Published in June 2017
Updated in June 2018
Updated in December 2018
Updated in June 2019
Updated in June 2020

This document uses aneasy-to-read font basedon the concept of universal design.

SDGs Booklet 2020

Facilitating
the Money Flowto Benefit
Society

Overview of Daiwa Securities Group (as of June 1, 2020)■ Corporate Name

Daiwa Securities Group Inc.

■ Head Office

GranTokyo North Tower
9-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-6751, Japan■ TEL

81-3-5555-1111■ President and CEO

Seiji Nakata

Daiwa Securities Groupand SDGs

Group website

What are the Sustainablepursued by Daiwa Securities

Development Goals (SDGs)Group?

SDGs are global goals for 2030 set out in the 2030 Agenda for Sustainable Development, which was unanimously adopted by the UN Summit in
September 2015. SDGs is an acronym for Sustainable Development Goals.
The SDGs are comprised of 17 goals (see the chart on the right) targeting social issues of all countries and 169 targets which are the achievement criteria established for each of the issues. The SDGs aim to build an
inclusive and sustainable society using these goals and targets.
The SDGs encompass a broad range of issues from poverty, hunger, andenvironmental issues to work style. The SDGs are designed not only toaddress issues of developing countries but also to call for action by developed countries, emphasizing that “no one will be left behind” in thecourse of implementation.

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Contributing to resolving
various social issues throughbusiness activities

We will fulfill our roles as a comprehensive
securities group toward achieving the SDGs
We have only 10 years to achieve the SDGs by

Daiwa Securities Group plays a role of contributing to resolving social issues

2030. In order to realize a sustainable society,by linking social issues with investment needs through ﬁnancial functions.

we must initiate action more proactively. What is
now needed above all is prompt decisions in theface of accelerating changes in the world due tothe repeated occurrence of natural disasters andthe COVID-19 pandemic.
Looking at the 10 years ahead, it is necessary
for us to further strengthen cooperative relations
with every stakeholder and implement initia-

Shared Value Creation Cycle
Stakeholders of Daiwa Securities GroupCustomersShareholders
and creditors

Employees

tives that are effective for solving issues aroundendeavor to develop mechanisms for the sustainable ﬂow of funds to prevent such initiatives

Working on“Resolving SocialIssues”

CreateEconomic Valuefrom stagnating due to shortage of funds.

〉〉

We will continue to work proactively to solve
social issues to remain a company that is neededby society in the next 100 years.

〉

As a comprehensive securities group, we willetc〉〉

the world.

Promotion of business for creatinga sustainable society

Communities
and society

CreateCultivatingSocial Value“NewCustomer Needs”

Daiwa Securities Group Inc.

〉〉

President and CEO

SDGs × Finance

SDGs × Technology

SDGs × Local Community

SDGs × Life

Daiwa Securities Group that contributes to the realization of a prosperous society
34nceSDGs × Fina

Promoting Investment inSocial Issues and Expanding
Handling of SDG Bonds

Daiwa Securities Group’s History ofSDG Bonds•Sustainability Bonds

In addition to its existing underwriting and sales of Green Bonds, Daiwa Securities• Green Bonds (5times)

Group has further expanded handling of SDG bonds including social bonds and sus•Water Bonds• Green Bonds (2times)•Water Bonds•Inclusive Business Bonds• Green Bonds (2times)•Water Bonds (2times)•Inclusive Business Bonds•Green Bonds (2times)

2013●•Microfinance Bonds•JICA Bonds

2011●•Water Bonds•Ecology Bonds (2times)

●2010

●2016

Social Bonds• Green Bonds (2times)•Water Bonds•Green Bonds•Ecology Bonds•Banking on Women Bonds•Latin America Childcare Support Bonds•Vaccine Bonds•JICA Bonds

ronmental issues
Bonds issued to raise funds required for social projects that contribute to solving social issues such as welfare and education
Sustainability Bonds
Bonds issued to raise funds required for both green and social projects*Excerpts from “Guidebook (History, etc.) on
Financial Instruments Contributing to theSDGs” by Japan Securities Dealers Association

Daiwa Securitiesʼ share of cumula-Total:¥1,506.1
billiontive sales of Impact Investment bonds(SDG bonds) for retail investors in2009●●2008

Green Bonds•Agri Bonds (2times)●2012•JICA Bonds●2018

Bonds issued to raise funds required for green projects that contribute to solving envi-●2014•Water Bonds

tainability bonds.

2017●

2015●

•Banking on Women Bonds

2019●The amount ofShare:bonds soldby Daiwa Securities:%¥735.2 billion

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the domestic market has remained•Vaccine Bonds•Vaccine Bonds•World CO2L Bond

•Microfinance Bonds

5high at 49% as of March 31, 2020.
(Results of SDG bonds for retail investors as of March 31, 2020)

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S D G s × F ina

nce

S D G s × F ina

nceSocial Challenges Fund(nicknamed “Egao-no-kakehashi”)

Deposits by Customers Contribute to Society—Daiwa Next Bank’s “Support Term Deposits”

Daiwa Asset Management estab-

Daiwa Next Bank donates an amount cal-lished a fund to support initiatives
including SDGs for solving social

Image of Portfolio Development
Shares listed on financial instruments exchanges inJapan (including shares scheduled for listing)issues in 2018. This fund focuses・Select investment themes fromamong issued faced by society

on solving social issues that havebecome apparent, as well as po-・From among companies that satisfy
the investment themes, select companies that meet the following criteria as candidates for investment.

tential social issues that have yet
to receive attention from society.
Potential social issues can be-

1Companies that identify potential
issues faced by people and society
ahead of others and work on solving
such issues as business

2

Companies that work on solving issues
attracting social attention to earn profits

are selected through interviews

3with companies and internal andCompanies that support initiatives
for solving issues through provisionof products and services

4Companies that benefit from resolution of issues

come a trigger for producing sustainable growth for companies.
Investment themes of this fundexternal information resources.
By taking potential social issues

Investment candidates
・Select companies with high investment attractiveness by conducting
analysis of individual companies
placing an emphasis on a thoroughbottom-up approach and analysis
of investment environment
・Give consideration to liquidity of individual stocks and share price level, etc.

as business opportunities and investing in companies with prospects for sustainable growth, thisfund seeks to gain both economic
and social returns.

culated by multiplying the balance of its“Support Term Deposits” by a certain rate
to 10 or more organizations according tofour themes.
The Deposit balance stands at ¥73
billion as of March 31, 2020. As a result,Daiwa Next Bank donated ¥9.49 million
in April 2020 (the amount for the second
half of FY2019), which is a record-highamount. The cumulative total amountdonated is approximately ¥19 million.
Feedback received from customers includes: “This was a good opportunity tolearn about social issues” and “I hopesimilar initiatives will become more widespread.”
Examples of activities that can be supported through term deposits
Environmental protection, support to sports for persons with disabilities, medical
support to children, support to children in poverty and other vulnerable situations

Portfolio

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mmunit y”
oClacoL“×SDGshnology”
SDGs × “Tec
Daiwa Energy & Infrastructure Co. Ltd.

Daiwa Food & Agriculture Co. Ltd.

Investment in Renewable Energy

Introducing New Technologies to Promote
Industrialization in Agriculture

Daiwa Energy & Infrastructure Co., Ltd. aims to solve social issues by developing newenergy systems through investment in renewable energy projects.
The company contributes to the provision of clean energy sources through investment in photovoltaic solar power plants, biomass power plants that utilize unusedmaterials as the main energy source, and thermal power plants, etc. in Japan andoverseas.

Daiwa Food & Agriculture Co., Ltd. aims to contribute to solving social issues surrounding the agriculture and food sectors in Japan by promoting industrialization inagriculture pursuing expansion of scale and efficiency improvement.
Starting from the spring of 2019, the company launched a business of producing
baby leaf vegetables utilizing agritech in Kumamoto Prefecture in cooperation with alocal partner company. In the spring of 2020, the company started a business of producing tomatoes in large-scale cultivation facilities in Yamagata and Oita Prefectures.

Photovoltaic solar power plants in Kanonji (left) and Nikko (right)

9Image of tomato cultivation

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hnology”
SDGs × “Tec”
SDGs × “LifeGood Time Living

Provision of High-Quality Nursing Care Services
The population aged 75 years or older in Japan is expected to exceed 20 million in
the first half of the 2020s. Therefore, providing high-quality nursing care facilities
and services is an urgent issue. To address that issue, Good Time Living provides customized nursing care services suited to the needs of individual residents.
Daiwa Securities Group will introduce our customers and their families to reliable
residence facilities for the elderly and provide a wider range of support for their secure and fulfilling second life.

Creation of Next Generation
Financial Services (Fintertech)
Cutting-edge financial technologies such as blockchain
are becoming widespread.
In this situation, Fintertech is working to create next generation financial services targeting the digital native generation.

FinanceKnow-how of securities
and financial businesses
Cutting-edge
technologies

EntertainmentDigital channels

TechnologyExample

s of busi

ness lines

Digital asset collateral loans,
crowd-funding, crowd-tipping system,etc.

ommunity”
Claco“L×sG
DSSolutions for Business Succession (Daiwa ACA Business Succession Fund)
It is said that about half of the small and medium-sized companies in Japan do not havesuccessors, and business succession is thus a major social issue. Daiwa ACA BusinessSuccession Fund supports small and medium-sized companies to pass on their excellent
technologies and services to the next generations.

”SDGs × “Life

Proactively Supporting the Healthcare Area (Daiwa ACA HealthCare Inc.)
Through Daiwa ACA HealthCare Inc., which has investment expertise in the medicaland nursing care business, Daiwa Securities Group aims to solve social issues in those
fields by the provision of funds for the hospital and nursing care business and support
Entrance Hall of Good Time Living Center Minami

for succession and management of medical institutions, in Japan and overseas.

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Supporting Sound
Financial and Capital Markets

Smiles to Children
ProjectDaiwa Securities Group assists companies that need funds

As a measure for approaching the issue of wealth inequality

and supports generation of the ﬂow of funds. We will con-created by capitalism, particularly the issue of child poverty,

tinue to support social infrastructure by contributing to theDaiwa Security Group is undertaking the “For Your Dreams̶

creation of a more active and stable ﬁnancial market.

Daiwa Securities Group Smiles to Children Project.”

Securities Companiesʼ Roles in Society as Viewed
by Daiwa Securities Group
Primary Market

Financial & Capital markets
Fund procurement

Companies

National
government

Issuance

Secondary Market

Bonds

Proceeds“Child Support Fund for a Bright Future” in collaboration withthe Public Resources Foundation, a public interest incorporated foundation, with the aim of improving the environment surrounding children and preventing the cycle of poverty.

Investment

Equities

As part of this project, Daiwa Securities Group has created theReturn

Institutional
investors

Investment

IndividualInvestors

SecuritizedproductsThis fund supports NPOs and others that assist childrenʼs future, and grant recipients are selected through open invitation.
Daiwa Securities Group decided to issue bonds for retail investors (nicknamed “Daiwa Securities Group Future SupportBonds”) in June 2020 and donate ¥112.5 million, comprising a
0.15% of the total amount of issuance.

Roles of Securities Companies

Of this amount, ¥10 million will be allocated for donation toProtect market trust ―Work to ensure a fair and sound market
Fund procurementby companies, etc.

Support for initialpublic offerings

Assistance intrading of securities

13Assistance inasset building

Analysis and provisionof information

the “COVID-19 Emergency Fund for Children Support Groups”
established by the Public Resources Foundation and the remaining amount for donation to the “Daiwa Securities Group
Future Support Bonds Child Support Group Sustainable Fund”.

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Representatives of grant recipientorganizations and Daiwa Securities
Group Inc. President and CEO Nakata

Providing Financial Education
to Various Generations

Toward Maximizationof Job Satisfaction

Daiwa Securities Group provides opportunities for ﬁnancial education

Daiwa Securities Group aims to create a workplacebased on the idea that deepening monetary knowledge and learningwhere all employees feel job satisfaction through theamong various generations and increasing money ﬂows in the market
will lead to the revitalization of ﬁnancial markets in the future.

promotion of work-life balance, health and productivity management, and other initiatives.

Cooperation with “Job Museum”

Encouraging Women to Succeed

Daiwa Securities Group cooperates with “Job Museum,” ca-

Daiwa Securities Group proactively promotes female employees, andreer education materials for elementary school children de-the ratio of female directors in Daiwa Securities Group Inc. is currently

signed to allow children to proactively decide on their future

21.4% (three out of 14 directors). In addition, we have been selected ascourses to prevent career mismatches. The book version, “Joba “Nadeshiko Brand*” for six consecutive years in recognition that ourAlmanac,” meets curriculum guidelines and can be used inefforts for an environment that encourages women to success are facil-school classes.

itating the sustainable growth of the company.
Job Museum Kids Website

Daiwa Internet TVPromotion of Health and Productivity Management
Daiwa Securities Group appoints a Chief Health Officer (CHO) and pro-We produce “Daiwa Internet TV” at our own studio and distribute economic, social and investment information free ofcharge in a varied and timely manner.

motes health management across the Group by holding Health Management Promotion Meetings and preparing the Health White Paper.
Specifically, we take measures, such as undertaking a health awareness
improvement project, and Daiwa Securities Group has been selectedDaiwa Internet TV15

as a “Health & Productivity Stock Selection” for six consecutive years.
* Selected jointly by Japanʼs Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange

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“SDGs Promotion Original Logo”
Selected through Internal Open Invitation

Expectations for the Capabilities ofSecurities Company
Hoping to contribute to solving issues facing society̶even if only slightly̶Daiwa Securities Groupconsiders and takes actions together with local communities and civil society. We invited comments

We solicited ideas for Daiwa Securities Groupʼs original SDGs promotion logo from all officers

from people in NPOs.

and employees, in order to strengthen promotion of SDGs in business and proactively dissem-Hoping that Daiwa Securities Group will Continue Providing Gift Work to Children to Change
Their Lives for a Brighter Futureinate our stance externally.
As a result, we received more than 70 entries of logo designs from across the Group, including overseas branches.
To ensure that each employee feels willing to use SDGs promotion logo in their daily work, theWith only 10 years to achieve the SDGs by 2030, what is now re-original logo was selected from the short-listed designs through a vote of officers and employees.

quired is for more diversified entities than ever to cooperate andcollaborate with each other to face social issues and make efforts
toward solving those issues. In particular, to realize a society withNatsuko Hagiwara“no one left behind,” the urgent task is to eliminate wealth in-Professor of Rikkyo University

equality that creates difficulties for children arising from poverty

Chairperson of Japan NPO Centerand leads to inequality affecting childrenʼs future. “Daiwa Securities Group Child Support Fund for a Bright Future” is a valuable
initiative for supporting NPOs that provides support to children
according to their diverse needs. Daiwa Securities Groupʼs social
contribution activities of returning profits from the main businessto activities that will expand childrenʼs opportunities for the future
are examples of what management scholar Charles Handy calls
the “Gift Work” of companies. I hope that Daiwa Securities GroupThe employee who created the logo design said that the logo was designed to express the ideathat “Daiwa Securities Group, in a society facing various issues, will contribute to building of awill continue to provide “Gift Work” to bring a brighter future forchildren, who will be the torchbearers of a sustainable society.

better society.”
Sharing this idea across the Group, we will step up our initiatives toward achieving SDGs.
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