanese)
CONNECT Co.Ltd. (Japanese)

Human Capital

Guidelines for Fair Hiring
Health Management (Approaches and Policy, Promotion
System, Targets, and, Examples of Major Initiatives andResults, etc.)
Daiwa Capital Markets Europe Ltd. "Modern Slavery Act 2015"

Human Rights Policy
Daiwa Capital Markets Europe Ltd. "Diversity & Equality"
Daiwa Capital Markets America Inc. "WORK FOR US" >"Culture"

Investment and Financing Policy

Environmental and Social Policy Framework
Daiwa Asset Management "Investment and Other Activities
Related to Cluster Bomb Manufacturing Companies"

Daiwa Asset Management Co. Ltd. "ESG Investment Policy"

14

SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

GovernanceCorporate GovernanceCorporate Governance Guidelines
Policies on Determination of Remuneration of Directors andCorporate Executive Officers

Basic Views on Corporate GovernanceCompliance

Daiwa Securities Group Anti-Corruption Policy
Privacy Policy
Daiwa Securities Group
Daiwa Securities Co. Ltd.(Japanese)
Daiwa Asset Management Co. Ltd.

Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT)Securing the Fairness and Transparency of the Market～Prevention of unfair transactions such as insider trading～
Basic Policy on Avoiding Involvement with Anti-Social Forces
Management Policy for Conflict of Interest
Daiwa Securities Group
Daiwa Securities Co. Ltd.(Japanese)
Daiwa Asset Management Co. Ltd.(Japanese)

Information disclosure

Disclosure Policy

15

OthersSDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersRisk Management

Risk Appetite Framework [PDF: 643 KB]
Environmental and Social Policy Framework

Tax affairs

Daiwa Securities Group "Tax Policy"

Daiwa Capital Markets Europe "UK Tax Strategy"

Japan's Stewardship Code

Daiwa Securities "Accepting the Japanese Stewardship Code"(Japanese)

Daiwa Asset Management Co. Ltd. "Stewardship"16

SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

Others

Structure of SDGs Promotion
In 2018, Daiwa Securities Group has established the SDGs Promotion Committee chaired by the President and CEO to discuss ourpolicies on SDGs promotion.
The initiatives of SDGs promotion and ESG are discussed in the Committee. The contents of discussions are reported to the Board of
Directors and the Executive Management Committee when appropriate. Also, important policies on SDGs and ESG are reviewed andapproved by the Board. We continue to enhance the Board’s supervisory function with regard to the progress on SDGs promotion and
ESG issues.
We always invite external experts to the SDGs Promotion Committee, which enables us to utilize their expertise and insights in its
discussions.
Based on discussions made by the Committee, we are working to roll out SDGs promotion initiatives to the entire Group through the
Corporate Planning Department’s SDGs Promotion Office, as well as strengthening collaboration and raising awareness of SDGs within
the Group.

（As of September 2022）
Head of SDGs : It oversees the promotion of the Group's SDG- and ESG- related business and the initiatives that strengthen our
foundation of sustainable management.
SDGs Managers : They take charge of the promotion of SDG-related business and monitor the progress against KPIs at eachheadquarter and Group company.
17

SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersSDGs Advisory Group : It is composed of personnel engaged in SDG- and ESG-related work within the Group. They discuss and sharethe information on SDGs and ESG based on their respective knowledge.
SDGs Business Working Group : With oversight by the SDGs Managers, the members monitor the progress against KPIs and the SDGrelated business, identify issues, and implement countermeasures to solve those issues we face.
ESG Response Working Group : It expands and strengthens our response to ESG-related issues while taking into consideration our ESG
evaluation by investors and rating agencies.

Introducing the SDGs Promotion Committee Members
ChairmanSeiji Nakata
President and CEO
Committee Members

Toshihiro Matsui
Deputy President
COO and Head of Wholesale

Keiko Tashiro
Deputy President
Executive Head of Overseas
Operations, Head of SDGs
and Think Tank

Akihiko Ogino
Deputy President
Executive Head of Corporate
Planning and Human
Resources

18

Shinsuke Niizuma
Deputy President
Head of RetailJunichi Arihara
Senior Executive Managing
Director, CRO and CDO

Kana Shirakawa
Executive Managing Director
Head of Human Resources
and CHO

Eiji Sato
Executive Managing Director
and CFO
Head of Corporate Planningand Deputy Head of Overseas

Sachiko Hanaoka
Director
Audit & Supervisory Board
Member, Daiwa Securities Co.
Ltd.

Mikita Komatsu
Deputy President
Head of Asset Management

Masahisa Nakagawa
Deputy President
Head of System Solutions

Masahiro Kobayashi
Deputy President
Deputy Head of Wholesale

Toyo Abe
Senior Managing Director
Deputy Head of Corporate
Planning, Head of Legal andCorporate Communication

Tomoo Fujioka
Senior Executive Managing
Director, Daiwa Securities Co.
Ltd.
Head of Global Markets

19

SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Outside Members* The names are arranged in alphabetical order in Japanese

Hiroko Kuniya
Project professor, Keio
University's Graduate Schoolof Media and Governance
Trustee (special mission) , theTokyo University of the Arts
National Goodwill
Ambassador for Japan by The
Food and Agriculture
Organization of the United
Nations (FAO)

Touko Shirakawa
Project professor, Sagami
Women's University
Visiting professor, Showa
Women's University
Member of Council for
Promoting the SDGs in the
Security Industry, JSDA

20

Social Contribution
Activities

Environmental
Initiatives

OthersSDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersDaiwa Securities Group SDGs Declaration
Daiwa Securities Group recognizes Sustainable Development Goals adopted by the United Nations in 2015 as overarching goals to leadthe world. Through our group business, we will work actively for realization of a prosperous society and improved people's life by
pursuing both company's economic values and solution of social challenges at the same time.

Creation of Shared values
As an integrated securities group that provides wide range of services for various customer needs, we will address solutions of social
challenges with flexible mindset to create company's economic values and social values at the same time.

Developing and realizing work styles for diverse human resources
With measures like promotion of better work-life balance and success of female and veteran employees to create working environment
in which our employees, regardless of their gender and age, would feel satisfying to work and they would demonstrate their potential
fully, we will endeavor to develop diverse human capital and work styles.

Stakeholders and Partnership
By utilizing our group quality of taking a leading role in connecting countries, companies and investors, we aim for contribution tovarious social business solutions through partnership with each of our stakeholders.

Increase recognition and enhance penetration
We will try to increase awareness and deeper understanding of SDGs among both our employees and customers through our groupbusiness as a main player in financial and capital market.

21

SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersStakeholder Engagement
Daiwa Securities Group recognizes that, as a company, it has an important mission not only to resolve social issues, but also to grasp
what social issues need to be addressed.
In light of the rapid changes in the economy and society in recent years, social issues are also expected to change with the times. We
place importance on dialogue as a part of engagement with various stakeholders as a method of continuing to grasp such changing
social issues. Through our business, we will resolve social issues identified by active engagement with a broad range of stakeholders,
including customers, shareholders, investors, local communities, and NPOs, in pursuit of balancing social values and economic values.

Basic Policy on Stakeholder Engagement(1) Daiwa Securities Group will strive to engage with a broad range ofstakeholders based on ISO 26000 and the Charter of Corporate Behavior of
the Nippon Keidanren (Japan Business Federation).
(2) The Group will strive to deepen engagement with stakeholders alreadyknown to us, including customers, shareholders and other investors,
business partners, employees and local communities.
(3) The Group will strive to actively communicate and engage with third-party
institutions, organizations, and individuals, etc. with whom we havepreviously had no contact in order to identify other stakeholders.

22

SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Stakeholders
Customers

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

Others

Method of Engagement

Main Contact Points

Relevant Web Pages

Investors

We strive to improvecustomer, satisfaction by
providing products andservices that meet the needs
and risk tolerance ofindividual investors,
institutional investors, andpotential investors who are
considering investing.

Retail Division
Contact Center
Customer Support
CenterWholesale Division

Issuers

We propose optimal financing
methods among from a wide
range of methods tocorporations, publicorganizations, and others
seeking to raise funds
through the issuance ofstocks and bonds, andprovide total support for theirfinancing from formulation ofplans to execution.

Providing Quality
Service to Customers
Action through theDevelopment andDistribution of
Products and Services
Environmental andSocial Policy
Framework

23

SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Stakeholders
Society

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

Others

Method of Engagement

Main Contact Points

Relevant Web Pages

Investees

As an institutional investor,
we strive to maintain active
communication, including
engagement with investee
companies.

Business
partners

We maintain fair relationships
with all our business
partners, including suppliers,
and collaborate with them inorder to create a sustainable
society.

Asset Management
Division
Investment Division
Retail Division
Wholesale Division
Finance Division

Government

We comply with the Daiwa
Securities Group Tax Policy,
fulfill our tax obligations anddisclose the amount of tax
paid in each country. We alsopresent policy
recommendations in order tocreate a better society.
When making politicalcontributions, we comply
with internal regulations andall relevant laws andregulations, and we properly
disclose the amount ofcontributions.

Role and Social
Responsibilities of the
Securities BusinessSupply Chain
Management
Environmental andSocial Policy
Framework
Tax Policy
Political Contributions(SDGs Data Edition)

NPOs/NGOs

We collaborate with
NPOs/NGOs in economic andfinancial education anddisaster relief assistance. We
also incorporate theperspective of resolvingsocial issues in our businessstrategies through active
dialogue with them.

Local
communities

As a member of the local
communities where Daiwa
Securities Group's head andbranch offices and overseas
subsidiaries are located, we
engage in community-based
activities.
24

SDGs Promotion Office,Corporate Planning
Department
Daiwa Securities HealthFoundation
Daiwa Securities
Foundation
Daiwa Anglo-JapaneseFoundation
Daiwa Myanmar-JapanFoundation
Corporate
Communication
Division

Financial Education
and ResearchContribution throughFoundations andNPOs
Corporate Citizenship
Initiatives
Sponsorship Activities
for Culture and theArts
Daiwa Securities
Group 120th
Anniversary Children's
Future Project⟨Japanese only⟩SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Stakeholders

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

Others

Method of Engagement

Main Contact Points

Relevant Web Pages

Employees

Employees
and theirfamilies

We create an environment inwhich employees, whoprovide added value for all
stakeholders, are able to feel
motivated to work anddemonstrate their abilities
and enthusiasm, and we
strive to improve employee
satisfaction. Families of
employees are also ourimportant stakeholders.

Human resources
divisions
Corporate
communication
divisions
SDGs Promotion Office,Corporate Planning
Department

Communication with
Employees

Shareholders
and others

Shareholders
and others(*)

We endeavor to betransparent in our disclosureof information and to meetthe expectations ofshareholders and others
through the sustainableimprovement of corporate
value.

Investor Relations
Office, Corporate
Planning Department

Engagement with
Shareholders andInvestors(*) Including investors in bonds
issued by Daiwa Securities GroupEngagement through participation in initiatives
Daiwa Securities Group actively participates in, signs, and supports various initiatives in Japan and overseas, and in addition toutilizing their standards, we also encourage society through engagement.
For more details, see Participation in Initiatives

25

SDGs report 202㻞

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersRole and Social Responsibilities of the Securities Business
At Daiwa Securities Group, we believe that our role is not only to maintain and develop a fair and dynamic financial market, but also toincorporate a social perspective in finance in order to contribute to building a sustainable society. For example, the securities business- our core operations - plays a key role in society by building a bridge between the needs of investors to manage assets and those of theprivate and public sectors to raise funds.
On investing in securities, we promote methods of investment that take ESG (environment, society, and governance) factors, such asenvironmental and social initiatives into account together with financial information.

Supporting Sound Financial and Capital Markets-Six Roles of the Daiwa
Securities GroupWe support companies that need funds, from listing support to consulting.
We will continue to support social infrastructure by creating a flow of funds, contributing to the creation of a soil where innovation iseasy to occur, and the creation of a more active and stable financial market.

Global Network
Role 1 Fund procurement by companies, etc.
Companies issue capital by issuing securities (stocks and bonds) and use them to develop new products and provide newservices. Financing using these securities will contribute to the growth of the company and the resulting economic growth.
Daiwa Securities Group advises companies and others on financing using securities.

26

SDGs report 202㻞

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersRole 2 Support for initial public offerings
The emergence and growth of new companies is essential for economic growth. The initial listing will not only contribute to thegrowth of the company but also provide investment opportunities for various investors. The Group is assisting in the initiallisting.
Role 3 Assistance in trading of securities
Securities such as stocks and bonds are mainly traded on markets such as stock exchanges.
Securities companies help you buy and sell securities. It is also important to ensure that the securities traded are delivered
correctly.
Role 4 Assistance in asset building
The Group offers a wide range of products and services, and offers proposals tailored to customers to help with life planning andasset formation.
Role 5 Analysis and provision of information
Many economists, analysts and strategists provide a wide variety of information that combines the latest trends and in-depth
analysis in an easy-to-understand format.
Role 6 Protect market trust
The market for securities is an important infrastructure of society and is built on the trust of participants. The Group strictly
manages information and monitors transactions to ensure that the market is fair and fair. We are also actively working on
dealing with ever-evolving trading methods and new issues.

Responsible Action as an Institutional Investor
Adoption of "Japan's Stewardship Code"The Financial Services Agency of Japan published “Principles for Responsible Institutional Investors (Japan’s Stewardship Code)” in
February 2014. The Code, which has been revised twice, encourages institutional investors to fulfill their responsibilities of enhancing
the medium- to long-term investment return for their clients and beneficiaries by improving and fostering the investee companies’27

SDGs report 202㻞

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

Otherscorporate value and sustainable growth through constructive engagement, or purposeful dialogue, based on consideration of
medium- to long-term sustainability including ESG factors consistent with their investment management strategies.
In our Group, Daiwa Securities and Daiwa Asset Management have announced their adoption of the Code.

Adoption of Principles for Responsible Institutional Investors (Japan’s Stewardship Code)
Daiwa Securities ⟨Japanese only⟩
Daiwa Asset Management

System at Daiwa Asset Management

Daiwa Asset Management became a signatory to the United Nations-supported Principles for Responsible Investment (PRI) in May
2006. It takes into account ESG initiatives taken by companies when making investment decisions, as it considers that such initiatives
can lead to expanding growth capabilities over the medium to long term and reducing risks. Moreover, Daiwa Asset Management
published its "ESG Investment Policy" in January 2020 to clarify its approach to ESG. In principle, the Policy applies to all investment
strategies of the company.
After announcing its adoption of Japan's Stewardship Code in May 2014, Daiwa Asset Management renewed the announcement of its
adoption of the Code in September 2020 in line with the revision of the code, and has since been continuously and actively fulfilling its
stewardship responsibilities and striving to improve its initiatives. The company's basic approach to stewardship activities is shown in
its "Stewardship Policy." Details of its stewardship activities, including status of engagement (such as policy, structure, and a
breakdown of activities by category), are released annually in its "Stewardship Report."
ESG Investment Policy
Stewardship Policy
Stewardship Report 2021

Stewardship Activity Structure
The company's framework for stewardship activities comprises the Stewardship Committee, which is responsible for decision-making
in relation to practical policies, and the Stewardship Supervisory Committee, which is entrusted by the Board of Directors to oversee
management of conflicts of interest in stewardship activities.

28

SDGs report 202㻞

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersStewardship Supervisory Committee
The Stewardship Supervisory Committee was set up in January 2017 for the purpose of managing conflicts of interest faced by
the company in fulfilling its stewardship responsibilities. The Committee oversees management of conflicts of interest in thecompany's stewardship activities, reports to the Board of Directors, and issues recommendations for improvement as
necessary. The Committee is composed of outside directors and the compliance officer, who is in charge of overseeing themanagement of conflicts of interest. In that way, independence in the stewardship activities from management and businessexecution is secured.
Stewardship Committee
The Stewardship Committee formulates basic policies related to stewardship activities, such as the Proxy Voting Policy and theEngagement Policy, deliberates and decides on individual cases when exercising voting rights, and implements initiatives toenhance stewardship activities. The Committee is chaired by the chief investment officer (CIO) and is comprised of executive
officers and departmental managers assigned to the Fund Management Division.

29

SDGs report 202㻞

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersResponsible Investment Department
The Responsible Investment Department, which is dedicated to promoting stewardship activities and ESG investment, is mainly
responsible for overall stewardship activities, such as the exercising of voting rights in, and engagement with, investee
companies, and promotion of integration of ESG into investment processes. The Department was renamed from the
Stewardship & ESG Department as of October 2022.

Engagement Activities
Daiwa Asset Management has released the Engagement Policy, which was formulated with the aim of facilitating dialog that
contributes to enhancing corporate value and realizing sustainable growth, and actively engages with companies and organizations inrelation to both financial and non-financial aspects, including ESG issues.
Engagement activities are implemented by three key actors: corporate research analysts, personnel responsible for proxy voting, andthe Engagement Team (comprised of corporate research analysts and fund managers). In FY2021, the company implemented engaged
activities that involved opportunities for direct dialog with 1,230 companies.
Approximately 40% of all engagement activities implemented by the three teams in 2021 focused on ESG issues, and this percentage ison the rise.
Engagement Policy

Key actors implementing engagement activities and their main activities

30

SDGs report 202㻞

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersEngagement for Passive Funds
As Japanese equity index funds increase as a percentage of assets under management due to the recent growth in theoutstanding amount of exchange-traded funds (ETFs) in recent years, Daiwa Asset Management believes that implementing
engagement for passive funds is also a clear obligation. Based on the belief that gaining an understanding of the company's
stewardship activities is the first step in dialog, since 2018, the company has been sending its Proxy Voting Policy to investee
companies included in Japanese equity index funds. In 2021, it also distributed materials outlining its approaches to crossshareholdings and to diversity and inclusion.

Proxy Voting
Based on the belief that the exercise of voting rights plays a very important role in realizing the company's corporate principle ofcontributing to social and economic development through the financial and capital markets, Daiwa Asset Management has madepublic the details of its Proxy Voting Policy so that as many people as possible can be familiar with the policy.
Starting from shareholders meetings held in April 2017, the company has also made public the outcomes of proxy voting on its
website. Regarding the outcomes of voting rights exercised at the shareholders meetings of investee companies, in principle, theindividual investee companies and the decisions on each proposal are disclosed on a monthly basis.
Review of the Proxy Voting Policy (for Domestic Stocks) and Issues for Consideration
In June 2022, the Proxy Voting Policy (for Domestic Stocks) was partially revised. Amendments included expanding the scope ofcompanies that are subject to the criteria relating to female corporate officers and changing the criteria relating to outside
directors. The criteria relating to female corporate officers was a new standard established in the partial revision made in March
2021 and applied to companies included in the TOPIX 100 index. Based on positive initiatives confirmed through engagement,
the standard has now been expanded to cover companies included in the TOPIX 500 index. Issues for future consideration listed
in the policy include "decarbonization and carbon neutrality" and "business and human rights."
Proxy Voting Policy

Incorporating ESG Factors in the Investment Process
Daiwa Asset Management views ESG initiatives of companies and organizations as leading to both an increase in growth potential anda reduction of risk in the medium and long term, and utilizes them in investment decisions. By sharing qualitative evaluations
undertaken by its corporate research analysts and fund managers as well as quantitative analysis and evaluations undertaken by its
quantitative analysts, the company can achieve corporate evaluations from an integrated perspective that combines financial
information with non-financial information. Using the above information and based on the company's approach to ESG, it is able tocalculate its own proprietary ESG scores, which serve as reference when choosing which stocks to invest in and determining portfolio
risk.
Daiwa Asset Management also takes into account the ESG performance of companies when making investment decisions in relation tobond operations. Since the approach to sustainability through engagement with companies and organizations is the same as forinvestment in stocks, the company shares and makes effective use of ESG information when investing in corporate bonds too.

31

SDGs report 202㻞

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

Others

ESG-related Engagement
Looking at ESG-related engagement undertaken in 2021 broken down by category, governance (G) continues to account for thelargest share, but the proportions of engagement on environment (E) and social (S) have risen. In 2021, Daiwa AssetManagement's particular focus on climate change (20.1%) and diversity (13.3%) are both important categories, accounting for
more than 10% each.

Addressing Climate Change Issues through Stewardship Activities
Daiwa Asset Management's efforts to address climate change issues through stewardship activities are disclosed in its Stewardship
Report, in line with the disclosure framework recommended by the Task Force on Climate-related Financial Disclosures (TCFD).
Stewardship Report 2021 (Measures relating to the TCFD)
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SDGs report 202㻞

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersInvolvement in Joint Initiatives relating to ESG Investment
Daiwa Asset Management is a signatory to and endorses the following external initiatives.
Category
General ESG

Environment

Diversity, human rights
Governance

Name
The United Nations-supported Principles for Responsible
Investment (PRI)

Date of affiliation
May 2006

Principles for Financial Action for the 21st Century

November 2011

Japan Stewardship Initiative (JSI)

March 2022

Task Force on Climate-related Financial Disclosures (TCFD)

December 2020

Net Zero Asset Managers initiative

December 2021

Climate Action 100+

August 2021

Investor Agenda

August 2021

Statement on Fiduciary Duty and Climate Change Disclosure

August 2014

30% Club Japan Investor GroupMay 2020

PRI Advance

December 2022

International Corporate Governance Network (ICGN)

April 2021

Participation in Initiatives

ESG Education, Training and Exchange of Information
Daiwa Asset Management has adopted "Enhance Global Sustainability" as part of its action guidelines, and is taking systematic
measures that will contribute to the sustainable growth of society.
Education and Training for Executives and Employees
Daiwa Asset Management provides all executives and employees with internal training designed to share knowledge of
stewardship activities that should be undertaken by an asset management company as well as overall knowledge of ESG. As
ESG, in particular, is a field where new initiatives are being taken daily, the company organizes study meetings aimed at the
updating of specific themes as needed. In FY2021, the company held a total of seven training sessions and study meetings,
including training to deepen understanding of its stewardship activities.

33

SDGs report 202㻞

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersESG Exchange Meetings for Investee Companies
Daiwa Asset Management places importance on investee companies' ESG initiatives as it considers that such initiatives can leadto expanding growth capabilities over the medium to long term and reducing risks. On the other hand, it became aware during
dialogs with investee companies that the investees were struggling with appropriate methods for ESG disclosure and collectionof information. The company therefore invites multiple investees and holds ongoing ESG-related information exchange
meetings based on the idea that investees' sharing their initiatives and exchanging information with each other will not only bebeneficial to the company but also to future initiatives of the investees. The first meeting in February 2021 was on the topic"gender diversity," and the second meeting in May 2022 was on the topic "human capital."
Report on the 2nd ESG Exchange Meeting ⟨Japanese only⟩34

SDGs report 202㻞

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersAction through Product Development and Distribution
For Addressing Social Issues and Contributing to Future Developmentof Society and Financial and Capital Markets
SDGs FinanceInitiatives through Business Activities Such as the Underwriting and Sale of SDG Bonds
Climate change has become a serious threat to all countries. It is said that developing countries are being impacted first andwith the gravest results. Climate change may destroy the social initiatives for poverty issues that have been steadily carried out
over the last several decades, and it is impossible to separate it from poverty issues.
In the past few years, initiatives for SDGs have spread worldwide, and along with the expansion of the market for related bonds,
customers' interest in SDGs has been growing. As a pioneer for SDG bonds in Japan (including conventional Impact Investment
bonds), Daiwa Securities provides customers with opportunities to invest in bonds issued by public organizations, financial
institutions, and other issuers for the purpose of solving social issues.
Daiwa Securities Group will continue to contribute to solving social issues through its business activities, including theunderwriting and sale of Green Bonds and other SDG bonds.

SDG Bonds for Retail Investors Sold by Daiwa Securities (FY2021)
Use of funds

Salesamount(estimate)

ORIX*

Applied to new or past expenditures that meet the eligibility
criteria of a green bond framework developed by ORIX

¥4.0 billion

World Bank

Supports a wide range of development projects undertaken by
the World Bank for developing countries¥1.1 billion

Tokyo Metropolitan Government(TMG)*

Used for the installation of solar power generation to facilities
owned by TMG, the development of parks, and the developmentof coastal preservation facilities (such as seawalls)¥2.0 billion

Tokyu*

Applied to refinancing of expenditures for "clean transportation,""railway infrastructure for safety and security," etc.

¥2.0 billion

Issuers

Japan International Cooperation Used for financing provided by JICA to support sustainable¥0.8 billion
Agency (JICA)*
development in developing countries* Sold by multiple companies including Daiwa Securities (the sales amounts shown above are those underwritten by Daiwa
Securities).
35

SDGs report 202㻞

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersResults of SDG Bonds for Retail Investors
Daiwa Securities cumulative sales: ¥810.3 billion* Figures have been rounded off* Source: Daiwa Securities (From March 2008 to March 2022)

Daiwa Securities' share in the Japanese market: 44%
Total ¥1,843.6 billion* Figures have been rounded off* Source: Daiwa Securities (From March 2008 to March 2022)

SDGs related to SDG bonds sold in the past

SDG Private Placement Bonds for Domestic Institutional Investors Sold by Daiwa Securities (FY2021)

Issuers

Bond nameDate of issuance

Currency

Issuance
amount(In unitsofmillionsof theissuance
currency)

Corporación Andina de
Fomento (CAF)

Nutrition bonds

June 2021

JPY

20,000

Corporación Andina de
Fomento (CAF)

Nutrition bonds

June 2021

JPY

3,000

Corporación Andina de
Fomento (CAF)

Nutrition bonds

June 2021

JPY

5,000

European Bank for
Reconstruction andDevelopment (EBRD)

Climate resilience bonds

July 2021

AUD

160

Inter-American Investment
Corporation (IDB Invest)

Decarbonization bonds

September 2021

AUD

68

Asian Development Bank

Water bonds

October 2021

AUD

30

36

SDGs report 202㻞

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Issuers

Corporate
Governance

Addressing
social issues

Bond nameSocial Contribution
Activities

Environmental
Initiatives

OthersDate of issuance

Currency

Issuance
amount(In unitsofmillionsof theissuance
currency)

Asian Development Bank

Gender bonds

February 2022

AUD

66

Inter-American
Development Bank (IADB)

Sustainable development
bonds

February 2022

AUD

120

Inter-American
Development Bank (IADB)* Data based on press releases

EYE (education, youth andemployment) bonds

February 2022

AUD

50

Daiwa Securities' share in the Japanese market: 21.95% (based on press releases)
Only private placement bonds for which the arranger is clear are counted.
FY2021 Initiatives Taken by the Group's Overseas Offices

Daiwa Capital Markets America (DCMA) Initiatives
Daiwa Capital Markets America Inc. (DCMA) Underwrites De-carbonization Bonds Issued by Inter-American Investment
Corporation (IDB Invest)
DCMA acted as solo lead manager for de-carbonization bonds issued by IDB Invest in October 2021.
IDB Invest is a multilateral development bank committed to promoting the economic and social development of its member
countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable enterprises andprojects to achieve financial, social and environmental development for the region.
The proceeds of the bonds will be used for companies and projects that support the IDB Group climate change action plan andthe de-carbonization in Latin America and the Caribbean through installation and management of renewable energy,
optimization of energy efficiency and management of waste and drainage system, etc.
DCMA Underwrites Education, Youth and Employment (EYE) Bonds Issued by Inter-American Development Bank (IDB)
DCMA acted as solo lead manager for EYE bonds issued by IDB in February 2022.
IDB is a multilateral development bank committed to promoting the economic and social development of its member countries
in Latin America and the Caribbean.
The EYE represents Education, Youth and Employment. The proceeds of the EYE bonds will be used for the EYE projects that
support early childhood care and education, through formal primary and secondary education, as well as programs thatfacilitate labor market placement by improving the transition from school and work through vocational training, which
contributes to the promotion of youth participation in society and the improvement of productivity in Latin America and the
Caribbean.
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SDGs report 202㻞

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Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersDaiwa Capital Markets Europe Limited (DCME) Initiatives
Tarek Hassan was appointed Head of ESG at DCME. Tarek is working closely with Senior Management to develop the DCME ESG
strategy that will support the Group's vision to "create the future through everyone's actions" and "realising the SDGs bycreating a sustainable capital cycle.

Message from the Head of ESG"I am delighted to be appointed as Head of ESG at Daiwa Capital Markets Europe Limited ("DCME") - I look forward toworking with our leadership within DCME and across the Daiwa Securities Group to generate ESG-related client
opportunities, advance our net zero efforts and educate colleagues to develop our collective expertise on
sustainability initiatives, further embedding ESG and the SDGs at the heart of our strategy."
Tarek Hasan's bio:In January 2022, DCME welcomed Tarek Hasan as Head of ESG to develop our ESGrelated strategy, solutions and services:
Tarek has over 12 years' experience across Capital Markets and Project Financeincluding time as a derivatives trader.
He started his career at MUFG where he eventually led their ESG strategy,
developing their global platform.
Tarek has expertise of industry standards such as ICMA principles, SFDR, EU
Tarek Hasan
Taxonomy, TCFD as well as specialist knowledge of investor ESG selection
Head of ESG,
methodologies & ESG ratings.
IMC, CFA ESG Investing
He is a member of the AFME Sustainable Finance Steering Committee and has
Cambridge CISL Sustainable
strong relationships with the Climate Bond Initiative.
FinanceDaiwa Capital Markets Europe
In his spare time, Tarek is a trustee of a sustainable impact charity, mentor for
Limitedindustry ESG initiatives and former co-chair of banking diversity & inclusion
networks.
Tarek graduated with a Masters in Financial Mathematics from Warwick Business
School, and holds a number of professional qualifications including CFA ESG
Investing Certificate.

38

SDGs report 202㻞

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersThe Business Development Working Group
The Business Development Working Group membership has been expanded to include the following departments:
Daiwa Capital Markets Europe Limited Geneva Branch Equity;
ECM;
Daiwa Capital Markets Deutschland GmbH ("DCMD") Equity Sales;
New Head of DCMD FICC Sales
One recent highlight and development from the working group is Fixed Income Sales and Syndication's outreach project toEuropean investors to identify ESG trends and objectives, which has now completed.
The database of feedback has been shared with DCM to allow them to better understand investor demands in ESG products.
This exercise has also paid off in notably increased orders in ESG issuance from investors that DCME contacted as part of thisexercise. A similar exercise is being looked into for Equity Sales.
The Regulation & Risk Working Group
Please see: Corporate Citizenship Initiatives > Initiatives Taken by the Group's Overseas Offices > Activities at the Group's London
Operational Base

Daiwa Capital Markets Singapore Limited Initiatives
Daiwa ESG Conference (Asia ESG Debt Webinar)
On August 26, 2021, Daiwa Capital Markets Singapore Limited hosted its first web conference focusing on ESG bonds in Asia. The
event consisted of two parts of the panel discussion which was led by 6 panelists including ESG experts from Asian Development
Bank (ADB), Singapore Exchange (SGX) and the International Capital Market Association (ICMA), and attended by more than 160
Asian and European bond issuers and investors. Post-event survey was conducted to hear the current investment stance andoutlook for Asian ESG bonds. We will continue this initiative as an annual event that leads to an increase in ESG bond deals in
Asia.

SDG Related Funds

SDG related funds are a mixture of stocks and bonds that take into account factors other than financial performance, such as ethics
and social and environmental objectives, in addition to assessments of the sales and profits of the investment candidates.
We have expanded our product lineup according to the times to include eco funds that limit non-financial assessments toenvironmental performance and investment trusts that focus on Impact Investment and select issues from an SDG perspective. By
investing in these funds, through financial markets, investors can indirectly support countries and corporations that are proactively
involved in ESG and SDG initiatives.

Result in FY2021
Assets under management in Daiwa Securities Group1: ¥451.6 billion
Daiwa Securities Sales: ¥366.4 billion* Souce: Daiwa Securities Co. Ltd.
1. Assets under management at Daiwa Asset Management and Global X Japan as of March 31, 2022
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SDGs report 202㻞

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Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersDevelopment and Provision of Superior Financial and Investment
Products
While the importance of asset management in the "100-year life era" is increasingly gaining attention, Daiwa Securities considers thedevelopment and provision of superior products to be one of our major missions in society, and strives to develop new products andimprove their quality.
"Jeans for Genes Day" Donations Delivered to Recipients of Support Term Deposits"Jeans for Genes Day" (a homonymous play on words) is a fundraising event that has been held since the 1990s in schools andcompanies in Europe and the United States to support children with genetic diseases. Since March 2021, Daiwa Securities Grouphas been holding Jeans for Genes Days on the third Friday of every month, with executives and employees coming to work
wearing jeans to raise funds. Donations collected from Jeans for Genes Days held between October 2021 and February 2022
were sent to recipients of Support Term Deposits that provide pediatric care and support for people with disabilities. Daiwa
Securities Group's social contribution activities conducted through Jeans for Genes Day and Support Term Deposits werefeatured in a TV program on Asahi Satellite Broadcasting called "Tsunagaru Ehon: for SDGs.""Tsunagaru Ehon: for SDGs," Asahi Satellite Broadcasting ⟨Japanese only⟩
Initiatives for Solutions Business
Many small- and medium-sized companies and small-scale enterprises are now facing the issue of business succession due tothe aging of their operators. However, it is said that about half the managers exceeding the age of 70—the average retirement
age—in the next 10 years are yet to decide on their successors. Moreover, even the continuity of their business activities, which
support regional economies, has recently been adversely affected by the unprecedented deterioration of management
environment resulting from the COVID-19 pandemic. Daiwa Securities recognizes that it is its duty, as a financial institution, tofirmly support, in financial terms, small- and medium-sized companies' efforts to pass down their valuable business resources,
employment, and technologies to the next generations, thereby helping to maintain regional supply chains. We will support thesustainable development of local communities and the Japanese economy by encouraging the continuation, development, andgrowth of small- and medium-sized companies of good standing by providing solutions to inheritance, business succession,
M&A, and other issues.
Initiatives of Fund Wrap Services
Daiwa Fund Wrap is a service enabling even those who are busy or have no investment experience to easily start medium- tolong-term diversified investment. Under a discretionary investment contract, Daiwa Securities invests and manages assets onbehalf of our customers. We offer plans that enable each customer to make diversified global investments according to theirinvestment policy, as do professional institutional investors such as those managing public pension assets. It has become more
important than ever for a large number of investors to manage their assets efficiently and stably through diversified global
investment, in particular as a measure to address prolonged low interest rates, which have made it difficult to find attractive40

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Othersinvestment options. Daiwa Fund Wrap is a service offered to customers over the medium to long term. We provide thoroughexplanations before the conclusion of a contract, report investment performance regularly every three months, and hold followup seminars whenever necessary. We thus ensure close communication with customers and seek to build a relationship of trustwith them.
Daiwa Fund Wrap Premium (Daiwa Fund Wrap with premium benefits) now offers a more detailed service, enabling customers
to have multiple investment portfolios and design them in a highly customized manner. The beneficiary designation service andthe gift service that takes advantage of the calendar year taxation system are incidental services that can meet the needs
customers with a strong interest in inheritance tax measures.
Anshin Tsunagaru Wrap (Daiwa Fund Wrap with premium benefits that provide peace of mind) also offers incidental services
that support all aspects of asset succession, such as inter vivos gifts (between living persons) and inheritance measures, in orderto safeguard a customer's valuable assets and pass them on to their family.
Moreover, Daiwa Fund Wrap Online proposes the most suitable investment style from a minimum investment amount of ¥10,000
by utilizing Robo-Advisor technology. We thus provide a service enabling customers who prefer long-term asset management toeasily engage in globally diversified investments online.
To keep attracting customers over the long term, we will continue our initiatives to implement better structures and systems so
as to improve our performance and the quality of our services.
Balance of domestic Wrap accounts: ¥13,722.2billion (As of March 31, 2022)* Source: Data released by the Japan Investment Advisers Association

Balance of Wrap accounts at Daiwa Securities: ¥2,957.4 billion (As of March 31, 2022)* Source: Data released by the Japan Investment Advisers Association

Daiwa Social Contribution Wrap - Daiwa Fund Wrap with a donation service
Amount donated in FY2021: ¥43.61 million (FY2020: ¥3.58 million)* Total donated amount from customers and from Daiwa Securities* Donated to United Nations World Food Programme, Medecins Sans Frontieres Japan, WWF Japan, Japan Committee for UNICEF, Japan
Platform

Initiatives in Funds for Decarbonization (Daiwa Asset Management)
Daiwa Asset Management offers investment opportunities by creating and managing investment trusts with ESG and SDG
targets.
The Carbon Neutral Equity Fund (Carbon Zero) was established by Daiwa Asset Management in July 2021 and is managed withadvice from Candriam S.C.A. (Candriam). It is the first fund in Japan with a revolutionary scheme that aims for zero carbon not
only in the investment part of the fund but also in other parts.
The fund invests in companies that provide solutions for realizing a decarbonized society. The fund’s portfolio comprises stocks
from around the world, including Japan. Its portfolio was found to be even more effective than MSCI All Country World Index(MSCI ACWI) in terms of reducing carbon dioxide emissions. Furthermore, part of the fee earned by Candriam for advising thefund is used to invest in green projects aimed at reducing carbon dioxide emissions mainly in emerging economies such as India
and Panama (i.e., projects that help address global warming and other environmental problems), thereby helping to offset the
carbon dioxide emissions associated with the fund.

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OthersNote:
1. Reference date: April 30, 2021
2. Coverage ratio*: Carbon Zero fund: 97.14%, MSCI ACWI: 98.70%* Percentage of all issues included in the portfolio for which data could be calculated
3. Carbon dioxide emissions (carbon footprint) is a value used to express, in numerical form, total greenhouse gas emissions (expressed in terms ofcarbon dioxide), from when products are manufactured, through consumption, to final disposal.
4. Annual carbon dioxide emissions per million euros of investment are the sum of the companies' direct emissions (Scope 1) and their indirectemissions associated with the purchase and use of energy (Scope 2), taking the investment ratio into account.
5. The MSCI ACWI is not used as a benchmark for the Carbon Zero fund.
6. The data presented above is based on past performance, and should not be taken as being indicative of, or guaranteeing, future results.
Source: Candriam

In addition, Daiwa Asset Management and some sales companies, including Daiwa Securities, are also contributing toward therestoration of natural environments by donating part of their trustee revenue from the fund to tree-planting activities throughan NPO. In this way, investment beneficiaries are being provided not only with an opportunity to earn profits from investing in
the fund, but also to help address environmental issues.
With respect to its donations to tree-planting activities, Daiwa Asset Management cooperated in an interview survey conductedby the National Land Afforestation Promotion Organization on the Project for Comprehensive Promotion of Forestation with
Public Participation (a project commissioned by the Forestry Agency), which was reported to the Forestry Agency as an example
of corporate involvement in forestation.
* The project report has not been made public.

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OthersIn recognition of these initiatives of the Carbon Zero fund, Daiwa Asset Management won the Governor's Special Prize for Green
Finance in the ESG Investment Category of the 2021 Tokyo Financial Award organized by the Tokyo Metropolitan Government
and the Most Innovative Product Award at the 2022 Best of the Best Awards organized by Hong Kong's Asia Asset Management—
The Journal of Investments and Pensions.
Special feature on the Carbon Neutral Equity Fund (Carbon Zero) ⟨Japanese only⟩
Initiatives Using REITs and Other Structures to Solve Social Issues
Daiwa Office Investment Corporation (DOI), a REIT that specializes in office properties and is managed by Daiwa Real Estate
Asset Management, established a green finance framework to provide ESG investment opportunities to investors. The company
received a Green 1 (F) rating, the highest rating, from Japan Credit Rating Agency, Ltd. (JCR). In September 2020, DOI issued its
first green bonds (five-year term: ¥1.5 billion; 10-year term: ¥2.4 billion).

Investment in Healthcare Facilities
Daiwa Real Estate Asset Management managed Nippon Healthcare Investment Corporation, which was Japan's first REIT
focusing on healthcare facilities. On April 1, 2020, that REIT was merged with Japan Rental Housing Investments Inc., a REIT
focusing on housing that was also managed by Daiwa Real Estate Asset Management, and Daiwa Securities Living Investment
Corporation ("DLI"), the J-REIT with the largest amount of healthcare facility assets under management in Japan, wasestablished. DLI invests in prime healthcare facilities that are likely to see stronger demand from society over the medium tolong term as the population continues to age. Through such investment, it will contribute to the "Achievement of Good Health43

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Othersand Longevity," a social issue in Japan identified in the SDGs Implementation Guiding Principles formulated by thegovernment’s SDGs Promotion Headquarters.
DLI has also established a social finance framework to provide ESG investment opportunities to investors through social
financing and received a Social 1 (F) rating, the highest rating, from Japan Credit Rating Agency, Ltd. (JCR). Based on thisframework, DLI borrowed ¥770 million through a social loan in October 2021 and issued ¥2.0 billion of social bonds in January2022, using the funds raised to acquire healthcare facilities.
Total amount of investment in healthcare facilities
Approximately ¥101.9 billion (as of May 31, 2022)

Investment in Renewable Energy
With regard to infrastructure assets, Daiwa Real Estate Asset Management has been managing photovoltaic power stations since
FY2014, and was entrusted in FY2017 with the management of a biomass power generation plant invested in by Daiwa Energy &Infrastructure. In September 2021, the company was entrusted with management of DSREF Amaterasu Core Fund, Investment
Limited Partnership, a private fund targeting investment in a solar power project which was established by soliciting
investments from domestic institutional investors. The company will continue to expand the balance of its assets undermanagement while striving to accumulate knowledge of investment and management in the renewable energy field.
Management results of renewable energy power plants
Number of deals: 22(Hokkaido, Tohoku, Hokuriku, Kanto, Chubu, Kansai, Chugoku, and Shikoku regions)
Output: Approximately 213 MW from solar power plants (excluding output from assets on land with leasehold interest), 13 MWfrom biomass power plants
Annual energy output (April 2021 to March 2022): 309,553MWh(Assumed CO2 reduction of 151,129 t-CO2, calculated using emission factors of each regional electric utility)
Balance of assets under management: Approximately ¥85.3 billion
Expansion of Services for Asset-Building Customers through App-based Securities Company, "CONNECT"
Smartphones and other technical innovations are changing the common perception that securities companies are used only byaffluent customers and that securities transactions require an advanced level of financial knowledge. We recognize thatgenerating securities services available to all people in consideration of financial inclusion is an issue facing not only Daiwa
Securities Group but also the securities industry as a whole.
CONNECT Co. Ltd., which began providing services in July 2020, is a new type of securities company created by Daiwa Securities
Group. It chiefly handles transactions in units of one share and provides services mainly targeted at people in the digital native
generation. The company provides and completes all services—from the opening of an account to securities trading—on
smartphones, enabling anyone to use securities services, starting with a small amount of investment, as long as they have asmartphone.
CONNECT also provides an investment game app and a point investment service in collaboration with external companies,
thereby offering opportunities to acquire financial knowledge easily even without funds and diversifying methods of access tofinancial services.
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OthersUnder the concept "Create your future, starting with your first share," CONNECT will continue to develop and provide its services
so that all people will be able to access better financial services.

Group-wide Research on Financial Innovations
Since FY2016, working-level personnel at Daiwa Securities Group, including from Daiwa Securities Group Inc., Daiwa Securities,
Daiwa Institute of Research, and Daiwa Asset Management, have been conducting research activities on artificial intelligence(AI) and other state-of-the-art technologies across the Group.
Specifically, they have achieved results in research on the provision of a stock information service using a stock price prediction
model, a real-time stock volume prediction model, shareholder rewards program Robo-Advisor, an AI-based business matching
service, an AI-based company analysis tool, and other matters.
Moreover, in FY2017, the Group launched the "Daiwa Securities Group & the University of Tokyo Future Finance Forum" in orderto develop its research activities further and expand the basis of the activities. As its advanced form, since FY2018 we have been
conducting joint research with a University of Tokyo study group led by Professor Kiyoshi Izumi through a social cooperation
program entitled "Next Generation Investment Technology" and have developed a theme issue search system based on
associative retrieval.
Going forward, Daiwa Securities Group will continue to promote innovations in the financial industry through its ongoing
research activities.
Response to FinTech and artificial intelligence (AI)
Since starting Daiwa Online Trade, Japan's first Internet-based securities brokerage service, in 1996, Daiwa Securities has
provided various products and services successively over a period of more than 20 years. Due to the widespread use of portable
information devices and the development of information communications technology, the importance of Internet channels has
increased even more in recent years, with the number of accounts held under contract for Daiwa Online Trade topping 3.5
million as of the end of March 2022. Of Daiwa Securities' total stock transactions, approximately 85% are carried out via theonline trading service, underscoring the fact that Daiwa Online Trade has become an indispensable channel for Daiwa
Securities.
Since May 2017, we have been providing information through Daiwa Online Trade regarding domestic issues selected using an
AI-based stock price prediction model developed by Daiwa Institute of Research, Daiwa Securities Group's think tank. We selectissues whose prices are likely to go up gradually after the announcement of financial results, using a method of machinelearning, which is an AI-related technology. In 2019, we distributed information four times in total when major financial results
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Furthermore, in February 2019, we introduced a login function using a biometric authentication system to Kabu Walk, asmartphone application with a domestic stocks trading function provided on iPhones and Android devices. We believe that byactively using such new technologies, including AI and FinTech—an amalgamation of finance and information technology—wewill stimulate interest in securities investment among individuals, especially younger generations, who have not previously
been familiar with securities investment, and thereby support a shift from savings to asset building. In that way, we cancontribute to Japan's sound economic development.
As the use of various AI-based services is currently spreading and the development of FinTech is accelerating, new financial
services leveraging these technologies are becoming easily available. We will keep track of such trends and endeavor tocontinue enhancing convenience and providing quality services as a channel chosen by next-generation affluent customers andyoung customers with particular focus on inbound marketing.
Daiwa Online Trade
Number of contract accounts: 3,506,000 accounts(As of the end of March 2022)
Contribution to Stimulation of Local Economies though AI-based Support for Enhancement of Financial Services
Due to its technological progress and higher academic rating, artificial intelligence (AI) has been increasingly used for businessapplications. Daiwa Institute of Research Business Innovation, which is entrusted by many financial institutions with systemdevelopment, is advancing initiatives for research and application of AI.
As part of AI-based support for enhancement of financial services, the company developed a common data definition thatenables AI to learn the financial activities and state of mind of retail customers with remarkable accuracy by combining a wealthof experience in developing financial systems and unique data science expertise. It built a financial product recommendation AI
system based on this data definition, which has been provided since 2019 to some regional financial institutions. The system is
expected to allow those financial institutions to predict the financial needs of their customers more accurately with AI.
Daiwa Securities Group will contribute to the social and economic development of communities through initiatives that actively
use state-of-the-art technologies.
System Product WEB Service
System Product WEB Service is offered as a support tool for customers building assets. Its aim is to realize a prosperous era of
the 100-year life.
The service enables customers to centrally manage their stock-based employee benefit plans (such as stock ownership plans,
workplace NISA, and defined contribution pension plans) and stock-based compensation plans (such as specified transferrestricted stock (RS) and stock options) on a single online platform. The service enables us to support asset-building to help ourcustomers realize their life plans and to actively encourage participation in a company's employee benefit plans, such as stock
ownership plans and installment-type investment plans.
Utilizing the latest technologies in the context of digital transformation (DX), for companies and their employees, we are working
to build highly flexible coordination based on an application programming interface (API), to provide a high degree of
convenience, such as making use of cloud services to make opening accounts more effortless and less time-consuming, and tocompletely eliminate the need for paper and personal seals in various procedures.
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OthersSDGs FinanceIn recent years, SDGs finance markets in Japan and overseas have expanded, and we believe this trend will continue in the future.
Daiwa Securities started to work on SDGs finance ahead of others. In 2008, the company sold Vaccine Bonds for individual investors,
Japan’s first impact investment bonds.
We have also worked to develop standards for SDGs finance in Japan and overseas. In 2017 and 2020, we served as a member of theGreen Bond Review Committee set up by the Ministry of the Environment to develop the Green Bond Guidelines. In 2020, we became
Asia’s only underwriter selected as a member of the Advisory Council of the International Capital Market Association (ICMA).
In 2020, Daiwa Securities Group established a team specialized in SDGs finance within Daiwa Securities to further enhance thecompany’s underwriting system. We strive to contribute to spreading and expanding SDGs finance while offering products, services,and proposals that meet the needs for SDGs finance from issuers and investors, who are our customers.

Promotion of SDGs FinanceKazushi Shimizu
Managing Director
Sustainability Solutions Dept.

I supervise and lead initiatives to promote SDGs finance at Daiwa Securities Group.
I have been involved in work associated with bond issuance and other finance since 1998, and I
have never experienced as much increase in awareness of ESG and the SDGs as seen in recent years
among investors and issuers.
What is driving Daiwa Securities Group to promote SDGs finance?
Daiwa Securities sold Japan’s first Vaccine Bonds in 2008. These bonds enabled the procurement offunds for addressing the social issue of providing vaccination needed by children in developing
countries.
We are a pioneer for ESG-related finance, and since the sale of these bonds, we have continued to
be a top runner for cultivating and expanding the market.
The SDGs are guidelines for conduct formulated in 2015 toward 2030.
They are characterized by the concepts of “diversity” and “leaving no one behind.”
To achieve greenhouse gas reduction targets toward the realization of the Paris Agreement, a hugeamount of funds is being required for capital investment and research and development.
Moreover, the importance of disaster preparedness and infrastructure has increased from theperspective of a country that has experienced disasters, and the importance of medical, education,and food systems has increased to cope with COVID-19. These things also require a huge amount offunds.
Environmental and social issues for 2030 are not issues for the distant future. They are close to us,
occurring at present.
Under the concept of “diversity” and “leaving no one behind,” Daiwa Securities Group will actively
promote SDGs finance, which can lead to solutions to environmental and social issues, as a top
runner toward 2030.
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Major Results＜Japan＞[Social] New Kansai International Airport Company, Ltd. (August 5, 2022) ⟨ Japanese only ⟩[Sustainability Linked] NEC Corporation (July 6, 2022) ⟨ Japanese only ⟩[Green] Sanken Electric Co., Ltd. (June 10, 2022) ⟨ Japanese only ⟩[Green] Sotetsu Holdings, Inc. (June 9, 2022) ⟨ Japanese only ⟩[Sustainability] Air Water Inc. (June 3, 2022) ⟨ Japanese only ⟩[Green] Sumitomo Corporation (May 18, 2022) ⟨ Japanese only ⟩[Social] FUJIFILM Holdings Corporation (April 14, 2022) ⟨ Japanese only ⟩[SDGs-IPO] Fuluhashi EPO Corporation (April 13, 2022) ⟨ Japanese only ⟩FY2021[Transition] Japan Airlines Co., Ltd. (February 22, 2022) ⟨ Japanese only ⟩[Sustainability] NEC Capital Solutions, Ltd. (February 22, 2022) ⟨ Japanese only ⟩[Green] Asahi Printing Co., Ltd. (January 28, 2022) ⟨ Japanese only ⟩[Sustainability] Nagoya Railroad Co., Ltd. (December 10, 2021) ⟨ Japanese only ⟩[Social] The University of Tokyo (December 10, 2021) ⟨ Japanese only ⟩[Sustainability] Hankyu Hanshin Holdings, Inc. (December 3, 2021) ⟨ Japanese only ⟩[Sustainability Linked] Tokyu Fudosan Holdings Corporation (October 5, 2021) ⟨ Japanese only ⟩[Sustainability] Yokohama Reito Co., Ltd. (September 17, 2021) ⟨ Japanese only ⟩[Green] SCSK Corporation (June 1, 2021) ⟨ Japanese only ⟩FY2020[SDGs-IPO] TESS Holdings Co., Ltd. (March 24, 2021) ⟨ Japanese only ⟩[Sustainability Linked Green] Takamatsu Construction Group Co.,Ltd. (March 12, 2021) ⟨ Japanese only ⟩[Sustainability] Shinsei Bank Ltd. (March 5, 2021) ⟨ Japanese only ⟩[Social-PO] Gakken Holdings Co., Ltd. (February 26, 2021) ⟨ Japanese only ⟩[Sustainability] Mitsui Fudosan Logistics Park Inc. (February 5, 2021)[SDGs-IPO] Poppins Holdings Inc. (December 21, 2020) ⟨ Japanese only ⟩[Green] Central Nippon Expressway Co., Ltd. (November 25, 2020) ⟨ Japanese only ⟩[Green] The Sumitomo Warehouse Co., Ltd. (October 2020)[Green] SENKO Group Holdings Co., Ltd. (September 11, 2020) ⟨ Japanese only ⟩[Green] Daiwa Office Investment Corporation (September 4, 2020)
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FY2019[Social] Gakken Holdings Co., Ltd. (March 6, 2020)[Green] DAIKEN CORPORATION First issuance of green bonds in Japan’s building materials industry (September 13, 2019) ⟨Japanese only ⟩[Green] The Sumitomo Warehouse Co., Ltd. First issuance of green bonds by a warehousing company (September 13, 2019) ⟨Japanese only ⟩[Sustainability] Mitsui O.S.K. Lines, Ltd. First issuance of sustainability bonds for individual investors in Japan (July 12, 2019) ⟨Japanese only ⟩[Green] ORIX JREIT Inc. (July 11, 2019)
FY2018[Green] Tokyo Tatemono Co., Ltd. (March 8, 2019) ⟨ Japanese only ⟩[Green] Daiwa Securities Group Inc. (November 22, 2018) ⟨ Japanese only ⟩[Green] Sumitomo Forestry Co., Ltd. Issuance of green convertible bonds (September 11, 2018) ⟨ Japanese only ⟩[Green] Mitsui O.S.K. Lines, Ltd. First issuance of green bonds for individual investors in Japan (August 24, 2018) ⟨ Japanese
only ⟩＜Overseas＞[Climate resilience] European Bank for Reconstruction and Development (EBRD) (July 2021) ⟨ Japanese only ⟩[Nutrition] Corporación Andina de Fomento (July 2021)
FY2020[Sustainable development] Inter-American Development Bank (IDB) (March 2021) ⟨ Japanese only ⟩[Green transition] European Bank for Reconstruction and Development (EBRD) (January 2021) ⟨ Japanese only ⟩[Social] International Finance Corporation (IFC) (November 2020) ⟨ Japanese only ⟩[COVID-19 Vaccine] Central American Bank for Economic Integration (CABEI) (November 2020) ⟨ Japanese only ⟩[Green] Hungary (September 2020)[Sustainable development] Inter-American Development Bank (IDB) (June 2020)[Social] International Finance Corporation (IFC) (April 2020)

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Report on Media Appearance
Economic Education Program “Sustainable Every Day—What Economy Can Do for the Future”
Yukino Yamada, Chief ESG Strategist at Daiwa Securities, appeared in“Sustainable Every Day—What Economy Can Do for the Future,” a TV program(broadcast on BS TV TOKYO) communicating ESG in an easy-to-understandmanner.
The program was supervised entirely by the Public Institutions Banking Dept.
and the Debt Capital Market Deprt. (Ⅰ) to (Ⅲ) of Daiwa Securities. It wasplanned for those engaged in business and college students who have a greatinterest in social contribution. Showing specific cases, the program
introduced corporate activities aimed at achieving the SDGs and fundprocurement methods.
⟨

Issuers Introduced in the Program *in order of appearance ⟩Poppins Holdings Co., Ltd.
Gakken Holdings Co., Ltd.
Nidec Corporation
Japan Railway Construction, Transport and Technology Agency
KDDI CORPORATION

Selected as Member of ICMA’s Advisory Council of the Green Bond and Social Bond Principles
Daiwa Securities Co. Ltd. was selected as a member of the Advisory Council of the Green Bond and Social Bond Principles(“Green Bond Principles, etc.”) of the International Capital Market Association (ICMA), becoming Asia’s only underwriterselected for the Council.
We believe that this selection was due to the high evaluation of our efforts and achievements related to SDGs. Daiwa
Securities Group will strive to establish and develop new frameworks, such as sustainability linked bonds and transition
bonds, in addition to existing green bonds, social bonds, and sustainability bonds, and will continue to contribute tocreating a sustainable society.

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OthersSelected as Top Performer in IFC’s ESG Scoring Survey (July 2020)
In an ESG survey for underwriters conducted for the first time by International Finance Corporation (IFC), Daiwa Securities was
selected as a top performer, becoming one of only six companies receiving the highest rank title among 44 companies.
Major check points

ESG policy
Handling of ESG-related products
Collaboration with stakeholders
Initiatives to reduce environmental impact
Reporting on nonfinancial information, etc.
Daiwa Securities Group Inc.’s MSCI ESG Rating Upgraded to A for the First Time (December 2019)MSCI Inc. is the world’s largest ESG index provider.
The ESG index assesses companies comparatively by industry on a global scale and assigns ratings on a seven-point scale from
AAA to CCC. The initiatives we implemented in our core businesses to achieve the SDGs were highly evaluated by the externalorganization.

Holding of Seminars
Daiwa Securities Group holds various SDGs-themed seminars while receiving support from issuers, investors, and rating agencies. We
aim to spread and expand SDGs finance by communicating the latest topics and approaches to customers.

9th Seminar: SDGs Bond Market and Valuation Methodology from the Perspective of European Companies (June 22,2022)
For details, click here ⟨ Japanese only ⟩LectureSpeaker

Opening

Toyobumi Naruge, Executive Officer, Daiwa Securities Co., Ltd.

Bloomberg lecture I"SDGs Bond Analysis Function at
Bloomberg"

Hideki Sato, ESG & Regulatory Concerns, Bloomberg L.P.

Bloomberg lecture II"Overview of Bloomberg ESG Data
Scores"Kimihiko Takamatsu, ESG Specialist, Bloomberg L.P.

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OthersSpeaker

Solo speech"ESG Market in Europe and Unique
Valuation Methodology"

Orith Azoulay, Global Head of Green & Sustainable Finance, Natixis/BPCE

Panel discussion"ESG/SDGs Bond Market and
Trends in Europe"

Orith Azoulay, Global Head of Green & Sustainable Finance, Natixis/BPCE
Jesus Santolaya Lazaro, Head of Institutional IR & Analyst, Caixabank SA
Hector Iturralde Lacaci, Head of ESG & Shareholders, Investor Relations, Banco
Santander SA
Simon Bond, Executive Director, Responsible Investment Portfolio Management,
Columbia Threadneedle

Closing

Norman L. Tweeboom, Japan Regional Head, Bloomberg L.P.

th Seminar: Passion for ZERO Carbon (June 7, 2022)
For details, click here ⟨ Japanese only ⟩LectureSpeaker
Keiko Tashiro, Deputy President, Member of the Board, Daiwa Securities Co. Ltd.

Keynote lecture"Now we must accelerate
decarbonization"

Shinjiro Koizumi, Member of the House of Representatives, former Minister of theEnvironment

Part 1"Contributing to a DecarbonizedSociety through theDevelopment of Transport
Networks"

Takashi Kawachi, President, Japan Railway Construction, Transport andTechnology Agency (JRTT)Part 2"What Finance Can Do for
Achieving the SDGs"

Norichika Kanie, Graduate School of Media and Governance, Keio University

Part 3"ESG Investments Facilitating
Realization of a DecarbonizedSociety, Driven by $130 Trillion"

Hiroyuki Chida, Senior Managing Director, Daiwa Asset Management Co. Ltd.

8

Opening remarks

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Othersth Seminar: New Trends in the SDGs Bond Market (February 24, 2022)
For details, click here ⟨ Japanese only ⟩LectureSpeaker
Yukino Yamada, Chief ESG Strategist, Equity Research Department, Daiwa
Securities Co. Ltd.

Issuer and investor perspectives"Sustainability Linked Bonds:
Future Questions about Bond
Issuance"

Takashi Sakamoto, General Manager, Group Finance Department, Tokyu Fudosan
Holdings Corporation and Finance Department, Tokyu Land Corporation
Nobusuke Yamaoka, Head of Investment Department, Financial Services Division,
Mitsui Sumitomo Insurance Co., Ltd.
Moderator: Kazushi Shimizu, Managing Director, Sustainability Solutions Dept.,
Daiwa Securities Co. Ltd.

Rating agency's perspective"Transition Bonds: Future
Themes and Outlook from a
Rating Agency's Perspective"

Masato Kanedome, Principal, Sustainability Services Dept., DNV Business
Assurance Japan K.K.
Moderator: Shun Otani, Strategist, Fixed Income, Currency and Commodities
Dept., Daiwa Securities Co. Ltd.

7

Keynote lecture"Global Environment for
Decarbonization and ESG
Investment"

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Othersth Seminar: SDGs Bond Market Leading to Realization of Decarbonization and Poverty Reduction (November 25, 2021)
For details, click here ⟨ Japanese only ⟩LectureSpeaker
Keiko Tashiro, Corporate Executive Officer, Deputy President, Daiwa Securities
Group Inc.

Keynote lecture I"SDGs Financing in Japan"

Tamami Ota, Head of Office of SDGs Research & Consulting, Financial & CapitalMarket Research Department, Daiwa Institute of Research Ltd.

Keynote lecture II"EU Transition Bonds"

Adeline Diab, Analyst, Bloomberg Intelligence

Bloomberg lecture"Introduction to SDGs Analysis
Function Using Bloomberg"

Hideki Sato, Fixed Income Specialist, Bloomberg L.P.

Interview"Efforts by TEPCO Group for
Carbon Neutrality"

Yuki Tomita, ESG Research Group Manager, ESG Office, Corporate Management &Planning Unit, Tokyo Electric Power Company Holdings, Inc.

Panel discussion"Financing to End Poverty: Case
Studies on the Forefront of Aid
to Developing Countries"

Hajime Taniguchi, Manager, Budget for Finance and Investment Account, andCapital Markets Division, Treasury, Finance and Accounting Department, Japan
International Cooperation Agency (JICA)
Kenji Kanamoto, Senior Financial Officer, International Finance Corporation
Shinpei Hirose, Manager in Charge of Foreign Bonds Investment, Investment
Operation Department, Japan Post Insurance Co., Ltd.
Moderator: Kazushi Shimizu, Managing Director, Sustainability Solutions Dept.,
Daiwa Securities Co. Ltd.

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Opening54

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Othersth Seminar: ESG Investment in Post COVID-19 Era with a View to Zero Emissions in 2050 (August 5, 2021)
For details, click here ⟨ Japanese only ⟩Speaker

Opening “Expanding Green
Finance in Japan”

Kazushi Shimizu, Head of SDGs Finance, Debt Capital Market Department 3, Daiwa
Securities Co., Ltd.

Japan’s environmental financepolicy “Japan’s Roadmap to
Zero Emissions”

Ryosuke Imai, Deputy Director for Environmental Finance, Environment andEconomy Division, Minister’s Secretariat, Ministry of the Environment

Green finance cases in Japan“Cases of CBI Certified Bond
Issuances”

Hiroshi Nishikawa, Executive Director, Japan Railway Construction, Transport andTechnology Agency
Moderator: Tamami Ota, Head of Office of SDGs Research & Consulting, Financial& Capital Market Research Department, Daiwa Institute of Research Ltd.

International trends“Development of Taxonomies
Worldwide and their Impact on
Japan”

Sean Kidney, CEO, Climate Bonds Initiative
Shunsuke Oshida, Head of Credit Research, Manulife Investment Management(Japan) Limited
Atsuko Kajiwara, Executive Officer, Head of Sustainable Finance Evaluation Group,Japan Credit Rating Agency, Ltd.

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Othersth Seminar: Disaster and Climate Change Measures and SDGs Bonds (May 28, 2021)
For details, click here ⟨ Japanese only ⟩LectureSpeaker
Keiko Tashiro, Corporate Executive Officer, Deputy President, Daiwa Securities
Group Inc.

Securities company’s
perspective “Current
Developments of SDGs Bonds,
Disaster and Climate Change
Measures”

Tamami Ota, Head of Office of SDGs Research & Consulting, Daiwa Institute of
Research Ltd.

Keynote lecture “UR’s Disaster
Responses and Contribution to
SDGs”Michinobu Matsuda, Head of Finance Section, Accounting & Finance Department,
Urban Renaissance Agency

Bond market’s perspective“Initiatives by Issuers for
Responses to Climate Change
and Support from Investors”

Masaru Mikami, Head of Funds Unit Section, Finance Department, East Japan
Railway Company
Yuriko Fujita, Line Manager of Domestic Corporate Bond Section, Fixed Income
Department, The Dai-ichi Life Insurance Company, Limited
Moderator: Takao Matsuzaka, Fixed Income, Currency and Commodities
Department and Equity Research Department, Daiwa Securities Co., Ltd.

4

Opening “Daiwa Securities
Group’s SDGs Initiatives”

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Othersrd Seminar: Japan’s Roadmap to Becoming a Major Power in SDGs Bonds (February 4, 2021)
For details, click here ⟨ Japanese only ⟩Speaker

Opening “Transition to
Capitalism Centered on theSDGs”

Mitsumaru Kumagai, Senior Executive Managing Director, Head of Research
Division, Chief Economist, Daiwa Institute of Research Ltd.

Keynote lecture “Initiatives forHigh-Quality SDGs Bond
Issuances”

Hiroshi Nishikawa, Executive Director, Japan Railway Construction, Transport andTechnology Agency

Debt capital market’s
perspective “New Trends ofSDGs Bonds”

Ichiro Sakata, Deputy Director, University of Tokyo
Shoichiro Seki, Head of General Affairs Department, Nagano Prefecture
Hiroyuki Nomura, Head of Investment Operation Department, JAPAN POST
INSURANCE Co., Ltd.
Moderator: Kazushi Shimizu, Head of SDGs Finance, Debt Capital Market
Department, Daiwa Securities Co., Ltd.

Corporate value perspective“SDGs Bonds and Creation ofSocial Value by Companies”

Hiroyuki Suematsu, Financial Group Manager, AEON MALL Co., Ltd.
Tamami Ota, Head of Office of SDGs Research & Consulting, Daiwa Institute of
Research Ltd.

Rating agency’s perspective“Ideal Rating of Bonds Designed
to Contribute to the SDGs”

Masato Takebayashi, Asia-Pacific Research Associate Director, Sustainalytics
Takao Matsuzaka, Fixed Income, Currency and Commodities Department andEquity Research Department, Daiwa Securities Co., Ltd.

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Othersnd Seminar: Basics of SDGs Investment for Beginners (November 10, 2020)
For details, click here ⟨ Japanese only ⟩Speaker“Basics of SDGs Investment”

Kazushi Shimizu, Head of SDGs Finance, Debt Capital Market Department, Daiwa
Securities Co., Ltd.

“Connections with SDGs Bond
Investors through Sustainability
Bonds”

Tetsuya Isono, Head of Accounting & Finance Department, Japan Railway
Construction, Transport and Technology Agency“Thoughts of Issuers, Investors,
and Rating Agencies behind
SDGs Bond Investment”

Katsuhito Ozawa, Director, Senior Managing Executive Officer, Tokyo Tatemono
Co., Ltd.
Hideo Kurosawa, Chief Financial Officer, Japan Automobile Recycling Promotion
CenterAtsuko Kajiwara, Head of Sustainable Finance Evaluation Group, Japan Credit
Rating Agency, Ltd. (JCR)

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Othersst Seminar: ESG Investment Strategy in the COVID-19 Era (August 4, 2020)
We held an ESG webinar using ZOOM live distribution and teleconference systems, explaining about ESG investment from theperspectives of securities companies, research, investors, issuers, and external rating agencies. A total of more than 400 issuers
and investors participated in the seminar.

Speaker

Securities company’s
perspective “Opening Speech”

Keiko Tashiro, Corporate Executive Officer, Deputy President, Head of SDGs,
Daiwa Securities Group Inc.

Research’s perspective “ESG
Grabbing Attention in COVID-19
Era”

Tamami Ota, Head of Office of SDGs Research & Consulting, Financial & CapitalMarket Research Department, Daiwa Institute of Research Ltd.

Investor’s perspective“Discussion on ESG Investment& Loan Policy and Corporate
Bond Investment”

Shinichiro Kon, Deputy General Manager, Finance and Investment Planning
Department, Nippon Life Insurance Company
Takashi Uni, Deputy General Manager, Credit Investment Department, Nippon Life
Insurance Company
Moderator: Takao Matsuzaka, Fixed Income, Currency and Commodities
Department and Equity Research Department, Daiwa Securities Co., Ltd.

Issuer’s perspective“Contribution to ESG throughBond Issuance”

Atsushi Kitadai, Finance Planning Team Leader, Finance Division, Mitsui O.S.K.
Lines, Ltd.
Yoshihiro Ikeda, Deputy Executive Director, Finance Department, Japan Student
Services Organization
Moderator: Kazushi Shimizu, Head of SDGs Finance, Debt Capital Market
Department, Daiwa Securities Co., Ltd.

1

LectureExternal credit agency’s
perspective “New Trends of ESG
Investment and Transition
Bonds”

Masato Kanedome and Koichiro Tanabe, DNV GL Business Assurance Japan K.K.

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OthersHolding of Engagement Meetings

Daiwa Securities Group arranges engagement meetings with issuers and investors with the aim of further enhancing SDGs finance.
In these meetings, we communicate investors’ frank opinions to SDGs bond issuers, thereby contributing to the positive developmentof SDGs bond markets for both issuers and investors.
For details, see below.
Realization of a green society through regional
revitalization and development of transportation
infrastructure ⟨ Japanese only ⟩- JRTT×Kiraboshi Bank, Ltd. (April 2021)

Support for students being required now ⟨Japanese only ⟩- Japan Student Services Organization×Japanese
Red Cross Toyota College of Nursing (January 2021)

Holding of Community-Based Seminars －SDGs×Regional Revitalization－

Since 2021, our sales branches across Japan have been holding seminars (webinars) that introduce initiatives taken by variousorganizations toward achievement of the SDGs.
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OthersIssuance of Green Bonds
Until now, Daiwa Securities Group has sold various kinds of Impact Investment bonds, thereby supporting the solving of social issues
from the standpoint of a financial institution. In November 2018, Daiwa Securities Group Inc. issued its first Green Bonds, expanding its
initiatives aimed at invigorating markets. As part of such initiatives, the proceeds from the Green Bonds have been used as investment
and loan funds for renewable energy generation projects worked on by the Group, as well as facility funds for Green Buildings. The
Group will continue to contribute to achievement of SDGs and provide investors with new investment opportunities.

Information on Green Bonds Issued by Daiwa Securities Group Inc.
(as of the end of June 2022)
1. Allocation of proceeds

The proceeds from the Green Bonds issued by Daiwa Securities Group Inc. in November 2018 (issuance amount: ¥10 billion) were fully
appropriated for eligible Green Projects.
See the table below for the balance of investment and loans for eligible Green Projects by category.

List of Eligible Green Projects (as of the end of June 2022)
Category

Sub-category

Commencement of
Finance/Refinance

Finance/Refinance

Balance(units of ¥ billion)

Renewable energy

Photovoltaic power generation

November 2018

Refinance

1.5

Renewable energy

Photovoltaic power generation

February 2019

Finance

1.7

Renewable energy

Photovoltaic power generation

June 2021

Finance

2.7

Renewable energy

Photovoltaic power generation

June 2022

Finance

2.1

Green Building-

November 2018

Refinance

2.0

total

2. Environmental Impact

10

As of the end of June 2022, the eligible Green Projects for which the proceeds from Green Bonds were appropriated have an energy
output/assumed energy output of 110,940 MWh. They have the effect of reducing carbon dioxide (CO2) emissions by 49,590 t-CO2
annually.
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OthersReport on Environmental Impact (as of the end of June 2022)
Category

Sub-category

Energy output/
assumed energy output (MWh)Estimated COemissions
reduction effect (tCO )Renewable energy

Photovoltaic power
generation

110,940

49,590Category

Progress of application for certification

Green BuildingAwarded Five Stars for the DBJ Green Building Certification Program* Calculation of environmental impact when no results have been obtained or the period of operation is less than one year, the assumed energy output iscalculated based on a report on energy output projections submitted by a third-party institution. For projects under development that are notscheduled to be brought into operation during this year, the assumed output for the first year of operation is used. All power plants are scheduled to bebrought into operation by FY2023.

3. Annual Review by Independent provider of ESG research and analysis

A review by an independent provider of ESG research and analysis confirmed that the use of proceeds criteria and the reporting criteria
were met.
Annual Review by Sustainalytics

4. Initiatives by Group Companies

Daiwa Securities Co. Ltd.

Disclosure of criteria and specific procedures for judging suitability for eligible investments and loans related to the Funds-Supplying
Operations to Support Financing for Climate Change Responses by BANK OF JAPAN < Japanese only >Daiwa Next Bank, Ltd.
Disclosure of criteria and specific procedures for judging suitability for eligible investments and loans related to the Funds-Supplying
Operations to Support Financing for Climate Change Responses by BANK OF JAPAN < Japanese only >Daiwa Energy & Infrastructure Co. Ltd.
Notice on Sales, etc. of Daiwa Green Finance Program Trust Beneficiary Interests and Trust ABL (Iwamizawa and Kushiro Solar Power
Plants) < Japanese only >Notice on Sales, etc. of Daiwa Green Finance Program Trust Beneficiary Interests and Trust ABL (Shiraoi Town Takeura Solar Power
Plant) < Japanese only >Completion of Shiraoi Town Takeura Solar Power Plant < Japanese only >Reporting on Green Project Bonds < Japanese only >62

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OthersProviding Analysis/Proposals on the Economy, Society, andInvestment Information
Daiwa Securities Group as an integrated securities group provides, in addition to investment information, a wide range of informationon the economy and society. We hope that the measures we propose from a long-term perspective will be helpful to customers,
investors and a variety of stakeholders.

Easy-to-Understand Communication of Information
Daiwa Securities publishes information for a wide range of people from institutional and retail investors to those who are about to startinvesting. The central role in the provision of information is played by highly specialized analysts and strategists from the Investment
Strategy, Equity Research, and Fixed Income, Currency and Commodities (FICC) Research Departments. They provide information
mainly through reports based on their unique analysis. Our information is based on close collection and analysis of data. Even if thesame person is providing that information, we tailor the presentation, depending on whether it is for retail investors or institutional
investors, who are investment professionals.
For example, if information is targeted at retail investors, we implement various measures to make it more visually understandable. To
remove the general perception that securities investment or securities companies are complicated, we believe it is one of our missions
to work toward communicating our analysis using easy-to-understand language.
Initiatives to Provide Information on ESG (Daiwa Securities)
Daiwa Securities' Equity Research Department is a group of analysts and strategists. They analyze and evaluate information
released by companies, and provide stock price information and investment strategies and ideas to institutional investors (suchas asset management companies, banks, insurance companies, pension funds).
International agendas, such as SDGs and the Paris Agreement, have gained much attention in recent years. Against thisbackdrop, a growing number of investors are using nonfinancial information in relation to the environment, society, andcorporate governance when making medium to long term investment decisions. Therefore, in May 2019, Daiwa Securities
established ESG Research Division, which specializes in handling ESG information, within the Equity Research Department,
thereby putting in place a system for comprehensively analyzing and evaluating financial and nonfinancial information. The ESG
Research Section works on writing analysis reports focusing on topics such as climate change, human rights and gender issues,
corporate governance systems, and social impact, as well as holding ESG seminars and other activities.
ESG information will become more and more important for companies and society as a whole for achieving sustainable growthover the long term. We strive to provide appropriate ESG information in a timely manner so that institutional investors will beable to expand their investment returns in the medium to long term through responsible investment and purposeful dialogue(engagement).

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OthersNumber of SDGs/ESG seminars held & participants
2021: 28 (3,326 participants)
2020: 23 (2,461 participants)
2019: 18 (699 participants)
2018: 15 (447 participants)
ESG reporting rate (individual corporate reports)
End of FY2021: 95.0%
End of FY2020: 87.4%

Initiatives by Daiwa Institute of ResearchComprehensive Provision of Information and Policy Proposal Activities
Daiwa Institute of Research (DIR), which assumes the think-tank role of Daiwa Securities Group, provides wide-ranging analysis
and information to the public. At DIR, we consider it our mission to engage in comprehensive provision of information andpolicy proposal activities concerning the financial and capital markets and the real economy. We have always sought to provide
up-to-date and in-depth information and a unique viewpoint that has not been presented by others. In order to provide
information that satisfies the needs of the public, we also exchange information and hold discussions with businesses,
investors, public institutions including governments and municipalities, and various economic groups, as well as overseas thinktanks and media. In this way, we are able to analyze the currents and trends of society and disseminate information.
We are also stepping up the release of ESG information, communicating wide-ranging information via our website and "DIR
Research Quarterly Review" (our quarterly journal) regarding community vitalization, environmental problems, women's active
participation in society, workstyle reform, corporate governance and other issues.
Provision of information by DIR through diverse media
Number of reports posted on the website : 486 reports (Results for FY2021)
Full texts of reports available on the website
Number of recent hits on the research division's page : 4.99 million hits (Results for FY2021)

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Focus on Information Dissemination with a View toward a World after COVID-19 and after the Invasion of Ukraine
The Research Division of DIR conducts research, analysis, and dissemination of information centered on topics relating todomestic and overseas macro-economics and financial and capital markets. In response to the spread of COVID-19 and Russia's
invasion of Ukraine in particular, the division has focused on analysis and information dissemination concerning the future of
the global economy and societies, which have been subjected to historical impacts.
The division set the path to recovery by the Japanese economy, issues and the future of financial and capital markets, and the
pursuit of sustainability as the basis for areas of medium- to long-term focus and selected individual themes to address. Amongthem, topics for priority measures are expected to include new capitalism, household asset formation, SDGs/ESG, and zero
emissions.
In recent years, rapid progress has been made around the world in the development of sustainability-related disclosure
frameworks, and there has been growing interest among both issuers and investors. Led by the ESG Research Division, effort has
been focused on researching, analyzing, and disseminating relevant information. In FY2021, the ESG Research Divisionpublished 14 reports and made 157 visits to finance and non-financial companies for the provision of information.
In addition, the Consulting Division is working to provide a variety of consulting services suitable for SDG management and ESG
investment from a perspective of sustainability support. Specifically, the division provides optimal solutions from an SDG/ESG
perspective for various issues faced by companies, such as management vision, medium-term management planning, humanresource strategies, DX, corporate governance, and M&A strategies including organizational restructuring, and implements
initiatives that contribute toward enhancing corporate value. Recently, in response to growing interest among customers in nonfinancial information, the division has also been actively working to provide support on environmental issues (TCFD support,etc.), human capital (introduction of employee wellness reports, etc.), and intangible assets such as intellectual property.
Economic Analysis Initiatives Using AI
DIR has been releasing the Daiwa Regional AI (Regional Love) Index, which uses artificial intelligence (AI) to calculate economic
sentiment by region, since July 2017 to contribute to the development of regional society.
Japan is faced with the important issue of breaking the vicious cycle of population decline and contraction of regional
economies to realize regional revitalization. To promote such regional revitalization, it is necessary to properly understand thecurrent state of regional economies, in addition to executing the policies that suit regional characteristics.
The Daiwa Regional AI (Regional Love) Index utilizes a state-of-the-art artificial intelligence (AI) model and also incorporates
economists' knowledge to calculate overall economic sentiment by region. It has the following advantages:
1. demonstrating overall economic sentiment quantitatively and promptly by region;
2. grasping regional economic sentiment in a historical manner; and3. enabling analysis of which fields (such as "consumption" and "exports") provide impact and cause changes in overall
economic sentiment.
DIR also uses AI to analyze business conditions and regional economies. For example, it makes AI-based economic index
forecasts and has developed a model enabling regional economies to be quickly understood by using alternative data
(electricity volume demand data announced every day on the websites of power companies), which was rarely used for
economic analysis in the past.

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OthersProvision of Information through Diverse Media
Lectures and Media Appearances
The Research Division of DIR adopts a variety of methods for providing information. These include the writing of reports;
contribution to DIR Research Quarterly Review, newspapers and economic magazines; media interviews; TV appearances;
lectures, seminars, and presentations at workshops; the publication of books, and participation in government councils as
members. We strive to explain in an easy to understand way complex issues related to the economy, society, and policy issues
within and outside Japan, while emphasizing the quality of reports. We ensure the reliability of our reports by requiring them toundergo review by a specialized section. As a result, the information we provide has improved in both quality and quantity, andwe are communicating with customers on a continuously increasing number of occasions.
Issuing of Books and Booklets
The Investment Strategy Department of Daiwa Securities issues the periodical "Daiwa Investment Monthly" and otherpublications as tools for communicating information to general customers. They are distributed to sales branches of Daiwa
Securities and are also available on the Internet. By viewing "Daiwa Investment Monthly" with a smartphone, videos
introducing individual stocks can be viewed. We are further evolving our booklets to make them easier to understand.
We also provide information in various ways to general customers, including books available through publishers, desk calendars
with information on financial events, and wall-hanging market charts.
Internet-based Initiatives

WebinarsDaiwa Securities Group regularly holds webinars where popular strategists and analysts of the Group appear as lecturers. These
webinars can be viewed in real-time and participants can pose questions directly to the lecturers using a chat function, enabling
numerous customers to receive market information and commentary on individual stocks through live seminars. Videos ofsome of the webinars are available for subsequent viewing, enabling customers to watch the webinars according to theirindividual lifestyles.
In FY2021, approximately 56,000 customers participated in these webinars.
We will continue our efforts to communicate market conditions and outlook and other information to even more people in a
way that is easy to understand through our webinars.
(Total number of participants)
FY2021: Approximately 56,000
FY2020: Approximately 20,000
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Official Daiwa Securities Group Channel (YouTube)
In 2000, Daiwa Securities Group began "Daiwa Securities Information TV," Japan's only TV
channel dedicated to securities information, on the multichannel pay TV broadcast service"SKY Perfect TV!" Since April 2011, "Daiwa Internet TV," an owned media that can be viewed byanyone online, has been produced and distributed from our own studio, and since April 2022,
financial and investment programs have been similarly produced and distributed on the"Official Daiwa Securities Group Channel" on YouTube, a free video distribution platform. We
distribute information on the Tokyo market five times a day in a timely manner, whileproviding local market information from Hong Kong and New York every day.
In addition to these daily programs, we distribute corporate information as well as video
reports where analysts and economists at Daiwa Securities and DIR provide commentaries oncurrent issues in an easy-to-understand way.
On a new program called "Take Note! SDGs/ESG Investment will Change the World" that was
launched in July 2020, Daiwa Securities strategists provide straightforward explanations of
SDGs/ESG investment.
Our Daiwa Internet TV initiative was introduced by the SDG Industry Matrix for Financial
Services (issued jointly by the United Nations Global Compact and KPMG International in 2015)as a case for Goal 4 "Quality Education." The report highlighted Daiwa's timely and free ofcharge provision of a variety of financial and investment information.
We will continue to make efforts to produce programs that can be viewed by not only investors
but also those who are new to investment, and that can support the journey from savings toasset building.
Click here for the Official Daiwa Securities Group Channel (YouTube) ⟨Japanese only⟩
Daiwa Asset Management
Daiwa Asset Management is dedicated to fulfilling its role as an asset management professional in order to achieve stable asset
formation for investors in Japan. Its key emphasis in this context is on the "quality" of its products, management and support.
Particularly for individual investors, its mission is to make investment trusts more readily used as a tool for asset building. And inorder to provide higher quality management of Japanese and overseas asset classes, it develops and manages products not
only internally but also in partnership with specialized asset management firms around the world.
This is why Daiwa Asset Management continues to take on the challenge of providing information to customers in a more timely
and easy-to-understand manner through a variety of media. Especially for novice investors, the company communicates theneed for asset building and how to best handle investment risks through sales company seminars. It also actively reaches out toa wide range of generations, including younger generations, utilizing content such as manga and videos, as well as collaborative
programs with ShinR25, NewsPicks, and other online platforms that are popular among all generations.
In July 2021, Daiwa Asset Management established the Carbon Neutral Equity Fund (Carbon Zero). It is the first fund in Japan
with a revolutionary scheme that aims for zero carbon in parts other than the investment part of the fund. In addition, together
with sales companies, by making donations to tree-planting activities proportionate to the balance of the fund, the company isnurturing forests along with the assets of investors, with the aim of realizing a decarbonized society. In recognition of theinitiatives of the fund, the company received the Governor's Special Prize for Green Finance in the ESG Investment Category of
the 2021 Tokyo Financial Awards.
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OthersThe Carbon Zero fund publishes a monthly "ESG Report" and an annual "Impact Report." The Impact Report explains toinvestors the fund's investment philosophy and the methods of investment used to realize that philosophy, as well as whatkinds of positive impact investments have had on the environment and society and what kinds of companies the fund has
invested in. The report endeavors to disclose information to investors so that they can make appropriate investment decision.
Daiwa Asset Management website
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OthersSupport for Creating Our Future Society
Daiwa Securities Group begins the social problem solving businesses in various fields, such as FinTech, healthcare, energy
infrastructure, and agriculture, utilizing the knowledge of various securities and financial businesses cultivated by the Group.

Business development starting from the SDGs
Fintertech Co. Ltd.
Creation of Next Generation Financial Services
Established in April 2018, Fintertech Co. Ltd. aims to create next generation financial services through the use of state-of-the-art
technologies and collaboration with external companies.
The company began offering digital asset-backed loans in March 2020, followed by real estate investment loans and crowd-tipping
systems in April 2021, and loan-type crowdfunding in November 2021. Going forward, the company will continue to develop new
financial services to satisfy the diverse needs of customers.
Fintertech Co. Ltd. ⟨Japanese only⟩

Daiwa Energy & Infrastructure Co. Ltd.

Promotion of Investment and Financing for Energy
Daiwa Energy & Infrastructure Co. Ltd. (DEI) was launched as the successor to the energy investment division of Daiwa PI Partners, andstarted operation on October 1, 2018. The company aims to provide new value as a member of an integrated securities group with ahybrid business model, and contribute to SDGs through investment and financing for renewable energy, infrastructure, and resource
fields.
Daiwa Energy & Infrastructure Co.Ltd.
Renewable Energy Power Generation Projects
DEI has been actively working on development of and business investment in renewable energy generation projects, taking
advantage of the Daiwa Securities Group's network.
In the solar power generation field, the 12 solar photovoltaic power plants which are owned and on which construction wascompleted as of May 2022 have all been operating stably. Also, the solar photovoltaic power plants under construction in
Takayama, Gifu (30.8 MW) and Tochigi, Tochigi (51 MW) will be completed in 2022 and 2024, respectively.
In the biomass power generation field, DEI has been steadily promoting the development of wood biomass power generation
plants that use tree trimmings in Japan as their primary source of fuel. The development is underway with Green Thermal Co.
69

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OthersLtd., with which DEI has formed a capital and business alliance. The commercial operation of a plant in Yonezawa, Yamagata
began in January 2018 as the first alliance project, and a plant in Kamitonda, Wakayama as the second project also began inJune 2020.
The plant in Kai, Yamanashi, which is under construction as the third project, is scheduled to be completed in 2023.

Stations developed/ invested in by DEI
Photovoltaic power stations

Biomass power generation plant

OutputStations in operation: Approx. 260 MW(total for 12 stations)
Stations under construction: Approx. 82
MW (total for 2 stations)

Stations in operation: Approx. 13 MW (total
for 2 stations)
Stations under construction: Approx. 7 MW
(total for 1 station)

Total

Approx. 342 MW

Approx. 20 MW

Equivalent to the amount for approximately
114,000 households

Equivalent to the amount for approximately
25,000 households

Projected amountof electricity
generated annually:* Projected amount of electricity generated
annually by stations in operation

Initiatives for the Woody Biomass Power Generation Field
DEI has formed a capital and business alliance with Green Thermal, a leading company for the development and operation of
woody biomass power generation plants, and Biomass Fuel Co., Ltd., a biomass fuel supplier. It has been actively promoting not
only the construction of power plants but also the expansion of its value chain in the biomass field.
In collaboration with Biomass Fuel, DEI has been working to expand the procurement of palm kernel shell (PKS) - fuel forbiomass power generation - and develop wood pellet manufacturing plants mainly in Southeast Asia. Preparations are currently
underway for the construction of a new pellet plant in Vietnam.
Furthermore, in December 2018, DEI invested in Bioendev AB, a Sweden-based torrefaction technology company, aiming fortechnological evolution and global expansion of the biomass fuel-related business.
The woody biomass power generation business uses carbon-neutral power generation facilities that do not affect the amount ofcarbon dioxide. Moreover, since it adds new value as fuel to wood trimmings from forests and PKS that have been left anddiscarded, it is expected to generate new industries and employment and contribute to local economies in Japan as well as thepromotion of industry in developing countries.

Daiwa ACA Business Succession
Contributing to the Sustainable Development of Society through Business Succession
About half of the small and medium-sized companies in which the owner is reaching the retirement age are said to not have enoughsuccessors. Business succession is thus an urgent social issue Japan needs to address even from the perspective of employment andGDP.
Daiwa ACA Business Succession Fund presents one solution to the business succession issue by becoming a new sponsor for70

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Otherscompanies on behalf of their owners.
As a new corporate partner, Daiwa ACA Business Succession Fund helps small- and medium-sized companies to pass on their excellent
technologies and services to the next generations, while encouraging the innovation of technology and services with continuity bysupporting business succession. Through these activities, Daiwa ACA Business Succession Fund will contribute to Japan's sustainableeconomic development.
Daiwa ACA Business Succession Fund[PDF:151KB]

Daiwa Food & Agriculture Co. Ltd

Promotion of Sustainable Agricultural Production BusinessJapan’s agricultural business faces various social issues, such as the aging of people engaged in farming, a decreasing number of new
farmers, shortages of successors, and an increase in abandoned farmlands.
Daiwa Food & Agriculture Co. Ltd (DFA), which was established in November 2018, will contribute to solving various issues faced by
Japan’s agriculture and food-related businesses, such as expansion of scale and increase in efficiency of the agricultural production
business and new business initiatives, through the provision of risk money.
Daiwa Food & Agriculture Co. Ltd ⟨Japanese only⟩
Agricultural Production Initiatives Using Large-scale Horticultural Facilities
Following on from the large-scale cultivation of tomatoes in Kusu, Oita, DFA entered the paprika production and sales businessin October 2021 as a new agricultural production business. By farming in state-of-the-art environmentally controlledgreenhouses, DFA has become one of Japan's leading centers of paprika production.
By taking advantage of cultivation using large-scale horticultural facilities and expertise in operating such facilities, DFA willcontinue to pursue expansion of scale and increase in efficiency of agricultural production, thereby engaging in business that
contributes to the stable supply of food in Japan and overseas and to the revitalization of local economies.

Paprika production farm that boasts one of the largest cultivation
areas in Japan

Paprika at harvest time71

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OthersDaiwa ACA HealthCare Inc.

Creation of a Sustainable Capital Cycle in the Healthcare Field
Social challenges are piling up in the healthcare field, including the rapid expansion of demand for medical and nursing care and thenecessity of reducing medical costs. Through Daiwa ACA HealthCare Inc., which has investment and lending expertise in the medical
and nursing care business, Daiwa Securities Group aims to solve social issues in the field by the provision of funds for hospital andnursing care businesses and support for succession and management of medical institutions, in Japan and overseas.
Daiwa ACA HealthCare Inc. ⟨Japanese only⟩

Good Time Living Co. Ltd.

Aging is an important social issue to be addressed in Japan's super-aging society. Amid the need to secure talented nursing carepersonnel, Good Time Living is developing an environment that allows staff to demonstrate their expertise thanks to labor-savings
utilizing network communications.

Provision of High-Quality Nursing Care Services
Good Time Living is working to improve service quality with an emphasis on communication and reduce the amount of labor spent on
indirect operations by using network communications to share information and knowledge. By switching from old paper records tomobile devices, records on the health and daily life of residents are being input in a timely manner. Coordinating information among
multiple professions not only reduces labor, but also helps to provide services tailored to the individual, such as environmental
improvements and reviews of nursing care details. The company is also currently introducing the LINE WORKS business chat tool tofurther strengthen staff communication.
In order to change the current state of nursing care services to address the progressive aging of the population, Good Time Living willfurther increase operational efficiency in nursing care frontlines and develop an environment that allows nursing care staff todemonstrate their expertise. The company will thereby contribute to the achievement of SDG Goal 3 "Good Health and Well-being" andGoal 8 "Decent Work and Economic Growth."
Good Time Living Co. Ltd. ⟨Japanese only⟩72

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A nursing care recording system Care-wing(institutional version)

Management of resident data with mobile
devices carried by staff

A next-generation predictive monitoring
system Neos＋care®

Care-wing (institutional version) was
developed jointly with the
manufacturer. In addition to having theconventional function of recording
home-visit nursing care, it digitalizes
the staff operations list it helps to savetime required for creating and revisinglists compared to paper-based
management, leading to enhancementof operational efficiency.
Feedback from staff
Care-wing helps to reduce time forcreating staff operations lists andcreating and making changes toschedules.
Care-wing enables each staff
member to check the staff
operations list using a tablet. This
allows us to know who is working
where, so the system has facilitated
our operations.

Data on residents’ health and lives,
which used to be handwritten bynursing care staff, is now entered into
the nursing care record system CAREKARTE. The system automaticallycreates progress graphs using vital
data such as temperature and bloodpressure. It has also made it easier toretrieve recorded data, contributing toeliminating paper and saving labor innursing care frontlines.
Feedback from staff
We didn’t have enough opportunities
to look at care given by other staff
members, but we are now able tolearn points for good care by looking
at records.
CARE KARTE has reduced the timerequired for recording data, enabling
us to increase time for conversation
with residents.

Daiwa Securities Group provided its
accumulated expertise to the
manufacturer and jointly developed abiometric monitor equipped with ahighly precise monitoring function. The
monitor helps to prevent and promptly
detect accidents that have occurred inrooms, and also allows for visualizationof living environments, while
protecting privacy, due to its adoptionof an infrared sensor. It thus helps toprovide services, including
environmental improvement and care,which are suited to each and every
resident.
Feedback from staff
Neos＋care® helps to identify causes
for accidents, enabling us to come up
with more effective measures.
As the system allows us tounderstand residents’ behavior
patterns, we can change our
responses and environments.
* As to use of the system, please see thevideo below. (in Japanese)
https://youtu.be/lsK0h8mU9vM73

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A drop-down in-wall nursing care lift for inroom transfers Swing Lift CoCoRo

The instrument supporting in-roomtransfers helps reduce lower back pain
and protect the safety and health ofcare staff. At the same time, theinstrument has enabled staff to assist
in-room transfers in a comfortable
position while communicating with theresident, and this has contributed toreducing both the physical and mental
burden on the resident.
Feedback from residents and staff
I no longer need to have the staff
member lift my body, and this has
made me feel much easier. (resident)
I feel that being able to see the staff
member’s face has given the resident
a sense of security. (nursing carestaff)

Corporate
Governance

Addressing
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Social Contribution
Activities

Face recognition system with athermography camera
When a person stands in front of thethermography camera, the system shows the
person’s temperature and registered name. *The person can be identified even when
wearing a mask

Good Time Living has set up athermography camera equipped withface recognition AI in a windbreakchamber. When a person enters thebuilding, the face recognition system
conducts temperature measurement
and identify whether or not the person
is registered. The automated door isthen opened and closed.
Thermography cameras with the same
specifications are also placed inside
the rooms to prevent residents from go
out alone if it is difficult for them to goout on their own due to their physicalconditions.

* As to use of the instrument, please see thevideo below. (in Japanese)
https://youtu.be/y23aX4RSLQE

Environmental
Initiatives

Others

A screen of the smartphone portal site
exclusively for residents and their families

Good Time Living established thisportal site to facilitate the provision of
information and enhance theconvenience of users. The site has
enabled the company to provide, in atimely manner, information on invoices
and payment receipts, various notices,and crisis management informationthat used to be given by posting
notices in the building or individuallygiving or mailing letters. The portal site
is expected to help reduce monthly
administrative work by 400 hours per
facility (in the case of a facility with 80
rooms). It is also expected to help
increase efficiency in nursing carefrontlines, enabling staff to maintainhigh-quality nursing care services andfurther improve their services.

Daiwa Corporate Investment Co., Ltd.

Creation of Next Generation Industries and Services
Daiwa Corporate Investment Co., Ltd., a venture capital firm of Daiwa Securities Group, helps to solve social issues through investment
in ventures, thereby contributing to the realization of a sustainable society.
Daiwa Corporate Investment manages multiple venture funds that invest in ventures. Some of these funds are strongly related to theSDGs, such as funds specializing in biotechnology and an environmental fund managed jointly with a Chinese environmental firm.
The firm incorporates an SDGs perspective into its investment activities for other funds as well, such as selection of investee
companies and management support provided after investment. For recent years, Daiwa Corporate Investment has been especially74

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Othersstrengthening efforts to relate its activities to the SDGs due in part to an increase in the number of entrepreneurs who have a strong
awareness of solving social issues.
Daiwa Corporate Investment Co., Ltd.

Investing in Ventures That Solve Social Issues
Daiwa Corporate Investment invests in many ventures. They include many companies related to the SDGs as shown below.
GITAI Japan (investment by DVGF*1 in Feb. 2021): development of robots used in outer space
Green Earth Institute (manufacturer in Tokyo; investment by F*2 in Sep. 2014): manufacturing license for bio fuel produced from
non-edible biomass, green chemicals, etc.
Craif (investment by DVGF in Jan. 2020): early detection of cancer using miRNA that exists in exosomes present in urine
AI Medical Service (equity investment by DVGF in Sep. 2019): development of AI that assists analysis of endoscopic images
Cardio Intelligence (equity investment by DVGF in Feb. 2021): development of an AI diagnostic support system for the early
detection of atrial fibrillation based on electrocardiogram data (Japanese only)
Plant form (equity investment by DVGF in Sep. 2018): operation of facilities for, and support to introduction of, aquaponics
farming, which combines hydroponics and aquaculture (Japanese only)
Kyoto Fusioneering (equity investment by DVGF in Aug. 2021): research and development, design, and manufacture of fusion
reactor equipment, and export of equipment and components
Aster (Reconstruction Fund*3 equity investment in Dec. 2017): development and manufacture of high-efficiency motors that
contribute to a carbon-free society*1 A venture fund that invests in startups creating new industries and contributing to generating a virtuous cycle of economic invigoration (being
incorporated into investment)*2 A venture fund aimed at helping the transformation of Japan's industrial structure that involves open innovations and the creation and invigoration of
innovations at manufacturing industries (incorporation into investment completed)*3 A venture fund targeting the Tohoku region, aimed at reconstruction and recovery from the Great East Japan Earthquake and the creation of new
industries (incorporation into investment completed)

CECEP Environmental FundIn October 2020, in collaboration with the China Energy Conservation and Environmental Protection (CECEP) Group, China's
only state-owned company specializing in the environment, Daiwa Corporate Investment established a fund in Wuhan, Hubei
Province, to invest in environment-related companies in China. The fund aims to contribute to the SDGs, and is engaged ininvestment business based on the principles of the Chinese government's policy to protect the Yangtze River. With aninvestment from the Hubei Provincial government in 2021, total investment funds currently stand at approximately ¥4.86 billion(as of the end of May 2022). The fund mainly invests in unlisted Chinese blue chips in the fields of energy conservation, theenvironment, circular economy, new energy, new materials, and equipment manufacturing. Previous investments include a
company that inspects and repairs underground drainage pipes (Wuhan, Hubei Province) and a company that processes wasteacid such as from steel rolling and recycles iron resources (Huizhou, Guangdong Province). Through investment activities inthese companies, among the 17 SDGs, Daiwa Corporate Investment aims to make concrete contributions to Goal 6 "Ensure
availability and sustainable management of water and sanitation for all" and Goal 9 "Build resilient infrastructure, promote
inclusive and sustainable industrialization and foster innovation."75

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OthersInvestment in Drug Development Ventures and Other Businesses by DCI Partners

DCI Partners is a venture capital firm that has been investing in the biotech field for more than 20 years, including the period of NIF
Ventures (now Daiwa Corporate Investment). The firm currently manages two of Japan's largest bio-venture funds, making
investments in Japan and Taiwan. In addition to existing bio-venture investments, the firm may expand the scope of investment to themany promising drug candidates that exist in pharmaceutical companies and academia, establish companies under the direction of
the fund, and promote the drug development business. Leveraging its human resources, expertise, and financial strength of the fundto provide managerial resources through the fund, DCI Partners is committed to advancing development beyond hands-on support,
from strategy planning to implementation. The majority of new drugs in recent years have been developed by biotech startups, and it
was a biotech startup that first succeeded in developing a vaccine during the current pandemic. Given their development speed andinnovative technological capability, biotech startups are attracting more attention than ever before, and their social significance androle are expected to increase. DCI Partners will support these companies through its investment activities and strive to build afoundation for industry and technological innovation and contribute to the health of all people and society.
DCI Partners Co., Ltd.
Taiwan-Japan Bio Venture Fund
DCI Partners is a venture capital firm that invests in biotech startups in Japan and Taiwan, with a focus on drug development. It
manages one of Japan's largest bio-venture investment funds. Following Fund I, established in January 2015 with a total capitalof ¥11.6 billion, the successor Fund II was established in December 2020 with a capital commitment of ¥14 billion, which waslater increased to ¥14.5 billion.
DCI Partners’ Investees
Renascience (listed on Mothers (now Growth Market) on the Tokyo Stock Exchange (TSE) in Sep. 2021): Development ofdrugs treating diseases associated with aging and mental health
StemRim (listed on TSE Mothers (now Growth Market) in Aug. 2019): development of regeneration-inducing medicine
EirGenix (listed on the Taipei Exchange in Jun. 2019): development of biosimilars and biopharmaceutical contractdevelopment and manufacturing operations (CDMO)* Involved in the development and production of COVID-19 vaccines made in Taiwan

The Great East Japan Earthquake SME Reconstruction Support Fund
Daiwa Corporate Investment Co., Ltd. operates the Great East Japan Earthquake SME Reconstruction Support Fund, receiving
investment from the Organization for Small & Medium Enterprises and Regional Innovation, JAPAN (SME Support, Japan), The Aomori
Bank, Ltd., The Bank of Iwate, Ltd., The 77 Bank, Ltd., The Toho Bank, Ltd., and other institutions. Targeting unlisted private companies
in the disaster-affected areas, the fund aims to expeditiously provide risk finance. The goal is to actively support companies in theirefforts to secure renewed growth and development by supplying finance for a variety of purposes. These include restoration andreconstruction following the 2011 earthquake disaster, new business development, the shift to a new industry or line of business,
76

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OthersFor the Development of Financial and Capital Markets
The securities business, the core business of Daiwa Securities Group, serves as an important social and economic infrastructure. It
facilitates the smooth flow of money by matching fundraising needs through the issuance of securities and investment needs ofinvestors via financial and capital markets. Maintaining and developing this infrastructure is about developing sound financial andcapital markets for the next generation, which we identify in the Group's materiality in Finance. We consider such maintenance anddevelopment to be a major mission for the Group toward the realization of SDG 9: "Build resilient infrastructure, promote inclusive andsustainable industrialization and foster innovation."

Initiatives for Maintaining Market Functions
Role and Importance of Settlement Functions

Securities settlement - a mainstay of the Group's overall operations - is the delivery of stocks, bonds, or other instruments and funds
both to and from the buyer and seller of a securities transaction. Settlement functions also serve as a social infrastructure, andtherefore security, reliability, and convenience are important. In secure and trusted markets, financial instruments can be reliably
converted into cash when necessary. This is the very reason why such markets attract investment money from all over the world andenable companies and others with funding demand to procure funds.
Responsibility as a Securities Company
Any delay in settlement functions could lead to a loss of trust in the market as a whole, which in turn could have a significant
impact on the global economy. Daiwa Securities considers it vital to settle transactions accurately and promptly as required inorder to ensure that markets function as a social infrastructure and become a driver for economic development. It is therefore
striving to build a structure enabling the smooth execution of settlement operations.
For this reason, Daiwa Securities has implemented a reliable system that has high processing capability to reliably settle amassive number of transactions. In addition, the company is carrying out its settlement operations with the best mix of thedigital world and the real world. This includes the digital transformation (DX) of its operations to ensure efficiency and greater
accuracy and personnel with a wide range of knowledge and expertise to quickly grasp the situation and respond appropriately
in the event of an irregularity.
Meanwhile, recognizing the need to further increase convenience and strengthen risk management in order to boost thecompetitiveness of Japan's financial and capital markets, the entire securities industry is working on reducing settlement time.
T+1 (trade date plus one day) settlement began for government bonds in May 2018, T+2 settlement for stocks in July 2019, andT+2 settlement for domestic corporate bonds in July 2020. We are also continuously examining various ways to further improvethe efficiency of settlement operations in collaboration with settlement institutions and other organizations.
We are determined to continue settlement operations no matter what happens. In accordance with such determination, we
have drawn up a business continuity plan (BCP) and regularly conduct training in preparation for unforeseen circumstances,such as the spread of new infectious diseases, natural disasters, and terrorism.
The reliability of settlement is extremely important for maintaining customer trust. We will continue to meet increasingly
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Otherssophisticated customer needs and quickly provide solutions by taking advantage of our reliable settlement infrastructure andhuman resources.

Considering Application of Blockchain/ Distributed Ledger Technology to Securities Business
Daiwa Securities and Daiwa Institute of Research (DIR) played central roles in carrying out the second phase of a project toconsider the application of blockchain/ distributed ledger technology (DLT) to the securities trade matching operations*. The
project was conducted jointly with 26 companies, including institutional investors, financial institutions, and computer systemcompanies.
This is a project using an industrial collaborative framework led by Japan Exchange Group. The first phase of the project was
conducted in 2017, confirming the usefulness of the application of DLT to the trade matching operations. Following suchconfirmation, the second phase of the project was conducted from September 2018 through January 2019. In that phase,
discussions were held on data items in the operations, the standardization of the operational process, policy on operating the
DLT infrastructure, and other issues. The project participants then drew up a more concrete plan toward the construction of asystem. The results of the project were released as a working paper in February 2019.
Daiwa Securities Group expects that the initiatives of this project will lead to the reduction of costs in the entire domestic
securities industry and the enhancement of convenience, which will ultimately contribute to the benefit of investors. We willcontinue working to realize the plan in order to provide useful services to customers.
* Operations in which a securities company and an institutional investor confirm the trading volume, fee, etc. with each other after the executionof securities trading

Initiatives for Development of Market Functions
Private Equity Investment in Southeast Asia and Taiwan
Daiwa PI Partners is engaged in full-scale private equity investment in Southeast Asia and Taiwan and has invested in a total of
14 projects to date in response to economic development and economic opening in the regions. In addition, Daiwa PI Partners
established DAIWA Myanmar Growth Fund in 2019. The investment targets include Commercial Plastic Holding, which
manufactures recycled plastic in Myanmar. By reducing the amount of plastic bottle waste while expanding the use of recycled
products, the company is contributing to improvement of environmental problems in the country. Onstar Express, which
conducts logistics in Indonesia, is contributing to enhancing the people's convenience and living standards by undertaking lastmile logistics to end users who place orders with e-commerce companies. MedScope Biotech, which manufactures precision
medical devices in Taiwan, contributes to healthy living through the manufacture of high-performance surgical instruments.
Qoala Technology, which brokers and distributes insurance products in Singapore using its own platform, contributes toeconomic growth by providing insurance products to people in Southeast Asia.
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OthersSoutheast Asia and Taiwan are undergoing amazing economic development, and there are many startup companies with highgrowth potential. We will continue to provide financing to these companies to support their growth and contribute to enhancing
social infrastructure and the living standards of people in the regions.
Support for Stock Market Development in Vietnam
In March 2019, DIR started providing technical support aimed at development of the stock market in Vietnam as entrusted by
the Japan International Cooperation Agency (JICA). This is a large-scale international cooperation project implemented
pursuant to a request made by the Vietnamese government to the Japanese government as part of the Vietnamese Prime
Minister's "2011–2020 Securities Market Development Strategy" decision promulgated in March 2012. The project started as athree-year project led by DIR, which was selected by JICA through a public tender, with a team of 12 consultants including fromthe Japan Exchange Group and other organizations.
The following four specific outcomes were established at the start of this project:
1. Reinforcement of the stock market's capacity for monitoring against unfair trading
2. Tightening of regulations on and supervision over securities companies
3. Improvement of listing management and screening procedures
4. Penetration of investor-oriented management approach
The initial plan for the actual project activities was to provide knowledge, training to improve practical skills, and support forthe creation of practical manuals to the State Securities Commission of Vietnam (SSC), the supervisory authority of capital
markets, as well as the HoChiMinh Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX), with the goal of achieving
international standards of fairness, transparency, and efficiency. After the start of the project, the scope of the work was
expanded to include providing consultation on the formulation of enforcement ordinances and notifications pursuant to the
new Securities Law established in November 2019 (came into effect in 2021, providing policy recommendations, supporting thecreation of strategies for development of securities markets, and organizing large-scale seminars such as for listed companies inVietnam. Since March 2020, due to the impact of the COVID-19 pandemic, activities have comprised primarily online
consultation, courses, and seminars. A new format of business implementation that involves the participation of Japanese
authorities and market participants, which had been difficult to achieve with conventional activities centered on local travel,
was introduced and has received high praise from both countries.
The new Securities Law and various ordinances and notifications pursuant to the new law have been in effect in Vietnam since2021, and the Vietnam Stock Exchange (VNX) was established as a holding company of the two existing stock exchanges, HOSE
and HNX. As of May 2022, a new securities market development strategy for 2030 is being formulated to further promote thedevelopment of Vietnamese securities markets and increase their international presence under this new legal system andsecurities market framework. Seeking assistance in formulating and subsequently implementing this new securities market
development strategy, the Vietnamese government requested a one-year extension of the project from the Japanese
government. Agreement between the two countries has been reached, and as a result, the project is now in its fourth year withan end date of March 2023.
By improving the transparency and fairness of the Vietnamese stock market and cooperating in the sound development of the
securities market, this project will contribute to building a foundation for Vietnam's economic growth and industrial
development as well as enriching Vietnamese society. It is also positioned as an activity that contributes to the realization of
SDG 9: "Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation." In addition,80

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Othersdeepening Daiwa Securities Group's involvement in Vietnam's financial and capital markets through the project is expected tocontribute to the development of the Group's business related to Vietnam and Asia in the medium to long term.
Development of Asian Bond Markets
DIR is undertaking activities that contribute to the long-term development of bond markets in various countries in Asia.
One representative example is participation in the Asian Bonds Markets Initiative (ABMI) framework. Taking a lesson from the
Asian currency crisis that occurred in the late 1990s, ABMI seeks to secure stability in financial markets by expanding the meansof financing through the development of markets for bonds denominated in local currencies. It is a regional cooperative
framework that was established in 2003. Specific measures of the framework are decided at the ASEAN + 3 (the 10 ASEAN
members countries plus Japan, China, and South Korea) Finance Ministers' and Central Bank Governors' Meeting. The
framework provides regional support under the leadership of the Asian Development Bank (ADB) for enactment of laws andregulations, infrastructure development, bond issuance, and demand stimulus, as well as country-specific support under thejurisdiction of the ASEAN Secretariat.
DIR has used these types of country-specific support programs to provide ongoing technical support to bond markets in thePhilippines, Indonesia, and Myanmar multiple times since 2004 in collaboration with Group companies and other companies asnecessary. And in all countries, the support recipients are governmental agencies such as relevant ministries and agencies,
central banks, and supervisory authorities. To date, DIR has set topics suited to the development phase of each country basedon discussions and consultations with executives and practitioners of government agencies in the various countries, such as theestablishment of legal systems, construction of issuance and secondary markets, and the development of bond investment
products, and has also provided knowledge and expertise and proposed schemes. Pursuant to a contract from the Japan
International Cooperation Agency (JICA), DIR conducted a feasibility study of a project bond to provide funds to public
infrastructure in the Philippines and proposed measures for future market activation.
These contributions to the development and fostering of bond markets in Asian countries facilitate the circulation of necessary
funds from entities that have excess funds to those that lack funds, and they can contribute to the achievement of the SDGs in
terms of solving social issues from monetary and fiscal perspectives. DIR is committed to continuing these initiatives in the
future.

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OthersCorporate GovernanceCorporate Governance Report[PDF:1624KB]

Basic Views on Corporate Governance
Daiwa Securities Group Inc. will respect the rights and interests of the shareholders, consider the position of all stakeholders and strive
for sustainable growth and improvement of medium to long term corporate value through realization of our corporate principles"Building trust," "Placing importance on personnel," "Contributing to society," and "Maintaining healthy earnings results."
For that purpose, the Company practices group management based on a holding company structure, establishes a highly transparent
and objective governance environment that conforms to international standards, realizes highly efficient oversight of group companies
and builds a unified group management system that elicits synergies among Group companies.
The Company has adopted Three Committees system (a company with nominating committee, etc.) as an institutional design in orderto supervise management through the following (1) and (2).
(1) Making swift and decisive decisions by having the Board of Directors assign wide-ranging authority to Corporate Executive Officers
and clarifying the division of the duties among Corporate Executive Officers(2) Improving transparency and fairness of the management by establishing three committees : the Nominating Committee, Audit
Committee, and Compensation Committee with highly independent Outside Directors as a majority of the members
Furthermore, the Company proactively addresses corporate social responsibility activities in order to obtain trust from all of the
stakeholders. There are indeed various aspects to corporate social responsibility, such as providing superior products, services, andsincere responses to customers; returning profits appropriately and disclosing information to shareholders appropriately; taking
measures for labor environment and evaluation of the employees; establishing legal compliance and corporate ethics; environmental
management; as well as social contribution.
The Company believes that these approaches, together with a strengthened corporate governance system which emphasizes
transparency, mobility and efficiency will lead to the sustainable improvement of the corporate value.

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The Company’s Corporate Governance Guidelines define the basic framework and policies of the Daiwa Securities Group’s corporate
governance.

Daiwa Securities Group Inc. Corporate Governance Guidelines
Preamble: Purpose of our corporate governance
Article 1: Basic approach to corporate governance and thepositioning of these Guidelines
Article 2: Organizational design (adoption of a Three
Committees system)
Article 3: Role of the Board of Directors
Article 4: Composition of the Board of Directors
Article 5: Chair of the Board of Directors
Article 6: Composition of the Committees
Article 7: Agenda setting and management of Board of
Directors meetings
Article 8: The role and requirements of Directors
Article 9: The role and requirements of Outside Directors
Article 10: The Outside Directors' Committee
Article 11: Support systems for Directors (including theprovision of information and training)
Article 12: Evaluating the effectiveness of the Board of
Directors

Article 13: The role of Corporate Executive Officers(Shikkoyaku)
Article 14: The role of the Nominating Committee
Article 15: Succession plans for the position of CEO
Article 16: The role of the Compensation Committee
Article 17: The authority and role of the Audit Committee
Article 18: Internal control systems
Article 19: Information disclosure
Article 20: Securing equality of shareholders
Article 21: Related party transactions
Article 22: Dialogue with shareholders and investors
Article 23: Dialogue with stakeholders
Article 24: Basic policy on strategic shareholding
Article 25: Amendments to and revocation of the Guidelines

Corporate Governance Guidelines(as of April 1, 2021) Complete Text

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The corporate governance system of the Company consists of the Board of Directors and the Three Committees (Nominating
Committee, Audit Committee, and Compensation Committee) as a supervising body, Outside Director’s Committee as a subcommitteeof the Board of Directors, Executive Management Committee and its subcommittees (Group Risk Management Committee, Group
Compliance Committee, Disclosure Committee, Group IT Strategy Committee, and Overseas Management Committee) as an executive
body, and Group Internal Audit Committee, which is in direct control of the CEO as an internal audit body.

Major Initiatives in Corporate Governance

History of Daiwa’s Corporate Governance
June 1998

Elected outside auditors

April 1999

Became the first listed Japanese company to adopt a holding company structure
Established the Advisory Board
Established the Group Management Committee

June 2000

Established the Compensation Committee
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June 2002

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OthersElected outside directors
Shortened directors’ terms of office from two years to one year

July 2003

Established the Internal Control Committee

June 2004

Shifted to a Committee system (currently, a Company with Three Committees system)

October 2015

Complied with the Corporate Governance CodeEstablished the Outside Director's Committee

April 2017

Appointed outside directors as chairs of all three committees

June 2020

The majority of directors Shall be non-executive directors

April 2021

Established Corporate Governance Guidelines

June 2021

Added one more outside director, electing seven of 14 directors as outside directors

December 2021

The Company selected for inclusion in the new Prime Market segment on the Tokyo Stock
Exchange (transferred on April 4, 2022)
The Group discloses its state of compliance with the Corporate Governance Code via corporate governance reports.

Board of Directors

Role and responsibility
The Board of Directors determine core management matters such as basic management policy, matters related to appointment anddismissal of Corporate Executive Officers (Shikkoyaku), division of duties, command system, etc., internal control systems and risk
management systems.
In order to make management decisions promptly and to enhance efficient group management, the Board of Directors delegatesdecision-making powers to the Corporate Executive Officers (Shikkoyaku) as much as possible.
In addition, by supervising the execution of duties of the Directors and the Corporate Executive Officers (Shikkoyaku), the Company
aims to ensure the fairness and transparency of the Group management and to achieve sustainable growth and maximization of
corporate value over the medium to long term based on the corporate philosophy.
The Board of Directors convenes at least once every three months; in FY2021, it convened 10 times.
Composition
The Board of Directors, in which a Board Chairman served as a chairman, consists of all Directors, of which between three and 20. In
order for the Board of Directors to exercise the supervisory function over the management more appropriately, two or more and onethird or more of the members of the Board of Directors shall be independent Outside Directors with a high degree of expertise and asense of ethics.
As a general rule, the majority of Directors do not concurrently serve as Corporate Executive Officers (Shikkoyaku). Regarding thepersonnel composition of the Board of Directors, the Company endeavors to ensure a balance of knowledge, experience and abilities,
and diversity including gender, internationality, etc. The Company aims to increase the ratio of female Directors to 30% or more by
2030.
Following the June 2022 Shareholders Meeting, the Board of Directors consists of 14 members, seven of whom are Outside Directors
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Othersand four of whom are female (two Internal Directors and two Outside Directors). Of its seven Internal Directors, five concurrently serveas Corporate Executive Officers (Shikkoyaku).
The members of the Board of Directors and their status of attendance in FY2021

In FY2021, all Internal and Outside Directors attended 100% of Board of Directors' meetings.
Takashi Hibino (Chairman of theBoard)

10/10

Seiji Nakata

10/10

Toshihiro Matsui

10/10

Keiko Tashiro

10/10

Akihiko Ogino

10/10

Sachiko Hanaoka

10/10

Hiromasa Kawashima

10/10

Michiaki Ogasawara (Outside
Director)

10/10

Hirotaka Takeuchi (Outside
Director)

10/10

Ikuo Nishikawa (Outside
Director)

10/10

Eriko Kawai (Outside Director)

10/10

Katsuyuki Nishikawa (Outside
Director)

10/10

Toshio Iwamoto (Outside
Director)

10/10

Yumiko Murakami (Outside
Director)

8/8*Attendance rates for the nine meetings held following their appointment as directors in June 2021

Supporting system
In order to provide support for the Board of Directors Secretariat and for Outside Directors, a Corporate Secretariat was established in
April 2020.

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OthersThe Skill Matrices of Outside Directors

Evaluating the Effectiveness of the Board of Directors
The Group has conducted effectiveness evaluations of the Board of Directors each fiscal year since FY2014 for the purpose ofidentifying any issues hindering the greater effectiveness of the Board of Directors and for making improvements.
All of the Directors were asked to answer a survey about the roles, duties, structure, management methods and the status of
discussions of the Board of Directors. They were then interviewed by specialized agencies, and the Company analyzed and evaluatedthe results of those interviews.
The results of the evaluation were reported to the Board of Directors and discussed by the directors in order to implement PDCA cycle.
The Company endeavors to maintain and enhance the effectiveness of the Board of Directors using such PDCA cycle.
Addressing the Opinions of the FY2020 Evaluations
1. Strengthening of the Medium-term Management Plan monitoring
Concerning the monitoring of the Medium-term Management Plan by the Board of Directors, efforts were made to secure moretime for discussion and to improve those discussions. With regard to the monitoring of Group companies, discussions were held
based on reports from the presidents of each company.
2. Strengthening of risk monitoring
As far as Top Risks are concerned, in light of growing social interest in SDGs/ESG issues, including climate change, geopoliticalrisks, fears of rising inflation and interest rates, DX(digital transformation), and cyber security as well as changes in the businessenvironment, the scope and definition of major risks were reviewed and decided by the Board of Directors (reflected in the risk
appetite statements). Discussions on monitoring important investment projects and cyber security were also held at Board of
Directors' meetings.
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3. Continuation of discussions on SDGs and ESG
The decision was made at a Board of Directors' meeting to formulate/revise the Environmental and Social Policy Frameworkand to set targets for reducing greenhouse gas (GHG) emissions (the formulation of the Daiwa Securities Group Net Zero Carbon
Declaration).
4. Other
Discussions on human capital were held at Board of Directors' meetings. At meetings of the Outside Directors' Meeting, opinions
were exchanged with outside directors on the basis of the CEO's summaries since his appointment.

Overview of the results of the Effectiveness of the Board of Directors in FY2021
Regarding the evaluations of the effectiveness of the Board of Directors in FY2021, the Company evaluated the following itemswith reference to the advice of specialized agencies and confirmed that the effectiveness is ensured.
Each directors awarded high marks to the monitoring of the Medium-term Management Plan, reports from the presidents ofmajor subsidiaries, and discussions on Top Risks. The themes mentioned as those that should continue to be addressed going
forward included SDGs/ ESG, DX, cyber security, human capital, geopolitical risk, and economic security.
The Company will continuously endeavor to enhance the effectiveness of the Board of Directors to earn trust of various
stakeholders and improve corporate value sustainably.

Key Agenda Items Covered by the FY2021 Board of Directors
Major discussion topics covered by for the FY2021 Board of Directors
Major resolution items

Current Medium-term Management Plan review
Management policy
Risk appetite statements (second-half and following first half-year)
Selection for inclusion in the new market segment (Prime Market)
Environmental and Social Policy Framework
Greenhouse gas (GHG) emissions reduction target (Net Zero Carbon Declaration)
Financial results, dividends/acquisition of treasury stok, executive appointments, etc.

Major reporting items

Annual plan monitoring
Reports from major Group companies
Risk monitoring
Important new businesses, investments, and business alliances, and group restructuring
Response to LIBOR reforms
Response to revised Corporate Governance CodeEngagement status with shareholders and investors, etc.
Reports from the Nominating Committee, Audit Committee, and Compensation Committee
Discussions on cyber security and human capital88

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Role and responsibility
The Nominating Committee examines the composition of the Board of Directors and the basic idea of candidates for Director inconsideration of corporate governance, and selection of candidates for Director, the succession plan of the CEO, etc. In order tonominate Directors from multiple points of view, the specialized expertise of Outside Directors is taken into consideration.
The meetings of the Nominating Committee are held once or more a year. In FY2021, there were six meetings in total.
Composition
Nominating Committee is chaired by an Outside Director, and consists of a total of seven members, of whom five are Outside Directors
and two are Internal Directors.
Nominating Committee members
Chairperson Michiaki Ogasawara (Outside Director)
Members Takashi Hibino, Seiji Nakata, Hirotaka Takeuchi (Outside Director), Eriko Kawai (Outside Director), Katsuyuki Nishikawa(Outside Director), and Toshio Iwamoto (Outside Director)

Audit Committee

Role and responsibility
The Audit Committee is in charge of auditing the execution of duties by the Directors and Corporate Executive Officers (Shikkoyaku),
auditing business reports and financial statements, etc., preparing audit reports, and determining the content of proposals to besubmitted at shareholders meetings regarding the election or dismissal and non-reappointment of the Accounting Auditor.
Audit Committee members attend meetings of the Board of Directors, and Audit Committee members selected by Audit Committee
attend the Executive Management Committee as well as other important meetings and have report hearings from Directors andemployees to share the information with other Audit Committee members, in order for the Company to create an environment for theeffective audit by the Audit Committee.
In principle, meetings of Audit Committee are held once a month. In FY2021, there were 16 meetings in total
Composition
The Audit Committee is chaired by an Outside Director, and consists of seven Directors who do not serve as Corporate Executive
Officers (Shikkoyaku), of whom five are Outside Directors and two are full-time Internal Directors.
Audit Committee members
Chairperson Ikuo Nishikawa (Outside Director)
Members Sachiko Hanaoka, Hiromasa Kawashima, Michiaki Ogasawara (Outside Director), Eriko Kawai (Outside Director),
Katsuyuki Nishikawa (Outside Director), and Yumiko Murakami (Outside Director)
Supporting system
The Audit & Supervisory Board Member’s Office, which is not engaged in executive operations, provides support for the Audit
Committee.

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The Daiwa Securities Group Inc. Audit Committee carries out auditing activities for duties executed by Directors and Corporate
Executive Officers (Shikkoyaku) as part of the Group's corporate governance. In particular, it focuses on verifying the structure
and operational status of internal control systems.
In FY2021, the Audit Committee focused on three key issues when conducting audits.
To verify the Group's efforts toward "pursuing customers' best interests," the Committee conducted hearings with employee
unions and various divisions, including the Compliance Department and Internal Audit Department.
As for the issue of "the progress and management of Hybrid Strategy," the Audit Committee checked the situation of the Group's
major investees and also visited their major facilities.
Regarding "the internal controls of Group companies in Japan and overseas," for companies in Japan, the Committee received
reports on issues and prospects from executives and employees of major subsidiaries. For overseas companies, it received
updates on each office through online meetings with executives stationed abroad who oversee the Americas, Europe & Middle
East, and Asia & Oceania businesses. In this way, the Committee confirmed the internal control status of Group companies.

Compensation Committee

Role and responsibility
The Compensation Committee discusses issues related to Director remuneration policy and decisions upon individual remuneration,
as well as the incentive plan of the Company group, to ensure the enhancement of consolidated earnings, etc. The specialized
expertise of the Outside Directors is taken into consideration so that the Compensation Committee can plan, operate, and verify
rational Remuneration system.
The meetings of the Compensation Committee held once or more a year. In FY2021 there were four meetings in total.
Composition
The Compensation Committee is chaired by an Outside Director, and consists of four Outside Directors including a chairman and two
Internal Directors.
Compensation Committee members
Chairperson Hirotaka Takeuchi (Outside Director)
Members Takashi Hibino, Seiji Nakata, Ikuo Nishikawa (Outside Director), Toshio Iwamoto (Outside Director), and Yumiko Murakami(Outside Director)

Outside Directors' Committee

The primary purpose of the Outside Directors' Committee is sharing information among the Outside Directors and aims to exchange
their opinions on the issues including the contests of the proposal of the Board of Directors. As needed, lectures by external instructors
are conducted. The meetings of the Committee are held once or more a year. In FY2021, there were four meetings, and the issues
discussed include the role to be played by Outside Directors at the time of receiving M&A and other proposals, the impact of AI on
society, opinions on the planned agenda at the Board of Directors meetings in FY2021, human resources strategies, annual review, andthe method of proceeding with the evaluation of the effectiveness of the Board of Directors.

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OthersThe Executive Management Committee

Role and responsibility
The Executive Management Committee deliberates and determines important business matters and the Company group's businessstrategy and the basic policy on the structural problems between the group companies.
In order to make the management decisions promptly, the Board of Directors delegated decision-making powers to the Executive
Management Committee as much as possible. Furthermore, to have more expert deliberation, the Company establishedsubcommittees each of which consists of certain Corporate Executive Officers (Shikkoyaku), etc.
Executive Management Committee is held once or more than once every three months. In FY2021, there were eighteen meetings in
total.
Composition
The Executive Management Committee consists of all of 12 the Corporate Executive Officers.
Subcommittees

Group Risk Management Committee
Role and responsibilityGroup Risk Management Committee deals with the group risk management system and the status of the risk of the Company
group etc., deliberates and decides upon policy and concrete measures on risk management.
The meetings of the Group Risk Management Committee are held once or more than once every three months. In FY2021 there
were nine meetings in total.
Composition
The CEO is the chairman of the committee, and the Committee consists of nine Corporate Executive Officers (Shikkoyaku) andtwo Executive Officers (Shikkoyakuin).

Group Compliance Committee
Role and responsibilityGroup Compliance Committee deliberates and decides general policies and specific measures on the compliance with the laws
and regulations, establishment of corporate ethics, internal control, etc. of the Company group.
The meetings of the Group Compliance Committee are held once or more than once every three months. In FY2021 there were
five meetings in total.
Composition
The CEO is the chairman of the Committee, and the Committee consists of twelve Corporate Executive Officers (Shikkoyaku).

Disclosure Committee
Role and responsibility
Disclosure Committee is in charge of decision making regarding disclosure of the Company group's information on
management, effectiveness and appropriateness of internal control report, the scope of consolidated financial reporting, etc.
In principle, the meeting of the Committee are held before the quarterly earnings announcement, disclosure of a securities
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Othersreport or a quarterly report. Committee meetings are also held from time to time when certain important matters to bedisclosed occur. In FY2021, there were fourteen meetings in total.
Composition
In principle, the chairman of the Committee is CFO, and the Committee consists of seven Corporate Executive Officers(Shikkoyaku), who are in charge of the sections which have close relations to the above decision making and who havejurisdiction over such section and one other member, a total of eight members.

Group IT Strategy Committee
Role and responsibilityGroup IT Strategy Committee deliberates and decides to integrate management strategy and IT strategy, enhance speed of thedecision-making related to IT investment and improve IT investment efficiency.
In principle, the meetings of the Group IT Strategy Committee are held once every six months in principle. In FY2020 there were
two meetings in total.
Composition
The CEO is the chairman of the Committee, and the Committee consists of six Corporate Executive Officers (Shikkoyaku) andthree Executive Officer (Shikkoyakuin), a total of nine members.

Overseas Management Committee
Role and responsibility
The Company established the Overseas Management Committee as a deliberative and decision-making body for the
management administration of overseas subsidiaries, etc. and other related matters.
The meetings of the Committee are held once or more than once every three months. In FY2021 there were five meetings in
total.
Composition
The CEO is the chair of the Committee, The Committee consists of eleven Corporate Executive Officers (Shikkoyaku), ten
Executive Officers (Shikkoyakuin) and three Senior Managing Director (Sanyo), a total of twenty four members.

Group Internal Audit Committee

Role and responsibilityGroup Internal Audit Committee deliberates and determines various matters of the business of the Company group related to thedevelopment of the internal audit system and verification of internal controls to secure suitability and effectiveness of the Group'sbusiness operations, internal audit system and internal control.
The meetings of the Group Internal Audit Committee are held once or more than once every three months. In FY2021 there were fivemeetings in total.
Composition
The CEO is the chair of the Committee, and the Committee consists of eleven Corporate Executive Officers (Shikkoyaku) and two
Executive Officers (Shikkoyakuin).

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OthersPreventing Conflict-of-Interest Transactions between Group Companies
Conflict-of-interest transactions can occur between Daiwa Securities Group Inc. and Group companies in situations such as
intra-Group transactions. Daiwa Securities Group applies rules regarding conflicts of interest stipulated by Japan’s Companies
Act to the Executive Management Committee as well as the Board of Directors. Conflicts of interest between Daiwa Securities
Group Inc. and Group companies are appropriately prevented through a rule prohibiting an executive officer from voting when
he or she concurrently serves as an officer of an interested Group company and thus has a special interest in a matter to be
decided.
Executive Compensation that is Closely Linked to Performance
At Daiwa Securities Group, Inc., as stipulated by the Companies Act, the Compensation Committee has determined "Policies on
Determination of Remuneration of Directors and Corporate Executive Officers".

Policies on Determination of Remuneration of Directors and Corporate Executive Officers
Compensation for Directors and Corporate Executive Officers is based on the following fundamental policies.
To create effective incentives, which contribute to the increase of shareholders’ value through sound business development andalso lead to the improvement of business performance in the short-term and in the medium/long-term.
To maintain a remuneration level which is competitive enough to recruit and retain people not only in Japan but also in the world
as a global securities company group.
To ensure the execution and supervision functions operate effectively as a company with a nominating committee, etc.

Remuneration of Directors and Corporate Executive Officers consists of base remuneration,Performance-linked
remuneration and Stock-linked remuneration, and determined at the Compensation Committee which are
specifically as below.
Base remuneration
A fixed amount calculated based on his/her position, duties and role, and paid monthly and in cash.

Performance-linked remuneration

Determined depending on the level of individual contribution, mainly on the basis of consolidated ROE and consolidated
ordinary income, which are set as Performance KPIs of the Medium-Term Management Plan, while also comprehensively taking
into account achievement status of the managerial goals set in the Medium-Term Management Plan and the other relevant
factors and provided at a certain time every year.
A certain limit is set on Performance-linked remuneration to be paid in cash based on business performance. If Performancelinked remuneration exceeds the limit, the exceeded amount will be paid in restricted stock instead of cash.
It does not apply to Directors who do not serve as Corporate Executive Officers.

Stock-linked remuneration

To increase the link between remuneration and shareholders’ value, the Company grants, as Stock-linked remuneration,
restricted stock, etc., the value of which corresponds to a certain percentage of base remuneration as non-monetary
remuneration at a certain time every year.
It does not apply to Outside Directors.
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OthersPerformance-linked remuneration ⟩The Company refers to KPIs, which are set as the Group numerical goals in the Medium-Term Management Plan "Passion for theBest" 2023 to calculate Performance-linked remuneration.
The Performance Evaluations used for calculating Performance-linked remuneration reflects the Financial Performance
Evaluation, which is based on Performance KPIs (calculated based on the financial information), and Quality Evaluation thatcomprehensively evaluates KPIs other than Performance KPIs. The Financial Performance Evaluation and the Quality Evaluation
are determined by the Compensation Committee.
Performance-linked remuneration is calculated by multiplying the reference amount determined for each position and the
Performance Evaluation and reflecting the degree of individual contribution. The same calculation formula is applied to all
positions for Performance Evaluation.
The indicators pertaining to Performance-linked remuneration are as shown below.
⟨(Note) The reference values are determined by the Compensation Committee in consideration of the targets set in the Medium-term Management
Plan.

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OthersImage of Executive Remuneration Structure ⟩If Performance-linked remuneration exceeds a certain limit,
the portion exceeding the limit is paid in restricted stock,
while maintaining the slope. This structure provides theexecutives with more incentives to improve performance inthe long term and seek sustainable growth.

Restricted Stock Remuneration System ⟩The Company has introduced a Restricted Stock Remuneration System to further increase incentives to improve performance inthe medium to long term and advance the sharing of value between shareholders and the Directors, the Corporate Executive
Officers (Shikkoyaku), Executive Officers (Shikkoyakuin), and other executives of the Company and its subsidiaries.
⟨

Stock Remuneration I(remuneration linked tostock price)

Restricted stock with a value equivalent to a certain percentage of base remuneration isprovided. To ensure that the remuneration functions effectively as an incentive to improve
performance in the long term, the restriction is to be lifted after the recipient retires fromany executive position at the Company and its subsidiaries and affiliated companies.

Stock Remuneration II(remuneration linked toperformance)

A certain limit is set for Performance-linked remuneration that is paid in cash based on
business performance. If the amount of remuneration exceeds the limit, the part exceeding
the limit is to be provided in restricted stock rather than in cash. The restriction period is set
at three years. When Performance-linked remuneration exceeds the certain limit, thissystem effectively serves as a deferment of payment for remuneration.

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OthersTotal Amount of Consolidated Remuneration, etc. by Executive for FY2021 ⟩Unit: millions of yen
Name

Total amount ofconsolidated
remuneration,etc.

Executive
category

Company
category

Takashi Hibino

223

Executive
Officer

Seiji Nakata

Toshihiro Matsui

Keiko Tashiro

Kazuo Takahashi

Mikita Komatsu

260

179

132

129

129

Executive
Officer

Executive
Officer

Executive
Officer

Executive
Officer

Executive
Officer

Amount of consolidated remuneration, etc. by type
Base
remuneration

Non-monetary
remuneration(restricted stock)

Performancelinked
remuneration

Retirement
benefits

Daiwa
Securities
Group Inc.

69

23

83

-

Daiwa
Securities
Co. Ltd.

46

-

-

-

Daiwa
Securities
Group Inc.

69

23

121

-

Daiwa
Securities
Co. Ltd.

46

-

-

-

Daiwa
Securities
Group Inc.

61

17

75

-

Daiwa
Securities
Co. Ltd.

25

-

-

-

Daiwa
Securities
Group Inc.

46

13

51

-

Daiwa
Securities
Co. Ltd.

20

-

-

-

Daiwa
Securities
Group Inc.

19

13

-

-

Daiwa
Securities
Co. Ltd.

46

-

50

-

Daiwa
Securities
Group Inc.

19

13

-

-

Daiwa
Securities
Co. Ltd.

46

-

50

-

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Akihiko Ogino

Shinsuke Niizuma

Atsushi Mochizuki

Initiatives throughBusiness Activities
108

106

106

Corporate
Governance

Executive
Officer

Executive
Officer

Executive
Officer

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersDaiwa
Securities
Group Inc.

44

10

41

-

Daiwa
Securities
Co. Ltd.

11

-

-

-

Daiwa
Securities
Group Inc.

10

10

-

-

Daiwa
Securities
Co. Ltd.

43

-

40

-

Daiwa
Securities
Group Inc.

10

10

-

-

Daiwa
Securities
Co. Ltd.

43

-

40

-

(Note)
1. The figures shown are only for executives with the total amount of consolidated remuneration, etc. of ¥100 million or more.
2. The executive category represents that of Daiwa Securities Group Inc.
3. The executives serving concurrently as Director and Corporate Executive Officer (Shikkoyaku) are indicated as Corporate Executive Officer inthe executive category.
4. Performance-linked remuneration does not include payment with restricted stock.

Procedures to Determine Executive Compensation ⟩The Articles of Incorporation stipulate that the remuneration, etc., of the Directors and Corporate Executive Officers(Shikkoyaku) is determined by the resolution of Compensation Committee.
In determining the amount of remuneration, it is calculated based on the indicators determined by Compensation Committee,
majority of which is held by Outside Director to secure the transparency.
⟨*In addition to above, Compensation Committee is held from time to time.

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Social Contribution
Activities

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OthersInternal Control System and Internal Audit
The Company group has created management structure centered on the Company with regard to the group’s various main risks,and seeks to ensure compliance with the laws and regulations regarding the effectiveness and efficiency of operations, thereliability of the finance report and the business operations, and the preservation of assets, etc. This is based on the recognition
that the maintenance of the internal control system to accomplish the sound and appropriate operation is the responsibility ofthe manager.
The Internal Audit Department verifies the effectiveness of the system.
Based on the recognition that instalment of a sound and efficient internal audit system enhances the value of the Company
group, and having concluded that the internal audit plays an important role in such a system, the Company has positioned afull-time Internal Audit Corporate Executive Officer (Shikkoyaku) in charge, and has Internal Audit Department, which is
independent from other sections, examine the internal control system.
By conducting effective audits on a risk basis, the Department strives to enhance the Group’s corporate value.
Examples of aspects of the Group’s business activities to which the Internal Audit Department pays special attention
The internal control systems at Daiwa Securities and its overseas offices as global financial instruments business operators
The status of businesses at Group companies, and the status of control over Group companies by the holding company

Authorization of Plans and Reporting of Results
Internal audit plans are subject to approval by and results of the audits are presented to the Group Internal Audit Committee.
Furthermore, internal audit plans shall be consented by the Audit Committee or Selected Committee Member who has been
given certain authority from the Audit Committee, and the results of the audits are also reported to the Audit Committee.
Reports to the Group Internal Audit Committee are not limited to the audit results conducted at Daiwa Securities Group Inc. andDaiwa Securities Co. Ltd. They also include highly important findings made during audits conducted on companies in Japan andoverseas.
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The Internal Audit Department collaborates with the internal auditing divisions of Group companies in Japan and overseas
through periodic meetings, monitoring, and audits.
The Internal Audit Department maintains communications with the Audit Committee and accounting auditor, making any
necessary adjustments to ensure that audits are performed efficiently. The Department also sometimes receives audit requests
from the Audit Committee. The degree to which these internal auditing activities satisfy the Institute of Internal Auditors’“International Standards for the Professional Practice of Internal Auditing,” the global standard for internal auditing, is routinely
evaluated by independent outside third parties. The Group thus strives to constantly improve its system.

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Daiwa Securities Group has four corporate principles. They are “building trust,” “placing importance on personnel,” “contributing tosociety,” and “maintaining healthy earnings results.” The Group believes that compliance is a significant element for achieving theseprinciples. The goal of the Group’s compliance activities is not merely to “comply with laws and regulations,” but to earn the trust ofcustomers, markets, society, and stakeholders.

Compliance System
The Group Compliance Committee deliberates and decides on general policies and specific measures concerning compliance with laws
and regulations, establishment of corporate ethics, and internal control, etc. for Daiwa Securities Group.
The Group is committed to compliance risk management in three key issues common to all Group companies: securing the fairness
and transparency of the market, eliminating anti-social forces (including countermeasures against money laundering and thefinancing of terrorism), and information security.
The compliance divisions of Daiwa Securities Group, Inc. consist of the Compliance Control Department and the ComplianceDepartment. The former is responsible for overall compliance planning and formulation and also plays a role as a gatekeeper to themarket. The latter provides guidance and support to sales branches and headquarters departments and divisions. Together, they work
to develop and strengthen the Group's overall compliance system. Both departments also work concurrently for Daiwa Securities
Group Inc. and its subsidiary Daiwa Securities.
In addition to domestic operations, the Group also works closely with the compliance divisions of its overseas worksites to build aglobal compliance system.
At Daiwa Securities, the Compliance Department monitors transactions and solicitation by sales branches, identifies challenges andissues, and visits sales branches to check their business status and provide instructions. The department also regularly conducts onsite inspections. Moreover, it visits the work sites of headquarters departments and divisions directly, identifying issues and providing
training support. In providing instructions and support, the department uses online tools when instructions and support are difficult toprovide face-to-face due to the COVID-19 pandemic. The Customer Counseling Center, established within the Compliance Department,
comprehensively handles customer feedback and complaints and reflects them in the business to improve customer satisfaction.
One of Daiwa Securities' strengths is that all sales branches have a full-time internal administrator. The internal administrators work on
improving the effectiveness of the PDCA cycle (plan, do, check, act) at each sales branch as compliance managers. They also cooperate
closely with the Compliance Department in an effort to build a solid compliance system.
Staff members in the compliance divisions—the Compliance Control Department, the Compliance Department, and internal
administrators at sales branches—total approximately 250 as of April 1, 2022.

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OthersFull Implementation of “Customer-First”
Daiwa Securities is taking measures in line with the compliance program to ensure the effective operation of our internal control
system and strict compliance of our sales activities with laws and regulations. For FY2022, we set up the pillars outlined below,
maintaining "Customer-First" as the keyword, as in the previous fiscal year.
1. Full implementation of "Customer-First Operations"—pursuit of the greatest benefit to customers
2. Reinforcement of systems to prevent financial crimes
3. Ensuring of market fairness and transparency
4. Further upgrading of information management systems
5. Strengthening of compliance systems of overseas worksites
Daiwa Securities markets various financial products, including stocks and investment trusts. When soliciting investment from
customers, we ensure compliance with the principles of integrity and fairness, suitability, and self-responsibility, from theperspective of investor protection. We have adopted the practice of systematically providing continuous and thorough after-salefollow-ups, rather than leaving it to individual sales staff, especially when the market is trending downward. We believe thatproviding thorough, face-to-face explanations to customers and maintaining customer trust and a sense of security at times ofmarket fluctuations are part of the practice of Customer-First for Daiwa Securities as a marketer of financial products. We willcontinue stepping up such initiatives going forward.
Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT)The importance of anti-money laundering and countering the financing of terrorism (AML/CFT) has grown worldwide. Daiwa
Securities Group complies with laws and regulations related to AML/CFT, and works on reinforcement of the effective preventive
system based on a risk-based approach as an important management issue to ensure that Daiwa Securities Group is not used
for money laundering or funding terrorism.
At Daiwa Securities Group Inc., we have appointed a person in charge of supervising AML/CFT for the entire group, and have set
up a supervising department to promote countermeasures. The "AML/CFT Domestic Group Policy" and "AML/CFT Global Policy",
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Otherswhich stipulate policies and operational guidelines for the AML/CFT management system, have been established, and domestic
and overseas group companies have established each system in line with the policies.

<Major countermeasures for AML/CFT>Periodic confirmation of customer information at the time of opening an account and after opening an account
Identification and evaluation of risks related to ML/FT in the products and services provided by the company
Implement risk mitigation measures such as continuous customer management, transaction monitoring, and suspicioustransaction reporting
Implementation of training for executives and employees regarding AML/CFT
Auditing the adequacy of AML/CFT management system by internal audit<Customer and Client Inspection System>
1. We undertake the following procedures for all customers opening a new account with Daiwa Securities.

(1) Screening using our own database constructed using information obtained from news reports, the Internet, and other sources(2) Screening using databases provided by public and other institutions(3) Utilization of overseas information provided by information vendors and other sources

2. We regularly check for matters of concern related to existing customers and conduct further investigation if necessary. Whena problem is identified, we promptly terminate or exclude trading.
3. We strive to obtain the latest information in collaboration with the police, and other external organizations aimed at
eradicating anti-social forces.
4. We conduct training for executives and employees at our Group companies every year. The training is designed to raise theirawareness of the importance of eradicating anti-social forces and AML/CFT, as well as to share knowledge of the latest laws
and regulations, and relevant cases.
5. When entering into new transactions with external service providers and other businesses, we check in advance whether or
not such parties are anti-social forces. We conduct similar checks every year for existing clients as well to see whether there
are any changes to the situation.
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OthersSecuring the Fairness and Transparency of the Market～Prevention of unfair transactions such as insider trading～Daiwa Securities Group thoroughly complies with related laws and regulations, including insider trading regulations, and strives
to ensure market fairness and transparency. In accordance with the procedures stipulated by laws and regulations, we will
properly conduct transactions with customers and our own transactions with a high awareness of compliance.
Daiwa Securities Group is working to secure the fairness and transparency of the market from two standpoints. These are how
to check and prevent illicit transactions by customers and by Daiwa Securities itself.
To prevent illegal transactions by customers, Daiwa Securities checks daily transactions by extracting deals that go beyond
certain criteria, such as whether they have an excessive impact on the market. In particular, in order to prevent insider tradingfrom occurring, we ask about customers’ place of employment and positions within their companies before registering theirinformation. This practice allows us to check transactions as soon as trading orders are placed by customers who are in aposition to acquire insider information. We also check the past transactions conducted with us retroactively when timely
disclosure is made of important information.
To prevent illicit transactions by Daiwa Securities itself, we also check daily transactions by extracting deals that go beyond
certain criteria for both proprietary trading and trading by executives and employees. From the perspective of preventing
insider trading, we strictly manage not just material facts of listed companies but also broader information related tocorporations, and review suspicious transactions. We have also introduced a system for managing corporation-related
information, keeping track of people obtaining information and where information has been sent. Through these efforts, wehave developed a structure for preventing illegal transactions. In addition, all executives and employees make an annual pledge
to comply with relevant laws and regulations.
Preventing Conflict-of-Interest Transactions between Group Companies
Conflict-of-interest transactions can occur between Daiwa Securities Group Inc. and Group companies in situations such as
intra-Group transactions. Daiwa Securities Group applies rules regarding conflicts of interest stipulated by Japan’s Companies
Act to the Executive Management Committee as well as the Board of Directors. Conflicts of interest between Daiwa Securities
Group Inc. and Group companies are appropriately prevented through a rule prohibiting an executive officer from voting when
he or she concurrently serves as an officer of an interested Group company and thus has a special interest in a matter to be
decided.
Fostering Compliance Awareness
Daiwa Securities Group rigorously observes regulations and exercises self-discipline so that it can contribute to the sustainablegrowth of society while maintaining high ethical standards. We provide education on compliance, training programs for new
recruits, and other regular training, thus ensuring that every executive and employee is aware of, and thoroughly understands,
compliance issues.
The Group trains its employees so that even when the Group pursues new business ventures in areas where the regulatory
structure is incomplete, they can return to the basic approach of laws and regulations, act sincerely in light of socially accepted
ideas and common sense, and maintain strong self-discipline and legal awareness.
In addition, the Group has formulated Group Minimum Standards as the basic standards that should be complied with by the103

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OthersGroup as a minimum, and based on these standards, it is working to further raise awareness for compliance in the Group acrossdifferent business categories.
Group Minimum Standards
Prevention of insider trading
Elimination of anti-social forces
Information security
The Group considers it extremely important for each employee to always maintain a high level of compliance awareness. We
have therefore adopted a compliance-related program in training for new employees and a number of other internal training
courses. We also give tests on compliance regularly through e-learning. At Daiwa Securities, we post a "Personal Information
Check Test" and "Compliance Digest" every Monday on our intranet and also feature a monthly compliance-related topic on ourinternal TV program which is aired every morning. Moreover, at Daiwa Securities' sales branches, the branch chief and theinternal administrator lead an initiative to provide training and instructions suited to each workplace on a daily basis. The
branch chief also chairs a monthly compliance meeting in which all branch members participate. We have thus implemented
various systems to keep the compliance awareness of all employees at a high level, and continue to foster awareness among
employees.
Structure and Achievements of Whistleblowing System (Corporate Ethics Hotline)
In January 2003, the Group introduced a Corporate Ethics Hotline enabling reports to be made directly to Daiwa Securities
Group Inc. corporate ethics officers or to outside lawyers. The hotline's primarily goal is the early detection and prevention of
behavior that risks damaging the Group's corporate value. This includes violations of the Financial Instruments and Exchange
Act and other laws, rules, and regulations. The whistleblowing system is available not only to executives and employees,
including those working at affiliated companies and temporary workers, but also to anyone who works at the Group's offices.
In operating the system, the Group strives to protect whistleblowers and ensure their anonymity. The Group has a strict "noretaliation" policy that prohibits disadvantage of any kind (dismissal, demotion, pay cuts, cancellation of worker dispatch
contracts, replacement, etc.) from being caused to the whistleblower for making the report. Group regulations also provide forthe protection of whistleblowers, prohibiting people who have information on whistleblowers from being asked to disclose suchinformation, and prohibiting inquiries into the identify of whistleblowers.
In terms of reporting methods, in addition to telephone and in-person reports, information can also be reported via the incident
reporting page on the intranet and via email, allowing for reports to be made 24 hours a day, 365 days a year.
When the hotline is contacted, the corporate ethics officer, in cooperation with the officer responsible for whistleblower
response operations at each Group company, carries out a factfinding investigation, while taking steps to protect the caller. In
FY2021, 48 reports were received through the whistleblowing system.
Overseas worksites have similar whistleblowing systems as in Japan, including the establishment of internal and external
contact points with English-speaking personnel and the protection of whistleblowers.

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All behavior that risks damaging the Group's corporate value, including the behavior outlined below:
Harassment (bullying, power harassment, sexual harassment, maternity harassment, etc.) and other human rights violations
Compliance violations (internal rule violations, information management violations, corruption and bribery includingexcessive rewards or entertainments, violations of the Financial Instruments and Exchange Act and other laws, rules, andregulations, etc.)
Behavior related to workplace environments
Behavior related to etiquette and manners
Behavior related to expenses and costs
Behavior related to labor management (time management, etc.)
Etc.

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Matter

FY2019FY2020

FY2021

Reports

Reports

Reports

Power harassment

16

27

19

Workplace environment

7

9

15

Sexual harassment

1

2

5

Internal rule violations

7

9

2

Other

3

0

2

Violation of laws, regulations

2

6

1

Maternity harassment

0

0

1

Personnel/conditions

0

0

1

Information management

1

0

1

Expenses and costs

2

1

1

Etiquette and manners

2

3

0

Time management

1

0

0

Total

42

57

48

The Group seeks to ensure that anyone can use the Corporate Ethics Hotline without hesitation. To this end, it is working to raiseawareness of the hotline via the Group newsletter and intranet, and making efforts to respond quickly when reports arereceived.
The Group is also taking steps to improve the hotline so that it operates not just as a measure to solve problems, but also as aneffective deterrent to prevent problems before they occur.

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OthersInformation Security
We at Daiwa Securities Group have implemented numerous information security measures to protect personal information entrusted
to us by customers in a safe and precise manner.
In many personal information leakage incidents arising in recent years, leakage has occurred at third parties to which operations havebeen entrusted. Accordingly, at the time of and after signing an outsourcing contract with a third party, we thoroughly check theinformation management structure of the party. We also conduct on-site visits before outsourcing to examine the business practices ofthe potential outsourcing contractor.
Following the enforcement of the My Number Act (the Act on the Use of Numbers to Identify a Specific Individual in Administrative
Procedures) in October 2015, we now ask customers to provide us with their Individual Numbers. We have controlled access to
information entrusted to us by customers, including Individual Numbers, by isolating such information physically and managing it withextra care. No matter how much information is systematized, there always remains a human element. To ensure that a mistake does
not occur, we focus on training for sales personnel to recognize the importance of information management, while keeping thenumber of employees authorized to access personal information at the minimum level necessary. Daiwa Securities also in principlebans employees from taking personal information out of the company. When it is absolutely necessary to take information out forbusiness purposes, we require employees to obtain prior approval from an internal administrator or other superior and to keep recordsof removal and return, thereby strictly managing such information. Similarly, we strictly manage removal of personal information
using emails and external storage media, while constantly monitoring whether there is any unauthorized use. Moreover, since some ofthe documents received from customers are paper-based, we prepare special storage files to avoid the risk of losing documents within
the company.
In addition, we have developed and implemented a reporting flow in the event that an information leakage incident occurs. Based on
this flow, the department where the incident occurred immediately shares the incident with the information security administrator
and reports to the department with responsibility for information management. The incident is then reported to the management,
including the officer who takes charge of overseeing information security.

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Policy on Personal Information Protection and Security
Daiwa Securities Group considers that personal information is an important asset of individuals. We recognize that we have aheavy responsibility of appropriately protecting such information. Based on the Act on the Protection of Personal Informationand other rules, we have established Privacy Policy, and comply with this Policy and the Group’s other rules, along with relevantlaws and regulations. Recognizing the importance of personal information, we strive to appropriately protect and use
customers’ personal information.
Under the idea that the variety of information that we handle in business is an important asset, we have also established apolicy to protect important information assets from various threats and maintain information security, as well as an emergency
response policy. We implement appropriate risk management to reduce and avoid various risks, including confidentiality risk,
integrity risk, and availability risk associated with information assets.
Daiwa Securities Group's Privacy Policy
Implementation of Risk Assessments and Audits Concerning Personal Information Protection
Daiwa Securities Group implements risk control self-assessments (RCSAs) as a framework for controlling operational risks. The
RCSA is a process in which those who perform work identify, understand, and assess operational risks on their own, analyze
those risks based on frequency of occurrence and impact, and evaluate and verify the efficacy of risk mitigation efforts. We
implement RCSAs regularly at major Group companies and also conduct a risk assessment on the protection of personal
information as part of the RCSAs. The assessment results are reported to the Group Risk Management Committee. In responseto the assessment results, each company carries out self-inspections to reduce the risks identified during the RCSAs. For
example, Daiwa Securities conducts a self-inspection every month in an effort to build a structure in which self-cleansing action
operates at work sites.
The organization responsible for internal auditing at each company (the Internal Audit Department of Daiwa Securities Group
Inc. for some Group companies) conducts audits periodically from the standpoint of the third line of defense to check whether
such RCSA initiatives function properly. Checks on the information security system of Daiwa Securities’ sales branches are
conducted by the Inspection Section of the Compliance Department, which is the second line of defense, during inspections atsales branches.
Creation of Governance System Concerning Protection of Personal Information
Daiwa Securities Group has established operation standards for information security measures (Group minimum standards) forthe purpose of appropriately controlling various risks pertaining to information assets, including personal information. Basedon these operation standards, Group companies have developed rules on the protection and handling of personal information.
In addition, we have appointed the executive officer overseeing the Compliance Control Department as Group Information
Security Manager to maintain and control the information security of the entire Group. We also place an Information Security
Manager at each Group company to maintain and control the information security of their own company.
The Information Security Managers at Group companies report to the Group Information Security Manager as appropriate
regarding the information management structure of their companies. The compliance division provides support to Group
companies to strengthen the Group’s information management structure. The status of information management structures at
Group companies and support provided to them are reported to the Group Compliance Committee. In this way, Daiwa
Securities Group is working to strengthen the information management structure of the entire Group.
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Daiwa Securities Group provides a variety of training for all executives and employees to enable them to appropriately
understand the handling of personal information and perform daily work based on relevant laws and regulations including the
Act on the Protection of Personal Information, Group minimum standards for information security, and other related rules.
We provide training programs according to the position and years of employment of individuals, in addition to training for all
employees, as the roles and knowledge required of each employee vary, depending on their situation and position. For
example, we have programs for sales managers, internal administrators, and employees in their first to fifth year at the Group.
We handle a broad range of topics in training. Major topics include "Daiwa Securities Group's Information Security System,""Occurrence Trends of Information Leakage Incidents," "Disciplinary Action against Unauthorized Removal of Information,""Prohibited Matters in Use of Information Devices for Business Purposes," "Important Points When Using Emails," "Use of Social
Media," and "Developing Awareness of Information Security." Through such training, we appropriately inform and raise theawareness of all executives and employees about the importance of building an information management structure andimplementing initiatives for the protection of personal information.
Policy on Incident Investigations and Responses
At Daiwa Securities Group, if an information leakage incident occurs or may occur, the department where the incident occurredor may occur immediately shares the incident with the information security administrator and reports to the department withresponsibility for overseeing information security (the “Managing Department”). The incident is then shared with theInformation Security Manager. Prioritizing the protection of customer information, the department where the incident occurredworks to recover leaked information and informs the affected customers of the facts of the leakage under the instructions of theManaging Department. At the same time, the department also immediately conducts an investigation into the incident andimplements other measures necessary to ascertain the cause of the incident and prevent it from recurring. The details of theinvestigation are reported to the Managing Department, which then informs all departments of the incident and issues awarning. In this way, we make Group-wide efforts to prevent recurrence.

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OthersPrevention of corruption
In line with the principles of the United Nations Global Compact, Daiwa Securities Group works to prevent corruption.
The Code of Ethics and Conduct, which guides the actions of officers and employees, stipulates that if corporate ethics and interests
conflict with each other, corporate ethics should be prioritized and acts contrary to corporate ethics should never be performed. In
addition, payment of any money or provision of convenience that is against the law is prohibited. Moreover, we prohibit the provisionand receipt of economic benefits that may not be valid in the light of common wisdom, such as cash rewards and excessive
entertainment. For entertainment, we apply and manage in accordance with management rules on entertainment, and we have set
special precautions especially for entertainment with government officials including those from foreign governments.
In order to thoroughly prevent corruption, we carry out educational activities, such as conducting annual ethics training for all
employees based on the Code of Ethics and Conduct, and monitor the status of entertainment. Headquarters departments and offices
have also incorporated the status of observance of management rules on entertainment into self-inspection items. Each department
and office therefore inspects their practice voluntarily, and the results of inspections are checked by relevant departments anddivisions. Officers in charge or relevant departments and divisions also monitor the use status of entertainment expenses at sales
branches to confirm that such expenses are appropriately spent.
We have also built a structure that prevents the fraudulent granting of benefits at overseas offices by establishing internal rules thatsuit local laws and regulations.
In FY2021, Daiwa Securities Group did not have any serious matters of note such as violations of laws and regulations related to theprevention of corruption.

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Daiwa Securities Group Anti-Corruption Policy
The Daiwa Securities Group (the "Group") has established the following Anti-Corruption Policy based on its corporate
philosophy. With high ethical standards, we strive to prevent corruption and ensure fair and sound relationships with all
stakeholders including our customers with high ethical standards.
1 Prevention of corruption
The Group prohibits receiving and giving of any form of bribery. Also, the Group prohibits the receiving and giving of
inappropriate entertainment, gift, facility, and other benefits that exceed acceptable limits under normal social
conventions.
2 Management involvement
The management of the Group recognizes the importance of corporate ethics, sets a good model through its daily
activities, and is responsible for preventing corruption.
3 Compliance with laws and regulations
The Group complies with anti-corruption laws and regulations and international treaties that apply in the jurisdictions
where it does business. Relevant laws and regulations include the Unfair Competition Prevention Law (Japan), theForeign Corrupt Practices Act (US), the Bribery Prevention Law (UK), the Commercial Bribery Regulations (China), andothers.
4 Internal control
The Group appropriately prepares internal rules and other regulations regarding anti-corruption based on relevant laws
and regulations. The Group regularly checks the operation and effectiveness of these internal rules to take necessary
actions such as reviewing them.
5 Education / training
The Group provides all officers and employees with regular education and training on anti-corruption, such as theprohibition of bribery and raising awareness about the whistleblowing system.
6 Reporting / whistleblowing
The Group establishes a system for receiving reports or whistleblowing from officers and employees regarding activities
that breach or might breach anti-corruption laws and regulations and internal rules and other regulations. The Groupwill thoroughly protect whistleblowers so that any officer or employee who reports will not be disadvantaged.
7 Dealing with breaches
If any officer or employee of the Group breaches relevant anti-corruption laws and regulations or internal rules, theGroup will strictly apply the applicable sanction procedures based on internal rules.
8 Understanding and embedding the policy
All management and employees of the Group fully understand this policy and make annual attestation.

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Daiwa Securities Group recognize the importance of identifying and evaluating the various risks associated with our business
operations accurately, and controlling them effectively, while we pursues profitability and growth. We aim to maintain a soundfinancial base and profit structure by properly balancing risks and returns and appropriately control not only short-term risks but alsorisks that are likely to appear in the medium- to long-term, such as climate change risk. By doing so, we seek to achieve sustainableimprovement in corporate value.

Risk management system

To manage risks for the entire Group based on the Risk Appetite Framework(RAF), the Board of Directors of Daiwa Securities Group Inc.
has approved the Risk Appetite Statement (RAS), which expresses the RAF in writing, and the Rules for Risk Management. The rules
mainly define basic policies related to risk management, the types of risks that need to be managed, and the responsible executives
and departments for each major risk. Based on the RAS and the Rules for Risk Management, the Board of Directors and the Audit
Committee oversee risk management for the entire Group. In order to establish an effective risk governance system, we have created a
Guideline for Three Lines of Defense and maintain a comprehensive structure for risk management.

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OthersBasic policies as de ned by the Rules for Risk Management Daiwa Securities Group
1. Management's proactive involvement of management in risk management
2. The structure of a risk management system that responds to features of the risks held by the Group
3. Understand overall risk based on integrated risk management, secure strong capital and the soundness of liquidity
4. Clarify the risk management processfi

Each of the Group companies conducts risk management suited to the risk profile and size of each business in accordance with thebasic policies related to risk management. The Risk Management Department and responsible departments for each risk within Daiwa
Securities Group Inc. monitor the risk management systems and risk status of Group companies. The risk status of Group companies
grasped through such monitoring, as well as their risk management issues, is reported as necessary to the CRO, who is appointed fromamong the executive officers. The CRO gives directions to address the risk management system, risk status, and other risk issues foreach company, verifies the effectiveness of risk management systems, and conducts reviews as necessary according to the businessscale and characteristics and risk status of each company.
The CRO is in charge of reporting risk to the CEO and does not concurrently serve as the person responsible for internal audits or as amember of the Audit Committee.
The risk status and other risk issues of Group companies are reported to the Group Risk Management Committee, which is a subcommittee of the Executive Management Committee of Daiwa Securities Group Inc. The committee deliberates and decides on policies
on risk management and specific measures. Risk management processes are also discussed and reviewed by the Group Risk
Management Committee. The Group Risk Management Committee is structured separate from the Audit Committee, but the content of
its meetings is also reported to the Audit Committee. The Board of Directors also verifies the effectiveness of risk management systems
and processes through deliberation and decisions on matters related to the RAF, top risks, and so on. The risk management process isalso discussed by the Group Risk Management Committee, and is reviewed based on suggestions and directions from executive
officers. In addition, major Group companies regularly hold risk management meetings in order to strengthen their risk management
systems.

Types of Risks to Be Managed / Managing Major Risks
Daiwa Securities Group faces various risks in the course of its business activities. The
Group therefore believes that it is important to identify these based on businesscharacteristics and risk profiles, and appropriately evaluate and manage those risks inorder to maintain a sound financial base and earnings structure.
The Group utilizes its own accounts to temporarily hold product positions for sales
purposes and to provide products to customers. Accordingly, the Group is subject tovarious risks, such as market risk due to market fluctuations and ineffective hedging,foreign currency and other liquidity risk, credit risk related to counterparties andissuers, operational risk that naturally occurs through the execution of business, andmodel risk resulting from using models for decision making. In addition, following theimplementation of growth investment based on hybrid strategies, investment risk
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Market Risk

Credit Risk

Accounting
and Tax Risk

Liquidity
Risk

Reputational
Risk

Operational
Risk

Risks That
Daiwa Securities
Group Has Determined
Should Be Managed

Investment
Risk

Model Risk

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Othersoccurs as a result of deterioration in the business performance and credit status of invest
environment. Therefore, the Group utilizes stress tests*1 and top risk management to ma
measuring the impact on capital and liquidity within the Group from a forward-looking p*1. Stress tests are used for the integrated evaluation of impacts on capital, liquidity, and business systems based on probable stress scenarios that
may have a major impact on the GroupTop Risks

Risk events that require special attention in light of our business characteristics are selected and managed as top risks. Top risks are
selected by management. A framework is in place enabling management to recognize and discuss a wide range of risks during theselection process. Specifically, in order to comprehensively visualize a wide range of risk events, risk events are organized andextracted based on risk events collected internally and externally, and these are designated as candidates for top risks. The company’s
directors and executive officers then select the top risks from among the candidates by making a forward-looking evaluation based on
the degree of impact on the Group’s business performance and the likelihood of the risk event occurring.
Climate change in particular is considered one of our top risks. Scenarios are analyzed utilizing stress tests and the results are reported
to management and disclosed.

Managing Climate Change Risks
Response to Climate Change (Disclosure Based on the TCFD Recommendations 2022)

List of top risks
Risk event

Specific example

Worsening of international disputeand conflict

Intensifying war between Russia and Ukraine, U.S.-China conflict, etc.

Inflation concern and interest hikein U.S.

-

Increased awareness of social
contribution (ESG)

Damage to the Group's reputation resulting from its ESG responses and disclosure being
viewed as inadequate

Rapid spread of digitaltransformation (DX)

Decline in competitiveness due to inadequate DX responses

Climate change

Decline in value of assets under management and decrease in opportunities for sales
due to climate change

Large-scale earthquakes andfloodsIncrease in various costs following disasters

Deteriorated performance andimpaired asset values at investees-

Cyberattacks

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System failure-

Compliance risk

Inappropriate act, etc. by officers and employees, including money laundering andinsider trading

Information security risk

Leak of material information, etc.

( ) Market risk management
Market risk refers to the risk of incurring losses due to market fluctuations, which affect the value of stock prices, interest rates,
foreign exchange rates, and commodity prices. In terms of the Group’s trading business, by providing market liquidity the Groupacquires compensation while at the same time taking on market risk through the holding of a certain amount of financial assets.
The Group implements suitable hedges to curtail fluctuations in profits and losses. However, as hedges may fail to function
effectively in times of stress, the Group sets limits on Value at Risk (VaR)*1 and loss estimates under various types of stress test*2
to ensure that they are within the scope of equity capital after taking into consideration financial conditions and such factors as
the business plans and budgets of subject departments. The Group also sets limits on such facets as position and sensitivity.
The departments in charge of the Group’s trading services calculate positions and sensitivity for the purpose of assessing theirown market risk, and monitor such. Meanwhile, risk management departments also monitor the status of market risk, confirm
whether risk falls within the established limits, and report on such to management on a daily basis.
*1. Value at Risk (VaR) represents the maximum possible loss of a given trading portfolio with a given probability over a given time horizon.
*2. Stress tests are used to calculate the Group’s maximum losses based on scenarios of the most significant market fluctuations of the past anddue to scenarios based on hypothetical risk events.

Daiwa Securities Group (Consolidated) Value at Risk
Range and Assumption of VaR
1

Scope: Trading accounts
Confidence level: 99% (one-side test), Holding period: 1 day
Adjusted for price correlation between products(Billions of yen)
20/6

20/9

20/12

21/3

21/6

21/9

21/12

22/3

0.99

1.21

1.20

1.18

1.59

1.74

1.95

1.92

High

1.43

1.43

1.89

1.62

1.83

2.07

2.58

2.37

Low

0.75

0.90

0.94

1.05

0.82

1.35

1.43

1.55

Average

1.08

1.11

1.35

1.35

1.37

1.64

1.90

1.90

VaR (Month-end)
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/

/

/

/

/

/

/

/

Equity

0.21

0.33

0.37

0.40

0.25

0.41

0.24

0.40

Interest

1.25

0.97

1.16

1.22

0.66

1.28

1.29

1.20

Currency

0.24

0.29

0.41

0.31

0.45

0.49

0.48

0.51

Commodities

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

By risk factor (Month-end)(2) Credit risk management
Credit risk refers to the risk of losses caused in cases where a counterparty of a trade or the issuer of a financial product held by
the Group suffers a default, or credibility deteriorates. The credit risk of the Group’s trading activities involves counterparty risk
and issuer risk.
When the Group provides products and engages in asset management and investments, there exists a risk that its exposure tovarious products and transactions could be concentrated on specific counterparty groups. If the credit situation at suchcounterparty groups should worsen, large-scale losses could be generated. For this reason, the Group sets limits on its total
exposure to individual counterparty groups and monitors this exposure regularly.

Issuer risk

We also monitor the amount of credit risk of the issuers of financial instruments held as a result of our market
making activities.

(3) Liquidity risk management
Liquidity risk refers to the risk of suffering losses due to cash management difficulties or having to finance at markedly higher
costs than usual as a result of a change in market conditions or a deterioration of Group companies' finance.

Basic Policy on Fund Procurement
The Group conducts securities-related operations using a variety of financial assets and liabilities, and makes investments andloans that contribute to providing new value as an integrated securities group with a hybrid business model. In order to prevent
market fluctuations from affecting the continuation of our business activities, the Group is constantly striving to secure the
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6

1

3

1

2

2

1

0

2

9

0

2

6

0

2

The Group sets an upper limit on the amount of credit that can be accepted for a trading partner group and monitors
it regularly.

2

Supplier risk

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Othersstability of fund procurement. Additionally, with the anticipation that financial crises may make it difficult to procure new funds
and reacquire existing funds, the Group diversifies repayment periods and fund sources.

Liquidity management system using Liquidity Management Indicators
Daiwa Securities Group Inc. has established a liquidity management system that utilizes the regulatory consolidated liquidity
coverage ratio and the consolidated net stable funding ratio as well as its own liquidity management indicators.
The Group performs daily checks to ascertain that the liquidity portfolios in place are sufficient to cover the repayment of
unsecured short-term funds due within a certain time period as well as the estimated outflow of funds under stress in an
appropriate time frame—here a number of stress scenarios are adopted. These efforts are made to ensure the Group cancontinue its business operations even when it becomes impossible to procure funds without collateral for a whole year.

Contingency Funding Plan
The Group recognizes the emergence of liquidity risks can have a direct impact that leads to the business failure of a financial
institution. Accordingly, Daiwa Securities Group has put in place a contingency funding plan that predefines the required
response methods, roles and authorities, and procedures, among others, in order to ensure that the Group responds
appropriately as a unified entity at the time of a liquidity crisis. This plan states the basic policy concerning the reporting lines
depending upon the urgency of stress internally originated, including a credit crunch, and externally originated including anabrupt change in the market environment, and the method of raising capital. The contingency plan enables the Group to
prepare a system for securing liquidity through a swift response.

(4) Operational risk management
Operational risk is the risk of losses that occur when internal processes, people, and systems do not perform adequately or do
not function; it can also arise from external events.

Definitions of Principal Operational Risks
Type

Definition

Operations Risk

The risk of suffering losses due to the neglect of proper operations by employees
and executives or due to accidents or impropriety

Systems Risk

The risk of suffering losses due to computer systems going down, malfunctioning,or experiencing system inadequacies, and the risk of suffering losses due to theinappropriate use of computers

Information Security Risk

The risk that a threat to information assets could materialize, preventing
information security (confidentiality, completeness, or continued availability) frombeing assured

Compliance Risk

The risk of suffering losses due to the failure of employees and executives to comply
with corporate ethics or laws and regulations, and the risk of suffering losses due tolawsuits with customers and other parties in Japan117

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Legal Risk

The risk of suffering losses due to the inappropriate conclusion of contracts,
breaches of contract, or lawsuits with customers or other parties in relation to
overseas offices

Human Resources Risk

The risk of suffering losses due to problems in labor management or from thestandpoint of workplace safety, and the risk of being unable to secure necessary
human resources

Tangible Fixed Asset Risk

The risk of suffering losses due to damage to tangible fixed assets as the result of
natural disasters or external factors, or to negligence on the part of executives andemployees

The Group classifies operational risks into the seven categories listed in the above table and monitors them by assigning
departments responsible for individual risks. As the Group’s business becomes more sophisticated, diversified, and systemized,
the accompanying risks become more varied. As a result, the importance of managing operational risk has grown each year.
Major Group companies control their operational risks appropriately by measures including risk control self-assessments(RCSAs), in accordance with rules on operational risk management set by Daiwa Securities Group Inc. In addition, the Group hastaken other necessary measures, including the implementation of rigid rules concerning authority, the automation of office
operations for reducing human errors, and the preparation of procedural manuals. Each Group company strives to reduce
operational risk according to the nature of its own business.
* RCSA (Risk Control Self-Assessment) uses a predetermined assessment sheet to identify and assess operational risks, analyzes risks based on
frequency of occurrence and impact, and evaluates and verifies efficacy of risk mitigation efforts.

(5) Model risk management
Model risk refers to the risk that the Group will suffer direct and indirect losses resulting from errors in the development andimplementation of models, or from their misuse.
In order to effectively manage model risk, the Group has clarified the roles and responsibilities of those involved in the models,and has established a mechanism to systematically manage models throughout their lifecycle. Specifically, the Group has
prepared model verification and approval processes to manage models prior to use and during updating, and conducts
monitoring and regular checks to manage models during use.
(6) Investment risk management
Investment risk refers to the risk that the value of an investment made by the Group will be damaged, or that additional funding
will be required, and to the risk that the return on investment will be lower than expected due to deterioration of the businessperformance and credit status of the investee, and to changes in the market environment. This risk is managed at the portfolio
level and at the individual investment level.
In terms of portfolio level management, the Group has set Group-wide risk limits on a per industry basis in order toappropriately manage the investment concentration condition, and regularly monitors this situation. In terms of individual
investment level management, along with verifying risk prior to making the investment based on a certain standard, the Group
monitors the risk condition following investment on an ongoing basis.
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Reputational risk refers to the possibility of the Group sustaining unforeseen losses and the Group’s counterparties being
adversely affected due to a deterioration of its reliability, reputation, and assessment caused by the spread of rumors or
erroneous information. There are no uniform procedures for managing reputational risk because it can emanate from a variety
of sources.
The Group has established various regulations under its Disclosure Policy, with particular emphasis on the management andprovision of information. It has also set up the Disclosure Committee within Daiwa Securities Group Inc.
Each Group company is obligated to report information that could turn into reputational risk to the Disclosure Committee.
That way, Daiwa Securities Group Inc. can obtain and centrally manage information, and it disseminates accurate information ina prompt manner according to the decisions of the Disclosure Committee.
The Group strives to keep abreast of problems and occurrences that may affect its reputation so that if and when such problems
occur, their impact on the Group can be minimized. It also acts to ensure that erroneous and inaccurate information is properly
corrected, and that it responds appropriately to libel and other issues. The Group has public relations and investor relations
systems in place to prevent and minimize risks regarding its reputation.
(8) Accounting and tax risk management
Accounting and tax risk is the risk of not conducting appropriate accounting treatment and disclosure in accordance withaccounting or taxation standards, laws, and regulations, or of not filing or paying taxes appropriately, as well as the risk of losses
arising as a result.
The Group strives to reduce accounting risk by operating in accordance with fundamental regulations related to internal
controls on financial reporting, and by establishing, putting into practice, and striving to improve its internal controls on
financial reporting.
In addition, by notifying principal Group companies of necessary reporting items related to tax risk management and receivingsuch items in a timely manner, the Group endeavors to appropriately determine the tax risk management status and risk
conditions for the Group as a whole, thereby reducing its tax risk.
Daiwa Securities Group Tax Policy

Business Continuity Plan (BCP)
To be prepared for disruptions of social infrastructures, we have drawn up a business continuity plan (BCP). The BCP prioritizes
important operations to be restored or continued* in order to keep the financial markets open and protect customers’ economic
activities. Disruptions of social infrastructure might make our head office functions, branches and data centers or other importantfacilities inoperative.
They can be caused by events such as earthquakes, fires, storms, floods, other extraordinary weather conditions, terrorism, large-scale
power failures, and serious outbreaks of infectious diseases. In accordance with the BCP, we will not only ensure the safety ofcustomers and our employees, and protect our assets, but will also strive to continue our vital operations in the financial markets
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Otherswhere our business serves the public interest. For example, we boast Japan’s highest level backup center, and have established asystem which enables us to easily switch to the alternate system in case of an emergency at headquarters. We can therefore continue
vital operations through a substitute office location.

Prioritized operations to be restored or continued
1. Carrying out securities transactions traded in the markets and yet to be settled
2. Payment to our customers
3. New orders from customers to sell or cancel the following products and sell securities back to exit a long position in
margin trading
Domestic listed shares, including closing long positions on margin transactions
MRF (money reserve funds)
Japanese government bonds for individual investors
Ordinary deposits

Measures to Address Disaster Risk by Region

Daiwa Securities has offices across Japan. As disaster risk differs amongst regions, it has formulated a disaster response plan for eachsales branch and is preparing disaster relief supplies that reflect the disaster risk for each branch. The hazard maps created by themunicipalities of respective regions are sent to branches and made available on our intranet.

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OthersEnvironmental and Social Policy Framework
Daiwa Securities Group Inc. formulated the "Environmental and Social Policy Framework" in June 2021 in order to strengthen its
management and governance infrastructure for environmental and social risks on business. By recognizing and appropriately
addressing risks associated with business that could have a significant negative impact on environment and society through initiatives
such as the engagements with our stakeholders including investees and/or lenders, Daiwa Securities Group strengthens our supply
chain management and strives to create a better society along with its stakeholders.
※ Daiwa Asset Management Co.Ltd. has established a policy as an "ESG Investment Policy" , and Daiwa Real Estate Asset Management Co.Ltd. hasestablished a policy as a "Policy Regarding ESG" separately from this framework.

Daiwa Securities Group "Environmental and Social Policy Framework"
1. Introduction
As awareness of environmental and social issues such as climate change and human rights violations continues to growin Japan and overseas, the Daiwa Securities Group (the "Group") is committed to playing its role, as a comprehensive
securities group, in supporting the realization of a sustainable and prosperous society in order to meet theenvironmental and social goals of all stakeholders.
The Group established its "Environmental Vision" in 2012 and, based on the "Environmental Principles" and the "Basic
Environmental Policies" announced at the same time, it has been working to help solve environmental issues andcontinuously reduce the environmental footprint that results from its business activities. Furthermore, in May 2021, it
established its management vision "Vision 2030", putting the realization of the UN’s SDGs at the center of the Daiwa
Group’s strategy, proactively working towards the promotion of the transition to a carbon-neutral society and therealization of a resilient society.
In addition, the Group has formulated the "Environmental and Social Policy Framework" (the "Framework") in order tostrengthen its management and governance infrastructure for environmental and social risks, such as the conservationof the global environment / biodiversity and the protection of human rights. We want to create a better society inpartnership with our stakeholders by acknowledging the risks for businesses that may have negative impacts on theenvironment and society, and taking appropriate measures through engagement.
The Group will actively support innovation and technological initiatives that will lead to the realization of carbon
neutrality, and will focus on providing a variety of financial solutions, including transition finance, to support these.
2. Governance on this Framework
The Group discusses SDG and ESG issues related to the environment and society at the SDGs Promotion Committee,
chaired by the President and CEO. The results of these discussions are reported to the Board of Directors as
appropriate, and important matters are passed through the Board of Directors as resolutions, which strengthens thesystem for supervision by the Board of Directors. This Framework was approved by the Board of Directors following
discussion with the SDGs Promotion Committee.
This Framework will be assessed regularly, with the aim of strengthening it, based on the experience of its
implementation and changes in the external environment.
3. Applicable products and services
This Framework covers new investments and loans, and the underwriting of bonds and stocks issuance (hereinafter,
financing) made by Daiwa Securities Group Inc. and its major group companies.
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4. Applicable business(1) Prohibited business・Businesses that negatively impact UNESCO-designated World Heritage Sites
・Businesses that negatively impact wetlands designated under the Ramsar Convention
・Businesses violating the Washington Convention
・Businesses involving human rights violations such as child labor and forced labor(2) Restricted business
1) Businesses affecting indigenous communities
When providing financing to a business, we will carry out ESG due diligence including environmental and social risk
assessments ("ESG due diligence"), carefully assessing whether they will cause serious cultural, social and economic
damage to indigenous communities, and whether appropriate measures are taken to mitigate them. We will utilize
these risk assessments in making decisions.
2) Business involving land expropriation that leads to involuntary relocation of residents
When providing financing to a business, we will carry out ESG due diligence, carefully assessing whether they result inland expropriation that forces residents to relocate against their wishes and whether appropriate measures are taken toprevent them, and utilize these results in making decisions.
3) New construction of coal-fired power generation
We prohibit any financing where the use of proceeds are directed toward this type of business.
Regarding the underwriting of bonds and stocks issuance, however, issuers that announce a target for net zero
greenhouse gas (GHG) emissions by 2050, or businesses adopting new technology aligned with the goals of the Paris
Agreement, may be considered on a case-by-case basis.
4) Weapons of mass destruction / inhumane weapons manufacturing
We prohibit any financing where the use of proceeds are directed toward this type of business. Weapons of mass
destruction include nuclear weapons, chemical weapons, biological weapons, and inhumane weapons include cluster
munitions and antipersonnel land mines.
5) Palm oil plantation development
When providing financing to a business, we will carry out ESG due diligence, carefully assessing whether the loss ofwildlife habitat due to overdevelopment may lead to a loss of biodiversity, or land conflicts with indigenous residents,
or human rights violations such as child labor/ forced labor, or whether appropriate measures are taken to prevent
them. We will utilize these results in making decisions.
In addition, when providing financing to a business, we will confirm if RSPO (Roundtable on Sustainable Palm Oil), aninternational certification system for palm oil, has been acquired. Where this is not in place, we will encourage clients toobtain certification. We will encourage clients to make environmental and human rights policies such as NDPE (NoDeforestation, No Peat and No Exploitation) or other compatible policies.
6) Business involving deforestation
When providing financing to a business, we will carry out ESG due diligence, carefully assessing whether appropriate
measures will be taken to prevent a negative impact on the environment caused by the destruction of ecosystems, andwhether illegal logging is carried out. We will utilize these results in making decisions.
When providing financing to a business, we will encourage clients to obtain FSC (Forest Stewardship Council), aninternational forest certification system or other compatible certifications or to make environmental and human rights
policies such as NDPE or other compatible policies.

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We prohibit any financing where the use of proceeds are directed toward businesses using the mountaintop removal(MTR) method and new thermal coal mining businesses.
When providing financing to a business, we will carry out ESG due diligence, carefully assessing whether appropriate
measures are taken to ensure occupational safety and a sanitary environment to prevent cave-in accidents, flood
accidents, gas explosions, and human rights violations such as illegal labor. We will utilize these results in making
decisions.
8) Large-scale hydroelectric power generation construction
When providing financing to a business, we will carry out ESG due diligence, carefully assessing whether appropriate
measures will be taken against the destruction of the environment and ecosystems and negative impacts on local
residents due to the construction of a dam. We will utilize these results in making decisions.
9) Oil and gas development
When providing financing to a business, we will carry out ESG due diligence, carefully assessing whether appropriate
measures are taken against their impact on the environment, ecosystems and local communities. We will utilize theseresults in making decisions. In particular, we will make careful decisions when providing financing to development
businesses in the Arctic, oil sands and shale oil and gas development businesses, pipeline businesses which may havesignificant negative impacts on the environment and society.
5. Assessment process
When providing financing to the above businesses, we will carry out initial ESG due diligence. If it is determined that
additional confirmation is necessary as a result of the assessment, we will apply enhanced ESG due diligence todetermine whether or not to provide financing. If the implementation of the business may have a serious impact on thecorporate value of the Group, the executive management will discuss further and make a final decision on whether or
not to provide financing.
December 26, 2022
Please also refer to the following.
Stakeholder Engagement
Supply Chain Management

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OthersIT Strategy and Management of Systems Risk
Daiwa Securities Group has raised pursuing the best mix of digital and real as one of its basic policies for the Medium-Term
Management Plan “Passion for the Best” 2023. Based on this basic policy, the Group is advancing a digital strategy intended to achievea higher top lines and more sophisticated, efficient business by fusing the respective strengths of its people and data/digitaltechnologies starting from those of data.

IT Organization and Structure
The Group IT Strategy Committee is established at Daiwa Securities Group Inc. as a sub-committee of the Executive Management
Committee, and the IT Strategy Committee is created at Daiwa Securities as a subcommittee of the Management Committee. These
subcommittees serve to deliberate and decide upon matters for accelerating decision-making involving the integration ofmanagement and IT strategies, as well as involving IT investments, and for enhancing the efficiency of IT investments.
Amid a rapidly changing and difficult-to-predict business environment, the Group has established and is strengthening its digitaltransformation (DX) promotion system. Daiwa Securities is transforming to a "data-driven" business model that aims to increasebusiness efficiency and improve the top line by analyzing, researching, and utilizing data. An example of this is the establishment of a
new Data-Driven Promotion Council which is chaired by the president and attended by each headquarters. The company is also
putting effort into developing IT personnel, such as establishing the new "Digital IT Master Certification System" for developing humanresources that can leverage advanced digital technologies to create business innovation as well as the new "Daiwa Digital College," theaim of which is for all employees to acquire the IT skills and information analysis skills necessary for achieving DX.

IT investment
The Group has been investing in IT in order to provide products and services responding to customer needs from the perspective ofcustomer-oriented operations, develop infrastructure to ensure business efficiency and safety, comply with laws and regulations, andenhance risk management. In FY2021, we promoted efforts toward expanding points of contact with customers, such as building a new
CRM system*1 to support the consulting services of our sales staff, revamping our Internet service with the aim of creating a morecustomer-friendly screen and menu structure, and adapting systems for collaboration with Japan Post Group in relation todiscretionary investment management services. In addition, we proceeded to build an infrastructure for storing and analyzing data sothat all Daiwa Securities officers and employees can make data-driven decisions, and we worked on improving the efficiency of
middle- and back-office operations and introducing a zero trust*2 security infrastructure.
*1 A customer relationship management (CRM) system is one that centrally manages customer information such as customer contact histories andtransaction records.
*2 A security concept of verifying the security of every access to data systems requiring protection, whether internal or external, without trusting them.

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OthersSystems risk management
Daiwa Securities Group has worked to maintain and enhance the management of systems risk in order to reliably provide high-quality
services to customers while protecting information assets from various threats and risks originating from inside or outside thecompany. Recognizing the importance of cyber security as a group management issue, we are working to strengthen systems for
detecting and monitoring cyberattacks. At the same time, we continue to work toward improving our defense and resilience tocyberattacks, collaborating with outside organizations in an effort led by a dedicated organization (Daiwa-CSIRT*) that works
throughout the Group.
In improving our cyber security management systems, we are considering specific measures in light of cyberattack trends, periodic
penetration tests and vulnerability assessments by external specialist firms, and risk assessments conducted within the Group basedon these results. During the current Medium-term Management Plan, we plan to enhance "technical measures," "operational
resilience," and "governance." Specifically, we are putting effort into strengthening technological measures, centered arounddevelopment of zero trust security infrastructure, as well as personnel measures, including raising the awareness of officers andemployees through enhanced education and training. In addition, we are strengthening the governance of domestic and overseas
group companies through the development of a global policy, and we are proceeding to develop systems to prevent damage fromcyberattacks and to prevent any damage from spreading both within and outside the Group.
* Computer Security Incident Response Team: The organization that manages cyber security across departments.

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OthersRespect for Human Rights
Our Approach and Policy
Human Rights Policy
Daiwa Securities Group states in its Corporate Principles that "the Group will strive to maintain a high sense of morality andduty, endeavoring to continue contributing to the sustainable growth of the societies in which we operate."
To further improve a corporate culture rooted in the basic principles of respect for human rights, and to promote efforts forthe respect of human rights in accordance with international standards, we have established this Human Rights Policy.
1. Respect for International Standards
Daiwa Securities Group supports and respects international standards on human rights, such as the International Bill of
Human Rights (consisting of the Universal Declaration of Human Rights and the International Covenants), the UN
Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work,the OECD Guidelines for Multinational Enterprises, ISO 26000, and Children's Rights and Business Principles. We also
endorse the Ten Principles of the UN Global Compact as a signatory to the UN Global Compact.
2. Scope of Application
This Policy applies to all companies, officers, and employees within Daiwa Securities Group. We also expect all
stakeholders, such as customers and suppliers, to respect human rights.
3. Prohibition of Human Rights Violations
Daiwa Securities Group provides an equitable and safe working environment that values people, and is considerate of
the human rights of all stakeholders. We do not tolerate discrimination based on race, nationality, birthplace, creed,
religion, politics, biological sex, sexual orientation, gender identity, social status, physical characteristics, or disability,or human rights violations such as sexual harassment, power harassment, or other acts of harassment in any aspect of
our work. Furthermore, we do not tolerate unfair labor, such as child labor and forced labor.
4. Human Rights Due Diligence
Daiwa Securities Group conducts appropriate human rights due diligence and is committed to preventing andmitigating any negative impact its corporate activities may have on human rights.
5. Remedial Mechanisms
Daiwa Securities Group takes corrective and remedial actions through appropriate procedures in the event it becomes
clear that its corporate activities have caused or been involved in a negative impact on human rights.
6. Education and Training
Daiwa Securities Group educates and instructs all officers and employees with accurate information on human rights. At
the same time, we view human rights issues as our own problem, not somebody else's problem, and foster a sensitivity
that enables empathy with the suffering of others.
7. Information Disclosure
Daiwa Securities Group is committed to disclosing information on its human rights initiatives and progress on its
website and through other media to ensure that they are understood by all stakeholders.
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8. Stakeholder Engagement
Daiwa Securities Group implements this Policy with an emphasis on dialogue with stakeholders.
9. Governance System
Daiwa Securities Group has established a Human Rights Awareness Promotion Committee, chaired by the Human
Resources Officer, to promote human rights initiatives. This Policy is determined by the Board of Directors.
Established October 1, 2022

Human Rights Education and Awareness System
In 1984, Daiwa Securities Group set up the Human Rights Awareness Promotion
Committee. The committee aimed at promoting activities and training for raising
human rights awareness, thereby encouraging better understanding andappreciation of social integration and other human rights issues. We have beenworking to achieve its objectives. Besides the committee, all Group managers at
the head office or branch level act in a promotional role, engaging in education
and awareness activities to ensure that employees correctly understand andacknowledge human rights and social integration issues.
Daiwa Securities Group has been a member of the Industrial Federation for
Human Rights, Tokyo, since 1998. The Federation is composed of 123 companies
mostly headquartered in Tokyo with a combined total of 1.5 million employees(as of April 2022). Federation members work together to further improve theiremployees’ awareness of human rights issues through research andcommunication.
Initiatives in FY2021
In FY2021, we provided human rights education as part of training for the Group's new employees conducted immediately after
their induction ceremony. It is also included in training for those newly becoming general managers, managers, and associatemanagers. The chief of the Human Rights Awareness Promotion Committee Secretariat has taken charge of all of these training
courses.
We have also been providing training on LGBT issues since FY2015. It has been conducted for those in the Group's complianceand human resources divisions. The issues are also taken up in training for new employees every year.
LGBT issues are also included in training for promoted employees as an opportunity to deepen their understanding. The
cumulative number of employees participating in training on LGBT issues is now 7,259.
The Group held a Human Rights Awareness Workshop for all executives and employees to consider human rights from multiple
viewpoints.
Times are changing, and we are moving from the stage of understanding our differences to that of actively turning thosedifferences into value. Discussions between participants were therefore held after watching "Turning Differences into
Strengths," an educational video with the theme of hints for promoting greater workplace communication.
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Training
participants

238 new employees

Objective

To acquire basic knowledge concerning human rights and to understand and raise awareness of
the Group's fundamental principles concerning respect for human rights

Training
participants

1,105 promoted employees

Objective

To acquire knowledge and raise awareness concerning human rights required for their respective
positions

Training
participants

All Group executives and employees

Objective

To watch a video for human rights awareness promotion and hold discussions at each workplace
regarding the content

Internal call for human rights awareness slogans
We called for human rights awareness slogans between October and November 2021 in a contest designed to promote broader
and deeper understanding of human rights issues. Applications were invited widely from Group executives and employees andtheir families. Entries selected from among 566 applications received commendations and were presented in our in-housemagazine.

Whistleblowing System (Corporate Ethics Hotline)
The matters to be reported under the Group's whistleblowing system (Corporate Ethics Hotline) include harassment (bullying, power
harassment, sexual harassment, maternity harassment, etc.) and other human rights violations. We take an appropriate response
whenever a report is made.

Structure and Achievements of Whistleblowing System (Corporate Ethics Hotline)

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Daiwa Securities Group understands that customer trust is the foundation of our business. Based on the idea of the Customer First
Principle, we always try to provide services that deliver genuine customer satisfaction.
We have also adopted the idea of hospitality to enhance our existing concept of customer service. We aim to provide customer service
that gives the most satisfaction to customers.

Building Deeper, Stronger Trust with Customers
Daiwa Securities aims to build customer satisfaction through quality services, built on understanding customer needs quickly andproposing the best solutions for each customer. We consider providing faithful and appropriate explanations to be paramount. A
principle of Japan's Financial Instruments and Exchange Act prohibits "solicitation that is improper in light of a customer's knowledge,
experience, financial situation and objectives." Daiwa Securities' approach is rooted in this principle. As a part of our hospitality-based
service, when promoting our financial products we strive to provide explanations and post-sale follow-up that exceed the legal
requirements. We have also agreed with the purport of the "Principles for Customer-Oriented Business Conduct" announced by the
Financial Services Agency in March 2017 and expressed our adoption of the principles, while drawing up and announcing our "Basic
Policy on Customer-first Operations."
Moreover, to further improve our services and the quality of our response, we are continuing to conduct customer service surveys. We
survey customers regarding their degree of satisfaction with our services and response, and solicit their feedback and requests. Basedon the survey results, since FY2017 we have been strengthening our initiatives to improve the quality of post-sale follow-up andenhance the convenience of e-mail services.

Basic Policy on Customer-first Operations
Daiwa Securities Group has agreed with the purport of the "Principles for Customer-Oriented Business Conduct"announced by the Financial Services Agency on March 30, 2017 and expressed its adoption of the principles. The Group has
also drawn up and announced its "Basic Policy on Customer-first Operations."
Daiwa Securities Group Inc.
Daiwa Securities Co. Ltd. (Japanese)
Daiwa Asset Management Co. Ltd. (Japanese)
Daiwa Next Bank, Ltd (Japanese)
Daiwa Corporate Investment Co., Ltd. (Japanese)
Daiwa Real Estate Asset Management Co. Ltd.
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OthersThorough Post-Sale Follow-Up and Appropriate Provision of Information
A customer's purchase of a product is only the beginning of a securities company's relationship with the customer. Follow-up is
the key to maintaining and solidifying the relationship of trust built with the customer.
To alleviate customer dissatisfaction or concerns arising after transactions, we offer thorough explanations, appropriate
proposals, and information regarding market conditions, products, and services. We have also expanded the use of emails andonline meetings, as well as face-to-face meetings, telephone and other conventional methods, thereby developing a systemenabling us to provide appropriate follow-up to as many customers as possible.
Introduction of NPS®* (Net Promoter Score) Towards Realization of Quality No. 1
In FY2018, Daiwa Securities introduced NPS® (Net Promoter Score) as an in-house indicator for measuring customer satisfaction.
The score measures the degree of customer recommendation and is considered to correlate closely with business performance.
We position it as one of our most important management indicators.
When introducing NPS®, we implemented sales reforms successively at individual branches to ensure that the aim of theintroduction is well understood and established among employees, rather than them merely adopting the score. Thus, it took ayear to complete the introduction of the score at all branches.
We will further step up our efforts to carry out sales activities from the customer perspective. At the same time, we will build ascheme for implementing a PDCA cycle that incorporates customer feedback and makes improvements, and continuously work
to improve NPS®.
* NPS® is a registered trademark of Bain & Company, Fred Reichheld and Satmetrix Systems.

Improving In-Branch Customer Service Quality
Daiwa Securities strives to provide in-branch services that can satisfy any customer.
With the aim of creating sales branches enabling elderly customers and customers with disabilities to feel secure, we haveplaced dementia supporters*1 and employees with service assistant*2 certifications, mostly comprising employees engaged in
in-house customer service.
Moreover, in order to ensure that our sales branches are accessible to more customers, we implement a range of barrier-freemeasures, including reduced variations in floor level, the installation of automatic doors and larger counters, and the placementof cane holders at all counters.
We have also been stepping up our efforts to enhance safety and convenience for elderly customers and customers withdisabilities visiting our sales branches. As part of such efforts, we place and make ready for use writing communication boards,
communication sheets, cane holders, hearing assistance devices, and other equipment.
*1. Dementia supporter
A dementia supporter is a person who properly understands dementia and pays warm attention to people with dementia and their families.
The Ministry of Health, Labour and Welfare has been stepping up the training of supporters across the country as part of its "Dementia
Supporter Caravan" project.
*2. Service assistantA service assistant is a person certified as having acquired hospitality and safe assistant skills for providing tailored support for elderly
customers and customers with disabilities.

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Initiatives for Elderly Customers and Inheritance
Daiwa Securities has placed Anshin (peace of mind) Planners and Inheritance Consultants as an initiative to provide each one of
our elderly customers with optimum consulting and solutions.
Anshin Planners are mainly responsible for elderly customers, providing comprehensive consulting for customers in their later
years. The scope of the Planners’ work is not limited to asset management but includes the provision of information on health,long-term care, etc. and solutions in relation to gifts, inheritance, etc. to next generations.
Inheritance Consultants are professional staff members appointed from among employees with CFP® certifications who havehighly specialized knowledge of inheritance and gifts.
We work to provide optimum support to every customer we serve by subdividing our services according to the life stage of eachcustomer and making careful proposals.
In addition to these initiatives, we are focusing on an Inheritance Planner Certification® in order to further develop inheritanceand business succession professionals. An Inheritance Planner Certification® is granted to candidates selected from among
employees with CFP® certifications after they undergo certification training designed to help them acquire a deeper knowledgeof inheritance and business succession. It is an in-house credential at Daiwa Securities.
* CFP® is a financial planner credential certified by the Japan Association for Financial Planners. A CFP® holder has specialized knowledge of asset
management, taxation, etc.

Holding of a Variety of Seminars
Daiwa Securities holds a variety of seminars to provide information to customers. Sales branches handle a broad range of topics
in their seminars, such as information on Japanese and overseas markets; programs targeting the asset building generation,
including the installment-type Nippon Individual Savings Account (NISA) and iDeco, a defined contribution pension plan for
individuals; and inheritance and gifts that alleviate concerns about old age.
We also regularly hold live online seminars which customers can participate in wherever they are. In January 2022, we
presented the New Year Webinar on four topics: Market Outlook, U.S. Stock Outlook, Chinese Stock Outlook, and Inheritance.
Going forward, we will work to successively expand our online seminars.
Asset Building through Installment-Type NISA Including Workplace NISA
Daiwa Securities has been accepting applications for NISA accounts since the initiation of the program. In particular, we actively
introduce the program to customers, especially those in the asset building stage, in order to encourage more customers to start
making investment in installments. We are also stepping up our initiative to propose the introduction of the workplaceinstallment-type NISA. The program enables individuals to build assets systematically by setting aside a fixed amount eachmonth for investment through their workplaces.
Information Website for Child Rearing and Money “SODATTE”
Daiwa Securities opened "SODATTE," an information website for child rearing and money, in April 2016 for the child-rearing
generations. With six years having passed since its opening, it has grown to be a website visited by many fans, with more than
350 columns and more than 650,000 page view per month. The website sets up six categories, including "Money Lessons,""Family Finances" and "Education Funds," and disseminates columns that provide tips to child-rearing generations.
As part of our initiative for financial education, we also released "A-I-U-E-Okane-no-ehon" on the website. It is a digital picture131

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Othersbook that helps small children to deepen their interest in and understanding of money while learning hiragana.
We will continue to update columns monthly as an information site that provides practical support on child rearing for parents
and enables them to learn in an enjoyable way.
SODATTE ⟨Japanese⟩

Working to Incorporate Customer Voices
At Daiwa Securities, the Contact Center and the Customer Support Center assume the function of utilizing customer feedback.

Contact Center Initiatives
Employees at the Contact Center, which serves as our comprehensive remote contact point, have direct contact with customers
and play an increasingly crucial role not only as a transaction channel but also in customer support and marketing. In order tomaintain and improve contact center operations to meet the demand for high-quality service, we provide training and regularlevel checks for all Telephone Service Representatives (TSR). We thus strive to appropriately respond to customers' true needs.

Contact Center Functions
The Contact Center has been a key channel for transactions, supporting the company's business model whose cornerstones are
Daiwa Consulting and Daiwa Direct transaction courses. The center now handles calls coming in to sales branches and somedialing support work, thereby acting as Daiwa Securities' comprehensive remote contact center for customers.
To strengthen the functions of the center, we first expanded the scale of the service points in Tokyo and Osaka in 2014 and thenestablished a contact center function in Fukuoka in 2016 as our third service point. We also enlarged the floor area of our service
point in Osaka in 2017.
In addition, since 2020, we have also been expanding the functional aspects, including taking over some of the customer
support operations of our sales branches.
By further expanding our customer response capability, we aim to enhance our support functions for sales branches going
forward to increase customer convenience.
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In J.D. Power Japan's "J.D. Power 2021 Contact Center Support Satisfaction Study," Daiwa Securities was ranked No. 1 incustomer satisfaction in the face-to-face securities category. And in HDI-Japan's 2021 benchmark rating program, we earned thehighest possible rating of three stars in both the Customer Support and Website Support categories for the securities industry.

Customer Feedback Sent to Contact Center
The Contact Center receives numerous comments and requests on online trading and Daiwa Securities' other products andservices.
We share such customer feedback information and requests with management and relevant departments and sections of thehead office and utilize them to enhance our services and customer interaction. (The number of major improvements
implemented in FY2018 was 85.)
We also show some of the inquiries received from customers on our website as "frequently asked questions," while sharing
them with sales branches in some cases to speed up our responses. We are thus working to raise customer satisfaction fromvarious perspectives.
Number of cases in FY2021 where responses were taken to customer feedback and requests
56 cases (in 26 of which responses were completed)
Customer Support Center Initiatives
Daiwa Securities' Customer Support Center is a department at the head office that handles customer feedback and complaints
directly by phone. It is set up within the Compliance Department of Daiwa Securities.
The Center promptly gives feedback and complaints from customers to relevant sales branches and departments and sectionsof the head office. It also sorts and analyzes such feedback and complaints, shares them with officers, sales branches, and head
office departments and sections, and capitalizes on them as precious information in the aim of "customer-first operations" and"pursuit of best quality."
To respond to customers' calls thoroughly, accurately, and promptly, Customer Support Center members study the securities
tax code and Daiwa Securities' services together on a daily basis, and work to improve the quality of their customer services.
Inquiries and Complaints Received at the Customer Support Center in FY2021
Number of calls received: 4,382 calls (up 452 calls)
Inquiries: 90%
Complaints: 10%
Based on customer feedback, we have made a number of improvements. For example, we have simplified documents we ask
customers to fill in. We have also revised product information on our website to make such information easier to understand,
while changing our online branch visit reservation system so that customers find it easier to enter information.

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Responses to ESG Issues in Supply Chain
Daiwa Securities Group regularly checks documents disclosed by our equipment and service providers, as well as news reports about
these companies and their reputation on the Internet. If any ESG-related issues are found, we take steps such as urging the business
partners to make improvements.
We also disclose statements on the prevention of slavery and human trafficking based on the U.K. Modern Slavery Act 2015.
Response to the U.K. Modern Slavery Act
Particularly with regard to the environment, we disclosed "Our Approach to Green Procurement," and ask suppliers to understand theGroup's Environmental Vision, Environmental Principles, and Basic Environmental Policies as well as our SDGs promotion system andthe purpose of supply chain management.
Approaches to Green Procurement
For our business operations we also formulated the Environmental and Social Policy Framework to strengthen our system for
managing environmental and social risks in new investments and loans, and the underwriting of bonds and stocks issuance(hereinafter, financing). We will carry out ESG due diligence for businesses that may have significant negative impacts on theenvironment and society to determine whether or not to provide financing according to the Framework.
Environmental and Social Policy Framework
When underwriting an initial public offering, we carry out due diligence in accordance with the items stipulated in the Rules
Concerning Underwriting, etc. of Securities by the Japan Securities Dealers Association. In such due diligence, we incorporate an ESG
perspective as well as the Environmental and Social Policy Framework and focus not only on business performance and financial
aspects but also on other items as key issues, such as the issuer’s business model, social reputation, the status of compliance with laws
and regulations, the implementation of a compliance system and corporate governance, and the planned uses of the proceeds. We
conduct more thorough due diligence on these issues by undertaking field work, meetings and other initiatives, and sometimes makeproposals for improvement to the issuer. If major concerns remain even after taking such measures, we report them to the Chief Risk
Officer (CRO).
We also collect information provided by public institutions within and outside Japan and exchange information with external parties tobe aware of ESG issues existing in the countries and regions where the Group conducts business operations. We then consider taking
appropriate measures for important issues.

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OthersPartnership"Declaration of Partnership Building"Daiwa Securities Group Inc. (“the Company”) declares that we will focus on the following items in order to build a newpartnership by promoting cooperation, coexistence and co-prosperity with business partners in the supply chain andbusinesses aiming to create value.
1. Coexistence and co-prosperity of the entire supply chain and new cooperation beyond scale and affiliate
By working with the other business partners through direct business partners (from "Tier N" to "Tier N + 1"), we will
work to increase the added value of the entire supply chain, and at the same time, we aim to build coexistence and coprosperity with our business partners through collaboration that goes beyond scale and existing business relationships.
At that time, from the perspective of business continuity in the event of a disaster and work style reform, we will also
promote support such as the introduction of telework for business partners and advice on BCP (Business ContinuityPlan) formulation.
(Individual item)a. Cooperation between companies
Our mission is to contribute to the development of society and the economy through financial and capital markets, andwe are focusing on solving social issues that are becoming more complex and diversified with the times. By providing allof our solutions, including support for industrial development and reorganization, discovery and development of new
industries, funding support for solving social issues, and business succession consulting, we aim to maximize value andutility to all stakeholders including business partners.
d. Greening efforts
It is also necessary to solve environmental problems in order to create a sustainable and prosperous society. We haveformulated the "The Daiwa Securities Group Net Zero Carbon Declaration", and we support a smooth transition to acarbon-free society through financial businesses, including support the realization of a decarbonized society throughfinance, support for new technologies that contribute to the realization of a decarbonized society, the provision of
investment opportunities for them, promoting solution businesses such as advisory businesses for customers in thefield of renewable energy. In addition, in order to reduce the environmental load of society as a whole, including the
supply chain, we have announced "Our Approach to Green Procurement" that stipulates environmental considerationsin procurement activities. Furthermore, in order to strengthen the management system for environmental and social
risks in our business, we have formulated the "Environmental and Social Policy Framework" and will work with our
suppliers and business partners to solve environmental problems throughout the supply chain.
e. Efforts on health management
We will work on practicing health management, public awareness, and health management support for business
partners.
2. Compliance with "Promotion Standards"
We will comply with desirable business practices between main subcontracting enterprise and subcontractors(“Promotion Standards” based on the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises),
and we will actively correct business practices that hinder the establishment of partnerships with business partners.
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Others(1) Price determination method
We will not make unreasonable cost reduction requests. When deciding price, if there is a request for consultation fromthe subcontractor, we will respond to the consultation and fully discuss it so as to include the appropriate profit of thesubcontractor, such as considering the impact of the increase in labor costs. When making a contract, including thedetermination of price, the parent company will clearly indicate and deliver the contract conditions in writing, etc.
(2) Payment terms such as bills
The subcontract price will be paid in cash if possible. When paying by bill, we will try not to bear the discount fee etc. on
the subcontractor and make the payment terms within 60 days.
(3)Intellectual property and know-how
We will conduct the transaction based on the guidelines and contract templates for intellectual property transactions,and we will not request to make a one-sided nondisclosure agreement, disclose know-how using the transaction
position, and transfer intellectual property rights without compensation.
(4) Wrinkles due to work style reforms, etc.
In order for our business partners to harmonize to work style reforms, we will not place orders for short delivery times
or make sudden changes in specifications to subcontractors without appropriate cost burden. In the event of a disaster,we will not impose a one-sided burden on subcontractors in terms of transactions, and when resuming business, wewill give consideration to the continuation of business relationships if possible.
3. Others (optional description)
We have "Contributing to society" as one of our Corporate Principles, and we believe that it is our mission to contributeto the development of society and economy through financial and capital markets. With a high sense of morality andduty, we aim to contribute to the sustainable development of the society. We will pursue both social and economic
value by emphasizing communication with all stakeholders, including our business partners, and solving social issues
that we have grasped through the active communication.
February 8, 2022
(Updated October 14, 2022)
Daiwa Securities Group Inc.
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OthersEngagement with Shareholders and Investors
Daiwa Securities Group works hard to promote communication with shareholders and other investors. We will strive to provide
shareholders and investors with improved communications and information that are easy to understand.

Breakdown of Shareholders(Note 1) The percentages of shareholdings are rounded off to one decimal place.
(Note 2) “Other” includes shares held by central and local governments and securities companies, as well as treasury shares.

Capital Policy
At Daiwa Securities Group, we strive to balance efficient capital management, investment in growth that contributes to improving
corporate value, and active returning of profits to shareholders based on our solid financial foundation in order to achieve sustainablegrowth by earning healthy profits. We aim for expansion through a capital recycling model that places emphasis on capital efficiency.

Dividend Policy
Daiwa Securities Group Inc. strives to continuously enhance shareholder value, including profit distribution. In principle, dividends arepaid semiannually (interim and year-end dividends) at a payout ratio of 50% or more based on consolidated financial performance.
However, after taking stability into account, when we can secure a sufficient amount of internal reserves required for future businessdevelopment, we intend to increase returns to our shareholders, including share buybacks.

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We raised the target payout ratio from about 40% to at least 50% in FY2018. When we can secure a sufficient amount of the internal
reserves required for future business development, we intend to increase returns to our shareholders, including share buybacks. The
full year dividend payout ratio was 52.3% in FY2021.
About dividends ＜Japanese only＞

Share buyback program
Buyback period

From May 18, 2022 to March 24, 2023

Total number of shares repurchased

33 million shares (maximum)(Percentage of total number of issued shares excluding treasury stock: 2.22%)

Total amount of shares repurchased¥25 billion (maximum)*The program was announced on April 27, 2022 along with the announcement of financial results for the fourth quarter of FY2021

Fair Disclosure
The Group has formulated a Disclosure Policy, which outlines the Group’s basic approach to information disclosure, and strives toprovide information that is fair, timely, and appropriate.
As a company engaged in the securities business, we are committed to fair information disclosure in accordance with the Fair
Disclosure Rules so that we will be a role model for other listed companies. We will strengthen disclosure not only of financial
information, but also nonfinancial information with social and environmental aspects that are not apparent in the financial figures inthe short term.
Disclosure Policy

Communication with Shareholders and Other Investors
Every year, many shareholders attend our general meeting of shareholders, which is an opportunity for us to interact directly witheveryone. For the general meeting of shareholders held in June 2022, we recommended that shareholders refrain from coming to thevenue on the day of the meeting from the perspective of preventing the spread of COVID-19. Meanwhile, we enabled shareholders who
did not come to the venue to watch the meeting on the Internet.
To increase communication opportunities, we also carry out various IR activities. These include telephone conferences on the days ofearnings announcements, briefings about the company for individual investors, management strategy briefing sessions, one-on-one
meetings with institutional investors and analysts in Japan and overseas, and participation in Daiwa Investment Conferences held
within and outside Japan.
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OthersFrom February 2020, we started refraining from holding briefings at venues and one-on-one meetings from the viewpoint of preventing
the spread of COVID-19. However, we have been actively engaging in dialogue using alternative methods such as websites andtelephone to continue to communicate with our shareholders.
In addition, we are further developing information disclosure on our IR websites and publishing integrated reports and business
reports for shareholders. We will continue working to make our communications even more precise and easy to understand forshareholders. Feedback and questions received from shareholders are reported to the CEO and other management personnel, as well
as at Board of Directors meetings.
Questionnaire for Shareholders
We distribute a questionnaire to shareholders coinciding with the distribution of rewards under our shareholder rewards
program at the end of September, to gather and incorporate their views into management and IR activities. The findings of thesequestionnaires are utilized to enhance satisfaction with the shareholder rewards program and to improve our business
operations.
Shareholder Rewards Questionnaire Contents at the End of September 2021
When did you first purchase our shares?
Why did you choose to buy Daiwa Securities stock? (multiple answers allowed)
How do you get information about Daiwa Securities? (multiple answers allowed)
What types of disclosure and corporate communications activities would you like to see enhanced in the future? (multiple
answers allowed)

Shareholder Rewards Program
Daiwa Securities Group Inc. has been implementing a shareholder rewards program for over 10 years to express our continuing
gratitude to shareholders. We also introduced a catalog system for rewards at the end of March 2008. Reward products areprovided semiannually, at the end of March and September. Shareholders can choose from 30 items such as regional
specialties, charitable donations, and "Kaisha Shikiho," a quarterly journal on investment.
Starting with the shareholder rewards offered to shareholders of record on September 30, 2017, if shareholders request reward
items on our website, we donate ¥20 per case to "Daiwa Securities Group Children Support Fund for a Bright Future,"established in the Public Resources Foundation. We thus support activities for improving the environment surrounding children
and breaking the cycle of poverty through NPOs engaged in fighting child poverty.
It also became possible to select donations to Single Mothers Forum, a certified NPO, and the Shareholders Incentives
Endowment Fund for the SDGs, established by the Japan Securities Dealers Association, as a donation recipient group from theshareholder rewards offered to shareholders of record on March 31, 2019.
The contributions made for the NPO will be used for initiatives to give congratulatory money to children in single-parent
households who enter elementary, junior and senior high schools and colleges and the donation for the Endowment Fund will
use to support school meals at the United Nations WFP, which conducts food support activities for the purpose of eradicating
hunger.
Starting with the shareholder rewards offered to shareholders of record on September 30, 2019, we have been gradually
expanding our shareholder rewards programs in collaboration with our Group companies. More specifically, we have enabledshareholders to receive a discount on the initial cost of private nursing homes under the name of "Good Time Living" and rental
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Othersresidences for the elderly under the name of "Platesia," both of which are operated by Good Time Living Co. Ltd. We have also
added preferential services that can be used when staying at hotels owned by Daiwa Hotel Private Investment Corporation, as
well as discounts and preferential services provided at hotels and golf courses in which Daiwa PI Partners Co., Ltd. invests. In
this way, we provide shareholders with opportunities to receive a variety of preferential services at facilities related to theGroup.
For details on shareholder rewards, click here ＜Japanese only＞
Initiatives in FY2021

Dialogue with Various Stakeholders
In FY2021, we held a total of 191 meetings with institutional investors and analysts. To prevent the spread of COVID-19, we held
all these meetings by phone or online and continued to actively disseminate information contributing to the improvement of
the Group's corporate value. We communicated our Medium-Term Management Plan started in 2021, an overview of ourmanagement policy, and other information efficiently and effectively in earnings announcements and management strategy
briefing sessions, as well as in integrated reports and business reports. For institutional investors in Japan and abroad, we
implemented effective activities suited to each investor base, and held telephone conferences by top management withoverseas institutional investors. With regard to ESG dialogue and investment, in December 2018, we held an ESG meeting for
institutional investors and analysts, with outside directors participating. From FY2019, we conducted one-on-one ESG meetings,
exchanging opinions with institutional investors. The topics for these meetings varied widely, including materiality (importantmanagement issues), the status of responses to TCFD, Net Promotor Score (NPS), the effectiveness of the Board of Directors,
cross-shareholdings, and director compensation systems. In February 2022, we held a theme meeting for institutional investors
and analysts targeting the real estate asset management business and Daiwa Energy & Infrastructure Co. Ltd. of investment
division.
We also focused on briefings for individual investors, with the CEO participating. As all of those were held online from theperspective of preventing the spread of COVID-19, we were able to attract the participation of more investors and larger
audiences than in FY2020. At these briefings, we provide a question and answer session and conduct a survey, thereby obtaining
diverse feedback to use for the improvement of communication with individual investors in the future.
For details on IR events and briefings, click here

Number of overseas IR activities held in FY2021
Number of meetings with institutional
investors and analysts(all held by phone or online)

191 meetings

including IR activities with investors
in North America:

11 events

including IR activities with investors
in Europe:

19 events

including IR activities with investors
in Asia:

30 events
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Number of briefings for individual
investors(all held online)

8

Video streaming of company briefings
for individual investors:

2 video streams

Total number of live participants andon-demand video viewers Approx.

18,700 (approx. 17,600 people in the previous fiscal year)

Internet streaming of May 2022 management strategy briefing (President and CEO Nakata)Video of May 2022 management strategy briefing
For a list of videos of company briefings for individual investors, click here ＜Japanese only＞

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OthersWorkforce Statistics
Daiwa Securities Group (Consolidated)
Number of employees(Unit: persons)
As of March 31, 2021

Employees
Japan

As of March 31, 2022
Temporaryemployees

FA*1

Employees

Temporaryemployees

FA*1

Male

7,819

40

-

7,646

37

-

(Careertrack*2)

7,291

-

-

6,991

-

-

(Managers)

4,132

-

-

4,149

-

-

Female

5,292

32

-

5,220

27

-

(Careertrack*2)

3,843

-

-

3,738

-

-

(Managers)

654

-

-

739

-

-

Japan total

13,11172

357

12,86664

174

Overseas

1,913

-

33

1,959

-

88

Total

15,02472

390

14,82564262*1. Financial advisors*2. Includes employees in broad regional career-track positions (with job transfers involving relocation within a certain area) and in regional career-track
positions (without job transfers involving relocation), and specialists

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OthersNumber of New Graduates Recruited

Daiwa Securities Group appoints talented human resources regardless of gender.
The Group conducts recruiting activities with the goal of stably maintaining the ratio of women among new graduates recruited at 50%
in each fiscal year until FY2025.
Career-track
employees,
regional careertrack
employees, etc.

April 2018

April 2019

April 2020

April 2021

April 2022

Male

289

337

244

164

232

Female

289

340

216

155

170

Ratio of women

50.0%

50.2%

46.9%

48.6%

42.3%

* The data covers eight Group companies: Daiwa Securities Group Inc., Daiwa Securities Co. Ltd., Daiwa Asset Management Co. Ltd., Daiwa Institute of
Research Ltd., Daiwa Institute of Research Business Innovation Ltd., Daiwa SB Investments Ltd (now Sumitomo Mitsui DS Asset Management Co., Ltd.,
Daiwa Securities Business Center Co. Ltd., and Daiwa Corporate Investment Co., Ltd.
The data covers seven Group companies from April 2019. For April 2021, four Group companies (Daiwa Securities Co. Ltd., Daiwa Asset Management,
Daiwa Institute of Research, Ltd., Daiwa Securities Business Center).

Daiwa Securities (unconsolidated)
Number of Employees(Unit: persons)
FY2017Japan

FY2018FY2019FY2020

FY2021

Male

5,216

5,204

5,144

5,018

4,842

Female

3,824

3,975

4,032

3,936

3,832

Total

9,040

9,179

9,176

8,954

8,674

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OthersNumber of New Graduates Recruited
April 2018

April 2019

April 2020

April 2021

April 2022

Male

219

262

169

121

161

Female

229

263

142

102

120

Ratio of women

51.1%

50.1%

45.7%

45.7%

42.7%

* This data covers career-track and regional career-track employees

Average Age
FY2017FY2018FY2019FY2020

FY2021

Average age (as awhole)

38.0

38.3

38.4

38.9

39.3

Average age (male)

39.6

39.8

39.7

40.2

40.5

Average age (female)

35.7

36.2

36.6

37.2

37.8

* This data covers Daiwa Securities

Average Number of Years of Service
FY2017FY2018FY2019FY2020

FY2021

Average number ofyears of service (as awhole)

13.7

13.8

13.9

14.4

14.9

Average number ofyears of service (male)

15.3

15.4

15.5

15.9

16.3

Average number ofyears of service(female)

11.4

11.5

11.8

12.4

13.0

* This data covers Daiwa Securities

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FY2019FY2020

OthersWorking Hours and Paid Vacation Usage Rate
FY2017FY2018FY2021

Annual regular
working hours (hours)

1837.51830

1807.51837.5

1,830

Average monthly
overtime hours(hours)*1

23.2

22.8

21.7

21.2

21.6

Paid vacation usage
rate(Average number ofdays taken)

68%(14.2)

68%(14.3)

72%(16.0)

72%(15.9)

70%(16.0)* This data covers Daiwa Securities*1. Figures for employees who are members of Daiwa Securities Group Employees’ Union

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OthersHiring Initiatives
Approaches and Policy
Daiwa Securities Group wants all our employees to work with a high level of loyalty and motivation. All new college graduates recruitedby the Group, including those with disabilities, are brought on as full and regular employees so that newly hired employees will be able
to have a sense of trust and pride in the Group, and a sense of solidarity with their colleagues. We are making efforts to provide anenvironment where a diverse range of people can perform to their full potential.
In order to flexibly accommodate job-seekers, we hire year-round, and new employees may join the company even after April.
We also focus on attracting people capable of excelling globally in order to develop a global network and strengthen alliancestrategies.
Daiwa Securities Group offers internship programs to provide opportunities for gaining firsthand experience in the securities businessthrough interaction with employees.

Fairness in Hiring
Daiwa Securities Group has formulated and announced its Guidelines for Fair Hiring, comprising three fundamental principles for
ensuring fair hiring practices.
We also provide training to employees involved in the hiring process to ensure that they are fully aware of the Guidelines for Fair
Hiring.

Guidelines for Fair Hiring
1. Utmost respect for the rights of the applicants
2. Eligibility for all individuals who meet the hiring criteria
3. Making all hiring decisions based on a fair and objective evaluation of the applicants’ ability, aptitude and motivation

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Recruitment of University Graduates
In FY2011, we began hiring recent university graduates who had obtained their diploma within the preceding three years with orwithout any work experience during the period as part of our efforts to build a diverse workforce. These recruits receive the same
training as new graduates.
Number of new employees for FY2022

402 people (4 group companies*）* Daiwa Securities Co. Ltd., Daiwa Asset Management Co. Ltd., Daiwa Institute of Research Ltd., Daiwa Securities Business Center Co. Ltd.

Click here to see Number of new employees for FY2022

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OthersDiversity and Inclusion
Approaches and Policy
One of the areas in which Daiwa Securities Group focuses its efforts is diversity & inclusion. We are working to develop personnel who
provide additional value and build an organization in which members thrive as they recognize and respect each other's diversity.
In order to accelerate our diversity & inclusion efforts, we have established a Diversity and Inclusion Promotion Committee and an
SDGs Promotion Committee, which regularly engage in discussions.
The predecessor of the Diversity and Inclusion Promotion Committee was established in 2008. The Committee now meets once every
quarter, with President & CEO Seiji Nakata serving as a chairperson. Staff from various positions and divisions, from executives andmanagers to young employees, participate as advisors to discuss and verify the status of various measures, including efforts to achievegoals related to diversity and inclusion and support for balancing work with childcare and nursing care.
The SDGs Promotion Committee, established in 2018 and led by chairperson President Seiji Nakata, provides a space to discuss Group
policies related to the promotion of SDGs. We always invite external experts to the Committee, and this has enabled the Committee toutilize the experience and insights of those experts in their discussions.

Encouraging Women to Succeed

Daiwa Securities Group proactively appoints talented human resources regardless of gender. To develop female leaders who playleading roles in Japan's financial industry, the Group actively promotes female employees while advancing the development of anenvironment that enables them to continue working energetically even after going through life events such as marriage and childbirth.
We have created an environment that makes it easier to consult about career and other matters, as well as having launched theinternal online social network "ANSWERS," which is a system that enables executives and employees to connect with each other acrossJapan. We also undertake initiatives such as providing career training for female employees and introducing thriving female
employees as role models in internal publications in order to increase the number of women in managerial positions. We will support
the efforts of companies by publicizing the status of their support for women's advancement in the Group.
In 2015, the Chairman of the Board of Daiwa Securities Group Inc. showed his support for the "Declaration on Action" by a group ofmale leaders who will create "A Society in which Women Shine" spearheaded by Japan's Gender Equality Bureau Cabinet Office.
In 2009, four female executives were appointed simultaneously. To incorporate more diverse perspectives into group management,
Daiwa Securities Group Inc. has four female Directors, and the Group as a whole has 13 female executives as Directors, Corporate
Executive Officers (Shikkoyaku), Executive Officers (Shikkoyakuin), and Audit & Supervisory Board Members. Also, the Chairman of theBoard and President and CEO of Daiwa Securities Group Inc. started to participate as members in the 30% Club Japan, which waslaunched in Japan in May 2019, in support of its activities. The 30% Club Japan aims to increase the proportion of women in the top
management of Japanese companies, setting up the target of boosting the percentage of female members in the Board of Directors of
TOPIX 100 companies to 30% by 2030.
More and more women are playing active roles in wider fields. For example, women now account for approximately 20% of branchchiefs and two women serve as the chiefs of overseas offices (as of the end of June 2022). The increase in the number of role models
has made it easier for women to envisage their career paths. In recent years, this has led to a significant increase in female employees
aspiring to advance their careers by switching to career-track, broad regional career-track, and regional career-track positions. We have148

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Othersalso implemented various systems and measures that are beyond the legal requirements to help women continue to work
energetically even after going through life events such as marriage and childbirth.
Women from our Group have been introduced by Nikkei Inc. in its Nikkei Womenomics Project and by Nikkei Inc. and Nikkei
Business Publications Inc. in their Nikkei Women's Empowerment Project. Please have a look. (Japanese only)
WOMENOMICS STORY Daiwa Securities Group Vol. 6 Click here to read the article on Keiko Tokuhiro, "Connect with
People, Create Possibilities: How to Turn Problems into Opportunities"
WOMENOMICS STORY Daiwa Securities Group Vol. 5 Click here to read the article on Shoko Ochiai, "Tackling Challenges
at My Pace: From My Hometown Branch to a Global Financial Center"
WOMENOMICS STORY Daiwa Securities Group Vol. 3 Click here to read the article on Ei Ga, "The Future-oriented
Leadership I’m Creating Through My Own Diversity"
WOMENOMICS STORY Daiwa Securities Group Vol. 2 Click here to read the article on Maika Oda, "Persistently Taking on
New Challenges to Better Serve Customers Throughout Their Lives"
WOMENOMICS STORY Daiwa Securities Group Vol. 1 Click here to read the article on Saika Inomata, "Using My Own
Sensibilities and Legwork to Discover Promising Information that Links Companies and Investors"
Empowerment Report Click here to read the article on Hiromi Uemura, Daiwa Securities Business Center, "Take on
Challenges Without Being Afraid of Opportunities: Give it a Try, and the World Will Change"
Empowerment Report Click here to read the article on Ayaka Yugami, Daiwa Securities, "I Want to Take on More
Challenges: Transferring from Sales to IT to Press Forward with DX"
Empowerment Report Click here to read the article on Emiri Sakamoto, Daiwa Securities, "I Want to Master This Field:
Devoted to Bond Sales, Using Overseas Experience as Strength"
Empowerment Report Click here to read the article on Kaori Matsushita, Daiwa Securities, "From Regional Clerical
Position to Branch Chief: I Want to Become a Role Model for Female Employees"

Targets Related to Initiatives for Empowering Women

Daiwa Securities Group has aimed to raise the ratio of women in director's positions to at least 30% by 2030, and we have set specifictargets for the years through FY2025. In this manner, positive steps are being taken to provide an environment in which employees withdiverse values can maximize their capabilities.

Targets for Years through FY2025 (Daiwa Securities)
Women account for at least 25% of people managerial positions by FY2025, reaching 30% by 2029
Continue hiring high quality employees, regardless of gender, and maintain a stable ratio of 50% of women among newly
recruited graduates every fiscal year
50% of women among participants in training, which aims to provide participants with various skills and improve theirexpertiseContinue to maintain a 100% rate of childcare leave use by male employees and a childcare leave duration of 14 days or
more
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OthersSupport for Female Employees' Career Advancement
By increasing the number of role models, we are making it easier for the Group's female staff to envision their career path. In thiscontext, there has been a sharp increase in female employees aspiring to advance their careers by switching to career-track,
broad regional career-track, and regional career-track positions in recent years.
To date, more than 1,500 female employees have converted to career-track positions.
An increasing number of employees have also taken advantage of our Professional Return Plan, a system for re-hiring
employees who left work to raise children or care for family members, starting them at the same level of compensation as when
they left. The scope of this system was expanded in FY2015. This has helped us to secure talented personnel who support
business operations. The number of female employees right before being promoted to managerial positions is 1,775 at the endof June 2022, substantially increasing from 1,093 in 2005.
We also launched a career support training initiative for female employees (Daiwa Woman's Forum) in FY2014, and a program
for women in managerial positions (Daiwa Woman's Management Forum) in 2018. These programs have contributed to building
networks among women.

Job shift system
With regard to job shifts, up to now more than 1,500 people have shifted to career-track or broad regional career-track positions(positions that can be relocated within a certain area) or regional career-track positions (positions that do not involve
relocation), and the number of female employees active in a wide range of jobs has increased significantly.
The increase in the number of role models has resulted in a major rise in the number of female employees who are aiming to
improve their careers through a shift to career-track positions.

Internal online social network: ANSWERS
In 2021, we introduced ANSWERS, an internal online social network through which employees can consult with each other, help
each other with difficulties, and build networks. It presents them with opportunities to meet role models, broadening theirperspectives regarding future career advancement, as well as to communicate with the management.

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OthersAppointment of Female Executives and Women in Managerial Positions

Daiwa Securities Group has a total of thirteen women in top managerial positions who work as directors, corporate executive officers,
executive officers, and auditors. They include five female executives serving as directors and corporate executive officers at Daiwa
Securities Group Inc. The number of women in managerial positions is increasing year by year, with the Group's total number standingat 739 as of the end of June 2022. The ratio of women in managerial positions has risen from 2.2% at the end of FY2004 to 15.1% on agroup-wide basis (up from 2.3% to 19.7% at Daiwa Securities).
Becoming a Member of 30% Club Japan

Daiwa Securities Group Inc. supports activities undertaken by the 30% Club Japan, with its Chairman of the Board and President
and CEO participating as members. The organization, launched in Japan in May 2019, aims to increase the ratio of women in top
management of Japanese companies. It has set the goal of raising the ratio of women in the Boards of Directors at the TOPIX 100
companies to 30% by 2030. Chairman of the Board Takashi Hibino also participates as a member of the Steering Committee. We
will accelerate our initiatives to produce female leaders who will lead Japan’s financial industry.

Trend in Number of women in managerial positions

Since the establishment of the "Women's Advancement Promotion Team" in 2005, the Group has continued to make various efforts
with the aim of supporting women's advancement and realizing "work-life balance" for employees, while establishing various support
systems for work-life balance that exceed legal requirements. As a result of our efforts so far, the number of female managers has
sextupled quadrupled compared to before the introduction of the measures.
The Group operates a fair treatment and evaluation system that encourages all employees, from young people, mid-level employees,
and experienced employees, regardless of their years of employment, to work hard at a higher stage and in a position of greater
responsibility. Also, based on the belief that promoting appointments based on fair evaluations and creating an environment in which
diverse human resources can maximize their abilities will lead to an increase in corporate value, even during child care leave,
employees are evaluated correctly based on their achievements up to that point and are eligible for promotion. The Group has createdan environment in which employees can aim for career advancement even as they experience life events.
As a result of various efforts, the number of role models has increased, and the number of female employees in positions just below
management positions has doubled since 2005.
Furthermore, the Group is appointing future candidates for executives regardless of gender at an early stage, and is working to develop
candidates for management executive positions through selective management training.
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OthersDaiwa Securities Group
2006 As of
March 312018 As of
March 312019 As of
March 312020 As of
March 312021 As of
March 312022 As of
March 31

Number of
women inmanagerial
positions(Consolidated)

97

424

490

562

654

739

Ratio of female
managers

2.7%

9.4%

10.5%

11.9%

13.7%

15.1%

Daiwa Securities Co. Ltd.

In terms of the ratio of female managers, the Group is continuing various initiatives with the goal of increasing the ratio to at least 25%
by 2025 and 30% by 2029 The ratio of women who have a position at or above the level of manager is 9.5% (40/422), and the ratio of
women at the level of section manager is 19.6% (533/2,718) (as of March 31, 2022).
2006 As of
March 312018 As of
March 312019 As of
March 312020 As of
March 312021 As of
March 312022 As of
March 31

Number of
women inmanagerial
positions(Consolidated)

77

329

378

432

504

568

Ratio of female
managers

2.8%

11.6%

12.9%

14.5%

16.3%

18.3%

* Deputy managers and above are counted as managers

FY2017FY2018FY2019FY2020

FY2021

Number of new
female managers(Daiwa Securities)

40

61

64

83

78

Ratio of womenamong new managers

24.4%

26.2%

26.8%

29.6%

39.4%

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OthersExternal Ratings for Initiatives

In recent years, we have received high ratings from external rating institutions as our support for women's advancement and initiatives
to promote work-life balance have been steadily bearing fruit.
We support the Declaration on Action by the Cabinet Office "Group of Male Leaders Who Will Create 'A Society in which
Women Shine'"
On December 18, 2015, Takashi Hibino, Chairman of the Board, endorsed the Declaration on Action of the "Group of Male
Leaders Who Will Create 'A Society in which Women Shine'" which is led by the Gender Equality Bureau of the Cabinet Office.
Under this activity, male leaders of companies actively engaged in promoting women's advancement shared a Declaration on
Action in order to maximize the abilities that women can have, and expanded the circle of support.

Formulated an action plan based on the Act on Promotion of Women's Participation and Advancement in the Workplace
Daiwa Securities Group has aimed to raise the ratio of women in director's positions to at least 30% by 2030, and we have set
specific targets for the years through FY2025. In this manner, we are further accelerating our efforts to provide an environment inwhich employees with diverse values can leverage their full potential.
[A general business owner action plan was formulated and submitted on April 1, 2021]
Daiwa Securities Action Plan [PDF:139.5KB][Press Release]"Setting Goals for Promoting Women's Advancement and Approval to the Cabinet Office of 'Meeting of Male Leaders to
Accelerate the Success of Women'" [PDF:103KB]
Since April 2005, Daiwa Securities Group Inc. has formulated an action plan based on the Act on Advancement of Measures to
Support Raising Next-Generation Children, and has been working to create a workplace environment where employees canwork comfortably while balancing their work and family life.
In recognition of this initiative, as of June 9, 2008, the Daiwa Securities Group Inc. received the "Child Care Support AuthorizedCompany Mark" (known as "Kurumin") from the Ministry of Health, Labour and Welfare as a "company actively working on
support for the development of the next generation" based on the Act for Measures to Support the Development of the Next
Generation.
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OthersFurthermore, on March 11, 2016, Daiwa Securities received the "Platinum Kurumin Certification" as an excellent "parenting
support company" that is working at a higher standard than companies that acquired "Kurumin."[A general business owner action plan was formulated and submitted on November 1, 2015]
Daiwa Securities Action Plan [PDF:256KB]

Support for the Success of Veteran Employees
As the careers of employees grow even longer, we aim to provide our veteran employees, who have a wealth of experience, with the
new skills they need to stay at the forefront of our times, and to create environments in which they can continue to thrive, thereby
contributing to the sustained growth of our company.
Daiwa Securities is greatly expanding its training programs for employees aged 45 and older, and has introduced a License Certification
System that provides incentives to employees who have improved their skills and polished their acumen as professionals. Since its
introduction, approximately 1,900 employees, accounting for about 60% of personnel aged 45 and older, have undertaken over 26,000
training programs.
Furthermore, Daiwa Securities Group has in place a Senior Advisor System that enables employees with a wealth of experience to play
an active role in the workplace. Senior advisors are dispatched to locations of their choice and engage in community-based consulting
and sales from a long-term perspective. In FY2017, we eliminated employment age limits for senior advisors, enabling them tocontinue working regardless of their age. For employees in other positions as well, we have raised the retirement age to age 70,
provided that certain conditions are met.
In addition, we have created a Senior Fellow System and have enhanced the personnel system for veteran employees with outstanding
expertise and knowledge who have made remarkable achievements. We support both work and caregiving, and are creating anenvironment in which employees can thrive without worrying about their future lives.
We have also introduced long service leave for employees in their 20th year and 30th year at the Group. The leave is designed withgratitude to provide employees who have contributed greatly to the Group's development with an opportunity to refresh themselves
and spend time with their parents, spouse, and other people around them who always support them.

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OthersEmployment of People with Disabilities
As of FY2022, Daiwa Securities Group had more than 200 employees with disabilities handling a wide range of responsibilities in ourhead office, sales branches and contact centers. We started recruiting new graduates with disabilities as regular employees (general
office staff) in FY2008, and in FY2011 broadened the scheme to career-track employees, regional career-track employees, and customer
service employees. Once people with disabilities are hired, we provide support for their career advancement by, for example, creating
opportunities for them to enter the career-track and regional career-track employment opportunities. To further strengthen our
support to employees, we also introduced the Daiwa LEAP Plan in 2018. This provides comprehensive support including a leave
program for outpatient treatment, subsidies for expenses incurred to start work, and the introduction of support tools according to thetype of disability. The Plan is a measure for bringing out employees’ talents while taking their respective circumstances into
consideration, and developing a pleasant working environment.
We have vigorously increased recruitment opportunities by holding briefings about the company for new graduates, participating incareer expos, and implementing job placement support programs for university students with disabilities.
Moreover, Daiwa Securities Group participates in the Accessibility Consortium of Enterprises (ACE), a general incorporated association,
as a member. ACE was founded for the purpose of establishing a model for people with disabilities that contributes to corporate
growth, and communicating information to society concerning human resources sought by businesses. As of October 2020, ACE has 37
corporate members, mostly large companies.
Through the holding of seminars and workshops for human resources personnel and employees with disabilities, as well as issuance of
educational brochures, ACE carries out awareness-raising activities for parties concerned, creates role models, and makes proposals tomanagement and society.
Our Group's "Daiwa LEAP Plan" initiative received a "Special Award" in the "Environment Creation Category" of the 2020 ACE Awards.

Employment Rate for Persons with Disabilities
FY2017FY20182.10%

FY20192.33%

FY20202.57%

FY2021
2.58%

2.62%

Promoting increased understanding toward the LGBT community andrelated issues
As an opportunity to deepen understanding of LGBT issues, LGBT themes are taken up in training for new and young employees, aswell as in training for those who have been promoted. A cumulative total of approximately 5,000 have participated in this training todate.
In addition, every year we hold a Human Rights Awareness Workshop for all employees in each department and office, which includes
video training and discussion to promote understanding of LGBT issues. In addition, the Group’s Compliance and Human Resources
departments receive training from the NPO Nijiiro Diversity to deepen their understanding of the fundamentals and case studies ofother companies in order to create a comfortable work environment. Our Human Resources department supports employees who areundergoing gender transition by allowing them to take time off. Efforts are also made to promote increased understanding amongsurrounding employees.
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OthersHuman Resource Development and Skill Enhancement
Approaches and Policy
The source of Daiwa Securities Group’s competitiveness lies in the capabilities of its employees. The Group has defined its personnel
ideals as "human resources who can provide high value-added solutions through the use of our 'Quality No. 1' integrity and specializedskills, who constantly make new discoveries, and who have positive mindsets, constantly taking on challenges as they seek to achieveeven higher targets." We are focusing on developing human resources that meet these ideals.
In particular, we offer extensive training programs to newly hired employees, as we believe that this is a critical period for theirtraining. Seeking to achieve the “Quality No. 1” in the industry, we adopt a system that allows employees to refine their knowledge,
techniques, and mindsets through a variety of programs in the curriculum. It enables us to nurture human resources with professional
skills at an early stage.
We believe that our employees must have a firm understanding of corporate ethics and compliance to ensure the development ofsound financial and capital markets. Accordingly, we provide all employees with regular training on information security andcompliance. We also believe that not only having a strong commitment to compliance but also maintaining a high sense of morality
and making decisions in light of general social norms is important for living up to the trust of customers and society. Based on thisbelief, we hold monthly discussions, using a case study approach, for young employees within the first five years of employment, withthe participation of senior employees.

Education and Training System
Daiwa Securities Group seeks to be a group of true professionals who love their jobs
and keep aiming high. Our employees not only acquire skills necessary for theircurrent work assignments but also make consistent efforts toward achieving theircareer visions. We have adopted an educational system comprising mandatory
programs clearly positioned as duties that must be worked on, and a variety ofoptional programs that can be chosen according to the needs of each employee for
their career advancement. In this way, we support the autonomous careerformation of each employee.
In 2019, we introduced the "Digital IT Master Certification System," a structured
system for developing human resources that can leverage digital technologies tocreate innovation within our business. In 2022, we set up Daiwa Digital College forall employees to learn the IT skills and information analysis skills that should beacquired toward the realization of DX strategy. We have thus introduced systems
aligned with our business environment and strategies, and are also working on
developing digital IT personnel, setting up a target of increasing such personnel to
200 or more as one of our Group-wide key performance indicators (KPIs).
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Number of times skill training was held in FY2020:

30 training courses held 57 times

Number of participants

6,488 people

Cumulative number of participants (FY2007-FY2021)

29,307 people

Cost for the Group's educational investment:¥1.9 billion

Cost per employee¥150,000

Training for Young Employees
Daiwa Securities Group views the first two years of an employee's career as a period for their basic training for becoming aprofessional. Accordingly, we implement the Daiwa Basic Program that covers this period of training. The program sets theitems and levels that should be acquired, and organically combines group training, OJT, e-learning, and support for theacquisition of qualifications. We have been conducting an educational program called “Q-Road” for employees in their third to
fifth year of employment. This program helps them improve their knowledge, techniques, and mindsets so that they canachieve “Quality No.1” in the industry. It sets high-level goals for them to further promote their growth.
Skill Training
We provide twice-a-year skills training aimed at enhancing the skills and techniques that employees themselves want toimprove as an opportunity for them to acquire various skills and special knowledge. We offer e-learning, which employees cantake when it is most convenient for them, and two-way online instructor-led training. We have thus developed a training systemthat can better satisfy employees' motivation for self-development. For example, in the "Inheritance and Business Succession
Master" course, which is led by a practicing tax accountant, employees learn basic knowledge of laws and systems and thenacquire practical skills by generating output through case studies. The course helps the participants to acquire the skills andspecialized knowledge necessary for conducting high-quality solutions business, and many of participants have stated that thecourse helped them better understand customers' issues and needs and provide solutions to address them. In addition, we offer
a wide range of training programs, such as programs for acquiring knowledge of M&A, real estate, and other solutions andenhancing digital literacy, so that employees can choose programs according to their career aims, regardless of their own
department and duties.
Training for Veteran Employees
We have been providing the Advanced Skill-building Program, a training program for employees aged 45 and older that isdesigned to continuously improve skills. We have also introduced a license certification system that provides incentives to
employees who play active roles in their divisions and continue to work to improve the skills that divisions will need in the
future as they implement our business strategies. Since its introduction, approximately 2,000 employees, accounting for morethan 60% of personnel aged 45 and older, have undertaken a total of over 32,000 training programs.

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OthersSupporting Employees Trying to Earn Credentials
Daiwa Securities sees Financial Planner (AFP and CFP®) and Certified Member Analyst (CMA) qualifications as core requirements, andhas set as a sustainability KPI a target of a combined total of 3,000 CFPs® and CMAs by FY2023. The number of employees with CFP®
certifications has exceeded 1,000 for the first time for a company/organization in Japan, making it the highest level in the industry.
CFP® is a high-level credential certifying knowledge and skills pertaining to the tax system, inheritance, and real estate fields, essential
for providing financial planning services. Moreover, through the Daiwa Basic Program and Q-Road learning program, nearly all
employees in their second year of employment acquire AFP qualifications. Our education system then allows employees to aim for
CFP® or Certified Member Analyst of the Securities Analysts Association of Japan (CMA) certifications by their fifth year, depending on
their own career goals.
We have also introduced an in-house Inheritance Planner Certification®. The certification is granted to employees who have completed
practical training, based on extensive knowledge obtained through the acquisition of CFP® certification, that is applicable to businessworksites. In addition, the company provides generous support by subsidizing certification costs so that employees can enhance their
specialized skills and become professionals.

Number of Persons Earning Major Credentials (as of March 31, 2022)
Number of persons earning CFP®
certifications:

1,321 people

Number of Certified Member Analyst of the
Securities Analysts Association of Japan(CMA)®:

1,509 people

Intra-Group Job Postings and the Career Track Change System
We have instituted a Career Track Change System that enables non-career-track employees to transfer to career-track and regional
career-track positions. Under the system, more than 1,500 employees have moved to other positions. We have also instituted a system
of intragroup job postings to help employees with skills and the desire to realize their potential to open new career paths.

Evaluation System
To ensure that all employees can continue working with a high level of motivation, it is important to have a fair and convincing
evaluation system. For this reason, Daiwa Securities Group has implemented a multifaceted evaluation system for managers whereby
subordinates conduct evaluation. This involves subordinates assessing each manager’s job performance in carrying out daily duties
and the results being fed back to the manager. The scheme aims to help managers to identify their challenges and improve their158

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Othersmanagerial skills through training programs and other means, thereby improving our overall productivity. The multifaceted evaluation
system covers all managers, including executives, the heads of departments, offices, and sales branches, and section chiefs.
Regarding the evaluation of employees, we conduct comprehensive evaluations that take their compliance-related performance into
account. In addition, we endeavor to create a personnel evaluation system that motivates all employees, regardless of years they arewith us, whether they are young, middle of career, or experienced veterans, to take on the challenges of the next stage of their careers
and to work in positions with greater responsibilities. In evaluating employees, we focus mainly on whether, in light of their respective
abilities, roles, and responsibilities, they are always changing and continuing to grow in their performance, contribution, and theachievement of the Medium-term Management Plan. Even while on childcare leave, employees are still eligible for promotions as we
properly evaluate their contributions to date.
Moreover, we have established a self-assessment system as a twice-yearly opportunity for employees to talk about their careers with
their superiors and the Human Resources Department. This system enables employees to share their career visions, strengths, andchallenges with their supervisors at one-on-one meetings and communicate to the Human Resources Division their degree ofsatisfaction with their jobs and also their opinions on the personnel and training systems, the workplace environment, and othermatters.

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Message from Management
Daiwa Securities Group is creating a working environment which flexibly responds to change and in which all employees
can continue to work energetically. Our aim is to create a workplace in which no one is left behind by achieving a highdegree of work-life balance that enables diverse personnel to thrive.
One of the Group's Corporate Principles is "placing importance on personnel" and the corresponding text is "The source of
the Group's competitiveness lies in the capabilities of its employees. The Group will promote the creativity of employees byoffering them a challenging and self-directed working environment that encourages their abilities and appropriately
rewards their contributions." We believe that maximizing the motivation of each and every employee will lead to higher
customer satisfaction and ultimately higher shareholder value. We are implementing various measures with the aim of
becoming a Group in which employees feel that their work is rewarding, and feel even more proud to be a member of theGroup, extending to their families and related parties.

Approaches and Policy
Daiwa Securities Group's management strategy states "Daiwa Securities Group is working to create a working environment which
flexibly responds to change and in which all employees can continue to work energetically" and "We are creating a workplace in which
no one is left behind by achieving a high degree of work-life balance that enables diverse personnel to thrive." We are making efforts topromote diversity, inclusion and work-life balance, aiming to achieve work styles in which work and life are in harmony, and toenhance the work environment, in which both men and women can work using a variety of work styles.
The Diversity and Inclusion Promotion Committee, which is chaired by the President and CEO, meets every quarter. Under strong
leadership, executives and employees working in various positions and departments, from executive officers and departmental
managers to young employees, participate in a wide range of discussions on various measures such as diversity, inclusion and160

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Otherspromotion of women’s advancement. The Group has also set up a Diversity and Inclusion Promotion Office in the Human Resources
Division to plan, make proposals, and promote diversity, inclusion and support for women's advancement. The Diversity and Inclusion
Promotion Committee and the Diversity and Inclusion Promotion Office are working together to implement various measures, andhold regular cross-Group women's advancement promotion meetings in order to advance efforts across the Group.

Various systems
Childcare leave

Employees can take childcare leave until the day before their child's third birthday.

Childcare support leave
for male employees

From 2022, wages of up to 4 weeks are guaranteed, in addition to childcare leave at birth andchildcare support leave, and in principle, the taking of leave of at least two consecutive
weeks is being promoted.
An environment enabling men to actively participate in child rearing has been developed.
The rate of childcare leave use has been at 100% for five years in a row since FY2017.

Pre-childcare leave formale employees

Can be taken when the employee accompanies the spouse to a pregnancy checkup andparticipates in a parents’ class, as well as for preparations for hospitalization, etc. before thebirth. The leave is designed to nurture an awareness of participation in child rearing among
male employees before the birth of a child. hird grade of elementary school.This system
hThis system has been used by a total of roughly 100 employees.

Short working hours
system

A system that allows employees to leave the company up to 90 minutes early until theirchildren graduate from elementary school

Exemption/restriction on
overtime work

Exemption from overtime work is possible until the employee's children complete the third
grade of elementary school. Overtime work can be limited until graduation from elementary
schoolSick/injured child careleave

Up to 5 days per child before elementary school, up to 10 days per year if the employee has 2
or more children.

Daycare subsidy

The Group subsidizes the cost of child care facilities or after-school care until the employee's
children reach the third grade of elementary school

Babysitter system

Employees can use a babysitting service contracted by the company at a special rate until
their children complete the third grade of elementary school. This system has been used by atotal of over 1,500 employees.

Support desk for
employees looking fornursery schools

Offers free-of-charge services that check information on nursery school facilities, the statusof availability, and other such matters on behalf of employees, thereby assisting them to findnursery schools. This system has been used over 200 times in total.

Job location changesystem

If an employee needs to relocate due to marriage, spouse job transfer, nursing care timecare, etc., the Group will provide a work position at the new location. Since fiscal 2007,
approximately 400 people have used this system

Spouse work
reassignment leavesystem

Employees can take up to 5 years of leave if their spouse is transferred overseas. This system
has been used by a total of over 70 employees.
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OthersThe Group pays 2 million yen as congratulations for the birth of the third and subsequent
childrenNursing care leave

Employees can take up to four periods of nursing care leave within 3 years (1095 days) for
each family member requiring care

Nursing care time

Employees can take up to 2 hours per day of family care time within 3 years from the start ofuse

Nursing care-support
leave

Employees can take leave to take care of family members who need nursing care, toaccompany them to a hospital, etc. or to carry out procedures on behalf of family members.
Up to 5 days per year can be taken (10 days for 2 or more family members). A cumulative
total of more than 2,000 people have made use of this benefit.

Nursing Care Travel
Home Expense
Allowance

The Group subsidizes travel expenses incurred when employees return to their parents’home to provide nursing care. A cumulative total of more than 230 people have made use ofthis benefit.

Life Support Paid Leave

Employees can take paid vacation when it is required for injury/illness, nursing care
preparation, fertility treatment, or nursing a child (up to 50 days)

Diversity and Inclusionphone line

The Diversity and Inclusion phone line provides various types of advice to employees
regarding balancing work and child care/ nursing care, career planning, etc.

Professional Return Plan
(re-hiring of sales staff)

A system to re-employ employees who have retired due to marriage, childbirth, or nursing
care, etc. with the same treatment as when they retired.
A cumulative total of more than 80 people have made use of system.

Expanded leave system

The Group has defined marriage preparation vacation; kids' ceremony vacation (forchildren's entrance ceremonies, etc.); family day vacation (to deepen family friendships);
parents' longevity vacation (to coincide with longevity celebrations for own or spouse's
parents); and volunteer vacation, and encourages employees to take paid vacation

2

Birth gift of million yen
from the third child

The telecommuting
systemThis has been instituted in every department, including Sales, as a means of promoting
employee autonomy and improving organizational productivity.

Flex time system

Depending on the nature of its operations, a unit can choose flextime (with a required coretime) or super flextime (no required core time) to improve organizational productivity.

Daiwa ELLE Plan

Regarding health issues for women who are active at various life stages, the Group provides
comprehensive support including measures for the menopause; ELLE vacations (for poor
physical condition during menstruation/menopause and fertility treatment); improvement ofliteracy such as e-learning training for managers; subsidies for specific fertility treatments;
and a work-at-home system to balance work and fertility treatment

The Group continues to educate its employees through various training sessions according to position regarding the initiatives andobjectives of "supporting women's advancement" and "promoting work-life balance" as management strategies. Furthermore, theGroup conducts training on its work-life balance support system for balancing work with child care and nursing care responsibilities
based on the idea that it is important to deepen mutual understanding not only for employees who use the system, but also for theemployees who work alongside them.
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social issues

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Activities

Environmental
Initiatives

OthersIn addition, once a year, we conduct a survey for all employees about work-life balance and balancing work with child care and nursing
care responsibilities. We survey the recognition, degree of use, and issues of our systems, while soliciting opinions and requests from
employees, to promote further understanding and enhance penetration of the systems. Based on employee feedback, we also review
the design and operation of these systems.

Various measures
Diversity and Inclusion Promotion Committee
President and CEO Seiji Nakata was appointed chairperson of the Diversity and Inclusion Promotion Committee, which meets
every quarter. Under stronger leadership, the Committee promotes women's activities and works on dramatically improving
productivity. Staff from various positions and departments, from executives and managers to young employees, participate asadvisors to discuss and verify the status of various measures, including efforts to achieve goals for the promotion of women's
activities, support for balancing work with childcare and nursing care, leaving work before 19:00, planned annual leave taking,and male employees taking childcare leave.
System Usage Calendar
The Group introduced a "System Usage Calendar" that allows all employees in the department to share their plans for using
annual leave, continuous leave, and the systems for balancing work with child care (short working hours system, etc.). It isextremely effective in promoting annual leave for all employees, and has become a system that allows each workplace to use
the leave systems smoothly.
Distribution of Career Design Books
To support the career design of each and every employee, the Group posts “Career Design Books” on the internal portal site,making them available to all employees. These books compile information on a variety of career paths and positions, various
personnel systems and education/training programs, and welfare and other systems.
Guidelines for balancing work and child care
The Group has established guidelines for balancing work and child care for all employees and department managers so that
employees can take child care leave and return to work smoothly. These guidelines encourage appropriate consideration to
make it easy for employees to use the system according to their physical condition and individual circumstances. They also
promote understanding among other employees, and describe how to distribute work according to the situation and how toprovide training as a role model. They go on to describe how to give fair and impartial evaluations and feedback to employeeswith various circumstances, such as those who will use the system and those who have returned to work. Through training andother measures managers can remain informed and educated.
In addition, the Group has distributed a list of the various work-life balance systems to managers as "Work-life balance systems
for balancing work and child care/nursing care that managers need to know about."
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Education for managers
Top management continually communicates about the Group's diversity & inclusion efforts including women's advancement
and their purpose at meetings where all executives and all department managers gather, and the Group is promoting training
for managers including all line section managers. By deepening their understanding of the initiatives for promoting the careersof women, their purpose, and the work-life balance support systems, managers themselves are working to create an"environment in which all employees can continue to work actively."
Furthermore, for the purpose of improving management ability and the productivity of the entire Group, subordinate
employees evaluate the work and behavior of managers in their daily work, and the results are fed back to the individual. In thisway, a "360-degree evaluation" is conducted for all management including executives, department managers, and section
managers. As part of these evaluations, the status of diversity efforts is also evaluated, and the results are incorporated into the
manager's evaluation.
Self-reporting system
The Group has implemented a "self-reporting system" as an opportunity for managers to think about their future goals andcareer development. Managers share their hopes and goals with their superiors and interviews are held to support their careeradvancement as managers.
Internal online social network: ANSWERS
In 2021, we introduced ANSWERS, an internal online social network through which employees can consult with each other, help
each other with difficulties, and build networks. It presents them with opportunities to meet role models, broadening theirperspectives regarding future career advancement, as well as to communicate with the management.
Expanded support for balancing work and nursing care
The Group is helping employees balance their work and nursing care in various ways. To further improve the environment inwhich employees with abundant experience and a high degree of specialization can continue to work actively without feelinganxious about future nursing care, the Group established a nursing care leave system that exceeds the legal requirements (up to1095 days, can be acquired in four periods) and introduced a work-from-home system for all departments including sales
departments. Further, following consultations with employees who are providing nursing care and their families, the Group
introduced a Nursing Care Concierge Service that can provide various solutions. Moreover, in conjunction with "Nursing CareDay" on November 11th, the Group held study sessions at all branches entitled "Responding to an Aging Society and Balancing
Work and Family Care," to raise employee awareness and foster a corporate culture that makes it easy to use the systems.

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Social Contribution
Activities

Environmental
Initiatives

OthersExpanding the telecommuting system
Taking advantage of the fact that we distributed two-in-one terminals to all employees, we expanded our teleworking system,
which we introduced in March 2020 and which includes working from home. This has made it possible to work outside the officein an environment equivalent to the office environment, producing a diversity of work styles that are aligned with the life stagesof employees and helping improve the business continuity and productivity of the company as a whole.
Enforcement of leaving the office before 7 p.m.
Since 2007, led by our policy of creating an environment in which employees can work efficiently within time constraints, theGroup has encouraged employees to leave the office before 7 p.m. and has set the goal of achieving a 100% implementation rate
in all divisions. Furthermore, the Group has developed guidelines for work and meetings where multiple departments
collaborate. The Human Resources Division regularly confirms if employees are leaving the company by 7:00 p.m., and theDiversity and Inclusion Promotion Committee has established a system for verifying the implementation status of this initiative.
Since 2015, the Group has been expanding investment in human resource development by capitalizing on the results ofproductivity improvements. In addition, in 2017 and 2018, the Group provided a "special allowance for work-life balance andwork style reform," and in 2019 provided a "special allowance for productivity improvement." Lump sum payments, funded by
the results of productivity improvement, were paid to employees separately from their bonuses.
Further, the Group operates an "hourly leave system" that allows employees to take annual leave in units of one hour, whichenables flexible work styles. The Group has also set up the "flextime system" according to the business situation of eachdepartment.
Promotion of taking annual leave
The Group promotes "taking planned annual leave" for the purpose of improving productivity and work efficiency by refreshing
the mind and body and bringing out new vitality. As part of its efforts, the Group introduced a System Usage Calendar andvarious initiatives, such as Kids' Ceremony Leave, Family Day Leave, Parents' Longevity Celebration Leave, Long Service
Gratitude Leave, Expecting Mother Escort Leave, Volunteer Leave, and Marriage Preparations Leave. Employees are made awareof the objectives and importance of the different kinds of leave through training, in-house broadcast, and the like.

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Environmental
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OthersFamily Workplace Visits
Since 2008, the Group been carrying out "Family Workplace Visits" in which we thank the families who support our employees
every day and invite them to the workplace.
Held at head offices nationwide, these events are popular with employees and their families. In 2020, these visits were held
online for the first time, and roughly 5,800 families participated.

Daiwa WLB* Station
A work-life balance promotion site exclusively for employees, which introduces the child care and nursing care systems andfeatures content on the subjects of self-improvement and health. It can be viewed from home while on leave, and the bulletinboard is used as a communication tool for employees.
* WLB: the abbreviation for Work-Life Balance

Work-life balance promotion site
"Daiwa WLB Station"

Legal Compliance
To protect and preserve each employee's rights, the Group regularly monitors the status of compliance with the Minimum Wage
Act, the Labor Standards Act "36 Agreement", and other relevant laws and regulations.
"Daiwakko" Daiwa Child Care ClubIn 2021, we created "Daiwakko," the Daiwa child care club, to provide both work and child care support to expecting mothers
and mothers taking care of children, assisting them to improve their skills and shape their careers so that they can feel secureand motivated as they continue to work while expecting children and providing child care. It is hosted on a dedicated site within
Daiwa WLB Station and offers ways for colleagues to connect and introduces various ways of using Daiwa's systems.
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OthersQuestionnaire about work-life balance
The Group regularly administers questionnaires to all employees concerning work-life balance and balancing work and childcare/nursing care. In 2020, we received responses from over 7,000 employees. We assess system usage conditions and collectrequests concerning systems, and we use employee feedback when revising the designs and operation of these systems.

Use of Group newsletter/Group satellite broadcastingIn every issue of the bi-monthly Group newsletter, there is a regular feature on "Turn diversity into power! Diversity & Inclusion
Lab," which introduces the Group's initiatives and systems for diversity & inclusion, and role models that are active in various
careers. In addition, the Group facilitates the sharing of best practices in each department via Group satellite broadcasting.

Child care/nursing care-related

With the goal of supporting the spouse's child care and smooth return to work, and supporting the further advancement of women, theGroup is continuing to advance efforts to achieve a 100% rate for men taking child care leave and an average of more than 14 days ofleave taken by 2025.

Trend in the number of employees taking child care leave
FY2017FY2018FY2019FY2020

FY2021

Female

695

696

680

646

582

Male

437

420

378

330

362

Total

1,132

1,116

1,058

976

944

Trend in the number of employees taking nursing care leave
FY2017FY2018FY2019FY2020

FY2021

Female

2

5

10

5

6

Male

3

3

3

3

2

FY2017FY2018FY2019FY2020

Other data
Childcare leave
usage rate

FY2021

Female100.0%

100.0%

100.0%

100.0%

100.0%

Male

100.0%

100.0%

100.0%

100.0%

100.0%

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FY2017Return ratefrom child care
leave

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

FY2018FY2019FY2020

Others

FY2021

Female

89.5%

91.4%

91.9%

92.1%

92.4%

Male

100.0%

100.0%

99.0%

100.0%

100.0%

Employment rate when a female
employee's child is 1 year old

100.0%

100.0%

100.0%

100.0%

100.0%

Short working hours system users

373

446

505

474

520

Daycare subsidy users

702

759

909

833

783

Birth gifts for third child

54

45

28

30

28

Initiative results/evaluation
External evaluations of initiatives

Results from the Group's efforts to support women's advancement and promote diversity & inclusion have been steadily realized, and
the Group has been highly praised by many external evaluation organizations in recent years.
Award for Companies That Promote Equality and Work-Life Balance Equality Promotion
Company Division "Director General of Tokyo Labour Bureau Excellence Award" (sponsor:
Ministry of Health, Labour and Welfare)Award for Companies That Promote Equality and Work-Life Balance Equality Promotion
Company Division "Minister of Health, Labour and Welfare Excellence Award" (sponsor:
Ministry of Health, Labour and Welfare)The 3rd Work-Life Balance Grand Prize "Excellence Award" in the Organizational Activity
Division (Sponsor: Japan Productivity Center)
The 4th "Nikkei Child Care Support Grand Prize" (sponsor: Nihon Keizai Shimbun)

6

0

0

2

9

0

0

0

1

0

1

1

0

2

2

1

0

3

1

0

2

2

2

2

The 3rd Diversity Management Award "Work-Life Balance Award" (sponsor: Toyo KeizaiInc.)
3rd overall in "BEST 100 Companies in Which Women Play an Active Role" 1st in Utilizationof Women category (sponsor: Nikkei WOMAN)
Award for Companies That Promote Equality and Work-Life Balance Family Friendly
Division "Director General of Tokyo Labour Bureau Excellence Award" (sponsor: Ministry of
Health, Labour and Welfare)
Career Supporting Company Award 2013 "Minister of Health, Labour and Welfare Award"(sponsor: Ministry of Health, Labour and Welfare)168

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Governance

Addressing
social issues

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Activities

Environmental
Initiatives

OthersSelected for "Diversity Management Companies 100 Selection" (sponsor: Ministry of
Economy, Trade and Industry)
Selected for FY2014 "Nadeshiko Brand" (sponsor: Ministry of Economy, Trade and Industry,
Tokyo Stock Exchange)
Selected for "Health & Productivity Stock Selection" in FY2014 (sponsor: Ministry of
Economy, Trade and Industry, Tokyo Stock Exchange)

4

1

0

2

5

1

0

6

0

1
1

0

2

7
8

1

2

9

1

0

2

0

2

0

2

0

2

2

Selected for FY2015 "Nadeshiko Brand" (sponsor: Ministry of Economy, Trade and Industry,
Tokyo Stock Exchange)
Selected for "Health & Productivity Stock Selection" in FY2015 (sponsor: Ministry of
Economy, Trade and Industry, Tokyo Stock Exchange)"BEST 100 Companies in Which Women Play an Active Role"
1st place for Promotion of Women's Advancement 5th place for Diversity Penetration(sponsor: Nikkei WOMAN)
Ikumen Company Award 2016 "Special Encouragement Award" (sponsor: Ministry of
Health, Labour and Welfare)
7th place for "Companies That Facilitate Easy Parenting 2016" (sponsor: Nikkei DUAL)
Award for Companies That Promote Equality and Work-Life Balance Family Friendly
Division "Minister of Health, Labour and Welfare Excellence Award" (sponsor: Ministry of
Health, Labour and Welfare)Award for Advanced Companies Where Women Can Shine "Minister of State for Special
Missions (Gender Equality) Award" (sponsor: Cabinet Office)Selected for FY2016 "Nadeshiko Brand" (sponsor: Ministry of Economy, Trade and Industry,
Tokyo Stock Exchange)
Selected for "Health & Productivity Stock Selection" in FY2016 (sponsor: Ministry of
Economy, Trade and Industry, Tokyo Stock Exchange)
Selected for FY2017 "Nadeshiko Brand" (sponsor: Ministry of Economy, Trade and Industry,
Tokyo Stock Exchange)
Selected for "Health & Productivity Stock Selection" in FY2017 (sponsor: Ministry of
Economy, Trade and Industry, Tokyo Stock Exchange)
Selected for FY2018 "Nadeshiko Brand" (sponsor: Ministry of Economy, Trade and Industry,
Tokyo Stock Exchange)
Selected for "Health & Productivity Stock Selection" in FY2018 (sponsor: Ministry of
Economy, Trade and Industry, Tokyo Stock Exchange)
2nd place for "Companies That Facilitate Easy Parenting 2019" (sponsor: Nikkei DUAL)
Selected for FY2019 "Nadeshiko Brand" (sponsor: Ministry of Economy, Trade and Industry,
Tokyo Stock Exchange)
Selected for "Health & Productivity Stock Selection" in FY2019 (sponsor: Ministry of
Economy, Trade and Industry, Tokyo Stock Exchange)
3rd place for "Companies That Facilitate Easy Parenting 2020" (sponsor: Nikkei DUAL)
169

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Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersSelected for FY2020 "Nadeshiko Brand" (sponsor: Ministry of Economy, Trade and Industry,
Tokyo Stock Exchange)
Selected for "Health & Productivity Stock Selection" in FY2020 (sponsor: Ministry of
Economy, Trade and Industry, Tokyo Stock Exchange)
5th place for "Companies That Facilitate Easy Parenting 2021" (sponsor: Nikkei xwoman)
Selected for FY2021 "Nadeshiko Brand" (sponsor: Ministry of Economy, Trade and Industry,
and Tokyo Stock Exchange)
Selected for "Health & Productivity Stock Selection" in FY2021 (sponsor: Ministry of
Economy, Trade and Industry, Tokyo Stock Exchange)

Selected for "Nadeshiko Brand" jointly sponsored by the Ministry of Economy, Trade and Industry and the Tokyo Stock
Exchange!

1

2

0

2

Daiwa Securities Group Inc. has been selected as a "Nadeshiko Brand" by the Ministry of Economy, Trade and Industry and theTokyo Stock Exchange for eight consecutive years from fiscal 2014 as a listed company that excels in promoting women's
advancement.
The Group was commended for setting clear goals regarding the promotion of women's advancement and work-life balance andpromoting an environment where personnel with diverse values can maximize their abilities.

2

2

0

2

Received the symbol mark (known as "Tomonin") from the Ministry of Health, Labour and Welfare for promoting thedevelopment of a "work environment that ensures a balance of work and nursing care"!
The Group is continuously working to create a workplace environment that makes it easy to use the work-life balance support
systems so that employees can continue to work while balancing work and nursing care.
The Group received the symbol mark (known as "Tomonin") from the Ministry of Health, Labour and Welfare for promoting thedevelopment of a "work environment that ensures a balance of work and nursing care"170

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Environmental
Initiatives

OthersHealth Management
Approaches and Policy
Included in the Group's Corporate Principles is "placing importance on personnel." Based on the idea that the source of the Group's
competitiveness lies in the capabilities of its employees, we seek to raise productivity by enhancing employees' well-being* and tomaintain high performance as an organization in the future. To this end, we are undertaking strategic measures to promote heath
management.
* Well-being: good physical, mental, and social condition

Promotion System

The Group appointed the executive in charge of human resources as Chief Health Officer (CHO) to promote health management.
Executives from each Group company are also actively involved in the promotion. The Group issues a "White Book on Health" annuallythat analyzes the health status of all Group executives and employees. We also identify issues, and evaluate and improve our initiatives
at a Group-wide "Promote Health Management Meeting" chaired by the CHO which is held every quarter, thereby implementing the
PDCA cycle for health management.
As a result of these initiatives, we have been selected as a "Health & Productivity Stock," which is jointly organized by the Ministry of
Economy, Trade and Industry and the Tokyo Stock Exchange, for eight consecutive years.

Also, the Human Resources Department, General Health Development Centers (infirmaries), andHealth Insurance Society closely cooperate and work together. The three parties collaborate witheach other, planning and disseminating health measures, and have increased the effectiveness ofsuch measures by exchanging opinions on a daily basis.

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Initiatives

OthersHistory so far
Main achievements

External Evaluations

FY2008Started specific counseling guidance (metabolic
syndrome guidance)
The Human Resources Department, General
Health Development Center, and Human
Resources Department started working together
to promote health

FY2009Introduced a system for checking past healthcheckup results and various health information
onlineStarted following-up with persons with possible
medical issues with the "yellow paper" system

FY2010Started walking and quit smoking challenges

FY2011

Started "Eating to 80% full" (Harahachi) campaign

FY2012Started Red Case Support Program (for severely ill
persons)

FY2013
FY2014

Received the Minister of Health, Labour andWelfare "Extending Healthy Life Expectancy
Award"
Our Group's efforts were published in the "Ministry of Health, Labour and Welfare White
Paper"
Press Release [PDF:85KB]

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FY2015Social Contribution
Activities

Environmental
Initiatives

OthersExternal Evaluations

Started point incentive ** Points are given to self-help efforts for employee
health promotion.
When the points reach a certain level, it is reflected in
the employee's salary after age 55

Press Release [PDF: 114 KB]⟨Japanese only⟩

Appointed Human Resources Officer of Daiwa
Securities Group Inc. to "Chief Health Officer(CHO)"
Implementation of "Promote HealthManagement Meetings"
Established "Health Management Promotion
Section" in the Human Resources Department of
Daiwa Securities Group Inc.
Issued "Daiwa Securities Group White Book on
Health"FY2016

KA-RA-DA iki-iki Project Introduction
Press Release [PDF: 91 KB]⟨Japanese only⟩
Press Release [PDF: 99KB] ⟨Japanese only⟩
Ministry of Health, Labour and Welfarecommissioned project "Cancer Measures
Promotion Company Action"
Received the Minister of Health, Labour andWelfare Award for companies promoting cancer
controlPress Release [PDF: 80KB]⟨Japanese only⟩

FY2017

Introduced Employment Support Plan for
Employees with Cancer
Press Release [PDF: 121KB]⟨Japanese only⟩
Press Release [PDF: 141KB]⟨Japanese only⟩
Received the Tokyo Metropolitan Government"Company Award for Excellent Initiatives for
Balancing Treatment of Cancer Patients andWork"
Press Release [PDF: 78KB]⟨Japanese only⟩173

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FY2018Social Contribution
Activities

Environmental
Initiatives

OthersExternal Evaluations

Introduced Daiwa ELLE Plan
Press Release [PDF: 191KB]⟨Japanese only⟩
Press Release [PDF: 98KB]⟨Japanese only⟩

FY2019FY2020Introduced a new health checkup plan (a systemthat allows people to have a cancer checkup
together with their regular health checkup,
specific counseling guidance using ICT, online
health consultation by a doctor)
Started health promotion measures for young
customers (fitness app, counseling guidance forpeople in their 20s and 30s)

Press Release [PDF: 113KB]⟨Japanese only⟩

Introduced Daiwa Online Care
Press Release[PDF:84KB] ⟨Japanese only⟩
Press Release [PDF: 113KB] ⟨Japanese only⟩

FY2021

Mindfulness Training for New Employees in
Cooperation with Keio University
Introduced smoking cessation during working
hours

174

Selected as "Health & Productivity Stock Selection
2021" and "Excellent Health and Productivity
Enterprise (White 500)"
Press Release [PDF:165KB] ⟨Japanese only⟩SDGs report 2022

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OthersTargets
To measure the improvement of productivity through health management, we use presenteeism*1 and absenteeism*2 as indicators.

Indicator

Target (FY2030)

Percentage of loss from presenteeism

Less than 10.0%

Average of absenteeism

3.0 days or less

*1. The state of the employee's work execution ability and productivity declining as a result of coming to work while suffering from some disease or
symptom. Calculated by conducting a survey in which employees evaluate their own work in the past four weeks with the work they can perform
when having no illness or injury set at 100%. The smaller the value, the higher their productivity.
*2. The state of being absent or on leave due to illness. Calculated by conducting a survey that asks how many days employees were absent due toillness in the past one year. The fewer the days, the higher their productivity.

Various Health Measures, Their Effects, and Connections withManagement Goals Pursued in Health Management (Strategy Map)

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OthersHealth issues
As the obesity rate tends to increase with age, it is necessary to increase health awareness when people are still young. The younger
generation, in particular, has lifestyle issues, such as a high smoking rate in men and upward trends in the rate of skipping breakfast
observed in both men and women. This suggests that measures to maintain a proper lifestyle are important, along with obesity
measures.
As for the risk of lifestyle-related disease, the number of people with the level of risk requiring specific counseling guidance is trending
upward gradually both in men and women.

Key area

Health issue

Lifestyle

Decreasing employees with health risk (obesity and high blood pressure, in particular)
and establishing a healthy lifestyle (smoking, exercise, eating habits, better quality ofsleep, etc.)

Younger generation

Improving the health awareness and health literacy of the younger generation

Women

Addressing health issues specific to women, increasing opportunities for women's
advancement

Cancer

Early detection and early treatment of cancer, support for balancing work and cancer
treatment

Mental health

Acquiring stress handling skills, early detection of mental health problems

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OthersExamples of Major Initiatives and Results of Initiatives
Increased Use of Daiwa Online Care
We offer "Daiwa Online Care," an online healthcare service that is available nationwide, and the use of the service is expanding.
The number of appointments for the service was 973 in FY2021, increasing 1.6 times from the previous fiscal year.
Daiwa Online Care provides consultation on health checkup results and mental health, and smoking cessation outpatient care,in addition to ordinary healthcare. (Costs to be borne are healthcare service fees and medication costs only.)177

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OthersDaiwa ELLE Plan
Women have various health issues depending on their life stage, and the national government encourages men and women to
deepen their understanding of each other's health issues associated with gender differences, while promoting health support
that takes gender differences into account. Against this background, we have provided women's menopause support,
established ELLE leave (leave for menstrual/menopausal conditions or infertility treatment), improved employee health literacy,and enhanced support for balancing work and infertility treatment. As a result, various effects have been shown, such as
improved productivity, reduction in the rate of employee turnover due to infertility treatment, and increase in women in
managerial positions.

* The symbol ◎ in the table indicates systems and measures that can be used regardless of gender178

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Initiatives

OthersContinuous Improvement in Female Cancer Screening Rate
Since FY2019, cancer screenings have been integrated into the regular health checkup items, resulting in a substantial
improvement in the screening rate. The proportion of female employees receiving the most recent cervical cancer screening andbreast cancer screening exceeds 80% for both types of screening.

Trends in female cancer screening rate (younger than age 35)

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OthersUpward Trend in Younger Generation with Exercise Habits
The proportion of young employees (in their 20s and 30s) with exercise habits is consistently increasing, for both men andwomen. The upward trend continued even during the COVID-19 pandemic in 2020, and we consider this to be due to BeatFit, afitness app introduced in 2019, helping to attract employees were not in the habit of exercising.
We also urge employees to participate in KA-RA-DA iki-iki Project* and continue to enhance their awareness of healthy lifestyles.
* The amount of investment in KA-RA-DA iki-iki Project is approximately ¥2.30 million. In a survey of participants, 27% of the respondents
answered that they were "very satisfied" and 55% "satisfied."

Proportion of employees with exercise habits* The proportion of respondents who answered in an interview sheet that they have "engaged in at least 30 minutes of exercise
causing light sweating twice or more per week for more than one year."180

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Environmental
Initiatives

OthersExpansion of Mental Health Support (Mindfulness Training)
Generally, employees in their first and second years are more likely to feel stress under a new environment. We have therefore
introduced Mindfulness Training for new employees as an initiative for mental health. The training is provided in collaboration
with the Center for Stress Research, Keio University and customized to the Group. For the employees completing Mindfulness
Training, we also conduct follow-up training at the fiscal year end.

* MBCT program (Mindfulness-based cognitive therapy)

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External Evaluations* We are explaining the group's health management initiatives to business partners who have made inquiries.

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OthersOther related data
25.8%

27.5%

25.5%

Women

8.5%

10.0%

9.3%

Men

31.6%

29.5%

28.7%

Women

7.2%

7.1%

6.6%

Men

25.3%

27.0%

27.8%

Women

14.6%

15.2%

16.2%

Men

20.8%

21.9%

23.1%

Women

11.4%

11.7%

12.0%

Proportion of employees taking enough rest through
sleep

65.0%

69.0%

69.0%

Average percentage of loss from presenteeism

18.7%

17.0%

15.2%

Average of absenteeism

3.8 days

3.4 days

3.4 days

Engagement survey*2

－

－

81%

Work

3.3

3.3

3.3

Organization

3.2

3.2

3.3

Colleagues

3.2

3.2

3.3

Growth / Careeradvancement

3.2

3.2

3.3

Compensation

3.0

3.0

3.1

(consolidated)

11.9%

13.7%

15.1%

(Daiwa Securities
alone)*4

14.5%

16.3%

18.3%

Stress check rate

92.5%

90.8%

91.8%

Ratio of employees with high stress

10.3%

11.8%

10.6%

Obesity rate (30s)*1
Smoking rate

Exercise habits
rate

(20s)
(30s)

Work Motivation Survey*3

Female ratio in managerial
positions

183

9

Men

1

FY

0

FY

2

FY

SDGs report 2022

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FY

Regular health checkup rate

100%

100%

100%

Medical institution attendance rate for employees withproblematic results in regular health checkups

88.3%

80.5%

82.2%

184

9

1

0

2

*1 . Target: Reduce the obesity rate for employees in their 30s by 30% from FY2018 by 2024 (men 20%, women 8%). From FY2021, the target was changed
from the obesity rate at age 35 to the obesity rate for employees in their 30s.
*2. Sustainable engagement (Daiwa Securities alone). An anonymous awareness survey started to be conducted for Daiwa Securities alone in FY2021 todetermine the proportion of employees who have a sense of trust in the Group and are highly motivated to contribute to achieving its goals. The
survey is being conducted on a group-wide basis from FY2022.
*3. Ended in FY2021.
*4. Target: At least 25% by 2025.

SDGs report 2022

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OthersCommunication with Employees
Approaches and Policy
Daiwa Securities Group has established various opportunities to receive feedback from employees under the belief that goodcommunication with employees is vital for a better workplace environment.
We will continue to identify areas for improvement in our systems and initiatives and utilize inputs from employees for creating aneven better workplace environment.
Systems to Receive Feedback from Employees

Self-assessment system
We have established a self-assessment system as a twice-yearly opportunity for employees to talk about their careers with theirsuperiors and the Human Resources Department. This system enables employees to communicate to the Human Resources
Department their career visions and also their degree of satisfaction with their jobs and their opinions on the personnel andtraining systems, the workplace environment, and other matters. Daiwa Securities Group uses such feedback to develop an
environment that enables employees to work with a high level of motivation.

Engagement Survey
In August 2018, we started Work Motivation Survey as a monitoring indicator to increase employees' motivation to work andrealize a virtuous cycle of higher employee satisfaction and higher customer satisfaction. We also introduced an Engagement
Survey in February 2022 to ensure that the motivation to work leads to the further growth of employees and further
improvement in productivity and business performance. We will develop a climate and system that enable employees to play
more active roles by continually increasing engagement through a productive workplace environment and employees' physicaland mental health.

Implementation of Survey on Work-Life Balance
We regularly conduct surveys on work-life balance for all employees. We incorporate employees' feedback, and have introduced
the Nursing Care Concierge Service and an allowance program for those who return to their parents' home to provide nursing
care to remove employees' concerns about nursing care. We have also introduced a support desk for employees looking fornursery schools to ensure that those on leave can have a smooth return to work, while expanding a program for subsidizing
expenses for day care and after-school child care for employees with children up to the third grade in elementary school.
Moreover, we conduct interviews with employees returning from childcare leave after a certain time has passed in an effort toresolve any worries they may have and provide a support system that employees can use until their children finish elementary
school.
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Initiatives

OthersAssessment Interview
To give feedback on assessment results, we conduct interviews with department and sales branch heads twice a year, thereby
sharing future goals and career development with them and providing appropriate guidance and advice to each employee.

Communication among Employees
In October 2007, Daiwa Securities introduced a program for supporting club activities. This program was created to help employees
enjoy their time off and deepen their friendships with colleagues, building more opportunities for sharing a sense of camaraderie andsolidarity. It is also intended to support work-life balance and facilitate a fuller social life for employees. The program was expanded
and enhanced in FY2009. Under this program, employee groups that meet certain conditions are recognized as Daiwa Clubs or Daiwa
Circles, which receive subsidies to cover some of their activity costs.
As of August 2022, there are 21 Daiwa Clubs and four Daiwa Circles.
In 2021, we introduced ANSWERS, an internal online social network through which employees can feel at ease consulting with eachother, help each other with difficulties, and build networks.

Relationship with Employee Unions
The Group supports the Ten Principles of the UN Global Compact, which include Principle 3, "Businesses should uphold the freedom of
association and the effective recognition of the right to collective bargaining," and respects freedom of association and the right tocollective bargaining.
Based on labor agreements signed with employee unions, we regularly hold labor-management negotiations on bonuses and othercompensation and the working environment, thereby building a sound labor-management relationship.
We also increase opportunities for learning the opinions of our employees and improve communication through surveys conducted by
employee unions, direct dialogue between management and union members, and other activities.
As of the end of FY2021, 6,505 employees belong to employee unions, and the union membership ratio is 56.0%.

Initiatives for Families
We work to ensure that members of employees' families share their pride in being part of the Group. Since FY2008, we welcome
employees' families to the workplace on Family Visit Day to give family members a better understanding of our company and theemployees' jobs. In FY2022, we held an in-house metaverse event in September to celebrate the Group's 120th year anniversary of its
founding. We invited employees' families as well, expressing our appreciation for their daily support and enjoying the event together.
Other initiatives for supporting our employees' families include the new creation of Kid's Ceremony Leave, Family Day Leave, andParents' Longevity Celebration Leave, as well as the extension of mental health support to employees' families.
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Activities

Environmental
Initiatives

OthersActive Use of In-House Magazine
Daiwa Securities Group issues an in-house magazine, "Fuji," whose history dates back to 1925, when one of the company's
predecessors, Fujimoto Bill Broker Bank, commenced its publication. The content covers a broad scope, including the basic
management policy, a message from top management, specific SDGs initiatives (includes ESG and improvement of environmental
awareness), information from Group companies, profiles of winners of awards presented by Daiwa, overview of worksite visits onfamily day, explanations of our welfare and human resources systems, human rights issues, and our internal whistle-blowing system(how it works and its usage status). By including information that traverses the Group, our intention in producing the magazine is not
only to engender communication among company employees but also to further the Group culture, the sense of connectedness andexchange of knowledge. At present, 20,000 copies of the bi-monthly magazine are distributed among Group executives, employees andretirees. In addition, the magazine is also posted on the work-life balance promotion website for employees, making it viewable tocompany employees who are currently involved in child rearing, nursing family members or are on leave from work.

Asset Building
To help our employees lead fulfilling lives, the Group has expanded systems that assist employees in building their assets.
Daiwa's Employee Stock Ownership Association
Defined contribution plan (401k)
Tsumitate (installment-type) NISA

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OthersFinancial Education and Research
Capitalizing on financial and economic expertise accumulated through its securities business, Daiwa Securities Group provides
education programs and supports for various generations in order to help people develop the capacity to build their own lives and theasset management skill.

Message from the Head of Financial Education
Due to the lowering of the adulthood age in Japan, people will start living as adults from the day theyturn 18. Therefore, it is important to receive financial education from an early age, such as inelementary school. Financial education is also essential for working adults to have fulfilling 100year lives.
Daiwa Securities Group will work as a group to improve the financial literacy of a wide range of people
through its own activities and cooperation with various organizations and companies.

Daiwa Securities Group Inc.
Senior Managing Director
Head of Financial Education
Toyo Abe

Initiatives to Enhance People's Financial Literacy
Daiwa Securities Group promotes various initiatives to enhance people's financial literacy.

Information on financial education learning website

SODATTEThe website sets up five categories, including "Money Lessons," "Family Finances" and"Education Funds," and disseminates columns that provide tips to child-rearing generations.
Click here for details＜Japanese only＞

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OthersPicture book of money for toddlers "a-i-u-e-o kane no ehon"This is a website where adults and toddlers of the child-raising generation can study together
and learn the Japanese hiragana.
Click here for details＜Japanese only＞

O cial Daiwa Securities Group Channel (YouTube)
Click here for the official Daiwa Securities Group Channel (YouTube) ⟨Japanese only⟩
For more information, see Providing Analysis/Proposals on the Economy, Society, and Investment Information > Provision ofInformation through Diverse Media > Official Daiwa Securities Group Channel (YouTube)
Production of Financial Educational Materials on Stocks

Digital Educational Material: "Let's Study Stocks"

ffi

Following the move to digitize schools under the government's GIGA School Program, we created a new PowerPoint educational
material for learning about stocks. With teaching plans and example descriptions included in the PowerPoint notes, the material
is designed for immediate use in school classes.
(Published by DAN Advertising, Inc.)
TargetUpper-grade elementary school children and above

Content
The role of money
The role of companies
The structure of stock companies and using shares to raise funds
The role of stock exchanges
How stocks can be useful
Positive effects of an excellent company on society(Applied learning) Financial instruments other than stocks
Click here for details [Japanese] [PDF:878KB]

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Initiatives

OthersSupport to Oshigoto Museum and "Oshigoto Almanac"
Since FY2016, the Group has been supporting the Oshigoto Museum, a career education
support project for elementary and junior high school students (organized by The Asahi
Shimbun Company). The project provides information on working and various jobs via the"Oshigoto Almanac" (book) and the Oshigoto Museum (website) to help children visualize their
future careers.
Click here for details [Japanese]

Oshigoto Museum (website)
In addition to information contained on the pages of the "Oshigoto Almanac" (book), this website gets children to learn throughquizzes and other game-like activities.

"Oshigoto Almanac" (book)
Our Group's pages include explanations about stocks, bonds, and the work of securities firms. In addition to being donated toelementary schools, junior high schools, and Kodomo Shokudo (children's cafeterias) nationwide, excerpts from the "Oshigoto
Almanac" are also distributed free of charge via EduMall (an educational content distribution service provided by Uchida Yoko).
Number of copies published to date

"Oshigoto Almanac 2022" 75,000 copies (published on June 14, 2022)"Oshigoto Almanac 2021" Donation of 70,000 copies (published on June 21, 2021)"Oshigoto Almanac 2020" Donation of 70,000 copies (published on June 29, 2020)"Oshigoto Almanac 2019" Donation of 67,000 copies (published on June 17, 2019)"Oshigoto Almanac 2018" Donation of 64,000 copies (published on June 15, 2018)
Group publications page

"Oshigoto Almanac 2022"
Tips and tricks on dealing with money
Click here for download [Japanese]

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What are SDG Bonds?
Click here for download [Japanese]"Oshigoto Almanac 2020"
What does a securities analyst do?
Click here for download [Japanese]

Oshigoto Almanac 2019
What happens in a trading room?
Click here for download [Japanese]

Oshigoto Almanac 2018
What jobs do people do at a securities company?
Click here for download [Japanese]

Oshigoto Almanac 2017
How can money be raised to expand a company?
Click here for download [Japanese]

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Oshigoto Almanac 2016
What are stocks?
Click here for download [Japanese]

Support for KidZania
Daiwa Securities Group is a supporter of KidZania, a theme park designed to offer
work experiences to children, and has been providing support to the facilities inTokyo and Koshien (Hyogo Prefecture) since they opened. KidZania provides
children from the age of three to 15 with programs that enable them to learn themechanisms of society in a fun way. In the Daiwa Securities pavilions, children act
as consultants at a securities company, giving advice to clients, going to nearby
pavilions, and checking their levels of traffic and popular products. Based on the
results of those checks, they then make investment recommendations for theirclients.

KidZania

Finance Park
Daiwa Securities Group cooperates with Finance Parks operated by Junior
Achievement Japan, a public interest incorporated foundation. This programprovides opportunities for junior high school students to learn economic andfinancial mechanisms that will be necessary for them in their adult life. Finance
Parks have been operating in Shinagawa (Tokyo), Kyoto, Iwaki (Fukushima
Prefecture), and Sendai (Miyagi Prefecture). We have set up pseudo-branches of
Daiwa Securities in these parks. (*The Finance Park in Kyoto ended in FY2020.)
Number of participants in Finance Parks for FY2021
14,425 people
Breakdown
Shinagawa: 3,341
Iwaki: 2,689
Sendai: 8,395

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OthersParticipation in the Platform for Learning Innovation Japan
Daiwa Securities Group took part in the Platform for Learning Innovation Japan (PLIJ), a collaboration of industry, university,
government, public, and schools to promote STEAM education*1 in Japan.
In the 6th Science, Technology, and Innovation Basic Plan (Cabinet decision in March 2021), the promotion of STEAM education
is listed as one of the measures for realizing Society 5.0*2. The platform established by the Council on Competitiveness-Nippon(COCN) is expected to include a library of STEAM education materials and a network of human resources to support STEAM
education.
We will contribute to the platform by providing educational content in the fields of economics and finance which we haveaccumulated through our securities business.
*1. Cross-disciplinary education to utilize learning in each subject such as Science, Technology, Engineering, Arts, Mathematics, etc. for finding
and solving problems in the real world*2. A human-centered society that balances economic advancement with the resolution of social problems by a system that highly integrates
cyberspace and physical space

Example of Business-Academia Collaborations: University of Tokyo Hongo Tech Garage (Donation Project by Daiwa
Securities Group)
Daiwa Securities Group supports the University of Tokyo Hongo Tech Garage, which was established by the University of Tokyoin 2016 as a site to advance entrepreneurship education (a donation project by Daiwa Securities Group). To date, more than 500
students have participated in the project, leading to the launch of several companies each year. Among such companies, teTraaviation corp., has achieved success. Established in 2018, the company became the sole prize-winning team in the worldcompetition for personal flying devices sponsored by Boeing in February 2020.

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OthersFor Your Dreams - Daiwa Securities Group Children’s Smile Project
Outline of the Project
Since 2017, the Daiwa Securities Group has been working on the "For Your Dreams- Daiwa Securities Group Children’s Smile Project" to help solve the problem ofchild poverty.

Why do we support the future of children?
"The financial and capital markets are a symbol of capitalism, and its benefit securities companies have been receiving. Meanwhile,
capitalism can generate a disparity, becoming a cause for child poverty, which is a distortion of society. For this reason, we recognize
the need to contribute to solving the poverty issue by using sound profits that we have gained from our core businesses.
Progressively declining birthrates and an aging population resulting in a decreased number of children shouldering Japan’s future will
significantly affect the sustainable growth of the country.
Child poverty generates many side effects, such as inadequate education, possibly leading to a situation where the children
shouldering the future of Japan cannot acquire enough qualities as members of society."
Eradicating child poverty is an extremely challenging goal that cannot be achieved overnight. However, we must now work to improvethe environment surrounding children and break the chains of poverty.

View details
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Disparity in Children’s Environment at Present
The following report from Daiwa Institute of Research shows the degree of severity of child poverty issues in Japan at present.

View details

Daiwa Securities Group Future Support Bonds Child Support Group
Sustainable Fund
The Daiwa Securities Group decided to donate ¥ . million of the total amount raised through the issuance of bonds (nicknamed“Daiwa Securities Group Future Support Bonds”) in June to the “Daiwa Securities Group Future Support Bonds Child Support
Group Sustainable Fund,” which was established in collaboration with the Public Resources Foundation.

View details

Daiwa Securities Group Child Support Fund for Bright Future
The Daiwa Securities Group has created “Daiwa Securities Group Child Support Fund for a Bright Future” in collaboration with Public
Resources Foundation, a public interest incorporated foundation. The Fund is designed to improve the environment for children andbreak the chains of poverty. It assists groups supporting children’s future.

View details

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OthersSanta Charity Program
Since 2017, we have been implementing a Santa Charity
Program—an initiative in which executives, employees, andformer members of Daiwa Securities Group donate Christmas
presents to children. Contributions collected under the Program
are used to purchase assorted snacks and toys and donated tochildren’s homes, livelihood support facilities for fatherlessfamilies, and NPOs supporting children across Japan. The
donations are made through the Public Resources Foundation, a public interest incorporated foundation.

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OthersWhy Daiwa Securities Group is Working to Support Children
The financial and capital markets are a symbol of capitalism, and securities companies have benefited from them.
On the other hand, capitalism can cause disparities and contribute to the poverty of children, which is also a strain on society.
That is why we believe that we should use the sound profits we earn from our core business to help solve the problem of poverty.
The declining birthrate and aging population are advancing in Japan, and the reduced number of children who will carry the future of
the country will also have a major impact on Japan's sustainable growth.
The problem of child poverty has many side effects, such as the inability to receive necessary education, and it also leads to thesituation in which the children who will carry the future of Japan cannot gain the qualifications they will require as adults.
Eliminating child poverty is an extremely high goal that cannot be achieved overnight.
However, it is now necessary to improve the environment surrounding children and stop the chain of poverty.

MessageOur desire to support children

In the past, I have personally donated items such as toys to children's homes. That was because
there was a facility next to the kindergarten where my daughter used to go.
I am deeply concerned by the growing problem of child poverty in recent years.
The future of children is connected to the future of Japan, so if the problem of child poverty is left
unresolved, it will have a great adverse effect on the economy. As beneficiaries of the market
economy, securities companies should face up to this problem.

In the first open call for participants to the "Daiwa Securities Group Child Support Fund for Bright Futures", more than 100
organizations from all over Japan applied. Going forward, we would like to continue to support organizations that are engaged in
activities in their respective regions that help solve the problem of child poverty.
In addition to the company's support activities, we started the "Santa Charity Program" last year, in which Group officers andemployees and ex-employees can participate voluntarily, and we received more donations than expected. It is important that these197

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Othersefforts have the support of each and every person involved and are continuously carried out. In the future, I hope that they will become
part of voluntary efforts to tackle various social issues.

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Disparity in children’s environments
Child poverty in Japan: hidden from view
Japan is a rich nation—is child poverty really such a serious problem? The difference today is thatpoverty is hidden from view; for this reason, it is vital we use data to visualize the reality of childpoverty.

Mikio Mizobata
Senior Researcher
Economic Research Department
Daiwa Institute of Research Ltd.

1. Child poverty close to home

When measuring poverty, using absolute income levels is appropriate if it is a question of the minimum income required to survive—as
in developing countries, for example, or post-war Japan.
On the other hand, in developed countries and in general use, poverty is defined as having an income level below which there is a riskthat a person lacks the resources necessary to lead a dignified life—this can take various forms, but includes becoming more socially
isolated, or suffering deteriorating health.
This is known as the “relative poverty rate,” and is defined as the percentage of people who do not earn half or more of the median perperson household income in that country. It is known as the “relative” poverty rate, since it defines poverty as a relative income.

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OthersPoverty rates among working households withchildren, by household type (2018)

Note: “Child poverty rate” is defined as the percentage of children aged
17 or below, whose equivalent disposable income is below thepoverty line
Source: Compiled by the Daiwa Institute of Research, based on the
Ministry of Health, Labour and Welfare’s “Comprehensive Surveyof Living Conditions”

Note: “Poverty rates by household type” is defined as the percentage ofthe total population living in working households—whose head isaged between 18 and 64—whose equivalent disposable income
falls below the poverty line.
Source: Compiled by the Daiwa Institute of Research, based on the
Ministry of Health, Labour and Welfare’s “Comprehensive Surveyof Living Conditions”

Released in December 2020, the latest government data for 2018 shows that child poverty rates have improved a little to 13.5%.
Following its 2012 peak, one of the reasons behind this improvement is the influence of Abenomics, which has raised incomes among
low-income households.
However, COVID-19 has led to decreased incomes among low-income households in particular; for this reason, there is a possibility
that child poverty rates could be on the rise again.
The Luxembourg Income Study Database enables us to compare poverty rates in Japan with those in other countries. Data shows thatJapan’s poverty rates are lower than the U.S. and Spain and other countries in southern Europe, similar to Australia and France, buthigher than Finland and other countries in northern Europe.
Japan’s child poverty rates are distinctive for the fact that poverty is most prevalent among single-adult households. Poverty rates are
particularly severe among mother-child single-parent households.
One cause is that many women hold non-regular forms of employment, and are therefore more likely to work low-paid jobs.
In father-child single-parent households, too, child poverty rates are particularly high when fathers hold non-regular forms of
employment.
The traditional Japanese employment and social system—in which the husband is a regular, permanent employee and in which thewife is a full-time housewife—is no longer appropriate for the present age; and this unsuitability is manifesting itself in the form of childpoverty.

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OthersChild poverty rates, by parent employment type (2012)

Note: “Regular” refers to regular workers and employees with either permanent employment contracts or employment contracts of one year or more;“Non-regular” refers to part-time workers, temporary workers, contract workers, commissioned workers, and others; with regard to people on
one-day contracts or contracts of less than one month, the sample size was too small to include in poverty rates.
Source: Compiled by the Daiwa Institute of Research, based on “Trends in Relative Poverty Rates: 2006, 2009, and 2012,” by Aya Abe (2014), published on
the HinkonStats (“Poverty Statistics”) website

Child poverty rates, by parent age (2012)

Note: Ages refer to ages of parents in 2012
Source: Compiled by the Daiwa Institute of Research, based on “Trends in Relative Poverty Rates: 2006, 2009, and 2012,” by Aya Abe (2014), published on
the HinkonStats (“Poverty Statistics”) website

However, the reality of child poverty does not always align with a conventional image of what poverty looks like.
The reason for this is twofold: first, poverty is defined in relative terms; second, all children today tend to own similar possessions,
whether they live in poverty or not.
For example, there is little difference in the percentage of general households and the percentage of poor households that have video
game machines, bicycles, mobile phones, or smartphones.
This is no doubt due in part to the fact that products in general cost less nowadays, and that most Japanese households earn sufficient
incomes to purchase such products.
However, children of poor households are disadvantaged in terms of the experiences they enjoy—they may be unable to attend
extracurricular activities, for example, or go on family holidays.
Parents of low-income households also tend to work longer hours, and for this reason they cannot spare the time to provide theirchildren with experiences. It may well be they try and make up for this shortfall by at least providing their children with possessions.
The fact that poverty manifests itself in consumption of services is one of the reasons why child poverty remains hidden from view.
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OthersDi erences in child possessions and experiences, by household type (Osaka Prefecture, 2016)ff

Note: The graphs show results from all local governments in Osaka Prefecture; “General households” are defined as households with equivalentdisposable incomes at or above the median line; “Poor households” are defined as households with equivalent disposable incomes of less than
50% of the median line
Source: Compiled by the Daiwa Institute of Research, based on “Factual survey into the lives of children in Osaka Prefecture,” by Osaka Prefecture
University (March 2017)

2. Economic and social impacts

Child poverty is a serious issue because, in addition to the impact it has on children throughout their childhoods, it has a tendency tolead to adult poverty and to disparities in adult income.
The most significant way in which poverty creates chains of poverty and income disparity is education.
Japan’s compulsory education system entitles all children to receive education, regardless of the income of their parents. However, thereality is that there is a link between parent income and child academic ability.
Since households with higher incomes tend to spend more on cram schools and extracurricular lessons, parent incomes can have asignificant impact on the academic and cognitive ability of their children.

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OthersSpending on extracurricular education, by household income (for third-grade junior high school students)

Note: “Household incomes” show pre-tax incomes; “Spending on extracurricular education” is defined as average monthly spending per child on cramschools and other lessons outside of school
Source: Compiled by the Daiwa Institute of Research, based on “Analysis of impacts on academic ability, based on the FY2013 National Assessments of
Academic Ability,” by Ochanomizu University (March 28, 2014)

Percentage of children who have poor “Ability to overcome adversity,” by household type (FY2016)
Note 1: “Households facing financial difficulties” are defined ashouseholds that fulfill at least one of the three following criteria:
a household income of 3 million yen or less; a household with alack of daily necessities; a household that has had difficulties
meeting payments in the past
Note 2: Numbers refer to the percentage of children classified among theworst-performing groups when it comes to “Ability to overcome
adversity”
Source: Compiled by the Daiwa Institute of Research, based on “Second
Child health and lifestyle factual survey, FY2016 report,” byAdachi Ward Education Committee, Adachi Ward; the Center for
Clinical Research and Development, National Center for Child
Health and Development; Department of Global Health
Promotion, Tokyo Medical and Dental University (April 2017)

While study and other forms of cognitive ability are important, so too are non-cognitive abilities required to become members ofsociety, such as patience, motivation, cooperation, and communication.
But here, too, poor households are disadvantaged. A survey looking at households in Tokyo’s Adachi Ward reveals that children frompoor households have a lower “ability to overcome adversity” than children from normal households.
Non-cognitive abilities also impact on whether a child has a positive attitude to study, and it is easy for children of poor households tofall into a vicious circle when it comes to skills formation.
If a child suffers from poor health, then it can be difficult to maintain continued employment as an adult, with an associated risk oflower lifetime earnings.
In poor households, children tend to have unbalanced diets and are more susceptible to obesity; this, too, leads to greater future
health risks.
It is likely that parents who work long hours, or who work late at night or early in the morning, do not have the time or capacity toensure their children are eating and living healthily on an everyday basis.
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OthersPercentage of obese children, by household type (FY2016)
Note 1: “Households facing financial difficulties” are defined ashouseholds that fulfill at least one of the three following criteria:
a household income of 3 million yen or less; a household with alack of daily necessities; a household that has had difficulties
meeting payments in the past
Note 2: Numbers for “Obese” refer to the percentage of childrenclassified as “Having a propensity for obesity”
Source: Compiled by the Daiwa Institute of Research, based on “Second
Child health and lifestyle factual survey, FY2016 report,” byAdachi Ward Education Committee, Adachi Ward; the Center for
Clinical Research and Development, National Center for Child
Health and Development; Department of Global Health
Promotion, Tokyo Medical and Dental University (April 2017)

Through skills and health disadvantages, child poverty increases the likelihood of a future deterioration of human capital.
In Japan, innovation ought to be used to increase per person productivity; going forward, the quality of its human capital will become
more important than ever before.
Since child poverty results in the continued deterioration of human capital, it will also lead directly to long-term falls in Japan’s
capabilities as a nation.
Child poverty, which is frequently hidden from view, is thus a significant risk for Japan.
The following video, recorded in June 2018, provides a commentary on this report ＜Japanese only＞
Related reports are also available to view online ＜Japanese only＞

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OthersDaiwa Securities Group Future Support Bonds Child Support Group
Sustainable Fund
Daiwa Securities Group started the “For Your Dreams–Daiwa Securities Group Smiles to Children Project” in 2017. Part of our efforts torealize a sustainable society, the project aims both to improve environments for children living in poverty and to break the chains ofpoverty.
As part of our “Smiles to Children Project,” and in the face of the recent state of emergency occasioned by COVID-19, we created a new“Daiwa Securities Group Future Support Bonds Child Support Group Sustainable Fund” in collaboration with Public Resources
Foundation.
Some of the proceeds from the Daiwa Securities Group Future Support Bonds corporate bonds we issued in June 2020 will be allocatedto this fund.

The purpose of the Child Support Group Sustainable Fund
It can be difficult for organizations seeking to improve environments and break the chains of poverty for children living in difficult
financial circumstances to continue their support activities during natural disasters or pandemics; for this reason, Daiwa Securities
Group aims to enhance both the business continuity and the resilience of such organizations.
By providing subsidies worth up to 3.5 million yen per year, we hope to encourage recipient organizations to establish business andorganizational models capable of providing continued support to children living in financial difficulties.
We intend to share the results of our fund’s activities with private non-profit sectors and government sectors through PR campaigns.

Organizations and initiatives eligible for funding
Non-profit organizations, including incorporated non-profit organizations, general incorporated associations, social welfare
corporations, and public interest corporations
Subsidies are to be used for establishing structures that enable recipient organizations to continue their activities even in times of
emergency, such as during the coronavirus pandemic or natural disasters; this includes enabling teleworking, enabling work
processes to be carried out online, enabling online fundraising, and formulating business continuity plans. Only initiatives aimed atenabling business continuity are eligible for funding.
As COVID-19 continues to have a significant impact on society, in its first fiscal year the fund will also support measures to ensureorganizations can conduct business during the pandemic.
However, similar conditions also apply to COVID-19; that is, only initiatives aimed at establishing structures to continue activities
during the pandemic are eligible.
The fund will focus on providing subsidies to organizations that work with children up to the age of 18; however, this is not a
condition of eligibility.
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Subsidy details
Subsidies will be provided up to a maximum of 3.5 million yen per initiative
Requested subsidy values may be screened depending on the content of the application
Subsidies will be provided for a single fiscal year only
Number of organizations: about eight organizations per year

Selection criteria
Reliability of the applicant organization (meeting application requirements, etc.)
Whether the applicant carries out organizational management appropriately
Whether the applicant carries out information disclosure appropriately etc.
Whether the applicant has clearly identified issues with and drawn up logic models for its existing business
Whether the content and goals of the applicant’s business accords with the aims of the fund
Whether the applicant proposes initiatives that are reasonable and achievable
Whether the applicant can be expected to be an example to and generate ripple effects for other organizations

Selection results for FY2021 (Second year)
In FY2021, we received applications from a total of 70 organizations. Following a primary screening based on written documents, and asecondary screening based on interviews, the Screening Committee chose the seven organizations listed below.

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Location

Project nameAmount of
grant (yen)eboard (NPO)

Nishinomiya
City, Hyogo
Prefecture

Strengthening fundraising by creating a
donation site for individuals and managing
advertisements

3,500,000

Weeds (NPO)Funabashi City,
Chiba
Prefecture

Sharing business know-how and building a
network of supporters to stay close tochildren suffering from the family
environment nationwide

3,500,000

ACE (certified NPO)

Toshima-ku,
Tokyo

Development of workshops and programs to
improve the abilities of child supporters

3,500,000

SOS Children’s Villages Japan (Certified
NPO)

Fukuoka City,
Fukuoka
Prefecture

Strengthening fundraising by introducing amechanism to completely revise the website
and verify the effects of the businessexpansion phase3,500,000

CPAO (Certified NPO)

Osaka-shi,
Osaka

Strengthening outreach for parents andchildren with poor living and strengthening
fundraising for supporters using online

3,500,000

Chance For ALL (NPO)Adachi-ku,
Tokyo

Strengthening online recruitment of personal
donations that will be the source ofscholarships

3,500,000

Yamaguchi Sawayaki Network (NPO)

Yamaguchi City,
Yamaguchi
Prefecture

Construction of a support system for
donations and receipt of supplies forchildren's cafeterias, etc.

3,500,000

Organization name

Total subsidies provided in FY2021 (Second year)
24,500,000 yen

Selection results for FY2020 (the fund’s inaugural year)
In FY2020, we received applications from a total of 60 organizations. Following a primary screening based on written documents, and asecondary screening based on interviews, the Screening Committee chose the eight organizations listed below.
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Location

Project nameAmount of
grant (yen)ASK-NET (NPO)

Nagoya City,
Aichi Prefecture

Project to establish an online youth center

3,500,000

SANKAKUSHA (NPO)Toshima Ward,
Tokyo

Reviewing business plans, and formulating
manuals for preventing infection whenproviding face-to-face emergency support, inthe light of COVID-19

3,500,000

3keys (certified NPO)

Shinjuku Ward,Tokyo

Creating structures for child support, forwhich administrative budgets are limited(strengthening fundraising)

3,500,000

DxP (certified NPO)

Osaka City,
Osaka
Prefecture

Strengthening fundraising through website
improvements and advertising operations

3,500,000

TOYBOX (NPO)

Osaka City,
Osaka
Prefecture

Project to establish emergency ICT training
environments

2,540,000

Toshima Kodomo Wakuwaku Network(NPO)

Toshima Ward,Tokyo

Establishing foundations for the promotionof public-private collaborations, andestablishing soft infrastructure for providing
food aid

1,782,400

PIECES (Certified NPO)

Bunkyo Ward,Tokyo

Project to strengthen fundraising structures,in order to support business expansion

3,413,000

Fair Start Support (NPO)

Yokohama City,
Kanagawa
Prefecture

Creating models for providing online support
to job seekers

3,000,000

Organization name

Total subsidies provided in FY2020 (the fund’s inaugural year)
24,735,400 yen
For further details, please see the Public Resources Foundation website

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OthersDaiwa Securities Group Child Support Fund for Bright Future
The Daiwa Securities Group has created “Daiwa Securities Group Child Support Fund for a Bright Future” in collaboration with Public
Resources Foundation, a public interest incorporated foundation. The fund is designed to improve the environment for children andbreak the chains of poverty. It assists groups working on child poverty issues.

Objectives of the FundThe fund supports unique and pioneering businesses that seek to improve the living environments of children living under difficult
economic conditions and to break the chain of poverty as well as business development.

Grantees
Nonprofit corporations, general incorporated foundations, social welfare corporations, public service corporations, and othernonprofit organizations
Subsidies cover business development activities.
Projects deemed to be similar to numerous other businesses are not eligible.
The fund emphasizes the development of businesses that target children under the age of 15 years (particularly elementary schoolage children) (however, this is not a limitation).

Details of Grants
Grants are limited to ¥3.35 million (fourth series of grants for FY 2020)
Grants are provided for a maximum of three consecutive years (continuation is not automatic, and screening is conducted eachyear).
Number of grantees: Two to three organizations each year
Use of the grant funds is limited to business development activities.

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Evaluation items
Is there a clear logic model for initiatives designed to reduce the risk of future child poverty?
Are the initiatives pioneering?
Does the business development plan set clear targets to ensure the effectiveness and continuity of the initiatives?
Has an appropriate business development plan been established?
Is the organization as a whole managed appropriately?

FY2021 (Fifth Series) Screening Results
Applications for continuing grants were received from all two organizations, and following a screening process (interviews), thescreening committee deliberated and selected both organizations for continuing grants.

Organizations Selected for Continuing Grants (third year) in FY2021 (Fifth Series)
Organization nameLocation

Theme

Amount of grant(yen)Panorama(NPO)

Yokohama City,
Kanagawa
Prefecture

Business development to foster humanresources of in-school cafe operators andimplementers

3,350,000

Fair Start Support(NPO)

Yokohama City,
Kanagawa
Prefecture

Business development to support communitybased employment programs for children’s
homes

3,350,000

Total Amount of Grants Awarded in FY2021 (Fifth Series)¥6.7 million

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The fifth presentation ceremony and activity report session were held online on January 25, 2022.

(Fourth Series) Screening Results

FY

Starting in FY2020, only continuing programs will be granted subsidies. Applications for continuing grants were received from all fourorganizations, and following a screening process (interviews), the screening committee deliberated and selected all four organizations
for continuing grants.

Organizations Selected for Continuing Grants (second year) in FY2020 (Fourth Series)
Organization nameLocation

Theme

Amount of grant(yen)Panorama(NPO)

Yokohama City,
Kanagawa
Prefecture

Business development to foster humanresources of in-school cafe operators andimplementers

3,350,000

Fair Start Support(NPO)

Yokohama City,
Kanagawa
Prefecture

Business development to support communitybased employment programs for children’s
homes

3,350,000

0

2

0

2

Organizations Selected for Continuing Grants (third year) in FY2020 (Fourth Series)
Organization nameAmount of grant(yen)

Location

Theme

Education A3(Certified NPO)

Fukuoka City,
Fukuoka
Prefecture

Business development of the learning complex“Study Place”

3,350,000

DxP(certified NPO)

Osaka City,
Osaka
Prefecture

Business development to provide “places where
one belongs” by effectively using classes andclassrooms in collaboration with schools

3,350,000211

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FY

In FY2019, applications were received from 38 organizations. Following an initial screening (document based) and a secondary
screening (interviews), the screening committee deliberates and selected the seven organizations set forth below, of which tworeceived new grants and five received continuing grants.

Organizations Selected for New Grants for FY2019 (Third Series)
Organization nameLocation

Theme

Amount of grant(yen)Panorama(NPO)

Yokohama City,
Kanagawa
Prefecture

Business development to foster humanresources of in-school cafe operators andimplementers

2,620,000

Fair Start Support(NPO)

Yokohama City,
Kanagawa
Prefecture

Business development to support communitybased employment programs for children’s
homes

3,000,000

Organizations Selected for Continuing Grants (second year) in FY2019 (Third Series)
Amount of grant(yen)

Fukuoka City,
Fukuoka
Prefecture

Business development of the learning complex“Study Place”

3,120,000

DxP(certified NPO)

Osaka City,
Osaka
Prefecture

Business development to provide “places where
one belongs” by effectively using classes andclassrooms in collaboration with schools

3,120,000

9

Education A3(Certified NPO)

1

Theme

0

Location

2

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Amount of grant(yen)

Organization nameLocation

Theme

SOS Children’s Villages Japan(Certified NPO)

Fukuoka City,
Fukuoka
Prefecture

Business development for support projects forfamilies’ future:
Outreach and network-oriented family support
trials3,120,000

PIECES(Certified NPO)

Bunkyo Ward,Tokyo

Business development for local outreachhuman resource development programs for
isolated children

3,120,000

Learning for All(NPO)

Shinjuku Ward,Tokyo

Business development for learning support andknowledge development

3,120,000

Total Amount of Grants Awarded in FY2019 (Third Series)¥21.22 million(Second Series) Screening Results

FY

In FY2018, applications were received from 43 organizations. Following an initial screening (document based) and a secondary
screening (interviews), the screening committee deliberates and selected the five organizations set forth below, of which two received
new grants and three received continuing grants.

Organizations Selected for New Grants for FY2018
Organization name

Theme

Osaka City,
Osaka
Prefecture

Development of a business providing “places
where one belongs” by effectively using classes
and dining halls in collaboration with schools

3,200,000

Fukuoka City,
Fukuoka
Prefecture

Business development of the learning complex“Study Place”

3,150,000

8

1

0

2

DxP
(certified NPO)

Amount of grant(yen)

Location

Education A3(Certified NPO)213

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Amount of grant(yen)

Organization nameLocation

Theme

SOS Children’s Villages Japan(Certified NPO)

Fukuoka City,
Fukuoka
Prefecture

Business development of “Support Project for
Families’ Future”(Subtitle) Network-oriented family support
through outreach and foster families

3,200,000

PIECES(Certified NPO)

Bunkyo Ward,Tokyo

Business development of “Regional Outreach
Human Resources Development Program for
Isolated Children”

3,200,000

Learning for All(NPO)

Shinjuku Ward,Tokyo

Business development of “Transmission of
Knowledge in Learning Support”

3,200,000* The maximum amount of grant for FY2018 (Second Series) was ¥3.2 million.
* PIECES was approved as a certified NPO in 2018.

Total Amount of Grants Awarded in FY2018 (Second Series)¥15.95 million

FY2017 (First Series) Screening Results
Organizations Selected for New Grants for FY2017 (First Series)
Amount of grant(yen)

Organization nameLocation

Theme

SOS Children’s Villages Japan(Certified NPO)

Fukuoka City,
Fukuoka
Prefecture

Business development of “Support Project for
Families’ Future”

3,000,000

PIECES(Certified NPO)

Bunkyo Ward,Tokyo

Business development of “Regional Outreach
Human Resources Development Program for
Isolated Children”

3,000,000

Learning for All(NPO)

Shinjuku Ward,Tokyo

Business development of “Transmission of
Knowledge in Learning Support”

3,000,000* The maximum amount of grant for FY2017 (First Series) was ¥3.0 million.
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Total Amount of Grants Awarded in FY2017 (First Series)¥9 million
For further details, please see the Public Resources Foundation

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Daiwa Securities Group has formulated the Basic Policy for Social Contribution Activities to strengthen its governance structure tooversee and promote the implementation of social contribution activities.

1. Objective
Daiwa Securities Group proactively engages in group-wide social contribution activities to gain the trust of
stakeholders, including our customers, shareholders, investors, local community, and NPO. The Group recognizes that
contributing to society, one of the core values portrayed in the Corporate Principles and the Daiwa Spirit, will lead to
improving corporate value. By solving social issues through its business activities and pursuing both corporate social
values and economic values at the same time, the Group works actively on creating a sustainable and prosperous
society.
Under such circumstances, the Group has formulated the Basic Policy for Social Contribution Activities. The purpose of
the policy is to strengthen its governance structure to oversee and promote the implementation of social contribution
activities. While working closely with stakeholders, the Group publicly discloses its activities and outputs.
The policy was approved by the Head of SDGs and will be revised regularly for the purpose of building a better society
in partnership with our stakeholders.

2. Priority Areas
The Group considers it important to work together with both internal and external stakeholders as a good corporate
citizen engaging in consistent collaboration with the both local and global communities to foster sustainable
development. The Group's focus areas for social contribution activities are:Financial Education and research
Capitalizing on economic and financial expertise accumulated through its securities business, the Group provides
education programs and supports for various generations in order to help develop the capacity to build their own
lives and the asset management skill.
Contribution through foundations and NPOs
To realize a prosperous society, the Group provides support where needed by delivering funds and grants to
NPO/NGO.
Support for culture and the arts
The Group provides support for a wide range of cultural and artistic activities. These include exhibitions, classicalconcerts, and sports.
Corporate citizenship initiatives
The Group believes that employee volunteering helps broaden their perspectives and familiarize them with different
values. This, in turn, has a good influence on both their work and lives. For this purpose, the Group provides its
employees with information on volunteer projects planned by ourselves and NPO/NGO as well as events that help
raise their awareness. The Group also makes participating in volunteering easy by setting up a recognition programand introducing volunteer leave.
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Donations or grants provided to organizations are determined based on their credibility, continuity, and effectivenessin accordance with internal regulations. Upon receipt of progress reports by grantees, the Group monitors andevaluates their grant utilization and reporting framework.

4. Related SDGs

3

Please refer to the following for the details of our social contribution activities.
Financial Education and ResearchContribution through foundations and NPOs
Support for culture and the arts
Corporate citizenship initiatives

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DOCS for SDGs
Daiwa Securities Group supports Yahoo! JAPAN Corporation’s DOCS for SDGs
posted documentary films on a special website, so be sure to watch them.

action plan for achieving the SDGs. Yahoo! JAPAN has

Documentary film
Ideal World(Japanese)

The Potential of Nobishiro House(Japanese)

The Sea, the Future, and Youth(Japanese)

SDGs Creative Award
The SDGs Creative Award is a film contest that seeks to promote SDG education and initiatives by recognizing live-action films
intended to solve social issues. Daiwa Securities Group supports this initiative, which was launched in FY2018 by holding the SDGs
Creative Award Executive Committee meeting in Sapporo.

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NGO LOOB“Garbage is a pop treasure! A global partnership across the ocean towards a world free of plastic pollution”

NGO LOOB is a non-governmental organization that has been engaged in youth development and community development in thePhilippines since 2001. This video introduces the fair trade that has been implemented at LOOB since 2007, where waste juice packs
are reused and upcycled.
Products can be purchased at the online shop.
Second Daiwa Securities Group Award
Ryuzo Tanaka, Taki Corporation, “TAKI SMIKLE DESIGN LABO × Chonmagetai—Lala Tree” (Japanese)219

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Yusaku Kanagawa, “Verde Africa Forever” (Japanese)

Children’s Art Exhibit Held
With cooperation from the Japan National Council of Social Welfare and the National
Council of Children’s Homes, we borrowed paintings created by children living inchildren’s homes and displayed them to provide an opportunity for more people todeepen understanding of these children.
Images of the FY2019 exhibition can be seen here (Japanese)
Images of the FY2018 exhibition can be seen here (Japanese)

Other Support Programs
Daiwa Securities Group continues to provide support to promote sports, culture, and the arts.

Media Gallery (support programs) (Japanese)
Charity project held with Kashima Antlers F.C.
Daiwa Securities, in cooperation with official partner Kashima Antlers F.C., carried out a charity project on June 1-24, 2022, using the
KASSAI tipping service of Fintertech Co., Ltd. In this project, fans and supporters purchase their favorite gifts and the money is donatedto Japan Heart, an NPO that supports childhood cancer patients.
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One charity participant commented, "I was able to use money to solve social issues." We were able to propose a fund circulation
system that contributes to the SDGs.
At a match sponsored by the Group on June 18, a ceremony was held for Ryuji Otsuki, President and CEO of CONNECT Co., Ltd, to handover the list of donations to Japan Heart.

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By donating through its foundations and funds and subsidizing NPOs, Daiwa Securities Group continually strives to support vulnerable
populations to realize a prosperous society.

Daiwa Securities Health Foundation
Daiwa Securities Health Foundation began providing grants in FY1973. It currently targets research projects on medicine and medicalcare for diseases specific to middle-aged and elderly people, preventing the elderly from becoming bedridden, rehabilitation, andhome-based medical care and nursing care. Although medical technology has made remarkable progress in recent years, the risk of
new infectious diseases and lifestyle-related diseases has not disappeared. In order to realize the "extension of healthy life expectancy"that enables people to live healthy and enriched lives, the Foundation will continue to provide research grants to contribute to theimprovement of welfare in the areas of medicine, medical care, and nursing care.

FY2021 Presentation ceremony at Daiwa Securities Health Foundation (Head Office)Daiwa Securities Health Foundation's cumulative grants awarded through FY2021
Number of recipients

1,375 people

Total amount of grants¥1,350,4 million

Daiwa Securities Foundation
Daiwa Securities Foundation began providing grants in 1994. It currently provides grants to support activities for the elderly, children
with disabilities, and children, and other volunteer work of great social significance, as well as to support activities for victims of largescale natural disasters such as earthquakes and torrential rain. In FY2018, the Foundation expanded its scope of support with its grants
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FY2021 Presentation ceremony at Daiwa Securities Foundation (Head Office)Daiwa Securities Foundation's cumulative grants awarded through FY2021
Volunteer Activities Grants

Number of projects receiving grants : 4,044 projects
Total amount of grants : ¥950.49million

Grants to activities supporting children

Number of projects receiving grants : 26 projects
Total amount of grants : ¥12.50 million

Media reports concerning grant activities
In FY2021, there were no media reports as announcements to the media were not made and the presentation ceremony was held withminimum attendance to prevent the spread of the COVID-19.

Daiwa Anglo-Japanese Foundation
As a UK charity for fostering closer ties between the United Kingdom and Japan, the Daiwa Anglo-Japanese Foundation wasestablished in 1988 with contributions from Daiwa Securities Co Ltd.
The Foundation's Tokyo office provides local assistance to Daiwa Scholars (students from the United Kingdom) staying in Japan forabout 20 months, administers grant applications from Japan and collaborates with other institutions promoting Anglo-Japaneserelation.
Activities
1. Awarding grants to projects in a variety of fields by individuals, institutions, and organizations working to promote ties
between the United Kingdom and Japan
2. Awarding Daiwa Scholarships to British university graduates(including for one-year Japanese language study, four-week home-stays, and six-month on-the-job training in specialized
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3. Awarding the Daiwa Scholarships in Japanese Studies, which are supported by Daiwa Securities, for students from the United
Kingdom who are advancing to graduate school in the U.K. or Japan to conduct research on Japan
4. Organizing events regulatory, at Daiwa Japan House in London, which is the Foundation's headquarters, to improveunderstanding of Japan in the United Kingdom
Seminars are also being held online (as webinars) due to the COVID-19 pandemic.
5. Organizing events in Japan in collaboration with the British Embassy and others

Daiwa Scholars and Daiwa Scholars in Japanese Studies
Daiwa Scholars 2020
The five Daiwa Scholars 2020 who were scheduled to visit Japan in 2020 have postponed their visits due to the COVID-19 pandemic.
Cumulative number of people completing the Daiwa Scholar program by FY2019

190 people

Click here to learn more about Daiwa Scholarships

Daiwa Japan Studies Scholars 2020
2020: 3 students selected
One completed a master's degree at Cambridge University, one is currently enrolled in a master's degree program at Oxford University,and one is currently enrolled in a master's degree program at Waseda University.

Daiwa Japan Studies Scholars 2021
2021: 4 students selected
One is currently enrolled in a master's degree program at Oxford University, and the other three are currently enrolled at universities inJapan (PhD program at Tokyo Metropolitan University, master's degree program at the University of Tokyo, and master's degree
program at Tokyo University of the Arts).

Daiwa Myanmar-Japan Foundation
In April 2013, Daiwa Securities Group established the Daiwa Myanmar-Japan Foundation to improve people's livelihoods in Myanmar
and develop the human capital necessary for sustainable economic growth. Since its establishment, the Foundation has implemented
a scholarship student support program that provides junior staff of the country's central government with opportunities to study inJapan. To date, it has supported a total of 30 scholarship students.*1 After completing their studies, the students are provided with
opportunities to receive training at the Financial Services Agency of Japan and Daiwa Securities Group. The Foundation has also
provided training to 100 certified public accountants in Myanmar to date,*2 based on the tripartite memorandum of understanding
signed with the Myanmar Institute of Certified Public Accountants and the Japanese Institute of Certified Public Accountants. It has
also assisted staff of the Government of Myanmar in gaining securities-related credentials, starting in June 2020, in an effort to help
improve their financial knowledge. The Foundation’s initiatives are positioned as one of the measures that Japan's public and private
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Otherssectors have worked on together to invigorate Myanmar's capital market. They contribute to developing and creating a network of thehuman resources that will form the country's future leaders.
*1 In consideration of the COVID-19 pandemic, the FY2020 and FY2021 programs were postponed.
*2 In consideration of the COVID-19 pandemic, training was conducted online in FY2020 and was not conducted in FY2021.

Daiwa Myanmar-Japan Foundation's cumulative grants awarded through FY2021
Number of Myanmar citizens receiving scholarships

30 people

Number of participants in public accountant training

100 people

Daiwa Securities Phoenix Japan Program
In May 2012, we established the Daiwa Securities Phoenix Japan Program as a measure to support reconstruction after the Great East
Japan Earthquake that occurred on March 11, 2011. Under this program, we donate part of the trust fees from the investment trust"Daiwa Nippon Support Fund Vol. 3 - Phoenix Japan -."(Collaboration: Authorized NPO Japan NPO Center)

Kopernik Program
Since fiscal 2010, the Group has provided support to the American NPO Kopernik, which was established to improve quality of life andreduce poverty in developing countries. This program is operated by donations related to the investment trusts "Daiwa Eco Fund" and"Russell Investment Global Environmental Technology Fund".

Other disaster support (examples)
Torrential Rain Disaster in July 2020

5 million yen

Donation in response to damage caused by Typhoon Hagibis in 201910 million yen

Contribution to Areas Damaged by the 2018 Hokkaido Eastern Iburi
Earthquake

10 million yen

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Contribution to Areas Damaged by the Torrential Rain in July 2018

Social Contribution
Activities

Environmental
Initiatives

Others10 million yen
About 11.22 million yen(donation activities by officers and employees)

Donation in response to the heavy rain disaster in northern Kyushu in
FY2017

10 million yen

Major initiatives to date
Disasters

Daiwa Securities Group Tsunami Reconstruction Fund (implemented March 2005 to September 2015)
The "Daiwa Securities Group Tsunami Reconstruction Fund" was established on March 9, 2005 as a measure to support thereconstruction of areas affected by the Sumatra Earthquake and Indian Ocean Tsunami that occurred on December 26, 2004.
This is a long-term support project over 10 years from 2005, with Daiwa Securities Group Inc. contributing 10 million yen eachyear (100 million yen in total).
(Monitoring: Authorized NPO Asia Community Center 21, Fund management: Sumitomo Mitsui Trust Bank, Limited)

Support for the "New Tohoku" Restoration Business Contest (FY2016–FY2020)
The Restoration Business Contest is one that recognizes and supports business plans that lead to the restoration of the areas
affected by the Great East Japan Earthquake. Daiwa Securities Group supported the contest from FY2016 to FY2020.
In addition to the grand prize and awards of excellence, the "Daiwa Securities Group Phoenix Award" was established as one of
the corporate awards.

FY

Makuta Amenity Co., Ltd. (Fukushima, Utilizing IoT and AI to strengthening business competitiveness in the
Fukushima)
local agricultural sector

FY2019 PHOENIX Inc. (Morioka, Iwate)

Snowplow system with one-handle operation that anyone canoperate with ease6

Ride the global wind! High value-added seafood and sashimi exports
based on local cooperation

1

FY2018 Sanriku Toretate Ichiba (Ofunato,
Iwate)
0

MORIUMIUS, a facility providing children with multi-layered
experiences2

FY2017 MORIUMIUS (Ishinomaki, Miyagi)

FY2020 AZ Create Co., Ltd. (Kitakami, Iwate)"Enjoy Iwate" activity support website, bringing more joy to your life!

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3keys program (implemented October 2012 to March 2016)
Since fiscal 2012, the Group has been providing support to 3keys, a designated NPO that provides learning support at
orphanages. Under this program, we contribute part of the trust fees from the investment trust "Daiwa SRI Fund" to support theactivities of this organization.

"Daiwa SRI Fund" Grant Program (implemented April 2006 to July 2013)This is a subsidy program for domestic NPOs with the purpose of developing NPO staff who are active in fields related to "life"(human security fields). We donated part of the trust fees of the investment trust "Daiwa SRI Fund" during its operation.
(Collaboration: Designated NPO Civil Society Initiative Fund)

Daiwa JFS Youth Sustainability College (implemented October 2006 to September 2010)
A program was held for students in which sustainability was divided into four themes to provide an overall picture over four
years (once session a month). Our college was translated into English and transmitted to 191 countries and regions around theworld from the website of the environmental NGO Japan for Sustainability. This program was held using part of the trust feesfrom the investment trust "Daiwa Eco Fund".
(Collaboration: Designated NPO Japan for Sustainability)

Social Business College (implemented October 2010 to September 2012)
We planned and held this event as a forum for disseminating information on social business and discussing sound businessmodels and optimal financing.
A report prepared by Daiwa Institute of Research based on the college topics and details of the lectures is presented.
Press release（Japanese）
Session One: Representative Director Natsuko Shiraki of HASUNA Co., Ltd. (held on October 28, 2010)
Development of an ethical jewelry brand to address issues of poverty and child labor
Report: Case Study 1 HASUNA（Japanese）
Session Two: Representative Director Eriko Yamaguchi of MOTHERHOUSE Co. & Ltd. (held on December 7, 2010)
Creating world-class brands from developing countries
Report: Case Study 2 MOTHERHOUSE（Japanese）

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Regional revitalization through forestry business
Report: Case Study 3 tobimushi（Japanese）
Session Four: Senior Managing Director Eiko Nakamura of eco farm Co., Ltd. (held on May 31, 2011)
Using pigs as partners to regenerate abandoned land and conduct recycling-based agriculture
Report: Case Study 4 eco farm（Japanese）
Session Five: Representative Director Michihiro Kouno of Yagisawa Shouten Co., Ltd. (held on July 21, 2011)
Rebuilding a 200-year-old soy sauce brewery to develop with Rikuzentakata
Report: Case Study 5 Yagisawa Shouten（Japanese）
Session Six: President Mitsuru Izumo of Euglena Co., Ltd. (held on October 25, 2011)
Green algae will save the earth!
Report: Case Study 6 Euglena（Japanese）
Session Seven: President Keiji Ikeuchi of Ikeuchi Organic Co., Ltd. (held on December 15, 2011)
From Ehime to the world – weaving towels with the wind: business links between Imabari and Tanzania
Report: Case Study 7 Ikeuchi Organic（Japanese）
Session Eight: Representative Director Yuko Morishige of A DANSÉ Co., Ltd. (held on January 27, 2012)
Forests, AIDS, and shea butter
Report: Case Study 8 A DANSÉ（Japanese）
Session Nine: Co-Founder and CEO Toshi Nakamura of Kopernik Solutions (a U.S.-based non-profit organization) (held on March
5, 2012)）Using innovation to solve poverty problems in developing countries
Report: Case Study 9 Kopernik Solutions（Japanese）
Session Ten: Representative Director Takashi Kawazoe Carepro, Inc. (held on May 25, 2012)
Saving 33 million vulnerable people with one-coin check-ups
Report: Case Study 10 Carepro（Japanese）
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What can we do for agriculture of the future: Post-earthquake reconstruction challenges of strawberry farmers in Yamamotocho?
Session Twelve (held on September 25, 2012)
Part 1: CEO Masami Komatsu of Music Securities, Inc.
Part 2: Social business—Questioning business in the 21st century
CEO Masami Komatsu of Music Securities, Inc.Mariko Kawaguchi
Senior Principal, Research Division Daiwa Institute of Research Ltd.
Environment

Support for production of "Renewable Japan Status Report" (implemented 2010 to 2011)
We donated trust fees from the investment trust "Daiwa Eco Fund" to be used as production costs for the 2011 and 2012 editionsof the "Renewable Japan Status Report" published by the designated NPO Institute for Sustainable Energy Policies.

Daiwa Russell GEF Environmental Technology Promotion Project (implemented 2008 to 2009)This was a project to compile and disseminate a handbook about basic technologies that can be sufficiently created andoperated by materials and human resources in developing countries from among Japan's environmental technologies. A
donation was made from part of the trust fees of the investment trust "Russell Investment Global Environmental Technology
Fund."(Collaboration: General Incorporated Foundation Global Environmental Forum)

Daiwa CI Biodiversity Conservation Fund (implemented 2007 to 2008)
We established and supported a fund to support eight local communities that are important for biodiversity conservation inareas around World Natural Heritage Sites. A donation was made from part of the trust fees of the investment trust "Daiwa Eco
Fund."(Collaboration: General Incorporated Foundation Conservation International)229

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Environmental
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OthersKopernik Program
Providing Appropriate Technologies to Developing Countries in Order to
Improve Lives and Break the Chain of Poverty
Daiwa Securities Group supports the program of Kopernik, a non-profit organization that wasestablished on February 19, 2010 to improve lives and break the chain of poverty in developing
countries.
Kopernik uses the Internet provides a mechanism that enables donors to select projects insupport regions and products that are locally needed (such as solar lamps and simple water
purifiers) for donation to recipients. Since the use of donations can be clarified and support can beprovided to local partners that take direct action locally, the organization is able to efficiently
provide support that accurately meets local needs.
Donations sourced from our revenue from the Russell Investment Global Environmental Technology
Fund are allocated as set forth below and to operational expenses of Kopernik.
（1） Projects to directly provide products and technologies that will be useful for raising the living standards of
impoverished persons in developing countries（2） Trials of products and technologies taking into account local issues and surveys of local needs

FY

– FY

Recipients

The following project was selected for grants.

Country of
Implementation

2

2

0

2

1

Improving livelihoods in the fisheries sector in coastal areas

2

0

2

Indonesia

Project

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Grant Amount
(US$)
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Others

The following three projects were selected for grants.

Country of
Implementation
Indonesia

Project

Grant Amount(US$)

Increasing the added value of seaweed

19,337

Improving sorting of waste

13,696

Seawater desalination project

2,610

FY2019 – FY2020 Recipients

The following three projects were selected for grants.

Country of
Implementation

Grant Amount(US$)

Reducing crop damage through pest control in paddy fields

10,306

Cultivating and conducting dietary education on highly-nutritious moringa to
improve children’s nutrition

9,043

Preserving water quality for sustainable batik industry

5,295

1

2

0

2

0

2

0

2

Indonesia

Project

FY2018 – FY2019 Recipients

The following three projects were selected for grants.

Country of
Implementation
Indonesia

Project

Grant Amount(US$)

Increasing rice production yields by improving rodent countermeasures

9,900

Extraction of honey using tubular filters

8,900

Emergency support for the Sunda Strait tsunami

10,100231

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FY

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

Others

The following six projects in two regions were selected for grants.

Country of
Implementation

Indonesia

Bangladesh

Project

Grant Amount(US$)

Improvement of irrigation systems: drip type irrigation systems using plastic
bottles

4,800

Grain storage method that contributes to farmers securing food and increasing
their incomes

3,600

Solar systems providing access to electricity

6,300

Palm leaf cutting machines that improve farmers’ processing skills

3,900

Provision of clean energy technology to schools and students in remote areas

7,700

Support to Rohingya refugees: solar power generation systems for health care

4,200

FY2016 – FY2017 Recipients

The following 11 experimentation projects in Indonesia were selected for grants.

Indonesia

Project
8

1

0

2

7

1

0

2

Country of
Implementation

Grant Amount(US$)

Storage method that improves the quality of agricultural products

1,500

Testing of low-cost seawater desalination technology

2,000Extraction of honey using tubular filters

3,000

Study on recyclable sanitary napkins and girls' school attendance

3,000

Testing of effects of handmade solar drying machine

2,000

Improvement of solar-based cacao processing method

5,800

Homemade solar lantern

2,400

Solar drying machine

5,500

Gas detector for keeping watch on forest fires

2,500

Testing of water quality sensor

2,000

Plastic waste recycling equipment

3,000
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Activities

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Initiatives

Others

The following four projects in three regions were selected for grants.

Country of
Implementation
TurkeyCambodia

Myanmar

Project

Technology Distribution

Grant Amount(US$)

Provision of technology to female refugees
fleeing war in Syria

Hygiene supply kit

20,000

Provision of technology to the people of Kratie

Solar lamps
Water purifiers
Cooking stoves

5,333

Provision of technology to the people of Siem
Reap

Solar lamps
Cooking stoves

6,676

Research on needs to improve the living
standards of impoverished farmers-

11,222FY2014 – FY2015 Recipients

The following three projects in two regions were selected for grants.

Country of
Implementation

Project

Grant Amount(US$)

Provision of high combustion efficiency cooking
stoves to replace cooking methods thatgenerate a lot of smoke for people living infarming villages in Soppeng Regency, South
Sulawasi Province

Cooking stoves

5,856

Technology fair held to determine what kinds oftechnologies will lead to solutions to the issues
that the Cambodian people are facing

Solar lamps
Water purifiers
Cooking stoves
Mosquito nets

17,862

6

14,663

1

Solar lamps
Water purifiers
Cooking stoves

0

Promoting the use of solar lamps, water
purifiers, and cooking stoves to local womenwith the aim of improving the living standardsof people living in Pulau Flores
2

Cambodia

5

1

0

2

Indonesia

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Activities

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Initiatives

Others

The following six projects in four regions were selected for grants.

Country of
Implementation

Introducing water purifiers to support theprovision of clean drinking water

Water purifiers

6,072

Provision of cooking stoves and solar lamps tosemi-nomadic communities in India

Solar lamps

3,718

Provision of technology to families living in the
Poso region after conflict

Water purifiers
Cooking stoves
Solar lamps

6,412

Provision of solar lamps to families living inYahukimo Regency, Papua Province

Solar lamps

7,334

Provision of solar lamps to East Timor to reducethe dumping of batteries from fishing boats andreduce deterioration of the environment

Solar lamps

14,050

3

1

0

2

2

East Timor

8,336

4

Indonesia

Grant Amount(US$)

Cooking stoves

1

India

Technology Distribution

Using high combustion efficiency cooking
stoves to reduce firewood consumption andimprove cooking environments

0

Myanmar

Project

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OthersRecipientsFY

The following six projects in five regions were selected for grants under the FY2012 program.

Country of
Implementation

Project

Technology Distribution

Grant Amount(US$)

Provision of solar lamps to river island residents
in northern Bangladesh

Solar lamps

8,775

Provision of clean water in impoverishedregions Bali

Water purifiers

6,678

Provision of commercial cooking stoves on
remote islands of Indonesia

Cooking stoves

12,000

East Timor

Provision of safe birth kits to clinics in East
Timor

Matenoble birth kits

9,345

Vietnam

Provision of hearing aids to schools for the deaf
in Vietnam

Hearing aids

8,500

Philippines

Provision of solar lamps in mountain regions of
the Philippines

Solar lamps

4,883

BangladeshIndonesia

FY2011 Recipients
2

1

0

2

The following six projects in five regions were selected for grants under the FY2011 program.

Country of
Implementation

Project

Technology Distribution

Grant Amount
(US$)

India

Provision of water purifiers to flood victims

Water purifiers

5,000

Provision of high efficiency cooking stoves towomen in India

Biomass cooking stoves

1,623

Indonesia

Creation of jobs to spread technology bymaking use of women’s networks

Water purifiers, cooking
stoves26,190Philippines

Provision of attractive and sustainable lights inhighland regions of the Philippines

Solar lanterns

8,648

East Timor

Provision of lights to fishermen on isolatedislands

Solar lanterns

7,340

VietnamPhase II: Provision of hearing aids and training
to deaf children

Solar hearing aids

10,417235

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Initiatives

OthersRecipientsFY

The following nine projects in four regions were selected for grants under the FY2010 program.

Country of
Implementation

Project

Technology Distribution

Grant Amount(US$)

Provision of lights in East Timor

Solar lanterns

20,271

Provision of lights to midwives

Solar lanterns

1,845

Provision of clean water to agricultural villages
in East Timor

Solar water purification
systems

7,495

Energy from biomass

High energy efficiency
cooking stoves and biomass
charcoal kits

4,345

Provision of biomass cooking stoves inagricultural villages in Indonesia

High energy efficiency
cooking stoves

5,035

Provision of lights to forest communities

Solar lanterns

8,010

Provision of biomass cooking stoves forrecovery following the eruption of Mount Merapi

Biomass cooking stoves

9,397

Vietnam

Restoring the hearing of children

Solar hearing aids

14,995

India

Improving living standards in communities in
India

Solar lanterns

5,291

East Timor

0

1

0

2

Indonesia

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Initiatives

OthersCorporate Citizenship Initiatives
Daiwa Securities Group believes that participation in volunteer programs and other community activities by employees helps broaden
their perspectives and familiarize them with different values. We consider that this, in turn, has a good influence on both their workand their lives.
Through our intranet, we provide information on volunteer opportunities for projects planned by ourselves, other businesses andNPOs/ NGOs as well as events that help educate employees and raise their awareness. We also strive to create an environment thatmakes it easy for employees to volunteer by setting up a recognition program, the Volunteer Award, and other incentives.
In FY2019, we introduced Volunteer Leave to create an environment that facilitates participation in volunteer activities.

Initiatives to Promote Volunteer Activities
President's Awards program
Daiwa Securities has the President's Awards program to recognize outstanding achievements by employees. As part of the
program, we introduced the Volunteer Award in FY2007, which is given twice a year to employees and groups involved involunteer initiatives and activities that provide ongoing support to communities.
Dissemination of Information through the Internal Network
The Daiwa Securities Group introduces the best practice in such volunteer work, through our inhouse magazine and internal TV programs.

In-house magazine "Fuji"

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Others"Jeans Day"
For the purpose of charity for those affected by COVID-19 infection, we hold an event "Jeans Day" on
the 1st of a month where officers and employees come to work in casual clothes and raise funds.
In the first half of FY2021, we donated the entire amount of the donation to the Red Feather
campaign . In March 2022, in view of the current situation surrounding Ukraine, the Japan
Committee for UNICEF "Ukraine Emergency Fundraising" was selected as the donation destination.
A total of more than 20 million yen is donated in one year to create opportunities to participate insocial contribution activities, and a different atmosphere and communication style are created,
contributing to a well-ventilated work environment and improving employee engagement.

Donations to recipients of "Support Terme Deposits" by "Jeans Day"

Collection Drive
The Daiwa Securities Group has been running the following collection drives as initiatives that are easy for employees to participate in.
Collected items are donated to various NPOs and sold by them to fund their activities, including support for education, medical
services and assistance to the disabled in developing countries.
ExamplesParticipation in "Used Book Sale Donation for Children's Future" (donation to Children's Future Support Fund )Donation of unusable postcards and used stamps (donations to Japan Committee "Vaccines for the World's Children" and Livewith Friends on the Earth)
Donation of redundant calendars (donations to groups involved in disaster assistance or community support activities, which
are selected each fiscal year)
Contribution made in FY2021 through collection drives (equivalent monetary value)
Used Book Sale Donation for Children's Future : ¥247,247
Japan Committee "Vaccines for the World's Children" : ¥147,602
Live with Friends on the Earth : ¥41,213

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OthersDonation Activity through Food and Drink
Since the spring of 2013, Daiwa Securities Group has contributed to the TFT Program, which isorganized by TABLE FOR TWO, an internationally designated NPO. This is an initiative aimed atcorrecting food imbalances between developing and developed countries by donating a portion ofrevenue from the purchase of food and drink by Group officers and employees to pay for school
lunches in developing countries.
We introduced the TFT menu at the cafeteria in the head office building and the staff cafeteria in
Daiwa Institute of Research and Daiwa Facilities Co., Ltd. started donating ¥1 per drink sold throughthe beverage vending machines installed within the Group. Moreover, points earned through the“KA-RA-DA iki-iki Project,” which is aimed at strengthening employees’ health, can now be
redeemed for contributions to the TFT Program. We have thus expanded the platforms forparticipating in the TFT activities.
The contributions made through the TFT Program during the period of January to December 2021
were equivalent to around 78,299 school lunches in developing countries (calculated on theassumption that one meal costs ¥20).

Donation of Shareholder Reward Items
Daiwa Securities Group Inc. implements a shareholder reward program. Together with the operation of this program, we donate
reward items returned to us due to the relocation of shareholders and other reasons, as well as reward items received for ourshareholdings in other companies, to organizations such as designated NPOs and public interest incorporated foundations.

Initiatives in Japan
Held a charity project with Kashima Antlers FC
For details, click here.

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OthersParticipate in food drive activity
At the Daiwa Securities Matsuyama Branch, they conducted a "food drive activity" to collect and donate surplus food from eachhousehold.
About four boxes of cardboard food, such as rice and beverages, brought by employees from each household were donated toorganizations that need food, such as the children's cafeteria, through the Matsuyama Chamber of Commerce and Industry.
Through such activities, each and every employee will continue to be interested in reducing food loss and will actively work tocontribute to society and achieve the goals of the SDGs.

Donated food and members of Matsuyama branch

Letter of appreciation received from Matsuyama Chamber ofCommerce240

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OthersContribution to Local Communities through Investment Activities of REITs
Daiwa Real Estate Asset Management contributes to local communities by addressing social issues through investment
corporations and funds that entrust it with asset management.

Efforts for the sustainable development of local communities
Daiwa Office Investment Corporation is making efforts to contribute to the sustainable development of local communities byparticipating in various councils related to urban development and cooperating in participation in local events.
In addition, using the site of the office building they own, they will install a shared electric kickboard / share cycle port andattract kitchen cars, etc., and social life of tenant employees, residents, local residents, etc. They are trying to improve the above
convenience.

Installation of electric kickboard (Daiwa Tsukishima building)Attracting kitchen cars (Daiwa Nakano Sakaue building)Efforts at healthcare facilities
At Daiwa Securities Living Investment Corporation, employees of the management company visit healthcare facilities owned
nationwide several times a year for the purpose of deepening their understanding of the on-site work of operators in healthcare
facilities and services for facility residents. They participate in exchange events (family social gatherings, senior citizens'
associations, etc.), employee experience training, and help with daily work (cleaning, pruning of courtyard plants, etc.). They
will continue to actively make this effort as part of our contribution to the local community.
(* Currently, due to the epidemic of COVID-19 infection, the above efforts are suspended to prevent infection.)

State of summer festival (Alpha Living Takamatsu stationsquare)State of planting pruning (Alpha Living Takamatsu
Hyakkenmachi)
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Initiatives against COVID-19
Daiwa Securities Hotel Private Investment Corporation will provide its hotel facilities as temporary self-isolated accommodation
facilities after entering Japan as an initiative to combat COVID-19 infections. They accept returnees and immigrants, including
foreign students and technical trainees, from overseas.

Initiatives Taken by the Group's Overseas Offices
Activities at the Group's London Operational Base
Daiwa Securities Capital Markets Europe Limited ("DCME") established the Sustainability Oversight Group in 2020. The Group,
chaired by the Head of Strategy and Executive Governance, is comprised six working groups: Business Development; Regulation& Risk; Sustainability; Charity; Wellbeing and Diversity & Inclusion.
In January 2022, DCME created a new post of Head of ESG to develop the ESG-related strategy, solutions and services. DCME,
with leaders across the Daiwa Securities Group, work to generate ESG-related client opportunities, advance their net zero efforts
and educate colleagues for developing their collective expertise on sustainability initiatives and further embedding ESG and theSDGs at the heart of their strategy.
Tarek Hasan's bio

The Wellbeing Working Group
The Wellbeing Working Group aims to build a workplace environment and foster a culture that is supportive of all aspects ofwellbeing. The wellbeing strategy has been developed against 7 pillars: physical, mental, social, spiritual, environmental,
financial and emotional. They have also continued to populate 'Your Wellbeing News' every two months.
During the last few months, the working group have arranged additional Mental Health First Aider training and published a callfor further volunteers to continue and improve mental health and wellbeing support for all employees.
DCME and the Wellbeing Working Group offered free bike servicing to all employees on 20th April to encourage those to do more
exercise and save on commuting into the office.

DCME Wellbeing news – March 2022 edition'Get Energised on your commute' Comms which was sent to all staff.
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OthersThe Diversity & Inclusion Working GroupThe Diversity & Inclusion Working Group works closely with People and Culture to assist in delivering the firms D&I objectives. It
is organised into four sub-groups on Gender & Family, Race & Ethnicity, LGBTQ+ and Multi-Faith.
In October 2021, DCME implemented a Black history month initiative called 'Shining a Light'. This is where colleagues kindly
volunteered to share their stories including their background, childhood and first experiences of becoming aware of race. Theirstories were posted on the intranet and the link was sent out in the Internal Communications email.

Shining a Light initiative - October 2021

On 31st March to celebrate 'Transgender Day of Visibility', which was founded in 2009, the working group shared key facts andexternal links for employees to learn more. They are also looking to hold a workshop to raise LGBTQ+ awareness for up to 50
employees.

Banner for Transgender Day of Visibility.

For International Woman's Day, the working group held a lunch seminar with the tag #BreakTheBias. This was led by membersof senior leadership, including Megan McDonald (CEO), Shuntaro Nagashima (President of Strategic Business Development),
Sarah Cawthra (Chief People Officer), Carolyn Jones (Head of Legal, Chair of D&I Working Group) and Tarek Hasan (Head of ESG).

Speakers from the IWD event - break the bias.

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The working group has the following plans set for 2022/2023 including:Tokyo Pride networking event (24/25 April)
HR D & I Data collection
Tommy's Resource
Launch of Multi-faith Prayer / Quiet room

Tommy's pregnancy and parenting work package stats

The Sustainability Working GroupThe Sustainability Working Group aims to define and monitor measures of waste, consumption and environmental impact in thecontext of DCME's business processes and develop a framework to guide the firm in lowering its environmental impact. A key
objective is to measure DCME's CO2 footprint and identify a path to net neutral, including early reduction targets.
DCME has already taken steps to reduce its carbon footprint, promoting energy efficiency, recycling and re-use. Recycling
stations have been introduced throughout our premises and plastic cups removed from staff kitchens. Plastic bin bag
consumption is set to reduce by 50,000 a year. The firm has ensured the most efficient operation of the building to reduceenergy consumption and has switched its stationery contract to a sustainable supplier.
To help DCME adopt some environment friendly habits, the Sustainability Working Group ran a 'Do Just 1 Thing' campaign from11th May to 27th August, to encourage everyone at DCME to pledge one thing they would do during those 3 months to adopt asustainable lifestyle. For every entry submitted, DCME will plant a tree to build a greener world.

DCME "Do just 1 thing to help build a greener world" internal campaign
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OthersThe Charity Working GroupThe Charity Working Group have been working on further projects and initiatives in the recent months. In March, DCME
participated in the Cycle for Smart Works charity initiative again, cycling a total of 520 miles and raising over £1,129 for thischarity.
Also, following on from DCME's exceptional volunteering efforts at last year's Summer Lunch Club, Hackney Foodbank haveinvited the Charity Working Group and all employees to take part in this year's Summer Tesco Collection, which will take placeon the 30th June and 1st July. This will allow employees to raise awareness of the food bank and the critical work they do in thecommunity.

Banner sent to DCME staff to encourage participation in the Hackney Foodbank Summer Lunch Club.

The Business Development Working GroupFor detail Action through Product Development and Distribution > For Addressing Social Issues and Contributing to Future
Development of Society and Financial and Capital Markets > FY2021 Initiatives Taken by the Group's Overseas Offices > Daiwa
Capital Markets Europe Limited (DCME) Initiatives

The Regulation & Risk Working GroupThe Regulation and Risk Working Group (RRWG) have created a page on the intranet to provide all DCME employees with more
information, which includes an introduction, working group membership and a vast amount of resources, focusing on climatechanges and regulatory updates.
The RRWG is made up of representatives from both DCME and DCMD covering Regulatory, Legal, Risk, Compliance and Font
Office Control.

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OthersActivities at the Group's New York Operational Base

Cultural Awareness: DCMA's International Cookbook
Daiwa Capital Markets America Inc. (DCMA)'s International Cookbook was created to celebrate cultural diversity and the ways inwhich it extends into all areas of life, including the stories, recipes, and history that bring us together. With the help of DCMA
staff, we assembled recipes collected from DCMA employees, and others from around the world, to learn about the different
cultures we have at the firm, from American to International, and foods that are significant to them. Food is the great connector
within our communities and the DCMA Cookbook serves as a shared space for the stories, recipes, and history that we sharewith each other.

Initiatives to Support Gender equality, Women Empowerment and Wellness:
Breast Cancer Awareness Fundraiser & International Women's Day Celebrations
DCMA's Women's Initiative Network was established in 2016 and strives to provide a forum for empowering women andpromoting women's career growth, professional development and leadership.
October is breast cancer awareness month! This year, we hosted a charity event to raise awareness for Breast Cancer and tosupport the Susan G Komen Breast Cancer Foundation: a non-profit organization focusing on breast cancer research, screening,
treatment, and education.
The International Women's Day in March 2022, DCMA sponsored events where employees and the Executive Team members
made a pledge to "Break the Bias." The firm also hosted two clothing drive donations to support "Dress for Success" and "EastSide House Settlement" which both help empower women & help them prepare for career success.

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Initiatives to Support Quality Education:
Charitable Contributions and DCMA's Back to School Supply Drive
In August 2021, DCMA was excited to team up with Apex for Youth to host a Back to School Drive that provided students withmuch needed school supplies as they headed back to school in the fall. Through mentoring and educational programs thatserve students from 1st to 12th grade, Apex volunteers guide and support youth to become confident, be ready for college andgive back to the community. DCMA also made a monetary donation to help bridge the gap between disadvantage and academic
success.
In May 2022, DCMA provided a donation to "Sheltering Arms" a local organization that helps to ensure that every child andfamily has access to the services and programs that support child education, local safety environment and healthcare.

A photo from Apex for Youth247

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OthersActivities at the Group's Asia & Oceania Operational Base

Charity run event, CareER RunnERthon 2021 (Asia & Oceania)
Daiwa Capital Markets Hong Kong ("DCMHK") participated in the RunnERthon as a gold sponsor, with the great support from ourstaff, we have a total of 310 #TeamDaiwa runners participating in the event across the Asia region. The event is also registered
for the Japan Autumn Fair promoted by the Consulate-General of Japan in Hong Kong and The Hong Kong Japanese Chamberof Commerce & Industry.
The RunnERthon is an annual charity event organized by CareER and the donation raised in the event is used to support careerdevelopment for students and graduates with disabilities in Hong Kong.

CareER and DCMHK staff at the opening ceremony

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OthersSDGs Lunch & Learn Session (Asia & Oceania)
The Asia & Oceania region held lunch & learn sessions as part of the SDGs initiatives to provide opportunities to staff members
to learn about diversity & inclusion in 2021.
We invited external experts and some of our staff as panelists to share their knowledge and experience on the topic. Over 100
staff members in the Asia and Oceania region participated in the first session, "Diversity and Inclusion", and more than 150 staff
members participated in the second session, "Gender Equality".

Lunch and Learn sessions

Participation in Inclusive Recruitment Fair (Hong Kong)
Staff from HR, Operations, and IT departments of DCMHK joined the Inclusive Recruitment Fair hosted by CareER that supports
career development for students and graduates with disabilities in Hong Kong. The staff shared Daiwa experience in disability
inclusion with the candidates and explore potential opportunities in hiring job applicants referred by CareER.

DCMHK staff at Inclusive Recruitment Fair

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OthersDisability Inclusion Index (DII) launched by CareER (Hong Kong)
DCMHK has participated in CareER DII in 2021. DII is designed to identify and quantify gaps in the practice of workplace disability
inclusion policies in participating organizations for more effective implementation. The DII is sponsored by Swire Trust, withstrategic partnership with HKEX Foundation, knowledge partnership with Deloitte and Hong Kong Equal Opportunities
Commission. Future direction towards implementation of workplace disability inclusion will be discussed further in accord withthe detailed DII results and specific recommendations from CareER.

CareER Disability Inclusion Index Dissemination Ceremony

JFC (Japanese Junior Football Club) Sponsorship (Hong Kong)
DCMHK has sponsored JFC for their club operation and official uniform. Their official uniform has proudly featured Daiwa
Capital Markets logo and our tagline "Passion for the Best".
With the sponsorship and support from Daiwa, the club hosted JFC tournaments with local/ international teams which provided
opportunities for children to experience soccer tournaments. These events have fostered cultural exchange between themembers and coaches from local and international backgrounds. Recently, JFC has won championships in some tournaments
and number of children participating in their soccer training session has grown by 50% from the past year even though we are
all facing the challenges under COVID-19 pandemic.

JFC kids playing soccer
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Melbourne, Australia had the longest lockdown in the world from 2020 to 2021, with a total of 262 days. Daiwa Securities CapitalMarkets Australia has introduced a well-being program to maintain the physical and mental health of employees during the
lockdown, including counseling support service, fitness, and home office setup.

DCM Australia staff purchased a new chair for his home office251

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Participation in "Love Handmade Soap Production"
Daiwa Securities Capital Markets Korea ("Daiwa Korea") participated in a non-face-to-face "love handmade soap production"
activity in collaboration with the incorporated association HANSUP. As effects of the spread of COVID-19 continues to last longer
than ever before, there is an urgent need to improve the hygiene environment for children who are marginalized more than everbefore. It was a good opportunity to contribute to society by providing handmade soap.
Since before, Daiwa Korea has donated 100,000 won every month to Korea Food for the Hungry International, an NGO that
supports children who are short of food at home and abroad in order to contribute to the realization of a society where they canlive together.
Moreover, since the Korean government is strongly promoting the realization of an appropriate "work-life balance" in society as
a whole, the company is making efforts to respond to such movements in local corporate activities and setting as effort goals:(1) encouraging proactive participation in social service activities (investigating and providing information on social
contribution activity programs and granting compensatory leave to employees who participate in weekend activities); (2)creating comfortable work environments for women (improvement of welfare programs at each stage of pregnancy, childbirth,and child rearing, allowing adjustment of working hours and providing time to visit doctors for pregnant employees, setting up
a nursing room and providing time for nursing at the discretion of the department head); and (3) encouraging employees toleave the office on time and take their annual paid leave to achieve work-life balance, and enhancing the welfare benefit system(subsidizing employees' self-development expenses, such as for studying languages, and expenses for promoting andmaintaining health).
In 2021, the company actively encouraged all employees to telework due to the prolonged effects of the spread of COVID-19, andmade efforts to maintain business continuity and employee safety at the same time.
The company will continue to carry out such CSR activities and will strive to contribute to the Korean society more broadly by
responding positively that the Korean society demands.

Members of Daiwa Korea who participated in the "Love Handmade
Soap Production" activity

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Daiwa Securities Group engages in collaborative programs as part of our efforts to create an environment where our employees find it
easy to participate in volunteer activities.
Membership of a community-based organization for volunteer work [Japanese]
Daiwa Securities Group is a member of an organization for volunteer activities, based in the Chiyoda ward of Tokyo, comprised of 17
companies and one body that works on initiatives contributing to communities together with other members.
Chiyoda Volunteer Club [Japanese]
Since 2009, we have joined the Chiyoda Volunteer Club, a free-of-charge membership program operated by Chiyoda Volunteer Center.
Club members receive information on volunteer activities within the Chiyoda ward every month through an e-mail newsletter. The
system of the club is simple and convenient encouraging our employees to participate in volunteer work under this program.

Past Activities
Forest Preservation Activities
Daiwa Securities Group has continued to conduct hands-on programs for experiencing the importance of maintenance andpreservation of forests, which account for two thirds of Japan’s total area.

Hands-on Forest Experience in Sayama Hills
The Group provided employees and their families with a forest preservation experience for 10
years from 2005 to 2014 at Mount Takao (Hachioji City, Tokyo). We changed the place of activity
to Sayama Hills in Tokorozawa City, Saitama from FY2015 and have been conducting a program
aimed at community village preservation activities.

Hands-on Forest Experience in Mount Takao
The program was implemented at Mount Takao (Hachioji City, Tokyo) for 10 years from 2005 to
2014. It involves thinning out trees in the first year and carrying out maintenance work forpathways in the second year, using lumber from the thinning work. The program attracted
around 30 participants each year as a program in which both parents and children (elementary
school children or older) can participate.

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Together with the Daiwa Anglo-Japanese Foundation, the Group holds a food culture exchange
event between Group employees and Scholars coming to Japan in September each year. The
event is held for the purpose of cultural exchange between Japan and the United Kingdom.
Through a cooking experience, we introduce washoku (Japanese cuisine), which has been
added to the UNESCO Intangible Cultural Heritage list and is loved across the world.

Holding of Events with Sign Language and Simultaneous Captioning
Daiwa Securities Group has provided sign language classes for beginners to increase
understanding and use of sign language. On July 7, 2011, to celebrate the 10th anniversary of
the classes, we held an event that could be participated in together with people with a hearing
impairment. The sign language classes have ended, but we have continued to hold eventsusing sign language and simultaneous captioning on an irregular basis.

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Reduction
Protecting the global environment, which is the basis of our livelihoods, is essential for a sustainable society. Through our businessactivities, Daiwa Securities Group contributes to the resolution of environmental issues by developing products that reduce theenvironmental burden, and also by assisting financing for the development of environmental technologies and infrastructure. At thesame time, we are working to establish a system that efficiently collects data on the Group's environmental load. We are also focusing
on raising employees' environmental awareness to empower them to reduce the environmental burden in daily business operations.
Through our SDGs Promotion Structure, we respond to climate change and environmental management.
Environmental Vision
The Group is dedicated to protecting the precious global environment and preserving it for future generations by leveraging
financial capabilities.
Environmental Principles
The Group recognizes the importance of environmental principles such as the effort to combat global warming, recycling
and reuse of raw materials, and preserving biodiversity, in order to create a sustainable society for the 21st century. The
Group pledges to contribute to solving environmental issues through its business as a financial services company and, toconstantly seek new ways to reduce its environmental impact as a responsible corporate citizen.
Basic Environmental Policies
1. Make positive environmental contributions through our core business activities
We shall seek to develop and provide financial products and services that promote a low-carbon, recycling-oriented,
and symbiotic society.
2. Implement an environmental management system
We shall implement an environmental management system and constantly seek new ways to improve environmental
activities. In addition, we shall support environmental education and publicity efforts, while promoting environmental
protection efforts by employees.
3. Take steps to save natural resources, reduce energy consumption, and promote biodiversity system
We shall continue to progress in our efforts to reduce the use of natural resources and energy, and seek ways to improvematerials and energy efficiency (including efforts to improve business efficiency). We shall also take steps to reducewater use and reduce, reuse, and recycle other materials to contribute to a more environmentally friendly society.
Furthermore, considering the importance of biodiversity, we shall seek a symbiotic relationship with the environment
and use safe, clean methods of materials procurement.
4. Promote environmental communication
Working in concert with business partners, the local community, NGOs and NPOs, we shall actively disseminate
information about environmental issues, and communicate our concern for the environment to customers and society
at large.
5. Strictly observe environmental regulations
We shall always endeavor in environmental preservation, observing environmental laws and regulations in addition to
the Group's environmental policies.
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Initiatives for the reduction of GHG emissions
Continue to reduce CO2 emissions by at least 1% compared with the previous fiscal year.

* On a Domestic consolidated basis

Initiatives for the reduction of electricity consumption
Achieve a reduction of at least 51% in GHG emissions from electricity usage compared with the FY2013 level (as of FY2030)* On a per unit area basis

Improve the accumulation of environment-related data hone analytical skills
Continue to introduce eco-cars
Purchase products certified under the Japan's Top Runner Program standards

Our Approach to Green Procurement
Under its SDGs Promotion Structure, Daiwa Securities Group is working to reduce the environmental load of society as a whole,including the supply chain, in accordance with our Environmental Vision, Environmental Principles, and Basic Environmental Policies.
In particular, we are engaging in procurement activities based on Our Approach to Green Procurement.

Our Approach to Green Procurement
1. We have outlined our commitments to promote green procurement in “3. Take steps to save natural resources, reduceenergy consumption, and promote biodiversity system“of our Basic Environmental Policies.
2. We seek to conserve the environment in our business activities. We therefore prioritize the companies that embrace
environmental conservation when selecting suppliers.
3. In purchasing new equipment, we encourage to procure eco-friendly products for the Group’s centralized procurement.
Also, we require our suppliers to deliver products that meet Top Runner Program standards in renewing existing
equipment.
We require our suppliers and other business partners to understand and comply with our approach in conjunction with ourEnvironmental Vision, Environmental Principles, and Basic Environmental Policies.
Structure of SDGs Promotion
Environmental Vision, Environmental Principles and Basic Environmental Policies
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Initiatives to Reduce the Environmental Impact of Business Activities
Development and Announcement of Environmental Accounting
As part of our efforts to reduce environmental loads, Daiwa Securities Group prepares and discloses environmental accounting.
It is expected to help us to track the costs and effects of environmental preservation more accurately and reduce environmentalloads more effectively.
Refer to "SDGs Related Data" for details
Initiatives at Group Companies
When installing new equipment at head and branch offices, Daiwa Securities requires that the equipment be certified underJapan’s Top Runner Program standards. Since FY2019, we have reviewed the status of office equipment at the head office byintroducing tablet devices and encouraged the elimination of paper. In FY2022, in addition to shifting to equipment that satisfy
the Top Runner Program standards, we plan to curtail environmental impact by reducing excess equipment such as decreasing
multifunction copiers by 10%.
We have also been successively replacing our company cars since FY2014 with eco-cars and hybrid vehicles that havesignificantly improved fuel efficiency. With the completion of the planned replacement, CO2 emissions will be reduced by anamount equivalent to the CO2 absorption of more than 40,000 Japanese cedar trees annually (an estimate by Daiwa Securities
using fuel efficiency data disclosed by automakers).
The introduction of LED lighting into the head office of Daiwa Institute of Research was completed in the summer of 2017. In
addition, Daiwa Securities Group promotes green purchasing and strives to choose environmentally friendly products in its
central purchasing.
Continue to introduce eco-cars
Company cars in Japan (Daiwa Securities) 1,023 vehicles (including eco-cars and hybrid cars; the breakdown is provided
below)
Introduction results for
FY2021Introduction plan for
FY2022As of March 31, 2021
(cumulative)

Eco-cars

69

187

820

Hybrid cars

61

63

152

Investment in energy-saving air conditioning systems for FY2021 ¥43 million (including installation costs)
Instances of soil and groundwater contamination at office sites in FY2021: Zero257

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Initiatives to Raise Environmental Awareness
Daiwa Securities Group is striving to raise the environmental awareness of each employee through various initiatives. For
example, our in-house magazine, "Fuji," has a column entitled "Eco-Initiatives in the Office." The column mainly shares thestatus of the Group's environmental initiatives and introduces environmental measures that can be implemented by employees,
depending on their individual awareness.
When printing documents, we recommend using aggregate printing and double-sided printing. We also encourage thereduction of paper usage in conjunction with the introduction of tablet devices, as well as displaying operational guidance andthe paper usage reduction costs in areas of offices where multifunction copiers are installed. Moreover, as a result of
encouraging telecommuting to prevent the spread of COVID-19, we reduced paper consumption by about 16% year on year in
FY2021, a substantial decrease.
Offering Environmentally Friendly Services and Working to Reduce Environmental Loads
Daiwa Securities provides environmentally-conscious services and undertakes initiatives to reduce environmental loads asshown below, utilizing mobile work terminals and online trading.
Offering environmentally friendly services
1. Paperless receipt of documents
We introduced mechanisms to enable customers to open accounts, enter into Fund Wrap contracts, and perform main
administrative procedures (such as change of address and notification of deposit accounts) without the use of paper or apersonal seal. As a result, in FY2021 a total of 200,000 pages of documents were digitalized (equivalent to about 20 trees
planted for paper).
2. Paperless delivery of documents and introduction of sales promotion materials contributing to reduce environmental loads
We provide e-Member online services that enable customers to check reports provided to customers (transactions balance
reports, transaction reports, etc.) and prospectuses online rather than receiving hardcopies on paper.
Reports and prospectuses received in electronic format can, in principle, be accessed and checked online as and whenrequired, saved to personal computers and other devices, and printed for five years after initial receipt.
As of March 31, 2022, about half of Daiwa Securities’ customers use this “e-Member” online service. We will continue
recommending the service to increase the number of customers using it.
Daiwa Securities also uses LIMEX* in part of its promotional items such as ballpoint pens and seminar bags. We areconsidering expanding its use going forward.
* LIMEX is a composite material made from limestone that is expected to reduce environmental impacts. It is a registered trademark of TBM Co.,Ltd.

3. Contributing to paperless operations by companies that use our services
In April 2021, we adopted System Product WEB Services, which provides new technologies to companies that haveintroduced welfare benefit systems using stocks and so on (such as shareholding associations, workplace installment-type
NISA, and defined contribution corporate pensions) or stock-based compensation systems (such as specified transferrestricted stock (RS) and stock options). We are also contributing to paperless operations for related procedures bycompanies that have introduced welfare benefit systems.
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4. Proposals encouraging paperless operations throughout the industry
There are some procedures that must be performed on paper due to system-related reasons, but a securities industry
working group submits requests to encourage paperless operations and makes recommendations for reducing theenvironmental impact of the industry as a whole.
Working to reduce environmental loads through business
1. Paperless internal applications
In the past, a document and seal were required for internal application procedures, but in February 2021, we introduced amechanism that enables on-screen application and approval, further promoting the transition to paperless operations.
2. Discontinuation of internal delivery
The distribution of documents within the company has been reduced as a result of these efforts, and accordingly, internal
document delivery was discontinued in May 2021. In the future, we will continue to work to reduce delivery vehicles.
GHG Emissions
In comparison with the previous fiscal year, GHG emissions in FY2021 fell by approximately 20% for Daiwa Securities Group's
domestic offices, as a result of a positive initiative to conserve energy.
Refer to "SDGs Data Edition 2022" for details
Initiative to Reduce GHG Emissions
We have set up the goal of reducing GHG emissions, while complying with the Act on the Rational Use of Energy and Tokyo's
environmental protection ordinances in a continuous and systematic way. In July 2021, we switched to energy originating fromrenewable energy plants owned by Daiwa Energy & Infrastructure, a Group company, for electricity used in the head officebuilding, and have been introducing renewable energy into other Group properties as well. We have also continued energy
saving initiatives, including implementing the "Cool Biz" program, and have continued efforts to save electricity even during
periods when there is some margin in the supply and demand of electricity. We will continue these efforts to conserve electricity
in the future.

Adaptation to Climate Change
In recent years, concerns have been raised about the risk of large-scale storm and flood damage in conjunction with the occurrence
and increase of sea level rise, torrential rains, and super typhoons caused by abnormally high temperatures. The Group anticipates thepossibility of physical damage to infrastructure, buildings, and so on at multiple sites as well as increased costs in conjunction withdisaster countermeasures. Accordingly, in our business activities, we are continuing efforts to minimize the impact of such damage on
operations by duplicating equipment and sites, moving equipment to upper stories of buildings, and so on. Moreover, in addition tohigher operational costs for investment real estate, we anticipate declines in the value of assets under management and reductions in259

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Othersbusiness. It is necessary that we review asset holdings and take measures such as ESG due diligence and fostering new industries andcompanies that contribute to the transition to a decarbonized economy. We will continue working to minimize the transitional risks
associated with climate change.
Refer also to "Response to Climate Change (Disclosure Based on the TCFD Recommendations 2022)."

Initiatives in Real Estate Management (Daiwa Real Estate AssetManagement Co. Ltd.)With a view to systematically addressing a variety of ESG related issues, Daiwa Real Estate Asset Management launched a Sustainability
Promotion Committee in 2014 and formulated its Policy Regarding ESG in March 2019. The company also established the Sustainability
Promotion Office in June 2021, systematically promoting planning, formulation, and implementation related to SDGs and ESG.
Support for TCFD Recommendations
In December 2021, Daiwa Real Estate Asset Management established its Climate Change and Resilience Policy, in order topromote clarification of the policy and system for addressing climate-related issues and expansion of disclosure of theinitiatives, and announced its support for the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. In
January 2022, the company joined TCFD consortium, a group of Japanese companies that support the TCFD recommendations.
Daiwa Real Estate Asset Management recognizes that climate change is an important issue that has a significant impact on its
asset management. The company will steadily promote information disclosure related to climate change, while identifying andanalyzing risks and opportunities of climate change based on the TCFD recommendations and continuously working to reduce
the environmental impact of its business activities.
Support for TCFD Recommendations

Joined TCFD consortium

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Initiatives to Obtain Environmental Certification
Daiwa Office Investment Corporation (DOI) aims to enhance the reliability and objectivity of the results of its efforts to reduce
environmental loads in the office buildings it owns, and to increase the medium- to long-term asset value of its properties. To
achieve these aims, the company actively promotes initiatives for acquiring external environmental certifications, such as
CASBEE for Real Estate certification*1, DBJ Green Building Certification*2, and BELS Certification*3. As of the end of May 2022, 31of the properties owned by DOI have acquired environmental certifications, with the environmental certification acquisition
ratio reaching 61.3% (based on the total floor area of owned properties), as shown below.

As of May 31, 2020

As of May 31, 2022

Number of properties withenvironmental certification

6 properties

31 properties

Environmental certificationacquisition ratio

23.6%

61.3%

Click here for the details of acquisition of green building certification by DOI*1 CASBEE for Real Estate Certification: An environmental performance evaluation system for buildings that was developed primarily by the
Ministry of Land, Infrastructure, Transport and Tourism. It is a system that evaluates the overall environmental performance of a building
based both on an evaluation of the environmental quality and performance of the building itself and an evaluation of the environmental load
imposed outside the building.
*2 DBJ Green Building Certification: A certification system created by the Development Bank of Japan (DBJ) to support environmentally andsocially responsible real estate.
*3 BELS Certification: A third-party certification system that rates housing and other buildings based on their commitment to disclosing energysaving performance under the Act on the Improvement of Energy Consumption Performance of Buildings.

Initiatives at Rental Residences
Daiwa Securities Living Investment Corporation has been advancing initiatives for environmental conservation. For example, it
is introducing LED lighting, energy-saving air conditioners, water-saving showers and toilets, and eco-friendly wallpaper into therental residences it owns. It also posts notices in the residences, encouraging residents to save electricity, water, and otherresources.
The company is also promoting the installation of delivery boxes. As of the end of March 2022, the delivery box installation ratio
in its rental residences reached 85.7% (based on the number of buildings). As the installation of delivery boxes will not only
improve the convenience of tenants but also lead to reductions in CO2 emissions associated with redelivery, the company aims
to maintain and raise the installation ratio going forward.

Status of FY2021 initiatives

Installation of LED lighting:

1,060 units

Installation of energy-saving air conditioners:

1,053 units

Water-saving showers:

258 units
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approximately 90,000 m2 (reductions of CO2 emissions:approximately 17 t-CO2)

Replacement with eco-friendly wallpaper:

Posting of notices to encourage electricity and water saving (Prospect
Glarsa Hiroo)

Installation of delivery boxes (Gran Casa Omori-Kaigan)

Survey and Research Work Contributing to Carbon Neutrality (Daiwa
Institute of Research)Daiwa Institute of Research (DIR) has been commissioned to undertake survey and research work by the New Energy and Industrial
Technology Development Organization (NEDO) toward the realization of a hydrogen society as an initiative that contributes to carbon
neutrality. The commissioned work encompasses the collection and analysis of information on the latest trends across the worldconcerning hydrogen fuel cells, as well as identification of issues for development strategies in hydrogen fuel cell technology in Japan.
The survey and research work is aimed at timely collection and analyzing of a wide range of the latest information on hydrogen fuelcells, and sharing it with relevant parties in Japan, toward the realization of a hydrogen society, taking safety and the environment into
consideration. The information includes policies and markets for hydrogen fuel cells and research and development trends across theworld, including in the U.S., Canada, EU countries, China, and South Korea As part of these activities, DIR visits international
institutions and attends international meetings.
In recent years, carbon neutrality and the energy transition toward carbon neutrality have become global trends, and the movement toposition hydrogen as an indispensable technology and accelerate this movement is spreading throughout the world. Until now, Japan,
the U.S., and Germany have taken the lead, but various countries, such as China, South Korea, Australia, and European countries, haverecently been searching for uses of hydrogen suited to their individual objectives.
The work is also aimed at identifying issues for Japan’s strategy for developing hydrogen fuel cell technology going forward by
accurately understanding, assessing, and analyzing developments in other countries.
In this way, DIR will be proactively engaged in business related to development of new energy sources that are environmentallyfriendly.

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Towards the early achievement of a carbon-neutral society, the Group has formulated the "Daiwa Securities Group Net Zero Carbon
Declaration" that commits to achieve net zero greenhouse gas emissions within our own operations* by 2030 (Scope 1 and Scope 2),
and net zero greenhouse gas emissions across our investment and loan portfolios, etc. by 2050 (Scope 3).
* The company's emissions will be calculated on a consolidated basis

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OthersResponse to Climate Change(Disclosure Based on the TCFD Recommendations 2022)
Daiwa Securities Group recognizes that responding to climate change is an important management issue for the early realization of acarbon-neutral society. In April 2018, the Group expressed its support for the Task Force on Climate-related Financial Disclosures(TCFD). Based on the TCFD recommendations, the Group disclosed information on "Governance," "Strategy," "Risk Management," and"Metrics and Targets" regarding climate-related risks and opportunities.
(July 2022)

Summary of disclosure for FY2022, progress, and future responses
TCFD
recommendations

Summary of disclosure for FY2022

Future responses
Strengthen the board's oversight ofclimate-related issues

Governance

Board's oversight(Reporting process, oversight of risk management,
management of progress in KPI, external experts)
Executive compensation system linked to sustainability
KPIs
Role of Executive Management Committee, etc.
(Reporting process, delegation of responsibility)
SDGs Promotion Committee/promotion system(Organizational system, external experts, process
reflected in management)

Review and refine climate change
scenarios
Continuously consider the financial
impacts of climate-related risks

Strategy

Qualitative analyses based on climate change scenarios(Impacts on businesses)(Short-/medium-/long-term time horizon, identification
process)
Approaches to climate change, initiatives
Quantitative analysis based on climate change scenarios(Amount of estimated losses)
Transition plan (Net Zero Carbon Declaration androadmap)
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TCFD
recommendations

Summary of disclosure for FY2022

Future responses

Risk management

Process of identifying, assessing, and managing risks(Environmental and Social Policy Framework,
engagement)
Process of managing risks(Addition to risk appetite framework, top risk
management)

Continuously review theEnvironmental and Social Policy
Framework
Continue to consider integratingclimate-related risks into existing risk
management system

Metrics andtargets

Disclosure of cross-industry, climate-related metrics andtargets, and performance- Greenhouse gas (GHG) emissions (Scopes 1, 2 and 3)- Metrics for transition risks (Carbon-related assets)- Metrics for climate-related opportunities (Balance ofinvestment in SDGs-related business)
Performance of energy usage

Consider GHG emissions
management methods for investment
and loan portfolios
Establish intermediate targets to alignwith the Paris Agreement by utilizing
science-based targets (SBT)
Build Group-wide monitoring
structure for Scope 3 Category 15(Note) Underlines indicate updates from FY2021

GovernanceIn the area of "governance," the TCFD recommends disclosure on the board's oversight of climate-related risks and opportunities andmanagement's role. The disclosure of Daiwa Securities Group is in line with this recommendation.

Strategy
In the area of "strategy," the TCFD recommends disclosure on the actual and potential impacts of climate-related risks andopportunities on the organization's businesses, strategy, and financial planning. The disclosure of Daiwa Securities Group is in linewith this recommendation.

Risk Management
In the area of "risk management," the TCFD recommends disclosure on how the organization identifies, assesses, and manages
climate-related risks. The disclosure of Daiwa Securities Group is in line with this recommendation.

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In the area of "metrics and targets," the TCFD recommends disclosure of the metrics and targets used to assess and manage relevant
climate-related risks and opportunities. Based on the strategy and risk management process described above, Daiwa Securities Grouphas established and disclosed the metrics and targets below.

FutureThe Group will continue to further enhance information disclosure based on the TCFD recommendations and strive to strengthencommunication with stakeholders, and contribute to the realization of a carbon-neutral society

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OthersGovernanceIn the area of "governance," the TCFD recommends disclosure on the board's oversight of climate-related risks and opportunities andmanagement's role. The disclosure of Daiwa Securities Group is in line with this recommendation.

Board's oversight
The Group's Board of Directors determines core management matters, such as basic management policy and the development of a risk
management system. At the same time, the Board also delegates decision-making powers to the Corporate Executive Officers(Shikkoyaku) as much as possible to expedite decision making and enhance the efficiency of Group management. In addition, by
supervising the execution of duties of the Directors and the Corporate Executive Officers (Shikkoyaku), the Board ensures the fairness
and transparency of the Group's management.
In terms of the board's oversight of climate-related issues, the Board receives reports, as appropriate, on the climate-related issues andresponses discussed by the executive team. It makes decisions on the core management matters specified by the Regulations of theBoard of Directors as well as matters the Board determines to be important (Chart 1-1).
In FY2021, the Board of Directors made decisions regarding the formulation and revision of the Environmental and Social Policy
Framework and the establishment of greenhouse gas (GHG) emissions reduction targets (formulation of the Daiwa Securities GroupNet Zero Carbon Declaration). The Board also investigated the Group's progress in sustainability KPIs (described later) before making
decisions on review of the Medium-Term Management Plan.
In June 2021, Yumiko Murakami was appointed as an Outside Director and has been providing advice based on her expertise andknowledge of ESG.

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1

1

Moreover, sustainability KPIs have been incorporated into the evaluation system for FY2022 performance-linked remuneration for
executives. This follows a decision made by the Compensation Committee in FY2021 to add such KPIs to increase the incentive for
executives to take action on climate-related issues. The climate-related KPIs, in particular, include the balance of investment in SDGsrelated business and the SDG bond league table (refer to "Metrics and Targets").

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1

Chart - Evaluation system for performance-linked remuneration(Notes) 1 Reference Value is determined at Compensation Committee, based on Medium-Term Management Plan.
2 The figure of consolidated total capital adequacy ratio is as of the end of December 2021.

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OthersManagement's role
Daiwa Securities Group has established the Executive Management Committee, which serves as a business execution body, andsubcommittees specializing in certain themes. As a decision-making body for business execution, the Executive Management
Committee deliberates and decides on matters relating to important operations as well as Group-wide business strategy and basic
policies concerning structural and other issues that cross over Group companies. The Group Risk Management Committee, asubcommittee chaired by the President and CEO, gathers information on the system and current situation of risk management inaddition to deliberating and deciding on policies and specific measures regarding risk management.
The role of management in regard to climate-related issues is to deliberate and make decisions on matters related to important
operations and policies, including climate-related topics, at the Executive Management Committee and the Group Risk Management
Committee, a subcommittee. Climate-related risks, in particular, are reported by the Chief Risk Officer (CRO), who is responsible for risk
management, at the Group Risk Management Committee.
As a structure of SDGs Promotion, the Group established the SDGs Promotion Committee chaired by the President and CEO in 2018.
The Committee discusses issues and the direction of activities relating to ESG and SDGs regularly (about once per quarter) and reports
to the Executive Management Committee and the Board of Directors as appropriate. Among the executives serving as internal
members of the Committee are five Directors (including one non-executive Director). They, along with two outside members of theCommittee (Chart 1-3), participate in all the Committee meetings, conducting deliberations based on their specialized knowledge andexperience in environmental, social, and other fields.

Chart 1-3 Outside members of Committee
Hiroko Kuniya

Project Professor, Keio University's Graduate School of Media and Governance,
Trustee (Special Mission), the Tokyo University of the Arts, National Goodwill
Ambassador for Japan by the Food and Agriculture Organization of the United
Nations (FAO)

Toko Shirakawa

Project Professor, Sagami Women's University, Visiting Professor, Showa
Women's University, Member of Council for Promoting the SDGs in the Security
Industry, JSDA

With regard to the aforementioned formulation and revision of the Environmental and Social Policy Framework and GHG emissions
reduction targets (formulation of the Daiwa Securities Group Net Zero Carbon Declaration), the SDGs Promotion Committee held
discussions on these matters, which were then reported to and deliberated and decided by the Executive Management Committee. The
matters were also decided by the Board of Directors. In addition, the results of the TCFD climate-related scenario-based quantitative
analysis were reported to and deliberated by the Group Risk Management Committee.
Since FY2020, the Group has appointed the Head of SDGs (Deputy President) to clarify management responsibility for sustainability,
such as climate change. The Head of SDGs promotes SDGs-related business and oversees initiatives to enhance the foundation forsustainable management while participating in the SDGs Promotion Committee.
In addition, the Group appoints a SDGs manager at each organization (each Daiwa Securities headquarters and major Group company)
within the Group. SDGs managers promote SDGs-related business, monitor progress in sustainability KPIs, and regularly report to the271

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OthersSDGs Promotion Committee and the Executive Management Committee (Chart 1-1). Please refer to "Structure of SDGs Promotion" fordetails of the SDGs Business/ ESG Response Working Group.

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In the area of "strategy," the TCFD recommends disclosure on the actual and potential impacts of climate-related risks andopportunities on the organization's businesses, strategy, and financial planning. The disclosure of Daiwa Securities Group is in linewith this recommendation.

Approach to Climate ChangeManagement vision and Materiality

In May 2021, the Group formulated and announced "Vision 2030." The management vision spells out the kind of company the Groupshould aim to be by 2030, which is the deadline for achieving the SDGs. In the vision, the Group identified priority areas and priority
issues linked to those areas as "Materiality," taking into account matters such as communication with stakeholders, social demands,
and the impacts the Group can have on society.
As Materiality related to the environment and climate change, the Group considers "Green & Social: Promoting the transition to acarbon-neutral society and realizing a resilient society" to be a priority area and has been advancing initiatives.
The Medium-Term Management Plan "Passion for the Best" 2023 maps out strategies for the first three years of "Vision 2030" andintegrates sustainability KPIs for managing progress in achieving the vision. SDGs managers are responsible for managing progress inthese KPIs, while promoting SDGs-related business.

Daiwa Securities Group Net Zero Carbon Declaration

The Paris Agreement, adopted in 2015, calls for keeping the increase in the global average temperature to well below 2℃ above preindustrial levels and pursuing efforts to limit the temperature increase to 1.5℃. In light of the Agreement, as well as a special report on
the impacts of global warming of 1.5℃ issued by the Intergovernmental Panel on Climate Change (IPCC), countries across the world
are working towards realizing carbon neutrality by 2050. Initiatives to reduce GHG emissions have thus become essential.
Against this backdrop, the Group announced the "Daiwa Securities Group Net Zero Carbon Declaration" in 2021 towards the realizationof a carbon-neutral society, taking into account our Materiality "Green & Social". In the Declaration, we have committed to 1) achieving
net zero GHG emissions within our own operations* by 2030 (Scope 1 and Scope 2); 2) achieving net zero GHG emissions within ourinvestment and loan portfolios, etc. by 2050 (Scope 3); and 3) supporting the smooth transition to a carbon-neutral society through ourbusiness activities.
* The company's emissions will be calculated on a consolidated basis

In March 2022, the Group endorsed the GX (GX: green transformation) League Basic Concept* announced by Japan's Ministry of
Economy, Trade and Industry a month earlier. The Group will continue to provide support for the smooth transition to a carbon-neutral
society.
* A forum for companies actively working on GX to discuss the transformation of the overall economic and social system and create new markets
accordingly through cooperation in the government, academic, and economic spheres
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OthersRecognition regarding climate-related risks and opportunities
Climate-related risks

Climate-related risks are the risks stemming from matters including tighter regulations and market change associated with thetransition to a carbon-neutral society (transition risk) and risks stemming from physical damage caused by natural disasters, etc.
(physical risk). In light of our Materiality, we conducted qualitative analyses based on climate change scenarios (described later) andmainly identified the risks that may have negative impacts on the Group’s business, the financial position, and operating results, aswell as the business opportunities that may have favorable impacts, as described below (Charts 2-1 and 2-2). The length of impacts is
assumed to be 3 to 5 years for the short term, 5 to 10 years for the medium term, and 10 to 30 years for the long term.

Chart 2-1 Major impacts of climate-related risks on the Group
Major assumed impacts

Assumedterm

Introduction and change ofmonetary policy that takes
into account the impact ofclimate change

Weaker appetite for investment and lower fundingneeds among companies due to uncertainty
associated with interest rate fluctuations
Higher borrowing rates would increase the Group's
fund raising costs

Mediumto long

Higher carbon tax rates,
taxation related to climatechange measures

Decrease in profit opportunities caused bycompanies' deteriorated performance and reduced
activities
Decline in investment performance throughincreased operational costs of investees
Dampened investment appetite among customers

Mediumto long

Delay in responding tochanges in industrial structure
resulting from rapid
technological innovation

Decline in the value of assets held by the Group
Decline in investment performance throughdeteriorated performance of investees

Mediumto long

MarketIncrease in credit risks insectors significantly affectedin the course of transition

Decrease in underwriting business due to increasein companies' fund raising costs
Decline in value of assets held by the Group anddecrease in sales opportunities
Decrease in balance of assets under management
resulting from decline in value of assets held byfunds

Mediumto long

Reputation

Increase in reputational risk
due to investment andunderwriting related tobusinesses with a heavy
environmental load andinadequate initiatives toaddress climate change

Decrease in business due to bad reputation
Increase in fund raising costs due to bad reputation

Short to
long

Type

Climate-related risks

Policy andlegal

Transition
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Technology274

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Acute/chronic

Increase in disasters, such as
torrential rain and powerful
typhoons, and higher averagetemperatures

Social Contribution
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Assumedterm

Decrease in the Group's business opportunities as aresult of customers being significantly affected
Adverse impacts of damage to the Group's assets
and impairment of asset values on businessperformance
Increased restrictions on business activities due tothe Group's sales offices and employees being
struck by disasters
Increase in various costs, such as disaster
preparation and restoration/repair work

Short tolong

The main transition risks include a decrease in earning opportunities from the deterioration in corporate performance associated withrises in carbon taxes and a decline revenue opportunities due to a decline in activities (policy and legal), a decline in the value of assets
held by the Group due to delays in response to structural change in industries (technology), a decline in underwriting business fromvarious industry sectors significantly affected in the course of the transition(market), and a decrease in business due to deterioration in
reputation through investment and underwriting related to businesses with a heavy environmental load (reputational).
In addition, for the main physical risks we anticipate a decrease in business opportunities of the Group due to its customers being
significantly affected by an increase in natural disasters such as heavy rains and large typhoons and from higher average temperatures
as well as increased constraints on business activities from the impact suffered by business locations and employees of the Group(acute and chronic).
We respond to physical risks based on our business continuity plan (BCP) and implement appropriate measures under our risk
management system (refer to "Risk Management").

Climate-related opportunities

In considering measures for these risks, the Group views the risks as business opportunities. For example, "decrease in underwriting
business from sectors significantly affected in the course of transition" is considered to be "increase in underwriting to raise funds
needed for the transition to a carbon-neutral society," while "deterioration in reputation associated with investment and underwriting
related to businesses with a heavy environmental load" is viewed as "expansion in opportunities for investing in new industries andcompanies that contribute to the transition to a carbon-neutral society." By viewing risks as opportunities, the Group formulates its
business strategies.

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Increase in underwriting to raise funds needed for green projects and the transition to a carbon-neutral society
Increase in M&As in the carbon-neutral field, such as renewable energy
Expansion in opportunities for investing in new industries and companies that contribute to the transition to a carbonneutral society
Expansion in investment opportunities through investment in photovoltaic power plants and other renewable energies,
as well as introduction of external capital
Inflow of capital to investment trusts that incorporate companies actively working to address climate change
Expansion in business opportunities for providing solutions to assist in the transition to a carbon-neutral society
Expansion in business opportunities resulting from improvement in reputation through net-zero initiatives

Initiatives promoted in relation to climate change
In light of the identified climate-related risks and opportunities, the Group will promote initiatives to address priority issues in "Green& Social," one of the priority areas under "Vision 2030." Such issues include "promotion of green finance to support the realization ofcarbon-neutral society " and "development and provision of new financial products and services that contribute to the realization of asustainable society."22Strengthening of green finance and transition finance

The funding market for green projects (green finance) is growing rapidly in Japan and overseas, and we recognize that this will lead toexpansion in our opportunities for underwriting. In October 2020, Daiwa Securities established a team specialized in SDGs finance (theSDGs Finance of the Debt Capital Markets Department, which was changed into the Sustainability Solutions Department in October2021) and has been providing sustainability-related solutions transcending the boundaries of products, such as debt, equities, andM&As, and catering to the needs of investors and issuers.
The need for transition finance is also increasing as more and more companies, even in sectors that emit a large amount of GHG, areactively working on a shift to decarbonization and technological innovations. Due to this trend, we recognize that there are significant
business opportunities in the underwriting business, such as funding for greening core businesses aimed at the transition to a carbonneutral society. We will therefore strengthen our efforts further in this field.
For investors (institutional and individual investors), we will also reinforce our research support system by providing ESG informationand other services. At the same time, we will create opportunities for the broker business through the provision of information oncompanies working on decarbonization.
SDGs Finance
Providing Analysis/Proposals on the Economy, Society, and Investment Information
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Promotion of M&As in the carbon-neutral field, such as renewable energy

OthersWith the rebuilding of business portfolios anticipated among companies aiming for decarbonization, we expect that opportunities will
expand for the business of supporting M&As and other forms of organizational realignment and business integration, especially in the
renewable energy field. Daiwa Securities Group acquired a 50% stake in Giraffe Advisory B.V., a Dutch advisory firm focused on
renewable energy, in October 2019, while establishing DC Advisory (Thailand) Co., Ltd. in February 2021 as a joint venture firm together
with a local partner in Thailand. We are thus strengthening our global M&A network with an overseas M&A business structure of
approximately 500 personnel (Chart 2-3). We will contribute to the realization of a carbon-neutral society through our M&A support tocustomers in this field.

Chart 2-3 Strengthening of global M&A network277

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OthersPromotion of investment in new industries and companies contributing to thetransition to a carbon-neutral society (investment in renewable energy in Japan andoverseas)

We recognize that opportunities to invest in new industries and companies contributing to the transition to a carbon neural society will
expand going forward, especially in the renewable energy field. Under this recognition, the Group established Daiwa Energy &Infrastructure Co. Ltd. in July 2018, expanding investment in the renewable energy and infrastructure fields, not only in Japan, but also
overseas. In December 2019, the Group entered into a strategic partnership with Aquila Capital Holding GmbH, a German firm
developing and operating renewable energy business (which became an equity-method affiliate in 2020). We are thus accelerating
investment in photovoltaic power and infrastructure assets in the European market as well.

Promotion of investment through investment in renewable energy and introductionof external capital (capital recycling model)

In September 2021, we created DSREF Amaterasu Core Fund, Investment Limited Partnership , a private core solar fund, by utilizing theinvestment and loan functions of Daiwa Energy & Infrastructure Co. Ltd. and the infrastructure asset management functions of Daiwa
Real Estate Asset Management Co. Ltd., a company under the Asset Management Division. Through such initiatives to inject portfolio
assets to funds and introducing external capital, we will promote our capital recycling—a business model that aims to realize capitalefficiency.

Development and provision of new financial products and services that incorporatecompanies actively working to address climate change

We expect that the need for investment trusts that take impact on climate change into account will expand due to increased awarenessof decarbonization. We will therefore focus on expanding ESG and SDGs-related funds and ETFs, such as funds that invest in companies
that provide solutions towards the realization of a carbon-neutral society.
Action through Product Development and Distribution

Strengthening of solution business that supports transition

Towards the realization of a carbon-neutral society, we anticipate that opportunities for the solution business supporting transition
will expand. Daiwa Institute of Research Ltd., the Group's Think Tank Division, will step up the dissemination of information and policy
proposal related to the impact of climate change on the economy and society, the planning of management strategy for climaterelated risks, including responses to the TCFD, as well as project support and other consulting services.
Climate-related scenario analyses
In the scenario analysis flow of the Group, we first establish assumptions for climate change events and prepare our in-house
multiple climate change scenarios. Using these scenarios, we assess impacts on business through a qualitative analysis whileassessing impacts on the assets held by the Group through a quantitative analysis. Based on the results of these analyses, we278

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Othersconsider our strategy and response policy (Chart 2-4). The assumed scenarios, analysis results, and other details are described
below.

Chart 2-4 Scenario analysis diagram

Assumed scenarios
We assumed three scenarios based on scientific findings that there is a positive correlation between cumulative carbon dioxide(CO2) emissions and increase in the average temperature of the world. Specifically, these are (1) a "no new climate policies (hothouse world)" scenario that assumes annual CO2 emissions will remain unchanged from the current level in 2050, (2) an "orderlytransition" scenario (progress of about 90%) that assumes fast response measures (progress towards zero CO2), such as a shift
to renewable energy, and (3) a "disorderly transition" scenario that assumes moderate progress towards zero CO2 (progress ofabout 50%). For details, please refer to Chart 2-5. (Only CO2 is covered under any of the scenarios due to the ease of obtaining
data.)The delay in progress towards zero CO2 under (3) the "disorderly transition" scenario would force CO2 reduction throughrestrictions on economic activities. Assuming various risk events, such as possible accompanying changes in the economic andsocial structures (transition risks), damage from extreme weather, natural disasters, and other events (physical risks), we
established numerical conditions for some of the risk events and created quantitative scenarios for macroeconomic models
based on statistical relationships.
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OthersUsing these risk events and quantitative scenarios, we qualitatively extracted (a) impacts on the Group's business activities andcalculated (b) valuation losses of the assets held by the Group that are classified as assets in carbon-related industries.

Chart 2-5 Outline of climate change scenarios
Basic factors
Scenarios

Individual factors (excerpts)
Physical risks

Temperaturerise

Net COemissions(2050)

Progresstowards
zero CO(2050)-

Unchanged(compared
to current
level)---

Damage toExtreme infrastructure,
weather
etc.

Transition risks
Creditrisk

Strengthened
measures

-

-

-

High

High

-

-

(0)

(Parameter)
Status quo(1)

No new
policies(hot house
world)

Over 2℃

Unchanged(compared
to current
level)(2)

Orderlytransition

1.5℃

Zero

Fast
(Approx.
90%)

Low

Low

Small

Medium(3)

Disorderlytransition

1.5℃

Zero

Moderate(Approx.
50%)

Low

Low

MediumSmall

2(a) Qualitative analysis of impacts on business activities

2

Analysis results

The factors with a relatively high level of concern include, under (3) a "disorderly transition" scenario, the stagnation andcontraction of the economy and industry and changes in financial markets (decline in stock prices, increased credit risks, etc.),
and under (1) the "no new policies (hot house world)" scenario, risks of direct damage from torrential rain, floods, etc. On theother hand, with regard to the reduction of CO2 emissions, the cost to be borne by the Group would be small as we do not own
plants or other facilities that emit a large amount of CO2. The impacts on businesses include existing businesses being adversely
affected by changes in the energy composition ratios resulting from the shift from fossil fuel resources to renewable energy andother alternative sources, as well as new business opportunities. With the coexistence of positive and negative impacts, it isconsidered to be a neutral factor overall.

(b) Valuation losses of the assets under management that are classified as assets in carbon-related industries

Under (1) the "no new policies (hot house world)" scenario, impacts on economic activities are anticipated from a marked
increase in natural disasters. Meanwhile, under (3) the "disorderly transition" scenario, negative impacts from a delay in CO2
reduction measures exceeds positive impacts, with valuation losses as of 2050 under the scenario standing at approximately ¥40
billion relative to (0) the "(parameter) status quo" scenario that assumes climate change will have no impacts on economic
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Othersactivities. Please note that (1) the "no new policies (hot house world)" scenario is not included in the scope of these calculations
due to a weak relationship with economic scenarios, although there may be a separate risk that the Group's branches andoffices will be directly affected by disasters.

Future response
These most recent scenario analyses are based on the limited information and data available at the present time, and estimates
were made by narrowing the focus of analysis and establishing required assumptions. The range of areas to be considered forclimate-related risks is broad, and the timing and scale of risk occurrence is assumed to follow several patterns. Along withconservatively interpreting these most recent calculation results, going forward the Group will work to acquire more
information and relevant data in an effort to improve the analysis method. We will also strive to refine the extraction of risks
through scenario analysis and strive to appropriately reflect the results in the Group's disclosures.

Transition plan
In August 2021, the Group announced the "Daiwa Securities Group Net Zero Carbon Declaration" and the roadmap for achieving net
zero carbon. Under the Declaration, we aim to 1) achieve net zero GHG emissions within our own operations by 2030 (Scope 1 andScope 2), 2) achieve net zero GHG emissions within our investment and loan portfolios, etc. by 2050 (Scope 3), and 3) support thesmooth transition to a carbon-neutral society through our business activities.

1) Net zero GHG emissions within our own operations (Scope 1 and Scope 2)

To achieve net zero GHG emissions within our own operations (Scope 1 and Scope 2), we will advance initiatives that are in line withthe priority area "Reduce the environmental footprint of the company." More specifically, we are aiming for net zero GHG emissions forour own properties by FY2023 and for properties as a whole, including rental properties, by 2030 through measures such as energy
saving activities and the introduction of renewable energy power (Chart 2-6). With regard to energy saving activities, we are currently
introducing energy saving systems and increasing the efficiency of energy use, and we will continue to work on these initiatives. As forrenewable energy power, we introduced such power into all of the Group companies residing at the head office building (GranTokyo
North Tower) in April 2021 by utilizing non-fossil fuel energy certificate with tracking information . In July 2021, we changed the power
plants tracked by the certificate to renewable energy plants owned by Daiwa Energy & Infrastructure Co. Ltd., a Group company.

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OthersChart Initiatives to promote net zero GHG emissions within our own operations (Scope 1 and Scope 2)
Item

ExampleEnergy saving activities

Continue to increase the efficiency of energy use (introduction of energysaving technologies and systems at facilities, enhancement of businessefficiency, etc.)
Change company cars to eco and hybrid vehicles

Introduction of renewableenergy power

Our own power contracts in Japan: Switch to renewable energy by utilizing
energy plants owned by Daiwa Energy & Infrastructure Co. Ltd.
Other companies' power contracts for rental properties, etc.: Urge owners toswitch to renewable energy power

Other

Utilize carbon offsetting, such as emission rights trading) Net zero GHG emissions within our investment and loan portfolios, etc. (Scope 3)

2

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6

2

Towards the realization of a carbon-neutral society, companies are required to manage and reduce GHG emissions emitted not only
from their own companies but also their supply chains as a whole. For financial institutions, GHG emissions from their investment andloan portfolios (Scope 3 Category 15) are considered to account for a significant part. With this in mind, the Group will establish targets
and disclose information based on the priority area "Set targets to align with the Paris Agreement goals and expand transparent
information disclosure" under "the Daiwa Securities Group Net Zero Carbon Declaration." Specifically, we will first undertake theconsideration of GHG emissions management methods for investment and loan portfolios and the establishment of an intermediatetarget. With regard to the consideration of management methods, in December 2021, we joined the Partnership for Carbon Accounting
Financials ("PCAF"), an initiative regarding the measurement and disclosure of GHG emissions, as well as the PCAF Japan coalition.
Utilizing the PCAF's knowledge and database, we are currently advancing our consideration while looking into a Group-widemonitoring structure for Scope 3 Category 15. As for the establishment of an intermediate target, the Group plans to establish a target
to align with the Paris Agreement goals by utilizing science-based targets (SBT), etc. within FY2023, which is covered by the MediumTerm Management Plan.

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OthersChart Initiatives to promote net zero GHG emissions within our investment and loan portfolios, etc.
(Scope 3)
Item

ExampleConsideration of management
methods

Measure and disclose by utilizing PCAF's knowledge and database
Strengthen monitoring management structure

Establishment of intermediatetargetEstablish an intermediate target to align with the Paris Agreement goals by
utilizing science-based targets (SBT), etc. (within FY2023)
Implement and strengthen engagement with investees) Support the smooth transition to a carbon-neutral society through our businessactivities

As stated earlier, the Group will continue to provide support to the transition through financing. (Please refer to "Initiatives promoted
in relation to climate change.")

Risk Management

Metrics and Targets

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OthersRisk Management
In the area of "risk management," the TCFD recommends disclosure on how the organization identifies, assesses, and manages
climate-related risks. The disclosure of Daiwa Securities Group is in line with this recommendation.

Managing climate-related risks
Outline of risk management

The Group recognizes the importance of appropriately identifying and assessing various risks, including climate-related risks, andmanaging them effectively. We strive for sustainable enhancement of corporate value by maintaining sound financial and profit
structures and appropriately managing not only short-term risks but also climate change risks and other risks that may materialize
over the medium- to long-term.
In accordance with Daiwa Securities Group Inc.'s basic policies on risk management, the Risk Management Department anddepartments responsible for each risk monitor risks at Group companies. The basic policies on risk management are deliberated anddecided by the Board of Directors as the Rules for Risk Management. Climate-related issues, including risk issues, are also reported toand deliberated and decided by the Group Risk Management Committee, a sub-committee of the Executive Management Committee.

Addition of climate-related risks to the risk appetite framework

We have introduced the risk appetite framework (RAF) to establish a risk-taking policy that aligns with our business strategy and tostrengthen risk governance as a global financial institution (Chart 3-1). RAF refers to a business management framework for setting thetypes and total amounts of risks that companies should accept as risk appetite to achieve their profit targets and business strategies
and using it as their common internal language concerning their overall risk-taking policy. We have documented this framework in our
Risk Appetite Statement, which is deliberated and decided by the Board of Directors and reviewed twice a year. Since FY2021, we haveadded climate change risks to the Risk Appetite Statement in an effort to appropriately identify, assess, and effectively manage
climate-related risks according to their risk profiles.

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OthersChart - Risk appetite framework concept chart

Top risk management for climate change risks

1

3

The risk events that require special attention in light of the Group's business characteristics are selected and managed as top risks. In
FY2022, we positioned climate change risks as top risks, taking into consideration the importance of managing climate-related risks(Chart 3-2).

Chart 3-2 List of top risks
Risk event

ExampleWorsening of international
dispute and conflict

Intensifying war between Russia and Ukraine, U.S.-China conflict, etc.

Inflation concern and interest
hike in U.S.

-

Increased awareness of social
contribution (ESG)

Impairment of the Group's corporate value resulting from its ESG responses anddisclosure being viewed as inadequate

Rapid spread of digitaltransformation (DX)

Decline in competitiveness due to inadequate DX responses

Climate change

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Risk event

Social Contribution
Activities

Environmental
Initiatives

OthersExampleLarge-scale earthquakes andfloodsIncrease in various costs following disasters

Deteriorated performance andimpaired asset values atinvestees-

Cyberattacks-

System failure-

Compliance risk

Inappropriate act, etc. by officers and employees, including money launderingand insider trading

Information security risk

Leak of material information, etc.

Integration into existing risk management

Daiwa Securities Group faces various risks in business. The Group utilizes its own accounts to temporarily hold product positions forsales purposes and to provide products to customers. Accordingly, the Group is subject to various risks, such as foreign currency andother liquidity risk, market risk due to market fluctuations, credit risk related to counterparties and issuers, risk due to ineffective
hedging, operational risk that naturally occurs through the execution of business, and model risk resulting from using models for
decision making. In addition, following the implementation of growth investment based on hybrid strategies, investment risk occurs as
a result of deterioration in the business performance and credit status of investee companies, and changes in the market environment.
Therefore, the Group implements integrated risk management—the practice of measuring the impact on capital and liquidity within
the Group from a forward-looking perspective.
Climate-related risks are factors that cause or increase various risks, such as market risk, credit risk, and liquidity risk. Accordingly, theGroup is continuously developing a system that enables the impacts of climate-related risks to be considered within its existing risk
management framework.
Risk management system

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Environmental
Initiatives

OthersBusiness continuity plan (BCP)
To be prepared for disruptions of social infrastructures, we have drawn up a business continuity plan (BCP). The BCP prioritizes
important operations to be restored or continued in order to keep the financial markets open and protect customers' economic
activities. Disruptions of social infrastructure might make our head office functions, branches and data centers or other importantfacilities inoperative. They can be caused by events such as storms, floods, and other extraordinary weather conditions. Through the
preparation of the BCP, we have developed a system that enables vital operations to be continued even in the case of suspension ofhead office functions.

Management of environmental and social risks in finance
In June 2021, the Group formulated and announced the Environmental and Social Policy Framework to strengthen its management ofenvironmental and social risks in finance. The Framework covers new investments and loans, specifying the businesses for whichinvestment and loans are prohibited and the businesses to be restricted. Moreover, in December 2021, we expanded the scope of the
Framework to include not only new investments and loans but also the underwriting of bonds and stocks issuance, which is a corebusiness of the Group. This reflects our efforts to further strengthen our system for managing environmental and social risks.
The Framework serves as guidelines for acknowledging and managing the risks for businesses that may have major negative impacts
on the environment and society, such as human rights violations and the destruction of the natural environment and ecosystems. It
prohibits four types of businesses, including those violating the Washington Convention and those leading to child labor, forced labor,
and other human rights violations. It also specifies nine restricted businesses , which include businesses involving deforestation andthe new construction of coal-fired power plants (Chart 3-3).
In considering investments and loans for these businesses, the Group first carries out initial ESG due diligence for the businesses underconsideration. Based on the results of assessment, if we determine that further confirmation is needed, we undertake enhanced ESG
due diligence that involves detailed investigation, and make a decision on financing. If the project may significantly impair the
corporate value of the Group, the management deliberates further and makes a final decision on whether to provide financing.

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Initiatives

OthersChart - Prohibited business and restricted business
Prohibited businessRestricted businessBusinesses that negatively impact UNESCOdesignated World Heritage Sites

Crosssectional

Businesses that negatively impacts wetlands
designated under the Ramsar Convention
Businesses violating the Washington Convention

Businesses affecting indigenous
communities
Businesses involving land
expropriation that leads toinvoluntary relocation of residents
New construction of coal-fired
power generation

Businesses involving human rights violations such as
child labor and forced labor

Weapons of mass destruction /inhumane weapons manufacturing
Specified

Palm oil plantation development
Business involving deforestation
Coal mining
Large-scale hydroelectric power
generation construction

3

3

Oil and gas development

Strengthening of engagement with stakeholders
The Group is strengthening engagement (constructive dialogue) with stakeholders, including issuers and investors, to provide financial
support for customers' shift to decarbonization. Through this initiative, we are reinforcing our risk management. Based on the
aforementioned Environmental and Social Policy Framework, we also acknowledge the risks for businesses that may have major
negative impacts on the environment and society, and take appropriate measures through engagement with investee companies.
(Reference) Engagement activities at Daiwa Asset Management Co. Ltd.
Daiwa Asset Management discloses its ESG key issues (Materiality), as has been conventionally required of investee companies.
It includes climate change among its ESG key issues. As part of its engagement with investee companies and with the aim of
reducing risk, the company discusses solutions, including sharing problematic issues, promoting environmental management,
and improving disclosure, for companies struggling to reduce their environmental impact. The company identifies investee
companies' climate-related risks and opportunities by analyzing their major indicators, such as GHG emissions, and conducting
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Activities

Environmental
Initiatives

Othersscenario analyses, and utilizes the analysis results for engagement with the investees. It held engagement meetings with 1,230
companies in 2021, with climate change accounting for approximately 20% of the topics for ESG-related engagement.
Engagement Policy

GovernanceRisk Management

Strategy289

Metrics and Targets

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Initiatives

OthersMetrics and Targets
In the area of "metrics and targets," the TCFD recommends disclosure of the metrics and targets used to assess and manage relevant
climate-related risks and opportunities. Based on the strategy and risk management process described above, Daiwa Securities Grouphas established and disclosed the metrics and targets below.

Balance of investment in SDGs-related businessAs shown in "Strategy," the Group views investments in new industries and companies that contribute to the transition to a carbonneutral society as business opportunities, and is promoting investment in such businesses. With this in mind, we have established atarget for the balance of investment in SDGs-related business (mainly renewable energy) (Chart 4-1).

Chart 4-1 SDGs-related business
Metrics

Balance of investment in SDGs-related
business

Target¥ 150 billion or more (FY2023)

Result¥ 116.2 billion (as of 4Q of 2021)

Carbon-related assets
Along with the transition to a carbon-neutral society, there is a risk that the value of carbon-related assets with large GHG emissions
may decline significantly in the future. Continuing to hold such assets may also cause reputational risk. As metrics for assets
vulnerable to transition risks, this time we newly disclosed the status of carbon-related assets. The total amount stands atapproximately ¥340 billion as of the end of FY2021 (Charts 4-2 and 4-3).
We are also working towards establishing an intermediate target within FY2023, as stated in "Transition plan," with the aim of achieving
net zero GHG emissions within our investment and loan portfolios, etc. Going forward, we plan to set targets for carbon-related assetsthat align with the intermediate target.

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Initiatives

Chart - Total amount of carbon-related assets
Metrics

Carbon-related assets (Note 1)

Target(Note 2)

ResultApproximately ¥ 340 billion(Note 1) The total of collateralized loan obligations (CLOs), investment and capital
contribution, and Loan Management Service (LMS; securities-backed
loans). The scope of sectors are 22 of the 33 TOPIX Sector Indices, namely
Energy, Transportation, Construction and Materials, Agriculture, Foods,
and Forestry. Companies in the real estate sector, under which
consolidated companies of the Group fall, are excluded from thecalculation of investment and capital contribution amounts. The Groupplans to consider including these companies in the calculation for the
next fiscal year.
(Note 2) Work is underway towards establishing the target (Please refer to text for
details).

Chart - Breakdown of carbon-related assets
Proportion
20%

2

Carbon-related assets Subtotal

4

Sector3%

Transportation

3%

Construction and Materials

13%

Agriculture, Foods, and Forestry

1%

Total for all sectors

100%

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GHG* emissions
The Group has disclosed medium- to long-term GHG emissions reduction targets in its "Daiwa Securities Group Net Zero Carbon
Declaration." Specifically, we aim to achieve 1) net zero GHG emissions within our own operations by 2030 (Scope 1 and Scope 2) and2) net zero GHG emissions within our investment and loan portfolios, etc. by 2050 (Scope 3).
To achieve these targets, we monitor electricity and other energy usage and GHG emissions (Scope 1, Scope 2, and Scope 3) every year.
Our own energy usage and GHG emissions are on a downward trend, and we are striving for further reductions. For our transition plan,
please refer to "Strategy / Transition plan."* We have calculated on CO2 emissions.

(Reference) Metrics and targets of Daiwa Asset Management Co. Ltd.
Daiwa Asset Management has disclosed the total carbon dioxide emissions, carbon footprint (emissions relative to the scale ofthe portfolio), and weighted average carbon intensity of the portfolio it manages. (For details, see "Stewardship Report 2021")

GovernanceRisk Management

Strategy292

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Initiatives

OthersESG Information Index
Information on the Daiwa Securities Group is organized from the perspective of ESG surveys and other research.

General Management
Message from Management

Message from CEO

Corporate Philosophy and
Code of Conduct

Corporate Principles[Japanese] Daiwa Spirit [PDF:80KB]
Management Policy
Basic Policy on Stakeholder Engagement

SDGs as a Management
Strategy

Daiwa Securities Group's Management Vision "Vision 2030" and Materiality
Daiwa Securities Group’s SDGs Declaration
Structure of SDGs Promotion / Introducing the SDGs Promotion Committee Members
Message from the Head of SDGs

Participation in Initiatives

Participation in Initiatives

External Evaluations

Third-Party Evaluations

Independent Assurance

Independent Assurance Report (SDGs Data Edition 2022) [PDF:1,500KB]

Initiatives through Business Activities(To achieve the SDGs and resolve ESG issues)
Thinking in the Securities
BusinessRole and Social Responsibilities of the Securities BusinessSupporting Sound Financial and Capital Markets-Six Roles of the Daiwa Securities Group-293

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How to think about
investingCorporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersEnvironmental and Social Policy Framework[Daiwa Securities Co.Ltd.] Acceptance of the Japanese version of the Stewardship Code(Japanese)[Daiwa Asset Management Co.Ltd.] Our Stewardship Activities (Japanese)[Daiwa Asset Management Co.Ltd.] Stewardship Policy[Daiwa Asset Management Co.Ltd.] Stewardship Report[Daiwa Asset Management Co.Ltd.] ESG Investment Policy[Daiwa Asset Management Co.Ltd.] Investment in cluster bomb manufacturing companies
and other treatment
Responsible Action as an Institutional Investor[Daiwa Real Estate Asset Management Co. Ltd.] Policy Regarding ESG

Responsibility to customers
and customer satisfaction

Basic Policy on Customer-first Operations
Introduction of NPS®* (Net Promoter Score) Towards Realization of Quality No.1
Improving In-Branch Customer Service Quality
Working to Incorporate Customer Voices

Develop and Provide
Products

Initiatives through Business Activities Such as the Underwriting and Sale of SDG Bonds
SDGs Finance
SDG Related Funds
Initiatives in Funds for Decarbonization (Daiwa Asset Management)
Response to FinTech and artificial intelligence (AI)

Inclusion (Financial
Inclusion, etc.)

Improving In-Branch Customer Service Quality
Private Equity Investment in Southeast Asia and Taiwan
Expansion of Services for Asset-Building Customers through App-based Securities Company,"CONNECT"

Analysis andRecommendations for
Economic, Social andInvestment Information

Initiatives to Provide Information on ESG
Initiatives by Daiwa Institute of Research294

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Investing in Businesses that
Solve Social Problems

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersCreation of Next Generation Financial Services
Promotion of Investment and Financing for Energy
Contributing to the Sustainable Development of Society through Business Succession
Promotion of Sustainable Agricultural Production Business
Creation of a Sustainable Capital Cycle in the Healthcare Field
Provision of High-Quality Nursing Care Services
Creation of Next Generation Industries and Services
Investing in Ventures That Solve Social Issues
Investment in Drug Development Ventures and Other Businesses by DCI Partners
Initiatives Using REITs and Other Structures to Solve Social Issues
Issuance of Green Bonds

Environment
Environmental
Management

The Daiwa Securities Group Net Zero Carbon Declaration
Environmental Vision / Environmental Principles / Basic Environmental Policies
Environmental Management
Targets for FY2022
Response to Climate Change (Disclosure Based on the TCFD Recommendations 2022)
Our Approach to Green Procurement

Efforts and Achievements in
Reducing Environmental
ImpactInitiatives to Reduce the Environmental Impact of Business Activities
SDGs Data Edition (Environmental Report/Accounting) [PDF:1,500KB]

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Social Contribution
Activities

Environmental
Initiatives

OthersSociety
Employment and Working
Environment

Hiring Approaches and Trends
Guidelines for Fair Hiring
Intra-Group Job Postings and the Career Track Change System
Evaluation System
Employees at Daiwa Securities Group (Consolidated) (SDGs Data Edition 2022 Social Report)[PDF:1,500KB]
Average Number of Years of Service (SDGs Data Edition 2022 Social Report)[PDF:1,500KB]
Employee Turnover Statistics (SDGs Data Edition 2022 Social Report)[PDF:1,500KB]
Working Hours and Paid Vacation Usage Rate (SDGs Data Edition 2022 Social Report)[PDF:1,500KB]
Workforce Statistics

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Diversity & Inclusion

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersHuman Rights Policy
Recruitment of University Graduates
Support for the Success of Veteran Employees
Number of Employees Re-employed after Retirement Age (SDGs Data Edition 2022 Social
Report)[PDF:1,500KB]
Employment of People with Disabilities
Employment Rate for Persons with Disabilities(SDGs Data Edition 2022 Social Report)[PDF:1,500KB]
Promotion of Work-Life Balance (WLB)
Encouraging Women to Succeed[Daiwa Capital Markets America Inc.] WORK FOR US > Culture[Daiwa Capital Markets Europe Limited.] Diversity & Equality
Promoting Increased Understanding toward the LGBT Community and Related Issues
Initiatives for Work-Life Balance and Supporting Diverse Work Styles (SDGs Data Edition 2022
Social Report)[PDF:1,500KB]
Welfare Program Usage (SDGs Data Edition 2022 Social Report) [PDF:1,500KB]
Childcare leave usage rate and other data
Various systems and measures

Employee Satisfaction

Communication among Employees
Work Motivation Survey (SDGs Data Edition 2022 Social Report)[PDF:1,500KB]

Internal Communication

Active Use of In-House Magazine
Communication with Employees
Initiatives for Families

Labor-Management
Dialogue

Relationship with Employee Unions

Human Resource
Development andCapability Development

Approaches and Policy

Number of Employee Union Members (SDGs Data Edition 2022 Social Report)[PDF:1,500KB]

Education and Training System
Supporting Employees Trying to Earn Credentials
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Human Rights

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersHuman Rights Policy
Human Rights Education and Awareness System
Initiatives in FY2021
Supply Chain Management[Daiwa Capital Markets Europe Limited.] Modern Slavery Act 2015

Health Management andOccupational Safety and
HealthHealth Management

Financial Education

Financial Education and ResearchInformation Website for Child Rearing and Money “SODATTE” (Japanese)
Daiwa Internet TV (Japanese)
Results in Financial Education Program (SDGs Data Edition 2022 Social Report)[PDF:1,500KB]

Social Contribution
Activities and Corporate
Citizenship Activities

Stakeholder Engagement
Contribution through Foundations and NPOs
For Your Dreams - Daiwa Securities Group Children's Smile Project
Support for culture and the arts
Corporate Citizenship Initiatives[Daiwa Capital Markets America Inc.] Corporate Social Responsibility[Daiwa Capital Markets Europe Limited.] Corporate Social Responsibility
Expenditures for SDGs Related Activities (SDGs Data Edition 2022 Social Report)[PDF:1,500KB]

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Social Contribution
Activities

Environmental
Initiatives

OthersGovernanceCorporate Governance

Basic Views on Corporate GovernanceCorporate Governance Guidelines
Corporate Governance System
The Skill Matrices of Outside Directors
Evaluating the Effectiveness of the Board of Directors
Preventing Conflict-of-Interest Transactions between Group Companies
Executive Compensation that is Closely Linked to Performance
Indicators for Performance-linked remuneration, reasons for choosing the indicators, andhow to determine Performance-linked remuneration
Internal Control System and Internal Audit
Corporate Governance Report

Tax Corporate GovernanceTax Policy

Whistleblowing

Structure and Achievements of Whistleblowing System (Corporate Ethics Hotline)

Risk Management

Risk Management and Risk Appetite Framework
Types of Risks to Be Managed / Managing Major Risks
Environmental and Social Policy Framework
Business Continuity Plan (BCP)

Supply Chain Management

Supply Chain Management[Daiwa Capital Markets Europe Limited.] Modern Slavery Act 2015

Compliance

Compliance System
Full Implementation of “Customer-First”
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Prevention of Money
Laundering, etc.

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersAnti-Money Laundering and Countering the Financing of Terrorism (AML/CFT)Securing the Fairness and Transparency of the Market～Prevention of unfair transactions such as insider trading～
Basic Policy on Avoiding Involvement with Anti-Social Forces

Anticorruption

Daiwa Securities Group Anti-Corruption Policy
Political Contributions (SDGs Data Edition 2022 Social Report)[PDF:1,500KB]

IT Governance Structure

IT Organization and Structure

Information Security

Systemic Risk Management
Status of IT investment
Privacy Policy
Information Security
Policy on Personal Information Protection and Security, Risk Assessments and Audits
Concerning
Creation of Governance System and Training Concerning Protection of Personal Information
Policy on Incident Investigations and Responses

Information Disclosure

Disclosure Policy

External Evaluation
Third-Party Evaluations

Third-Party Evaluations

Independent Assurance

Independent Assurance Report (SDGs Data Edition 2022 Social Report) [PDF:1,500KB]

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Environmental
Initiatives

OthersParticipation in Initiatives
Daiwa Securities Group has participated in, signed, and supports the initiatives described below to contribute to developing asustainable society.

Major Initiatives
The United Nations Global Compact (UNGC)

Daiwa Securities Group Inc. signed the UNGC in January 2010. We support
the following 10 principles and work to contribute to sustainable
development in the international community.
10 principles
Human rights
Principle 1: Businesses should support and respect the protection ofinternationally proclaimed human rights; andPrinciple 2: make sure that they are not complicit in human rights abuses.

LabourPrinciple 3: Businesses should uphold the freedom of association and theeffective recognition of the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment andoccupation.

The environment

Principle 7: Businesses should support a precautionary approach toenvironmental challenges;
Principle 8: undertake initiatives to promote greater environmental
responsibility; andPrinciple 9: encourage the development and diffusion of environmentallyfriendly technologies.

Anti-corruption

Principle 10: Businesses should work against corruption in all its forms, including
extortion and bribery.

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Environmental
Initiatives

OthersThe United Nations-supported Principles for
Responsible Investment (PRI)

Daiwa Asset Management became a signatory in May 2006. PRI is a set ofsix principles launched by the United Nations Environment Programme Finance Initiative and the UN Global Compact. This initiative asks
institutional investors to incorporate ESG into their investment decision
making practices. Daiwa Securities Group will continue promoting
responsible investment.

Japan Sustainable Investment Forum (JSIF)

Daiwa Securities Group Inc. has been a member of the JSIF since its
establishment in 2003 as Sustainable Investment Forum-Japan (SIFJapan), and Daiwa Asset Management has been a member since August2022. The Forum works to promote and advance ESG investment and othersustainable investment throughout Japan. We also support these activities
in our capacity as a financial institution.

Principles for Financial Action for the 21stCentury

Based on the recommendations of the Central Environment Council of the
Ministry of the Environment, this is an action guideline for financial
institutions that was established with the aim of expanding the circle ofenvironmental finance efforts.
The Principle was revised in June 2022. It asks the signatories'
collaboration to address to various issues regarding environment, society,and economy. The Group has been actively involved since the draftingstage of this principle, Daiwa Securities Group Inc. and Daiwa AssetManagement signed the principles in 2011, when they were established.

Japan Stewardship Initiative (JSI)The JSI was established in 2019 with the aim of helping to deepen andadvance stewardship activities.
In March 2022, Daiwa Asset Management endorsed and became aparticipant in JSI's activities.

The OECD Guidelines for Multinational Enterprises
ISO26000
The Charter of Corporate Behavior of Keidanren (Japan Business Federation)
Japan's Stewardship Code ("Principles for Responsible Institutional Investors")

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Activities

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Initiatives

OthersEnvironmental initiatives
United Nations Environment Programme Finance Initiative (UNEP-FI)

Daiwa Securities Group Inc. became a signatory in May 2018. In
collaboration with financial institutions, policymakers, and regulatory
authorities, UNEP-FI works to advance a shift to a financial system thattakes economic development and ESG into consideration. As a financial
institution, Daiwa Securities Group will promote collaboration in theinternational community to address environmental issues.

CDP

CDP is an initiative in which institutional investors interested in climatechange, water, and forest related issues collaborate and require global
companies to disclose information on their attitudes and approaches toenvironmental issues.
Daiwa Securities Group Inc. announced its support for the initiative in
2004.

Climate Change
Task Force on Climate-related Financial
Disclosures (TCFD)

This is a task force established by the Financial Stability Board (FSB) in
2015. TCFD asks companies to grasp and disclose information on theimpact of climate change on finances during the course of a shift to a lowcarbon economy. Daiwa Securities Group Inc. (April 2018), Daiwa AssetManagement (December 2020), and Daiwa Real Estate Asset Management(December 2021) announced their support for TCFD. They also participate
in the TCFD Consortium, which was established in May 2019 in Japan.
Response to Climate Change (Disclosure Based on the TCFD
Recommendations 2022)

Partnership for Carbon Accounting Financials(PCAF)

PCAF was launched mainly by European financial institutions in 2015 withthe aspiration to standardize the measurement and disclosure of financed
emissions.
In December 2021, Daiwa Securities Group Inc. joined PCAF. Also, theGroup joined the newly established PCAF Japan coalition launched by theJapanese financial institutions participating in the global, industry-led
PCAF initiative.

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Activities

Environmental
Initiatives

OthersNet Zero Asset Managers initiative (NZAMi)

Launched in December 2020, NZAMi is a global initiative by asset
management companies that aims to achieve net zero greenhouse gas
emissions from investee companies by 2050. In December 2021, Daiwa
Asset Management became a signatory in support of this aim.

Green Transformation (GX) League Basic
Concept

In March 2022, Daiwa Securities Group Inc. endorsed the GX League Basic
Concept announced by the Ministry of Economy, Trade and Industry. The
aims of the GX League are to enhance industrial competitiveness byrecognizing the goal of carbon neutrality by 2050 as an opportunity for
growth, and to achieve a virtuous cycle for the economy, environment, andsociety by getting groups of companies actively working on GX tocollaborate with each other.

Statement on Fiduciary Duty and Climate
Change DisclosureThis statement on the disclosure of fiduciary duty and climate change
information was jointly formulated by the Climate Disclosure Standards
Board (CDSB) and the UNEP FI (United Nations Environment Programme
Financial Initiative).
Its aim is to prompt companies to disclose climate change information in acomprehensive and comparable form in their annual reports and otherdisclosure materials. Daiwa Asset Management became a signatory inAugust 2014.

Climate Action 100+

This international engagement initiative was established by investors in2017 with the aim of encouraging greenhouse gas emissions reductions
through collaborative engagement with companies with high emissions
levels.
In August 2021, Daiwa Asset Management became a signatory in support ofthis initiative as an approach for reaching the targets of the Paris
Agreement.

Investor Agenda

This agenda was established in 2018 by a group of institutional investors. It
has issued recommendations on how to accelerate climate change
initiatives by institutional investors and national governments.
Daiwa Asset Management became a signatory in August 2021.

Natural Capital and Biodiversity
Taskforce on Nature-related Financial
Disclosures (TNFD) Forum

TNFD is an international initiative launched in June 2021 to develop andprovide a framework for disclosing nature-related financial information.
The TNFD Forum is a stakeholder organization that supports discussions
on TNFD. In September 2022, Daiwa Securities Group Inc. and Daiwa AssetManagement joined the TNFD Forum in support of TNFD's objectives.
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Keidanren Initiative for Biodiversity
Conservation

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersIn order to increase the depth of actions on biodiversity taken by theJapanese business community, Keidanren (Japan Business Federation) has
declared its aim to "realize a sustainable society by building a society inharmony with nature" through "the Keidanren Declaration on Biodiversity
and Action Guidelines(revised version)." Daiwa Securities Group Inc.
supports this Declaration.

Green FinanceRegistration System of Green Bond, etc.
Issuance Supporters

The Financial Support Programme for Green Bond Issuance, etc.
implemented by the Ministry of the Environment subsidizes the externalcosts incurred other than the cost for the ordinary bond issuanceprocedure. It grants a subsidy to those who provide issuance support togreen bond, etc. issuers (issuance supporters) for their issuance support
costs. The Ministry has established a system for announcing the issuance
supporters on the "Green Bond Platform."
The Group has been a registered supporter since the initiation of thesystem in 2018.
Please refer to the SDGs Finance page for further details.

Climate Bonds Partners ProgrammeThis is a program operated by Climate Bonds Initiative.* The program isjoined by Climate Bonds Partners, who support the development of green
bonds that contribute to climate change responses and low-carbon
investment.
The Group joined the program in March 2020.
* Climate Bonds Initiative (CBI):CBI is an international NGO that promotes large-scale investment in a low-carbon
economy. Aiming to use the $100 trillion bond market to combat climate change,
CBI has created the Climate Bond Standard (CBS) as a screening tool for investors
and governments when they make low-carbon investments. It also provides
periodic reports on the green bond market, policy models, and advice.

Please refer to the SDGs Finance page for further details.

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Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersHuman Capital
Women's Empowerment Principles (WEPs)

The Women's Empowerment Principles (WEPs) are principles of action for
actively promoting the empowerment of women, established by UNGC andUN Women in 2010.
Daiwa Asset Management became a signatory in October 2022.

30% Club JapanIn May 2019, the Chairman of the Board and President and CEO of Daiwa
Securities Group Inc. started to participate in the 30% Club Japan as
members in support of its activities.
In May 2020, Daiwa Asset Management became a member of the 30% ClubJapan Investor Group, and is promoting gender diversity and genderequality in every level of its organization through stewardship activities
such as constructive dialogue with the companies in which it invests.
The 30% Club, established in the U.K. in 2010, is a worldwide campaign
aimed at increasing the ratio of women in executive positions to promote
the sustainable development of companies. It has been rolled out in 14
countries and regions including Japan, greatly contributing to a rise in theratio of female executives.

Human Capital Management Consortium

Increasing attention is being paid to human capital management, which
views human resources as "capital" and maximizes their value to improve
corporate value over the medium to long term. In August 2022, Daiwa
Securities Group Inc. and Daiwa Asset Management joined the Human
Capital Management Consortium in support of its objectives. Recognizingthat the source of the Group's competitiveness is its human resources, wewill continue to actively promote initiatives related to human capital.

Advance

Advance is a collaborative stewardship initiative where institutional
investors work together to take action on human rights and social issues.
The Initiative has been coordinated by the PRI.
In December 2022, Daiwa Asset Management endorsed and became a“Participant”.

Universal Declaration of Human Rights
United Nations Guiding Principles on Business and Human Rights
Children’s Rights and Business Principles
The eight fundamental conventions of the International Labour Organization
306

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Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersGovernance initiatives
International Corporate Governance Network(ICGN)

Daiwa Asset Management joined the ICGN in April 2021. Established in
1995, ICGN's mission is to establish effective corporate governance andfoster investor stewardship with the aim of promoting an efficient global
market and sustainable economic activity.

Corporate Governance Code307

SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersThird-Party Evaluations
Inclusion in ESG Indices (As of December, 2022)
Dow Jones Sustainability Indices

Dow Jones Sustainability Indices are sustainability equity indices selectedby S&P Global. Daiwa Securities Group Inc. has been included in DJSIWorld Index and/or DJSI Asia Pacific Index since it launched in 1999.
In 2022, we were selected as a component of DJSI Asia Pacific Index.

FTSE4Good Index

FTSE4Good Index is a socially responsible investment index developed by
FTSE, a subsidiary of the London Stock Exchange.
Daiwa Securities Group Inc. has been included for 17 consecutive years
since 2006.

FTSE Blossom Japan Index Series

FTSE Blossom Japan Index is a socially responsible investment index
developed by FTSE. It is comprised of Japanese enterprises that
demonstrate strong ESG practices.
It is adopted by Japan’s Government Pension Investment Fund (GPIF) as acore ESG benchmark for its passive investments. Daiwa Securities Group
Inc. has been included for six consecutive years since 2017.
Daiwa Securities Group Inc. has also been included in FTSE Blossom Japan
Sector Relative Index, which has been newly added to GPIF’s ESG
benchmarks for its passive investments.

MSCI Japan ESG Select Leaders Index

MSCI Japan ESG Select Leaders Index is a global ESG stock index
comprised of Japanese companies selected by MSCI from different sectors
on the basis of excellent ESG performance. It is adopted by GPIF as a core
ESG benchmark for its passive investments.

MSCI Japan Empowering Women Index (WIN)Developed by MSCI, MSCI Japan Empowering Women Index selects
Japanese companies that promote and maintain gender diversity among
the workforce. It is adopted by GPIF as a core ESG benchmark for its
passive investments.
Daiwa Securities Group Inc. has been selected for six consecutive years
since 2017.

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Initiatives throughBusiness Activities

STOXX Global ESG Leaders Index

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersSTOXX Global ESG Leaders Index is a ESG stock index developed by STOXX,
a subsidiary of Deutsche Börse Group. Its constituents are selected basedon Sustainalytics's ESG evaluation.

*THE INCLUSION OF Daiwa Securities Group Inc. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTEA SPONSORSHIP, ENDORSEMENT OR PROMOTION OF Daiwa Securities Group Inc. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI.
MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

ESG Ratings (As of December, 2022)
MSCI ESG Ratings

MSCI ESG Ratings assess companies’ resilience to ESG risks.
Daiwa Securities Group Inc. received the highest rating “AAA” for the firsttime (seven levels from AAA to CCC).

CDP

CDP is an international non-profit organization that requests world’s
companies to disclose information on climate change and evaluate theirperformance.
In 2022, Daiwa Securities Group Inc. has been named to CDP’s highest
rating “A List”, recognizing the company as a global leader on climatechange initiatives for the first time (eight levels from A to D-).

*THE USE BY Daiwa Securities Group Inc. OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR
INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF Daiwa Securities Group Inc. BY MSCI. MSCI SERVICES ANDDATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED ‘AS-IS’ AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS ORSERVICE MARKS OF MSCI.

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Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersAwards and Recognition (As of September, 2022)
CDP 2021 Supplier Engagement Leader

Daiwa Securities Group was recognized as a 2021 Supplier Engagement
Leader, the highest rating in the Supplier Engagement Rating by CDP. The
Supplier Engagement Rating is designed to evaluate companies' supply
chain engagement practices on climate issues.

Environmentally Sustainable Company in theEnvironmentally Sustainable Company
Category of the 3rd ESG Finance Awards Japan

ESG Finance Awards Japan, sponsored by the Ministry of the Environment,
recognizes financial institutions, companies, and other organizations thathave made an impact by actively engaging in ESG finance, or
environmental / social projects.
Daiwa Securities Group Inc. was selected as an Environmentally
Sustainable Company that meets certain criteria for disclosure of material
environmental issues, based on evaluation criteria such as risks, business
opportunities, strategies, KPIs, and governance.

Governor's Special Prize for Green Finance inthe ESG Investment Category of Tokyo Financial
Award 2021

Tokyo Financial Award, sponsored by the Tokyo Metropolitan Government,
recognizes financial companies that develop and provide innovative
financial products and services that meet the needs of citizens in Tokyoand contribute to solving issues, or that work to spread ESG investment.
Daiwa Asset Management's efforts toward the spread of new investment
aimed at carbon neutrality through its CANDRIAM Decarbonization
Technology Fund (nickname: Carbon ZERO) received an award in the ESG
investment category. Daiwa Asset Management also won the Governor's
Special Prize for Green Finance as an excellent company from theperspective of green finance.

“Weekly Toyo Keizai”
SDG Corporate Ranking ranked 3rd

Daiwa Securities Group Inc. was ranked 3rd in the overall ranking in the
SDG rankings of 500 companies announced in Weekly Toyo Keizai (July 30
issue) based on the evaluations of human resource usage, environmental
activities, social contributions, and corporate governance.

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Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersNadeshiko Brand

Daiwa Securities Group Inc. has been selected as a Nadeshiko Brand foreight consecutive years since 2014. The Nadeshiko Brand is an initiative
jointly organized by the Ministry of Economy, Trade and Industry and theTokyo Stock Exchange to recognize listed companies that excel inpromoting women's advancement.
We established a broad regional career-track system that allows employees
to be relocated within a certain area. In addition, ANSWERS, an internal
online channel through which employees share their difficulties and get
support, was also introduced. By supporting career advancement andoffering a wide range of career options for female employees, we areworking to build a workplace where all employees can continue to work
energetically.
Nadeshiko Brand (Ministry of Economy, Trade and Industry website)
Nadeshiko Brand (Ministry of Economy, Trade and Industry website)

Health & Productivity Stock Selection

For eight consecutive years since 2014, Daiwa Securities Group Inc. has
been listed as a Health & Productivity Stock, jointly organized by the
Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange, as
a listed company that excels in initiatives for employees' health.
Our Chief Health Officer (CHO) and the executives of Group companies
actively engage in health management. As a health management pioneer
selected as a Health & Productivity Stock since the launch of the program,
we share our know-how with other companies and provide lectures on the
topic. We also strive to evolve our initiatives according to our issues, socialchanges, and employees' needs. For example, we comprehensively
address health issues specific to women, offer systems for supporting abalance between cancer treatment and work, provide online healthcare
services within the company, and have introduced a fitness app, and these
efforts have been highly evaluated.
Health & Productivity Stock Selection (Ministry of Economy, Trade andIndustry website)

Certified Health & Productivity Management
Outstanding Organizations（White 500）

The Ministry of Economy, Trade and Industry chooses outstanding
enterprises engaging in advanced health and productivity management as
White 500 companies.
Daiwa Securities Group Inc. has been certified for six consecutive years
since 2017.
Certified Health & Productivity Management Outstanding Organizations(Ministry of Economy, Trade and Industry website)311

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Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersFamily-Friendly Employer Certification Logo
(Known as “Kurumin” and “Platinum Kurumin”)

Kurumin is a certification logo provided by the Ministry of Health, Labourand Welfare under the Act on Advancement of Measures to Support Raising
Next-Generation Children.
Daiwa Securities Group Inc. has been certified since June 9, 2008.
Daiwa Securities, Daiwa Asset Management, Daiwa Institute of Research,and Daiwa Securities Business Center have also been certified.
Moreover, Daiwa Securities, Daiwa Securities Business Center, and Daiwa
Institute of Research received Platinum Kurumin. It was given to especially
excellent companies that implement higher level of parenting supports.
Kurumin and Platinum Kurumin (Ministry of Health, Labour and Welfare
website)Logo for Promoting Work Environment for
Balancing Work and Long-Term Care (Known as“Tomonin”)

Daiwa Securities Group has obtained Tomonin from the Ministry of Health,Labour and Welfare for our efforts in establishing a work environment
where employees can pursue their careers while balancing work andnursing care.
Tomonin (Ministry of Health, Labour and Welfare website) ⟨Japanese
only⟩

Analyst Rankings of "Nikkei Veritas" and"Institutional Investor"“Nikkei Veritas” Analyst Ranking
Nikkei Veritas Analyst Ranking is one of Japan’s most recognized rankings
with over 30 years of history. It is determined based on votes of
institutional investors in Japan.
In 2022, Daiwa Securities earned 1st in the Nikkei Veritas Analyst Ranking
by company for the fourth year in a row.
“Institutional Investor” All-Japan Research Team Survey
Institutional Investor All-Japan Research Team Survey is one of the world's
most well-known surveys. It is determined based on votes of primarily
foreign institutional investors. In 2022, Daiwa Securities earned 1st in
Institutional Investor All-Japan Research Team Survey for the third year in arow.
Click here for details

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GRESB Real Estate Assessment

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersThe GRESB Real Estate Assessment is an annual benchmarking assessment
to measure ESG integration of real estate companies and funds. Daiwa
Office Investment Corporation and Daiwa Securities Living Investment
Corporation have participated continuously in assessment.
Daiwa Office Investment Corporation
Daiwa Office Investment Corporation has participated continuously in the
GRESB Real Estate Assessment since 2011. In the 2021 Assessment, it
obtained a "Green Star" rating recognizing outstanding achievement for
the tenth consecutive year in both the Management Component, which
evaluates policies, organizational systems, etc. for promoting ESG, and the
Performance Component, which evaluates environmental performance,
initiatives with tenants, etc., at buildings in the portfolio. The company also
earned a rating of "4 Star" in the GRESB Rating, which assigns a rating out
of five stars based on where the participant's overall score ranks globally.
Moreover, in the 2021 GRESB Public Disclosure Assessment, whichmeasures the comprehensiveness of ESG information disclosure, thecompany was recognized as providing outstanding information disclosure
relating to environmental and sustainability initiatives, receiving the top
rating of "A" on the five-tiered evaluation scale.
Daiwa Securities Living Investment Corporation
Daiwa Securities Living Investment Corporation has participatedcontinuously in the GRESB Real Estate Assessment since 2018. In 2021,
company received a rating of "1 Star" in the GRESB Real Estate, as well as arating of "B" in the GRESB Public Disclosure Assessment.
Daiwa Office Investment Corporation "Participation in External
Assessments"
Daiwa Securities Living Investment Corporation "Acquisition of External
Assessments/Certifications"

ISO Certi cation (As of May, 2022)fi

ISO14001

Daiwa Institute of Research has received ISO 14001 certification, aninternational standard for environmental management systems. Throughits business activities, the firm endeavors to realize a harmonious
relationship with the global environment, and actively works to reduce theenvironmental load.
Business site: Daiwa Eitai Building Office
Scope: All business activities involved in system consulting and system
integration by Daiwa Institute of Research313

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Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersISO/IEC20000

Daiwa Institute of Research (Systems Management Division) has received
ISO 20000 certification, an international standard for IT service
management systems. To provide customers with a high-quality IT service
in a stable manner, the firm engages in enhancement of IT services quality,
cost management, business optimization, and continual improvements.

ISO/IEC27001

Daiwa Institute of Research (Systems Management Division) has received
ISO 27001 certification, an international standard for information security
management systems. To maintain and manage the confidentiality,
integrity, and availability of its information assets, the firm is working on
improvement of the information security.

ISO/IEC27017

Daiwa Institute of Research (Systems Management Division) has received
ISO 27017 certification, an international standard for information security
in relation to cloud services. As an add-on certification to ISO 27001, ISO
27017 deals with information security specific to cloud services.

ISO9001

Daiwa Institute of Research (Enterprise System Department (1)) has
received ISO 9001 certification, an international standard for quality
management systems.
(Scope: Design and development of application software based on
customer requirements)

ISO

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Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersGRI Content Index
Our report refers GRI Standards 2016 of the Global Reporting Initiative (GRI).

: General Disclosures
Organizational Profile
Number

Disclosures

Applicable web page

102-2

Activities, brands, products, and services

Securities Reports ⟨Japanese only⟩

102-3

Location of headquarters

Corporate Profile

102-4

Location of headquarters

Global Network

102-5

Ownership and legal form

Corporate Profile

102-6

Markets served

Securities Reports ⟨Japanese only⟩
Management policy

102-7

Scale of the organization

Corporate Profile

102-8

Information on employees and other workers

Workforce Statistics
SDGs Data Edition 2022

102-9

Supply chain

Supply Chain Management
Role and Social Responsibilities of the
Securities Business
Risk Management102-10Significant changes to the organization and its
supply chain

Securities Reports ⟨Japanese only⟩
Role and Social Responsibilities of the
Securities Business2

Corporate Profile

0

Name of the organization.

1

102-1

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Initiatives throughBusiness Activities

NumberCorporate
Governance

Addressing
social issues

Disclosures

Social Contribution
Activities

Environmental
Initiatives

OthersApplicable web page102-11

Precautionary Principle or approach

Corporate GovernanceCompliance
Risk Management
IT Strategy and Management of Systemic Risk

102-12External initiatives

Participation in Initiatives

102-13

Membership of associations

Participation in Initiatives

Strategy
Number

Disclosures

Applicable web page102-14

Statement from senior decision-maker

Message from the CEO
Why Daiwa Securities Group is Working toSupport Children

102-15Key impacts, risks, and opportunities

Our Values and SDGs Materiality
Securities Reports ⟨Japanese only⟩
Response to Climate Change (Disclosure
Based on the TCFD Recommendations 2022)

Ethics and Integrity
Number

Disclosures

Applicable web page102-16

Values, principles, standards, and norms of
behavior

Corporate Principles
Daiwa Securities Group’s Management Vision“Vision 2030” and Materiality
Statements

102-17

Mechanisms for advice and concerns about
ethicsCompliance

Governance
Number102-18Disclosures

Applicable web page

Governance structure

Corporate Governance316

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NumberInitiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Disclosures

Social Contribution
Activities

Environmental
Initiatives

OthersApplicable web page102-19Delegating authority

Structure of SDGs Promotion

102-20Executive-level responsibility for economic,
environmental, and social topics

Structure of SDGs Promotion

102-21

Consulting stakeholders on economic,
environmental, and social topics

Stakeholder Engagement
Participation in Initiatives
Our strategy for achieving SDGs
Corporate Governance102-22Composition of the highest governance bodyand its committees

Corporate Governance102-23Chair of the highest governance body

Corporate Governance102-24

Nominating and selecting the highest
governance body

Corporate Governance102-25

Conflicts of interest

Corporate GovernanceGroup Management System
Summary of the Management Policy for
Conflict of Interest

102-26

Role of highest governance body in setting
purpose, values, and strategy

Corporate Governance102-27

Collective knowledge of highest governancebody

Our strategy for achieving SDGs
Management policy

102-28

Evaluating the highest governance body's
performance

Corporate Governance102-29Identifying and managing economic,
environmental, and social impacts

Our strategy for achieving SDGs

102-30Effectiveness of risk management processes

Corporate GovernanceRisk Mamagement102-31

Review of economic, environmental, and social
topicsCorporate Governance102-32Highest governance body's role in sustainability
reporting

Structure of SDGs Promotion

102-33

Communicating critical concerns

Compliance102-34Nature and total number of critical concerns

Compliance317

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NumberCorporate
Governance

Addressing
social issues

Social Contribution
Activities

Disclosures

Environmental
Initiatives

OthersApplicable web page102-35

Remuneration policies

Corporate Governance102-36

Process for determining remuneration

Corporate GovernanceCorporate Governance Report102-37

Stakeholders' involvement in remuneration

Corporate Governance102-38Annual total compensation ratio-

102-39Percentage increase in annual totalcompensation ratio-

Stakeholder Engagement
Number

Disclosures

Applicable web page102-40

List of stakeholder groups

Stakeholder Engagement102-41

Collective bargaining agreements

Communication with Employees
SDGs Data Edition 2022

102-42

Identifying and selecting stakeholders

Stakeholder Engagement102-43

Approach to stakeholder engagement

Stakeholder Engagement102-44

Key topics and concerns raised

Daiwa Securities Group’s Management Vision“Vision 2030” and Materiality
Stakeholder Engagement

Reporting Practice
Number

Disclosures

Applicable web page102-45

Entities included in the consolidated financial
statements

Securities Reports ⟨Japanese only⟩
Global Network

102-46

Defining report content and topic Boundaries

Editorial Policy

102-47

List of material topics

Daiwa Securities Group's Management Vision"Vision 2030" and Materiality

102-48

Restatements of information

Not Applicable

102-49Changes in reporting

Our strategy for achieving SDGs
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NumberCorporate
Governance

Addressing
social issues

Disclosures

Social Contribution
Activities

Environmental
Initiatives

OthersApplicable web page102-50

Reporting period

Editorial Policy

102-51

Date of most recent report

Editorial Policy

102-52

Reporting cycle

Editorial Policy

102-53

Contact point for questions regarding the report

Editorial Policy

102-54Claims of reporting in accordance with the GRI
Standards

Editorial Policy

102-55

Content index

Content index

102-56External assurance

SDGs Data Edition 2022

: Management Approach
Number

Disclosures

Applicable web page103-2

The management approach and its components

Our strategy for achieving SDGs
Daiwa Securities Group's Management Vision"Vision 2030" and Materiality

103-3

Evaluation of the management approach

Our strategy for achieving SDGs

3

Our strategy for achieving SDGs
Daiwa Securities Group's Management Vision"Vision 2030" and Materiality

0

Explanation of the material topic and its
Boundary

1

103-1

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Environmental
Initiatives

Others: Economic
Economic Performance
Number

Disclosures

Applicable web page201-1

Direct economic value generated anddistributed

Disclosure Report 2021 ⟨Japanese only⟩

201-2

Financial implications and other risks andopportunities due to climate change

Response to Climate Change (Disclosure
Based on the TCFD Recommendations 2022)
Environmental Management / Initiatives forEnvironmental Load Reduction

201-3

Defined benefit plan obligations and otherretirement plans

Disclosure Report 2021 ⟨Japanese only⟩

201-4

Financial assistance received from government

Impact is insignificant

Market Presence
202-1

Ratios of standard entry level wage by gendercompared to local minimum wage

Impact is insignificant, due to the nature of ourbusiness

202-2

Proportion of senior management hired fromthe local community-

0

Applicable web page0

Disclosures2

NumberIndirect Economic Impacts
Number203-1

Disclosures

Applicable web page

Infrastructure investments and services
supported

320

Action through Product Development andDistribution
Support for Creating Our Future Society
Contribution through Foundations and NPOs
SDGs FinanceCorporate Citizenship Initiatives

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Initiatives throughBusiness Activities

Number
203-2

Corporate
Governance

Addressing
social issues

Disclosures

Social Contribution
Activities

Environmental
Initiatives

OthersApplicable web page

Significant indirect economic impacts

Not applicable

Procurement Practices
Number204-1

Disclosures

Applicable web page

Proportion of spending on local suppliers

Impact is insignificant, due to the nature of ourbusiness

Anti-corruption
Number

Disclosures

Applicable web page

205-1

Operations assessed for risks related tocorruption

Prevention of corruption
Risk Management

205-2

Communication and training about anticorruption policies and procedures

Prevention of corruption

205-3

Confirmed incidents of corruption and actions
taken

Not applicable

Anti-competitive Behavior
Number206-1

Disclosures

Applicable web page

Legal actions for anti-competitive behavior,anti-trust, and monopoly practices

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Activities

Environmental
Initiatives

OthersTax
Number

Disclosures

Applicable web page207-1

Approach to tax

Tax Policy
Risk Management

207-2

Tax governance, control, and risk management

Tax Policy
Risk Management

207-3

Stakeholder engagement and management ofconcerns related to tax

Tax Policy

207-4

Country-by-country reporting

Tax Policy：Environment

Materials

Number

Disclosures

Applicable web page301-1

Materials used by weight or volume

Not applicable

301-2

Recycled input materials used

Not applicable

301-3

Reclaimed products and their packaging
materials

Not applicable

0

0

3

EnergyNumber

Disclosures

Applicable web page302-1

Energy consumption within the organization

SDGs Data Edition 2022

302-2

Energy consumption outside of the organization

SDGs Data Edition 2022

302-3

Energy intensity

SDGs Data Edition 2022

302-4

Reduction of energy consumption

SDGs Data Edition 2022

302-5

Reductions in energy requirements of products
and services

SDGs Data Edition 2022

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Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersWater and Effluents (2018)
Number

Disclosures

Applicable web page303-1

Interactions with water as a shared resource

Impact is insignificant, due to the nature of ourbusiness

303-2

Management of water discharge-related
impacts

Impact is insignificant, due to the nature of ourbusiness

303-3

Water withdrawal

SDGs Data Edition 2022

303-4

Water discharge

-

303-5

Water consumption-

Biodiversity
Number

Disclosures

Applicable web page304-1

Operational sites owned, leased, managed in, or
adjacent to, protected areas and areas of highbiodiversity value outside protected areas

Not applicable304-2

Significant impacts of activities, products, andservices on biodiversity

Not applicable

304-3

Habitats protected or restored

Not applicable

304-4

IUCN Red List species and national conservation
list species with habitats in areas affected byoperations

Not applicable

Emissions
Number

Disclosures

Applicable web page305-1

Direct GHG emissions

SDGs Data Edition 2022

305-2

Energy indirect GHG emissions

SDGs Data Edition 2022

305-3

Other indirect GHG emissions

SDGs Data Edition 2022

305-4

GHG emissions intensity

SDGs Data Edition 2022

305-5

Reduction of GHG emissions

SDGs Data Edition 2022
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Initiatives throughBusiness Activities

NumberCorporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersDisclosures

Applicable web page305-6

Emissions of ozone-depleting substances (ODS)

Impact is insignificant, due to the nature of ourbusiness

305-7

Nitrogen oxides (NOX), sulfur oxides (SOX), andother significant air emissions

Impact is insignificant, due to the nature of ourbusiness

Disclosures

Applicable web page306-1

Waste generation and significant waste-related
impacts

Impact is insignificant, due to the nature of ourbusiness

306-2

Management of significant waste-related
impacts

Not applicable306-3

Waste generated

SDGs Data Edition 2022

306-4

Waste diverted from disposal

Not applicable306-5

Waste directed to disposal

Not applicable

Waste
NumberEnvironmental Compliance
Number307-1

Disclosures

Applicable web pageNon-compliance with environmental laws andregulations

Not applicable

Supplier Environmental Assessment
Number

Disclosures

Applicable web page308-1

New suppliers that were screened using
environmental criteria

Not applicable308-2

Negative environmental impacts in the supply
chain and actions taken

Not applicable324

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Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

Others: Social

Employment
Number

Disclosures

Applicable web page401-1

New employee hires and employee turnover

SDGs Data Edition 2022

401-2

Benefits provided to full-time employees thatare not provided to temporary or part-time
employees

Work-Life Balance

401-3

Parental leave

Work-Life Balance
SDGs Data Edition 2022

Labor / Management Relations
Number402-1

Disclosures

Applicable web page

Minimum notice periods regarding operationalchanges

-

0

0

4

Occupational Health and Safety (2018)
Number

Disclosures

Applicable web page403-1

Occupational health and safety management
system403-2

Hazard identification, risk assessment, andincident investigation

403-3

Occupational health services

Work-Life Balance
Health Management

403-4

Worker participation, consultation, andcommunication on occupational health andsafetyWork-Life Balance
Health Management
Communication with Employees

403-5

Worker training on occupational healthandsafety

Health Management

325

Work-Life Balance
Health Management

SDGs report 2022

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Initiatives throughBusiness Activities

NumberCorporate
Governance

Addressing
social issues

Disclosures

Social Contribution
Activities

Environmental
Initiatives

OthersApplicable web page403-6

Promotion of worker healthWork-Life Balance
Health Management

403-7

Prevention and mitigation of occupational
health and safety impacts directly linked bybusiness relationships

403-8

Workers covered by an occupational health andsafety management system

403-9Work-related injuries

403-10Work-related ill healthTraining and Education
Number

Disclosures

Applicable web page404-1

Average hours of training per year per employee

Human Resource Development and Skill
Enhancement

404-2

Programs for upgrading employee skills andtransition assistance programs

Human Resource Development and Skill
Enhancement

404-3

Percentage of employees receiving regularperformance and career development reviews

Diversity and Equal Opportunity
Number

Disclosures

Applicable web page405-1

Diversity of governance bodies and employees

SDGs Data Edition 2022

405-2

Ratio of basic salary and remuneration of
women to men

SDGs Data Edition 2022

Non-discrimination
Number406-1

Disclosures

Applicable web page

Incidents of discrimination and corrective
actions taken
326

Respect for Human Rights
Environmental and Social Policy Framework

SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersFreedom of Association and Collective Bargaining
Number407-1

Disclosures

Applicable web page

Operations and suppliers in which the right tofreedom of association and collective
bargaining may be at risk

Not applicable due to the nature of our business

Disclosures

Applicable web page

Operations and suppliers at significant risk forincidents of child labor

Not applicable due to the nature of our businessChild Labor
Number408-1

Forced or Compulsory Labor
Number409-1

Disclosures

Applicable web page

Operations and suppliers at significant risk forincidents of forced or compulsory labor

Not applicable due to the nature of our business

Security Practices
Number410-1

Disclosures

Applicable web page

Security personnel trained in human rights
policies or procedures

Impact is insignificant, due to the nature of ourbusiness

Rights of Indigenous Peoples
Number411-1

Disclosures

Applicable web page

Incidents of violations involving rights ofindigenous peoples

327

Not applicable due to the nature of our businessSDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersHuman Rights Assessment
Number

Disclosures

Applicable web page412-1

Operations that have been subject to humanrights reviews or impact assessments

Risk Management

412-2

Employee training on human rights policies orprocedures

Respect for Human Rights

412-3

Significant investment agreements andcontracts that include human rights clauses orthat underwent human rights screening

Risk Management

Local Communities
Number

Disclosures

Applicable web page413-1

Operations with local community engagement,
impact assessments, and development
programs

Impact is insignificant, due to the nature of ourbusiness

413-2

Operations with significant actual and potential
negative impacts on local communities

Impact is insignificant, due to the nature of ourbusiness

Supplier Social Assessment
Number

Disclosures

Applicable web page414-1

New suppliers that were screened using social
criteria

Not applicable

414-2

Negative social impacts in the supply chain andactions taken

Not applicablePublic Policy
Number415-1

Disclosures

Applicable web page

Political contributions

SDGs Data Edition 2022

328

SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersCustomer Health and Safety
Number

Disclosures

Applicable web page

416-1

Assessment of the health and safety impacts ofproduct and service categories

Not applicable due to the nature of our business

416-2

Incidents of non-compliance concerning thehealth and safety impacts of products andservices

Not applicable due to the nature of our business

Marketing and LabelingNumber

Disclosures

Applicable web page417-1

Requirements for product and service
information and labeling

Providing Quality Service to Customers

417-2

Incidents of non-compliance concerning
product and service information and labeling

Not applicable

417-3

Incidents of non-compliance concerningmarketing communication

Not applicable

Customer Privacy
Number418-1

Disclosures

Applicable web page

Substantiated complaints concerning breachesof customer privacy and losses of customer data

Not applicable

Socioeconomic Compliance
Number419-1

Disclosures

Applicable web pageNon-compliance with laws and regulations inthe social and economic area329

Not applicableSDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

Others

Editorial Policy
Daiwa Securities Group discloses sustainability information related to its business and other activities on the SDGs pages of thecompany's website, and posts updated information as required.
We also release the SDGs Data Edition (a compilation of quantitative data), the SDGs Report (a PDF version of the information posted
as of September 30 each year, for printing and archival purposes), and the SDGs Booklet (a digest version of the report). These
documents and their back numbers can be found on the SDGs Reports/SDGs Data Edition page.
Intended ReadershipThis report is intended for the broad range of Daiwa Securities Group stakeholders definedby ISO 26000, including customers, shareholders and investors, employees, business
partners, and local communities.

Reporting Boundary

This report generally discusses the principal companies of Daiwa Securities Group. It does
not, however, include all data from the Group's principal companies on items reported. The
information is selected based on the respective companies' size and type of business. Eachset of data specifies the scope of coverage. The term "Daiwa Securities Group" refers to ourentire group, while the terms "Daiwa Securities Group Inc." and "Daiwa Securities" refer to
Daiwa Securities Group Inc. and Daiwa Securities Co. Ltd., respectively.

Period Covered by
ReportFY2021 (April 1, 2021, to March 31, 2022) The report, however, also includes some
information on events and activities carried out prior to the beginning of or after the end of
FY2020, or scheduled to take place during FY2022.

Inquiries

SDGs Promotion Office, Corporate Planning Department, Daiwa Securities Group Inc.

Tel

+81-3-5555-1111(Main)

E-maildaiwa_sustainability@daiwa.co.jp

URL

https://www.daiwa-grp.jp/english/sdgs/

Reference Guidelines

GRI Sustainability Reporting Standards (GRI: Global Reporting Initiative)
ISO 26000: Guidance on social responsibility
SASB Standards (SASB: Sustainability Accounting Standards Board)
Environmental Reporting Guidelines 2018 and Environmental Accounting Guidelines 2005,
Ministry of the Environment, Japan330

SDGs report 2022

Our strategy forachieving SDGs

Initiatives throughBusiness Activities

Corporate
Governance

Addressing
social issues

Social Contribution
Activities

Environmental
Initiatives

OthersFor Deeper Understanding of Corporate Activities of Daiwa Securities GroupAt Daiwa Securities Group, we issue an Integrated Report, referring to the International Integrated Reporting Framework published by
the Value Reporting Foundation (VRF) and the Guidance for Collaborative Value Creation of the Ministry of Economy, Trade andIndustry. The Integrated Report is aimed at communicating the Group’s history and current and future value creation activities to ourstakeholders in an easy-to-understand way, and we select important matters and initiatives taken mainly in the past one year as
information to be posted.
Please look at the Report along with this website.
Integrated Report

Overview of information disclosure331