Daiwa Securities Group Inc. SDGs report 2021

Index

Our Strategy for Achieving SDGs

Initiatives with Our Stakeholders

Our Strategy for Achieving SDGs ··················· 

Stakeholder Communication ··················· 

Message from CEO ······························ Workforce Statistics ··························  Daiwa Securities Group’s Management
Vision “Vision  ” and Materiality················· Hiring Initiatives ·····························  Daiwa Securities Group SDGs Declaration ········· 

Diversity and Inclusion························  Structure of SDGs Promotion ····················· 

Human Resource Development and Skill
Enhancement ······························· Statements ··································· Work-Life Balance ··························· 
Health Management·························· 

Initiatives through Business Activities

Role and Social Responsibilities of
the Securities Business ·························· Action through Product Development
and Distribution ······························· 
SDGs Finance ································· 
Providing Analysis/Proposals on the Economy,
Society, and Investment Information··············· Communication with Employees················ 
Activities to Support Communities
through Our Foundations ····················· 
For Your Dreams - Daiwa Securities GroupChildren’s Smile Project ······················· Support for Culture and the Arts ················ Action with NPOs ···························· 

Providing Quality Service to Customers ············· Promotion of Social Contribution Activities ······· Support for Creating Our Future Society ············ 

Economic and Financial Education
for the Young Generation ······················  For the Development of Financial
and Capital Markets ···························· Environmental Initiatives

Initiatives for Supporting Business Activities

Corporate Governance ·························· Environmental Management / Initiatives
to Environmental Load Reduction ··············· Compliance··································· The Daiwa Securities GroupNet Zero Carbon Declaration ··················· Prevention of corruption ······················· 

Response to the TCFD ························ 

Risk Management ·····························  Issuance of Green Bonds ······················ 

IT Strategy and Management of Systems Risk ······· 
Human Rights Education and Awareness ·········· Supply Chain Management ····················· 
Engagement with Shareholders and Investors ······ Environmental and Social Policy Framework ······· 

ESG Information Index ··························  Participation in Initiatives························  
Third-Party Evaluations ························· 
GRI Content Index ······························ Editorial Policy ································ *This report is current as of December 24, 2021.
> Please refer to the SDGs site (https://www.daiwa-grp.jp/english/sdgs/) for the latest information.

*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_2021.pdf*As a digest version of the SDGs Report, we also publish “SDGs Booklet,” a compact and easy-to-understandsummary 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_2021sec.pdf

SDGs report 2021

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 Promotion2

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April 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-."3

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May 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.

Now, and looking to 2030
Formulation and announcement of the management vision “Vision2030”and the Medium-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 Materiality

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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.

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Message from CEO
Due to the COVID-19 pandemic, sustainable finance attracted much attention
in FY2020. Daiwa Securities Group has recognized anew our social mission ofacting as a bridge between the private and public sectors to raise funds, andaims to promote a sustainable capital cycle by helping to increase
understanding of the SDGs and ESG in asset building.
Seiji Nakata
President and CEO
Daiwa Securities Group Inc.

Moving forward to 2030, we have formulated “Vision 2030”, setting out the role theDaiwa Securities Group will play in helping to realize a sustainable society. I will assume
responsibility as top management and work hard to gain support for our Vision andensure that the Group continues to be needed by all stakeholders.

Message from the Head of SDGs

Keiko Tashiro
Director, Deputy President,
and Head of Overseas and SDGs
Daiwa Securities Group Inc.

The COVID-19 pandemic has prompted the world to seek a new state of society, andchanges are continuously occurring around the globe. Companies are no exceptions. For
Daiwa Securities Group to continue to be a company valued by society in the times
ahead, it is important to set out and put into practice a vision with future trends in mind.
“Vision 2030” is a management vision newly formulated by the Daiwa Securities Group.
It outlines the goals the Group should aim for as we are moving forward to 2030—thetarget year for the SDGs.
Under the key concept of “From savings to SDGs,” all officers and employees will unite
as one and actively work on realizing the SDGs by creating a sustainable capital cycle.

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Daiwa 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 Spirit

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

100 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

priority issues
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

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

9. Fostering human resources who can provide added value
10. Building an organization where everyone can play an active roleby acknowledging diverse personalities-Strengthening the foundation that supports
sustainable corporate management-

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

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Daiwa 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
3,000
personnel or more
Non-financial
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
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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

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Materiality 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.

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Formulation 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.

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Daiwa 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.

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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.

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SDGs report 2021

Head of SDGs : It oversees the promotion of the Group’s SDG-related business and the initiatives that strengthen our foundation ofsustainable management.
SDGs Managers : They take charge of the promotion of SDG-related business and monitor the progress against KPIs at eachheadquarter and Group company.
SDGs 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 and COO

Keiko Tashiro
Deputy President
Head of Overseas and SDGs

Mikita Komatsu
Deputy President
Deputy Head of Wholesale

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Koichi Matsushita
Deputy President
Head of Asset Management

SDGs report 2021

Masahisa Nakagawa
Deputy President
Head of Think Tank

Masahiro Kobayashi
Senior Executive Managing
Director, Daiwa Securities Co.
Ltd.
Head of Global Investment
Banking

Akihiko Ogino
Senior Executive Managing
Director
Head of Planning and Legal
and
Executive Head of Human
Resources

Shinsuke Niizuma
Senior Executive Managing
Director
Head of Retail

Junichi Arihara
Executive Managing Director,
CRO and CDO

Kana Shirakawa
Executive Managing Director
Head of Human Resources
and CHO

Eiji Sato
Executive Managing Director
and CFO
Deputy Head of Planning and
Deputy Head of Overseas

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

Toyo AbeManaging Director,
Corporate Planning
Department

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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

Naohiro Nishiguchi
CEO, Japan Innovation
Network
Senior Innovation Advisor,
UNDP
President, Japan Bosai
Platform

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Statements
Introducing Daiwa Securities Group's various statements.

Management
Daiwa Spirit [PDF: 80 KB] (Japanese)
Daiwa Securities Group’s Management Vision “Vision 2030”
Policy on Communication with Stakeholders

Corporate Principles
Management Policy
Daiwa Securities Group’s Materiality

SDGs/ESG in general
Daiwa Securities Group’s SDGs Declaration
Daiwa Real Estate Asset Management Co.Ltd. "ESG Policy"

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

Daiwa Capital Markets Europe Ltd. "Corporate Social
Responsibility"

Environment
Environmental Vision, Environmental Principles, and Basic Environmental Policies
The Daiwa Securities Group Net Zero Carbon Declaration
Our Approach to Green Procurement

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Society
Customer support
Basic Policy on Customer-first Operations
Daiwa Securities Group
Daiwa Securities Co. Ltd.（Japanese）
Daiwa Asset Management Co. Ltd.（Japanese）
Daiwa Next Bank, Ltd（Japanese）

Human Resources/Human Rights

Guidelines for Fair Hiring

Daiwa Securities Group “Basic Policy for Initiatives Addressing
Human Rights and Social Integration Issues”
Daiwa Capital Markets Europe Ltd. "Diversity & Equality"

Structure to Promote Health Management (About HealthManagement Promotion System, Three-Part System)
Daiwa Capital Markets Europe Ltd. "Modern Slavery Act 2015"

Daiwa Capital Markets America Inc. "WORK FOR US" >"Culture"

Investment

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"

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

Basic Views on Corporate Governance
Policies for selection of candidates to serve as the Directors
including Outside Directors [PDF: 640 KB]
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Compliance

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

Daiwa Securities Group’s Customer and Client Inspection System
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

Risk 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 StewardshipCode"（Japanese）

Daiwa Asset Management Co. Ltd. "Stewardship"19

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Role 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.

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.

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Role 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.

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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’
corporate 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.
Daiwa Asset Management has also been continuously and actively working to fulfill its stewardship responsibilities as it announced its
adoption of Japan's Stewardship Code in May 2014. The company renewed the announcement of its adoption of the Code in
September 2020 and has been striving to improve its initiatives. The basic idea about Daiwa Asset Management’s stewardship activities
is shown in its “Stewardship Policy.”
ESG Investment Policy
Stewardship Policy

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Specifically, dialogues are led by the following three parties.

Corporate Research TeamEngagement Team

Voting Rights Exercising Team

Stewardship Supervisory Committee
In January 2017, Daiwa Asset Management set up the “Stewardship Supervisory Committee” which is designed to manage conflicts ofinterest faced in fulfilling its stewardship responsibilities. The Committee supervises the company's overall stewardship activities andis responsible for making reports to the Board of Directors and issuing recommendations to improve stewardship activities asnecessary. The Committee is composed of outside directors and the compliance officer, who takes charge of overseeing themanagement of conflicts of interest. In that way, independence in the stewardship activities from management and business execution
is secured.
Stewardship Committee
To conduct stewardship activities, Daiwa Asset Management has established the Stewardship Committee within its Fund Management
Division from the perspective of separating management from investment. The Committee is chaired by the chief investment officer(CIO) and composed of personnel in the Fund Management Division who are involved in stewardship activities. The responsibilities of
the Committee include formulating basic policies related to stewardship activities, such as criteria for the exercising of voting rights
and ESG investment policy; conducting deliberations and determination on individual cases when exercising voting rights, as well as
external announcement of the results of exercising of voting rights and the details of stewardship and other activities; andimplementing initiatives to enhance stewardship activities.

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SDGs report 2021

Stewardship & ESG Section
Daiwa Asset Management established a special section within the Investment Planning Department in October 2018 to help show thecompany’s specific ESG initiatives and approach to parties within and outside the company. In October 2020, the section was named
the Stewardship & ESG Section. The Stewardship & ESG Section is mainly responsible for overall stewardship activities, such as theexercising of voting rights in, and engagement with, investee companies, and promotion of integration of ESG into investment
processes.

Education and Training
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 afield where new initiatives are being taken daily, the company provides training aimed at the updating of specific themes as needed.

Engagement in Relation to ESG Issues and Policy on Exercising of Voting Rights
The three teams that lead engagement activities hold dialogue on important ESG issues as shown in the “Policy to Hold Constructive
Dialogues with Companies” according to respective objectives and investee companies. Dialogue on ESG issues held by the threeteams accounted for approximately 30% of overall engagement activities conducted in 2020, and this percentage is trending upward.
Daiwa Asset Management also established a new criterion on female officers when making partial revisions to its “Policy on Exercisingof Voting Rights (Domestic Stocks)” in March 2021. Under the new criterion, Daiwa Asset Management requires companies that makeup the TOPIX 100 Index to appoint at least one female officer (directors and corporate auditors). Moreover, it has specified business andhuman rights as a future issue to be addressed in the Policy on Exercising of Voting Rights, recognizing that encouraging corporate
human rights initiatives and information disclosure is an important engagement theme and issue.
Engagement Policy
Voting Policy（for Domestic stocks）
Voting with Consideration of the Impact of COVID-19＜Japanese only＞

Specific Initiatives for Dialogue
Regarding dialogues with investee companies, based on the Policy to Hold Constructive Dialogues with Investee Companies
announced in June 2014, Daiwa Asset Management has conducted engagement activities aimed at accurately understanding theconditions of investees and sharing such assessments. Later, in September 2020, the company announced the “Policy to Hold
Constructive Dialogues with Companies,” which includes the ESG issues the company focuses on, after making revisions as needed.
Daiwa Asset Management recognizes that it also has duties regarding engagement for passive investment. Based on this recognition,
since 2018 it has been sending its “Policy on Exercising of Voting Rights” and information on its stewardship activities to the investee
companies incorporated in its domestic stock index funds. In 2020, the company sent information on Daiwa Securities Group’s IR
activities and thoughts on diversity and inclusion.

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SDGs report 2021

Corporate Research Team

・Composed of analysists in the Research Department. Meetings are held along with research activities on corporate
value, business strategies, ESG, and other themes.
The analysts in the Research Department engage in stewardship activities to contribute to enhancing corporate value andsustainable growth as part of their activities as analysts. They held engagements with approximately 300 companies in FY2019(from January 2019 to December 2019; hereinafter the same). As fundamental tools for dialogues, Daiwa Asset Management has
prepared and utilizes (a) the Analyst Handbook, which summarizes the fundamental stance and knowledge that serves as abasis for the analyst activities; (b) the Business Strategy Reference Book that analyzes companies’ management strategies; (c)the Qualitative Evaluation that evaluates companies from a medium- to long-term standpoint; and (d) the Long-term Corporate
Value Model that determines the medium- to long-term fair value of companies.
Voting Rights Exercising Team

・Composed of personnel responsible for exercising voting rights. Meetings are mainly themed on corporate
governance and the exercising of voting rights.
・Engagement for passive investment
Personnel in charge of corporate governance collect information on investee companies required for exercising voting rights. In
dialogues with investee companies, they explain their policies on exercising voting rights and what they expect from companies
with respect to corporate governance, thereby sharing their knowledge with the investee companies. They conductedengagements with approximately 60 companies in FY2020. They also disclose how they exercised their voting rights forindividual proposals from shareholder meetings held from April 2017 onwards.

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SDGs report 2021

Engagement Team

・Composed of fund managers and analysts. In-depth meetings are held with investee companies mainly
incorporated in active investment funds for medium- to long-term investment.
The engagement team held engagement with approximately 30 companies in FY2020, focusing on small- to medium-cap issues
mainly incorporated in active investment funds for medium- to long-term investment.
In meetings, the team places emphasis on discussions that incorporate a medium- to long-term perspective and holds dialogue
with the president and other top management of investee companies as much as possible.
When holding dialogue, the engagement team creates the agenda and clarifies the purpose of dialogue.
Daiwa Asset Management also conducts ES meetings—dialogues specializing in environmental impact and social responsibility.
In FY2020, it held a number of dialogues with investee companies regarding the importance of ES in considering medium- tolong-term corporate value.
Daiwa Asset Management has released a Report on the Status of Stewardship Activities on its website (only available inJapanese). The report includes the status of engagements, such as policy, structure, and the number of engagement times bytheme, as well as ESG investment, the status of exercising of voting rights, and measures to improve stewardship activities.
ESG Exchange Meeting
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
dialogues with investee companies that the investees were struggling with appropriate methods for ESG disclosure andcollection of information. The company therefore invited multiple investees and held an ESG-related information exchange
meeting 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.
Report on the 1st ESG Exchange Meeting ＜Japanese only＞

Incorporation of ESG Factors into Investment Processes
Daiwa Asset Management takes into account companies’ ESG initiatives when making investment decisions as it considers that suchinitiatives can lead to expanding growth capabilities over the medium to long term and reducing risks. Sharing qualitative evaluations
by analysists in the Research Department and fund managers, and quantitative analysis and evaluations by quants analysists, hasenabled corporate evaluations from a comprehensive perspective that integrates financial information with nonfinancial information.
Daiwa Asset Management also calculates unique ESG scores based on the above information and Daiwa Securities Group’s approaches
to ESG, and takes the scores into account when selecting companies and grasping risks to the portfolio.

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SDGs report 2021

Performance of ETFs Tracking MSCI, FTSE, and Other Indices

In July 2017, Government Pension Investment Fund (GPIF) selected and announced three ESG indices for Japanese equities andcommenced approximately 1 trillion yen worth of passive investment that tracks these indices. Since then, GPIF has expanded
its ESG investment in stages while adding indices. As of March 31, 2021, the scale of GPIF’s passive investment tracking ESG
indices reached approximately 10.6 trillion yen.(End of March 2021)
Immediately after GPIF’s first announcement of ESG indices, Daiwa Asset Management newly established and listed thefollowing three ETFs aimed at tracking the indices: Daiwa ETF MSCI Japan Empowering Women Index (WIN), Daiwa ETF MSCIJapan ESG Select Leaders Index, and Daiwa ETF FTSE Blossom Japan Index. These ETFs are used by a broad range of investors,
from individual to institutional, as convenient tools for helping to increase risk tolerance that does not appear in financial
information and aiming for long-term improvement of returns.

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SDGs report 2021

Involvement in Joint Initiatives Related to ESG Investment
Daiwa Asset Management has signed and supports the following external initiatives.
Name

Timing

PRI

Signed in May 2006

ICGN

Joined in April 2021

TCFD

Showed support in December 2020

ClimateAction 100+

Signed in August 2021

Investor Agenda

August 2021

30％ Club Japan Investor Group

Participated in May 2020

Principles for Financial Action for the 21st Century

Signed in November 2011

Statement on Fiduciary Duty and Climate Change Disclosure

Signed in August 2014

Participation in Initiatives

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SDGs report 2021

Action through Product Development and Distribution
For Addressing Social Issues and Contributing to Future Developmentof Society and Financial and Capital Markets
Impact Investment

Impact Investment is a type of investment that not only pursues economic benefits, but also uses funds raised solely to solve social
issues, such as poverty and environmental problems. Daiwa Securities Group sells SDG bonds (impact investment bonds),* which areissued by public organizations, financial institutions, and other issuers for the purpose of solving social issues, to customers in Japanas a pioneer for Impact Investment bonds in the country.
* A generic term for bonds the proceeds of which are used for projects that contribute to SDGs (including conventional Impact Investment bonds)[Japanese] Social Contribution through Investment-Impact InvestmentSDGs FinanceInitiatives in FY2020
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 Impact Investment bonds in Japan, 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.
In September 2018, we sold MOL Blue Ocean Environmental Bonds, the first green bonds issued by an operating company inJapan (sold by two securities companies—Daiwa Securities and Nomura Securities). These were green bonds issued in Japanfollowing the Tokyo Green Bonds (foreign currency-denominated) issued by the Tokyo Metropolitan Government in FY2017.
Through the underwriting and sale of these bonds, Daiwa Securities aims to help expand trends towards utilizing precious funds
from retail investors for environmental measures, and to this end, we continued with our initiatives.
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.

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SDGs report 2021

SDG Bonds for Retail Investors Sold by Daiwa Securities (FY2020)
Use of funds

Salesamount(estimate)

Applied to refinancing funds procured to provide educationalloans (tuition support plan) offered to retail customers incollaboration with universities, vocational schools, and otherinstitutions¥500 million

Mitsubishi UFJ Financial Group, Inc.*

Used for financing green projects (green buildings andrenewable energy) and social projects (job creation andmaintenance, healthcare, education, and public housing)¥10 billion

The Asian Development Bank

Support for health and medical related businesses in the AsiaPacific region through investment¥4.2 billion

AEON REIT Investment
Corporation*

Used to refinance existing loans obtained to acquire AEON
MALL Ishinomaki and AEON MALL Mitouchihara, which are
special assets meeting the criteria for eligible sustainableassets

¥6.0 billion

The Tokyo Metropolitan
Government*

Used to promote greening of wetlands, park development,
and development of automobile driving areas¥2.1 billion

Issuers
Orient Corporation*

Crédit Agricole Corporate andInvestment Bank

Lending to companies and projects that contribute todevelopment of an environmentally friendly economy and¥42.4 billion
society* Sold by multiple companies including Daiwa Securities (the sales amounts shown above are those underwritten by Daiwa
Securities).

Results of SDG bonds for retail investors
Daiwa Securities cumulative sales: ¥800.4 billion* Figures have been rounded off* Source: Daiwa Securities (From March 2008 to March 2021)

Daiwa Securities' share in the Japanese market: 45%
Total ¥1,765.3 billion* Figures have been rounded off* Source: Daiwa Securities (From March 2008 to March 2021)

SDGs related to SDG bonds sold in the past30

SDGs report 2021

SDG Private Placement Bonds for Domestic Institutional Investors Sold by Daiwa Securities (FY2020)
Issuers

Bond nameDate of issuance

Currency

Issuance
amount(In unitsof millionsof theissuance
currency)

International FinanceCorporation (IFC)

Social bonds

April 2020

AUD

200

Inter-American
Development Bank (IADB)

Sustainable developmentbonds

May 2020

AUD

50European Bank for
Reconstruction andDevelopment (EBRD)

Pandemic bonds

August 2020

USD

50

Vasakronan

Green bonds

October 2020

USD

10

Central American Bank for
Economic Integration(CABEI)COVID-19 vaccine bonds

November 2020

USD

50

International Bank for
Reconstruction andDevelopment (IBRD)

Sustainable development
bonds

November 2020

USD

48

International FinanceCorporation (IFC)

Social bonds

November 2020

AUD

50

European Bank for
Reconstruction andDevelopment (EBRD)

Green transition bonds

January 2021

AUD

280

Banco Santander Chile

Women SME bonds

February 2021

USD

50

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

Sustainable development
bonds

March 2021

AUD

60

Daiwa Securities' share in the Japanese market: 16% (based on press releases)
Only private placement bonds for which the arranger is clear are counted.

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SDGs report 2021

Initiatives Taken by the Group's Overseas Offices
In April 2020, Daiwa Capital Markets Europe Limited acted as sole lead manager for social bonds issued by the International
Finance Corporation (IFC).
IFC, a member of the World Bank Group, is among the world’s largest international development financing institutions thatspecializes in private sector support of emerging markets. IFC’s social bond program allocated funds raised by issuing bonds inaccordance with social bond principles pursuant to the relevant program to projects that benefit persons who are not receiving
needed services in developing countries that have been impacted by COVID-19. IFC recently set an US$8 billion COVID-19 related
facility to support companies that have been impacted by the economic downturn caused by the spread of COVID-19 and theiremployees.
In June 2020, Daiwa Capital Markets America acted as a sole lead manager for a sustainable development bond issued by InterAmerican Development Bank (IDB).
IDB is an international development financial institution aiming to contribute to the economic and social development of Latin
American and Caribbean member countries. It has announced that it would direct up to $12 billion of lending to support
countries in their response to the COVID-19 pandemic and its consequences. The funds raised through this issuance will be usedmainly for helping countries affected by COVID-19 to strengthen their public health systems and purchase daily necessities andmedical equipment. They will also be used for fiscal spending by local governments to respond to the COVID-19 pandemic andvarious measures for supporting economic recovery, such as job security measures.
The issuance of the bond is aimed at achieving SDG Goal 3 “Ensure healthy lives and promote well-being for all at all ages.”
In January 2021, Daiwa Capital Markets Europe Limited acted as sole lead manager for green transition bonds issued by theEuropean Bank for Reconstruction and Development (EBRD).
Climate change is an urgent issue, and financial support will be essential for achieving the long-term goals of the Paris
Agreement and carbon neutrality by 2050. The purpose of green transition bonds is to support the transition by industry sectors
with high greenhouse gas (GHG) emissions, such as manufacturing, agriculture, and construction, to low-carbon businessmodels. The priority is primarily on greatly reducing the use of fossil fuels, and attention is also being focused on improving
resource use. The funds raised from green transition bonds are allocated to financing projects that will lead to substantial
decreases in emissions on industrial sectors with high environmental impact for the purpose of making the transition to low
carbon business models.

Daiwa Group Receives 2020 mtn-i Award in SRI Category
Daiwa Securities Group was selected as the “Power Performer – SRI Japan Distribution” of the MTN Awards 2020, which were
presented by mtn-i Ltd. a leading vendor of MTN-related information.
The MTN Awards 2020 on the mtn-i Website

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SDGs report 2021

Initiatives in FY2021

Initiatives Taken by the Group's Overseas Offices
Initiatives by the Australia OfficeDaiwa Capital Markets Australia Limited regards SDGs as principle for our sustainable growth, and we aim to contribute on SDGs
by creating shared value through business.
Our all divisions started taking SDGs actions that Equity sales team invited ESG related Australian corporate for Asian ESG
Conference, that DCM focuses on SDGs bond for not only Australian financial institutions but also SSAs like ADB, and that PI
looks for new investment opportunities of environmental-/eco-friendly building project as well as social housing project since
FY2021. We hired a senior ESG analyst, and he released Pan-Asia ESG report and works closely with sector analysts and equity
sales teams.
In addition, we introduce some SDGs related Australian start-ups for Japanese corporates and investors, collaborate with Daiwa
Energy & Infrastructure Co. Ltd. for renewable energy investment project, and study possibility of investment in Australian
agriculture project with Daiwa Food & Agriculture Co. Ltd.
DCMA Underwrites Nutrition Bonds Issued by the Development Bank of Latin America
Daiwa Capital Markets America (DCMA) acted as sole lead manager for nutrition bonds issued by the Development Bank of Latin
America (CAF) in June 2021.
The CAF is a regional development financial institution funded by 19 member countries, primarily in Latin America. Its
objectives are to promote economic integration, economic development, and trade finance in Latin America.
The funds raised from this bond issuance will be used through the relevant governments primarily to improve people’s
nutritional status and eliminate health concerns, such as eliminating chronic malnutrition in early childhood and supportingfood purchase assistance programs for children, pregnant women, and persons with disabilities.
These bonds were issued with the aim of achieving SDG 1: No poverty, SDG 2: Zero hunger, and SDG 3: Good health and wellbeing.
See here for details.（Japanese only）

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.

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SDGs report 2021

Result in FY2020
Balance in Daiwa Securities Group: ¥610.6 billion* Source: Daiwa Securities

Daiwa Securities' share in the Japanese market: 12.8%* Source: Daiwa Fund Consulting (As of March 31, 2021)

Development 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.
Daiwa Next Bank’s “Support Term Deposits”
Support Term Deposits are designed to support hard-working people and organizations. Daiwa Next Bank donates an amountcalculated by multiplying the balance of its Support Term Deposits by a certain rate to recipients chosen by customers. At
present, it supports more than 10 organizations working on solving issues based on the following four themes: medical support
to children; self-reliance support to children; support for sports for disabled people; and environmental preservation.
Feedback received from customers includes: “This was a good opportunity to learn about social issues” and “I hope similar
initiatives will become more widespread.”
Since September 2020, we have been posting on the Support Time Deposit section of “Ta-me Talk” Website, a customer support
site for selecting deposit products, “Support Manga” with articles on the activities of recipients and related information as wellas information on how funds are used and the thoughts of the people involved. In June 2021, we created a digital bookcompiling all of the prior Support Manga as one initiative marking the 10th anniversary of the founding of Daiwa Next Bank.
Supporting someone through by own deposits—Support Term Deposits introduced using manga （Japanese only）

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SDGs report 2021

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 thegrowth of the Japanese economy by encouraging the continuation, development, and growth of small- and medium-sizedcompanies 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 attractive
investment 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.
In addition, Daiwa Fund Wrap Premium (Daiwa Fund Wrap with premium benefits) now offers a more detailed service, enablingcustomers to have multiple investment portfolios and design them in a highly customized manner. The beneficiary designation
service and the gift service that takes advantage of the calendar year taxation system are incidental services that can meet theneeds customers with a strong interest in inheritance tax measures.
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: ¥11,208.5 billion (As of March 31, 2021)* Source: Data released by the Japan Investment Advisers Association

Balance of Wrap accounts at Daiwa Securities: ¥2,574.1 billion (As of March 31, 2021)* Source: Data released by the Japan Investment Advisers Association

Daiwa Social Contribution Wrap - Daiwa Fund Wrap with a donation service
Amount donated in 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
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SDGs report 2021

Daiwa Asset Management Offers Investment Trusts with ESG and SDG Targets
Daiwa Asset Management offers investment opportunities by creating and managing investment trusts with ESG and SDG
targets based as a part of its stewardship activities. Daiwa Asset Management has an extensive lineup of funds that arecompatible with the 17 SDGs including ETFs linked to ESG indices and investment funds with sustainability themes.
Initiatives Using REITs and Other Structures to Solve Social Issues
Daiwa Real Estate Asset Management uses investment corporations and fund structures to provide funds through capital
markets to real estate, including offices, rental housing, healthcare facilities, hotels, and logistics facilities, as well as
infrastructure assets such as renewable energy power plants. By doing so, the company will contribute to putting in place anddeveloping high-quality properties and social infrastructure with minimal environment impact.

Issuance of Green Bonds
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 Healthand 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).
Total amount of investment in healthcare facilities
Approximately ¥95.5 billion (As of May 31, 2021)

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SDGs report 2021

Supporting Healthcare Workers
As a part of its measures to address the COVID-19 pandemic, Daiwa Real Estate Asset Management donated a total of 5 million
yen in collaboration with Daiwa Securities Group for allocation to accommodation fees under the “Room Support Plan for
Medical Professionals,” a program conducted at hotels by JHAT Co., Ltd. JHAT is a hotel operating company owned by Daiwa
Hotel Private Investment Corporation (DHP), a private REIT managed by Daiwa Real Estate Asset Management.
Looking ahead to the post-COVID era, Daiwa Real Estate Asset Management put into practice activity based working (ABW),
which enables diverse work styles by employees regardless of location. One aspect of this was supporting hotel operators facing
difficulties during the COVID-19 pandemic by encouraging telecommuting by employees to telecommute from hotels owned by
DHP and subsidizing the entire amount of associated costs.

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. It has been continuously expanding the balance of its assets under management while striving to accumulateknowledge of investment and management in the renewable energy field.
Management results of renewable energy power plants
Number of deals: 21(Hokkaido, Tohoku, Hokuriku, Kanto, Chubu, Chugoku, and Shikoku regions)
Output: Approximately 180 MW (excluding output from assets on land with leasehold interest)
Annual energy output (June 2020 to May 2021): 253,187 MWh(calculated based on an assumed CO2 reduction of 120,264 t-CO2 and an emission factor of 0.000475 t-CO2/kWh)Balance of assets under management: Approximately ¥75.4 billion
Group-wide Research on Financial Innovations
Daiwa Securities Group launched the Financial Innovation Committee in FY2016 as a platform for Group-wide research
activities, and frontline employees at Daiwa Securities Group Inc., Daiwa Securities, Daiwa Institute of Research, Daiwa AssetManagement, and other companies are proceeding with research activities on artificial intelligence (AI) and other state-of-theart technologies.
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.
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SDGs report 2021

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 3.4
million as of the end of March 2021. Of Daiwa Securities' total stock transactions, approximately 80% 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
were announced.
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: 3,446,000 accounts(As of the end of March 2021)
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.
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SDGs report 2021

Efforts to Enhance Asset Management Using AI in Collaboration with Academia
In recent years, increasing attention is being paid to the knowledge derived from behavioral economic, which focuses on
irrational human psychology. It is difficult to explain economic bubble and crashes using conventional economic mechanisms,
and consequently, algorithms are being sought in asset management practice to create highly reproducible operations based onemotional human behavior while accepting the limitations of exiting theory.
The research lab of Professor Tomoya Suzuki of the Ibaraki University Graduate School of Science and Engineering and Daiwa
Asset Management investigated abnormal situations in financial markets using artificial intelligence (AI) and developed a model
to transform the process of abnormal situations returning to normal situations into profit opportunities. Recent research has
made it clear that at times, financial market participants engage in irrational behavior that can be difficult to explain. It isbelieved that market trading prices become distorted because of such irrational behavior. This model uses AI to assess whether
there are distortions and the degree of those distortions with the objective of making the restoration of normal conditions into
profit opportunities. Operation of a private fund for qualified institutional investors using the model started in February 2021.
Daiwa Asset Management has welcomed Professor Suzuki, who has been conducting research on using machine learning that
employs collective intelligence in financial fields, as a senior research fellow since October 2017. Joint research by the Ibaraki
University and the company began the following year. Going forward, the company will work to enhance its operations andcreate new value in customer services through collaboration with academia through a variety of initiatives.

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SDGs report 2021

SDGs 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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SDGs report 2021

Major Results＜Japan＞[Sustainability] Yokohama Reito Co., Ltd. (September 17, 2021) < Japanese only >[Green] SCSK Corporation (June 1, 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)
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 >

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SDGs report 2021

＜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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SDGs report 2021

Activity
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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SDGs report 2021

Selected 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.

5th 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 >LectureSpeaker

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 and Economy
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.
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SDGs report 2021

LectureSpeakerInternational 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)
LimitedAtsuko Kajiwara, Executive Officer, Head of Sustainable Finance Evaluation Group,Japan Credit Rating Agency, Ltd.

th 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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SDGs report 2021

rd 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.

3

Lecture46

SDGs report 2021

nd Seminar Basics of SDGs Investment for Beginners (November 10, 2020)
For details, click here < Japanese only >LectureSpeaker“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)st Seminar ESG Investment Strategy in the COVID-19 Era (August 4, 2020)2

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.

1

Lecture47

SDGs report 2021

LectureSpeaker

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.

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

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

Holding 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.

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SDGs report 2021

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.
For details, click here. < Japanese only >49

SDGs report 2021

Providing 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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SDGs report 2021

Number of SDGs/ESG seminars held & participants
2020: 23 (2,461 participants)
2019: 18 (699 participants)
2018: 15 (447 participants)
2017: 12 (412 participants)
ESG reporting rate (individual corporate reports) as of 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 : 554 reports (Results for FY2020)
Full texts of reports available on the website
Number of recent hits on the research division's page : 5.27 million hits (Results for FY2020)

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SDGs report 2021

Focus on Information Dissemination with a View toward the Post-COVID Era
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 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 the SDG/ESG, zero emissions, digital transformation (DX), andhousehold asset formation. The Office of SDGs Research & Consulting was established in FY2019 with the aim of contributing tosociety through the dissemination of information intended to solve various issues. In FY 2020, the office published 18 reports
and made 75 visits to finance and nonfinancial companies for the provision of information. In addition, the Consulting Division
is working on enhancing corporate value for achieving the SDGs with a focus on sound management and human capital.
During the COVID-19 pandemic, the Consulting Division has provided information from a corporate management perspective on
various issues that companies are directly facing such as medium-term management planning, human resource strategies, DX,
information disclosure and shareholder responses (including investor relations and corporate governance), and responses toenvironmental issues.
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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SDGs report 2021

Provision 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. "Daiwa Investment Monthly" videos can also be viewed with a smartphone. 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 FY2020, approximately 20,000 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.

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SDGs report 2021

Daiwa Internet TV
In 2000, Daiwa Securities Group began “Daiwa Securities Information TV,” Japan’s only
channel dedicated to securities information, on the multichannel pay TV broadcast service“SKY Perfect TV!” Since April 2011, we have been producing “Daiwa Internet TV” at our own
studio and distributing it online in an effort to target a wider range of viewers. We distributeinformation on the Tokyo market five times a day in a timely manner, while providing 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! SDG/ESG Investment will Change the World” that was
launched in July 2020, Daiwa Securities strategists provide straightforward explanations of
SDG/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.
Daiwa Internet TV ＜Japanese only＞
Daiwa Asset Management
Daiwa Asset Management posts “Tweets by Tsumitate Wa-NISA” on its website as educational content for NISA in an effort to
distribute information in an approachable, easy-to-understand way in collaboration with “Tsumitate Wa-NISA,” the Financial
Services Agency’s official character of the installment-type NISA. The company recognizes that providing information toinvestors through the Internet will become more important with the spread of COVID-19, and distributes, as website content,
market information videos that focus on the U.S. and REIT markets, in addition to the Fund Letters and Market Letters that havepreviously been distributed.
As a signatory to the United Nations Principles for Responsible Investment (PRI), Daiwa Asset Management plans to present
information on its ESG investment related initiatives to domestic and overseas asset owners, investment managers, and others
as a bronze sponsor of the PRI Digital Conference that will be held in October 2021. The company actively disseminates
information on its ESG investment initiatives as an asset management company and in FY2020 engaged in a variety of activities
including publishing an article in the Securities Analysts Journal and presenting at an online seminar of the NIKKEI ESGManagement Forum held by The Nikkei and at a symposium on a project for considering the future of asset managementcompanies. In the future, the company will continue to disseminate information on its own ESG investment knowledge andinitiatives both inside and outside the industry.
Daiwa Asset Management website
Tweets by Tsumitate Wa NISA＜Japanese only＞
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SDGs report 2021

Providing Quality Service to Customers
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.
CONNECT Co.Ltd. (Japanese)55

SDGs report 2021

Thorough 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 2020, we held the“Daiwa New Year’s Special Live Seminars” five times in total, focusing on real estate and inheritance as topics, as well as theglobal economy and market information.
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.

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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 five years having passed since its opening, it has grown to be a website visited by many fans, with more than
300 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 picturebook 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)
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 FY2014 andthen established a contact center function in Fukuoka in FY2016 as our third service point. We also enlarged the floor area of ourservice point in Osaka in FY2017.
In FY2020, we transferred part of the customer support function of sales branches to the Contact Center and launched a
Customer Support Section.
By further expanding our customer response capability, we aim to enhance our support functions for sales branches going
forward to increase customer convenience.
Scale of Contact Center: 820 service points(500 in Tokyo, 210 in Osaka, and 110 in Fukuoka)

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.
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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 FY2020 where responses were taken to customer feedback and requests
62 cases (in 24 of which responses were completed)59

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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.
Calls received at the Customer Support Center in FY2020
Number of calls received: 3,930 calls (up 84 calls)
Inquiries: 89% Complaints: 11%
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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Support 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
SDGs × "Technology"
Creation of Next Generation Financial Services
Fintertech Co. Ltd., which was established in April 2018, works to create next generation financial services mainly for the digital native
generation, using blockchain and other state-of-the-art technologies.
Since March 2020, it has been providing digital asset-backed loans. It also launched stock investment-type crowd-funding services
through Ecrowd Inc., an investee company, in July 2020 while starting to provide real estate investment loans and crowd-tipping
systems in April 2021. Going forward, the company will continue to develop new financial services to satisfy the diverse needs ofcustomers.
Fintertech Co. Ltd.＜Japanese only＞

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.

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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 11 solar photovoltaic power plants which are owned and on which construction wascompleted as of May 2021 have all been operating stably. Also, the solar photovoltaic power plants under construction in Naka
City, Ibaraki Prefecture (35 MW) and Ena City, Gifu Prefecture (13MW) will both be completed by the end of 2021.
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.
Ltd., with which DEI has formed a capital and business alliance. The commercial operation of a plant in Yonezawa City, Yamagata
Prefecture began in January 2018 as the first alliance project, and a plant in Kamitonda, Wakayama Prefecture as the second
project also began in June 2020.

Stations developed/ invested in by DEI
Photovoltaic power stations
Output: Approximately 237 MW in total
A breakdown is shown below.
Stations in operation: Approximately 189 MW (total for eleven stations)
Stations under construction: Approximately 48 MW (two stations)
Projected amount of electricity generated annually: Equivalent to the amount for approximately 60,000 households
Biomass power generation plant
Output: Approximately 13 MW in total
A breakdown is shown below.
Stations in operation: Approximately 13 MW (two station)
Projected amount of electricity generated annually: Equivalent to the amount for approximately 25,000 households
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. Construction of a pellet
plant is currently underway 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.
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SDGs× Local Community
Expansion of Solutions Provided in the Business Succession Field (Establishment of Daiwa ACA BusinessSuccession Fund)
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 forcompanies 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]

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
In 2020, DFA took a stake in agricultural corporations in Kawanishi Town, Yamagata Prefecture and Kusu Town, Oita Prefecture,
which both sell tomatoes cultivated in large-scale greenhouses. It thus handles an agricultural production business on its own.
(total cultivation areas: approximately 3.2 ha)
Taking advantage of cultivation using large-scale horticultural facilities and expertise in operating such facilities, DFA pursues
expansion of scale and increase in efficiency of agricultural production to contribute to the invigoration of agriculture, a social
issue Japan should look to resolve. The company will thereby put into practice SDG Goal 2 “Zero Hunger” and Goal 9 “Industry,Innovation and Infrastructure.”63

SDGs report 2021

Production facility that boasts the largest cultivation area in Yamagata
Prefecture

Tomato greenhouse in harvest time

SDGs×Life
Full-Scale Entry into 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＞

Provision of High-Quality Nursing Care Services
The aging population is an important social issue to be addressed in Japan, which has become a super aging society. To date, GoodTime Living Co. Ltd. has worked on nursing care that helps residents to live independently and improve their condition, rather thansimply providing assistance for their disabilities. At the same time, the company has also promoted the use of ICT to increase efficiency
in operation. In FY2020, the company actively introduced a face recognition system with a thermography camera to provide moresecurity to residents and their families amid the COVID-19 pandemic, while creating a portal site exclusively for residents and theirfamilies that enables smooth information sharing. In order to change the current state of nursing care services to address the
progressive aging of the population, Good Time Living will further increase operational efficiency in nursing care frontlines anddevelop an environment that allows nursing care staff to demonstrate their expertise. The company will thereby contribute to theachievement of SDG Goal 3 “Good Health and Well-being” and Goal 8 “Decent Work and Economic Growth.”
Good Time Living Co. Ltd.＜Japanese only＞

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Specific Case of IT Use

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/lsK0h8mU9vM

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

Artificial intelligence (AI)-based robot Aeolus
Robot

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)

Investigation is underway on thepossible use in nursing care practice.
We will advance the development of anenvironment that allows care staff to
focus on providing nursing careservices with higher added value by
having the robot assume simple work.

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

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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.

SDGs report 2021

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.

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Contribution 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.
Initiatives against COVID-19
Daiwa Real Estate Asset Management uses hotels close to Haneda Airport and located in Kasai and other places owned by Daiwa
Hotel Private Investment Corporation, which it manages, as temporary quarantine facilities for people who have returned fromoverseas.
Earthquake Preparation Initiatives
Daiwa Real Estate Asset Management has implemented earthquake countermeasures for building users and local residents. For
example, the company has placed emergency cabinets in the elevators of office properties owned by Daiwa Office Investment
Corporation and installed disaster-responsive vending machines in rental residences owned by Daiwa Securities Living
Investment Corporation (DLI) and Daiwa Residential Private Investment Corporation.
Efforts to Address Aging
Employees working at the investment division of Daiwa Real Estate Asset Management visit healthcare facilities owned by DLI
nationwide several times each year. They participate in hands-on events, such as family get-together meetings and meetings toshow respect to the elderly, while assisting with daily work, including cleaning the periphery of the facilities, pruning plants inthe courtyards, and pulling out weeds. They also participate in hands-on training to experience work as facility employees in aneffort to deepen their understanding of frontline work. Daiwa Real Estate Asset Management started these initiatives in order todeepen its understanding of the daily work of facility operators and the services provided to residents. The initiatives are now
positioned as local community contribution activities through the core business, and we will continue to work actively on these
initiatives.
(* The above initiatives have been suspended due to the spread of COVID-19 to prevent infections.)

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SDGs×New Technologies and Ideas
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 especiallystrengthening 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
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)*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)

CECEP Environmental FundIn October 2020, Daiwa Corporate Investment established a fund investing in environment-related companies in China together
with China Energy Conservation and Environmental Protection (CECEP) Group, which is the only state-owned environmentrelated company in China.

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Investment in Drug Development Ventures and Other Businesses by DCI Partners
We at DCI Partners have been investing in the biotech field for more than 20 years, including the period of NIF Ventures (now Daiwa
Corporate Investment). We currently manage one of Japan’s largest funds focusing on drug development, making biotech venture
capital investment in Japan and Taiwan. Through the fund, DCI Partners strives to help advance development by providing managerial
resources and hands-on support from strategy planning to implementation. With COVID-19 spreading rapidly, biotech startups began
working on countermeasures against it. The investee companies of the fund are also advancing development work against COVID-19
from multiple aspects, such as prevention, diagnosis, and treatment. Since countermeasures against a pandemic require speed andinnovative technological capability, biotech startups are expected to attract more attention and play a larger social role than everbefore. DCI Partners will support these companies through its investment activities, work to provide treatment options to patients, andstrive to contribute to the health of all people and society.
DCI Partners Co., Ltd.
Taiwan-Japan Bio Venture Fund
DCI Partners manages funds that have specialized in investing in bio startups in Japan and Taiwan since their establishment.
Following Fund I established with 11.6 billion yen in January 2015, the company established Taiwan-Japan Bio Venture Fund II
with a capital commitment of 14 billion yen in December 2020 (the first closing).
DCI Partners’ Investees
StemRim (went listed on the Mothers market of the Tokyo Stock Exchange in Aug. 2019): development of regenerationinducing medicine
EirGenix (Taiwanese company): development of biosimilars and biopharmaceutical contract development andmanufacturing operations (CDMO) *involved in COVID-19 vaccines
June 2019: The company went listed on the Taipei Exchange
April 2021: Foxconn founder Terry Gou announced a plan to invest 20 billion yen of his personal funds

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Support for Reconstruction Following the Great East Japan Earthquake
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 their efforts to secure renewed growth and development by supplying finance for a variety of purposes.
These include restoration and reconstruction following the 2011 earthquake disaster, new business development, the shift to a
new industry or line of business, business reorganization and succession, and business incubation. The fund thereby aims tocontribute to the early restoration and sustainable development of the disaster-affected areas.
Support for the "New Tohoku" Restoration Business Contest 2020
Since FY2016, Daiwa Securities Group has been supporting the Restoration Business Contest, which recognizes and supportsbusiness plans that lead to the restoration of the areas affected by the Great East Japan Earthquake. In addition to the grandand excellence awards, the “Daiwa Securities Group Phoenix Award” has been established as a corporate award, and it was
granted in FY2020 to AZ Create Co., Ltd. (Kitakami City, Iwate Prefecture). The company operates a platform that provides eventand other local information, which boasts the largest number of views in Iwate Prefecture. Since the occurrence of the Great
East Japan Earthquake, the importance of local communities has been reevaluated.
The company’s platform and the enhancement of its convenience is expected to help invigorate Iwate and other communities in
the Tohoku region, leading to the revitalization of local economies. For this reason, Daiwa Securities Group intends to support
this initiative.
We will continue to actively carry out these activities so as to be able to contribute to the reconstruction of the Tohoku region.

Commemorative photo of the Reconstruction
Agency, sponsor companies, and award recipients(“New Tohoku” Restoration Business Contest 2020)

Head of SDGs Promotion Office, the presenter(left), and an award
recipient(“New Tohoku” Restoration Business Contest 2020)71

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Toward Global Realization of Financial Inclusion
Initiation of Services by New 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.
Under 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.

CONNECT Co. Ltd.

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Support for Developing Human Resources Responsible for the Next
Generation
Participation in the METI Programs "Sido Next Innovator 2018" and "Sido Next Innovator 2019" and Support for Developing
Human Resources Responsible for Next Generation Innovation Based on These Programs.
Daiwa Institute of Research (DIR) recognizes the importance of supporting the development of human resources responsible fornext generation innovation. Under this recognition, the company has been involved in the “Shido Next Innovator” program
advanced by Japan’s Ministry of Economy, Trade and Industry, starting with “Sido Next Innovator 2018. The program has
solicited and selected a wide range of people, including those taking up the challenge of generating innovation and thoseworking on challenging new business at major companies, under the theme ”Thinker to Doer.” It has developed global humanresources who will play a major role in next-generation innovation by providing selected applicants with lectures, seminars,
workshops, mentoring and interaction with investors and entrepreneurs in Silicon Valley.
In addition to supporting the domestic program, DIR has participated in two-week Silicon Valley program together with the 20
participants selected based on the overall results of screening by application forms and pitch. It has supported the Silicon Valley
program as well by visiting entrepreneurs playing major roles at local startups, personnel in charge of new businessdevelopment at large companies, and venture capitalists. DIR consultants have also served as mentors, providing mentoring to
the program participants and support for the development of human resources for next generation innovation throughparticipation in pitch contests.
Moreover, capitalizing on these experiences, DIR planned and served as the secretariat for “Daiwa Innovator Programme 2020”
in FY2020. The program, which is sponsored by Daiwa Securities Group Inc., is designed to find innovators within Daiwa
Securities Group and look for opportunities for new businesses.
The number of submitted applications exceeded 200, from which less than 30 were selected based on screening by application
forms and allowed to go on to the training program and mentoring. Under the training program, DIR invited external lecturers
playing major roles in the frontline of the innovation field. As a way to operate the program, in light of the spread of COVID-19,
DIR adopted online videos and online mentoring and strived to carry out flexible operations. The plans selected at the final pitch
contest all reflect today’s needs, such as DX in the nursing care business, camping business that focuses on regional
revitalization, and the pet care business. After the completion of the program, DIR has been providing support to the selectedplans, aiming to commercialize them.
DIR will continue to participate in programs such as this which will lead to innovation.

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For 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.
Number of settlement transactions handled
Daily
10000 transactions on average
Annually
Approximately 2.6 million transactions (mainly by institutional investors within and outside Japan)

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Responsibility as a Securities Company
By distributing two-in-one devices*1 to employees and expanding telecommuting systems, Daiwa Securities has enabled all
employees, from those in frontline divisions to back office divisions, to carry out work nearly equivalent to that performed at theoffice no matter where they are. In settlement operations, which should never be suspended, even during the COVID-19
pandemic, enhancing telework through digital transformation (DX) has enabled us to fully demonstrate our capability inachieving a balance between reducing employees’ risk of infection and fulfilling our social responsibilities as a securities
company.
If anything that could stall securities settlement should occur, it would not only affect the Group but also damage trust in
markets as a whole. It could even have a significant impact on the global economy. We consider it vital to settle transactions
accurately and promptly as required in order to ensure that markets function as a social infrastructure and become a driver for
economic development. We are therefore striving to build a structure enabling the smooth execution of settlement operations.
Amid the emergence of investors engaged in frequent trading utilizing computers, we have implemented a reliable system thathas high processing capability and can reliably settle a massive number of transactions. We believe, however, that no matter
how well operations are systematized, the most important thing for the securities settlement operation is still human resources.
Staff members must have a wide range of knowledge to grasp the situation quickly when an irregular event occurs and thenrespond to it appropriately. For that reason, we are making efforts to visualize and accumulate the experience and expertise
acquired through our daily operations, as well as expanding the business knowledge of each individual and the scope ofoperations they can cover by providing cross-business training and continually rotating tasks.
Meanwhile, the securities industry recognizes that, to boost the competitiveness of Japan's financial and capital markets, it isnecessary to further increase convenience and strengthen risk management. With this awareness, the entire industry iscurrently working on reducing settlement time. Daiwa Securities has played a central role in a working group launched by theJapan Securities Dealers Association, identifying and examining a variety of issues towards the reduction of settlement time.
The T+1 (trade date plus one day) settlement cycle already started for government bond trading in May 2018, and the T+2
settlement cycle for stock trading started in July 2019 and for domestic corporate bonds in July 2020.
Moreover, cross-border foreign exchange transactions entail settlement risk associated with time differences in settlement forthe currencies involved (for example, the risk of being unable to receive dollars in U.S. time even when paying yen in Japantime). Daiwa Securities is the only Japanese securities company that participates directly in Continuous Linked Settlement(CLS)*2 as a settlement member. We will fulfill greater responsibility for the stability of financial markets by reducing thesettlement risk of foreign exchange transactions.
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
sophisticated customer needs and quickly provide solutions by taking advantage of our reliable settlement infrastructure andhuman resources.
*1. A mobile device that can be used as a desktop PC within the company and as a laptop PC or tablet outside the company*2. Continuous linked settlement75

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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
Daiwa PI Partners is engaged in full-scale private equity investment in Southeast Asia and has invested in a total of 14 projects todate in response to economic development and economic opening in the region. 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, thecompany is contributing to improvement of environmental problems in the country. Onstar Express, which conducts logistics inIndonesia, is contributing to enhancing the people’s convenience and living standards by undertaking last-mile logistics to end
users who place orders with e-commerce companies.
Southeast Asia is undergoing amazing economic development, and there are many startup companies with high growthpotential. 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 region.

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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 project implemented pursuant to a request made to theJapanese government as part of the 2011 – 2020 Securities Market Development Strategy established by the Prime Minister andannounced by the Vietnamese government in March 2012. The project started with implementation over three years by a teamof 12 consultants including from the JPX Group and others with DIR playing a leading role.
The initial plan was to provide knowledge, training to improve practical skills, and support for the 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. In addition, to this, the scope of the work was significantly expanded to include support for theformulation of enforcement ordinances and notifications pursuant to the new Securities Act, which was adopted in November
2019 and came into effect in January 2021, as well as support for the creation of strategies for development of securities
markets. Since March 2020, activities have comprised primarily online consultation and courses as well as exchanges of
documents in response to the COVID-19 pandemic, and a new format of business implementation with the participation ofJapanese authorities and market participants, which was difficult to achieve with conventional activities centered on local
travel, was introduced and received high praise from both countries.
Ordinances and notifications pursuant to the new Securities Act have been enacted in Vietnam in 2021, and their plans for theVietnam Stock Exchange (VNX) to commence operations as a holding company of the two existing stock exchanges. It is
expected that the development of Vietnamese securities markets will enter a new stage under the framework of the new legal
system and securities market, and it can be said that the importance of this project continues to increase.
The four specific expected outcomes of this project are as follows:
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
If this project helps improve the transparency and fairness of the Vietnamese stock market through activities with theseobjectives, it is expected to contribute to the Daiwa Securities Group's business related to Vietnamese stocks in the medium tolong term. That is because if Vietnamese companies start incorporating a more investor-oriented perspective into their
management, investor trust in the stock market will increase, leading to market invigoration.
Support for the development of a stock market is aimed at contributing to the economic development of the relevant country,
and DIR will continue to actively provide support to other emerging countries as well.

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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 used these types of country-specific support programs to provide technical support to bond markets in the Philippines,
Indonesia, and Myanmar in succession in collaboration with Group companies and other companies as necessary since 2004.
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 based on discussions
and consultations with executives and practitioners of government agencies in the various countries, such as the establishmentof 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 thePhilippines 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 of funds, and from monetary and fiscal perspectives, they are
activities that can contribute to achieving the SDGs by solving social issues. DIR is committed to continuing these initiatives in
the future.

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Corporate GovernanceCorporate Governance Report[PDF:1050KB]

Basic Views on Corporate Governance
Daiwa Securities Group Inc. practices group management based on a holding company structure, establishes a highly transparent andobjective governance structure that conforms international standards, realizes highly efficient oversight of group companies andbuilds a unified group management system that elicits synergies among group companies.
The Company has adopted a company with Three Committees system (a company with nominating committee, etc.) as an institutional
design in order to 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; measures for labor
environment and evaluation of the employees; establishing legal compliance and corporate ethics; environmental management; aswell 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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Corporate Governance Guidelines
The Company’s Corporate Governance Guidelines define the basic framework and policies of the Daiwa Securities Group’s corporate
governance.
Corporate Governance Guidelines(as of April 1, 2021) Complete Text＜Japanese＞

Corporate Governance System
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.

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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置

June 2002

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

July 2003

Established the Internal Audit 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 chairpersons of all three committees

June 2020
Adopted structure in which majority of directors are non-executive directors
The Group discloses its state of compliance with the Corporate Governance Code via corporate governance reports.

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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 FY2020, it convened 12 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 2021 Shareholders Meeting, the Board of Directors consists of 14 members, seven of whom are Outside Directors—
one more than in FY2020—and four of whom are female. Of its seven Internal Directors, five concurrently serve as Corporate Executive
Officers (Shikkoyaku).
The members of the Board of Directors and their status of attendance in FY2020
In FY2020, all Internal and Outside Directors attended 100% of Board of Directors’ meetings.
Takashi Hibino (Chairman of theBoard)

12/12

Seiji Nakata

12/12

Toshihiro Matsui

12/12

Keiko Tashiro

12/12

Akihiko Ogino

9/9*

Sachiko Hanaoka

12/12

Hiromasa Kawashima

9/9*Michiaki Ogasawara (Outside
Director)

12/12
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Hirotaka Takeuchi (Outside
Director)

12/12

Ikuo Nishikawa (Outside
Director)

12/12

Eriko Kawai (Outside Director)

12/12

Katsuyuki Nishikawa (Outside
Director)

12/12

Toshio Iwamoto (Outside
Director)

9/9*

Yumiko Murakami (Outside
Director)

new appointment*Attendance rates for the nine meetings held following their appointment as directors in June 2020

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.

The Skill Matrices of Outside Directors

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Evaluating the Effectiveness of the Board of Directors
Every year since FY2014, the Group has evaluated the effectiveness of its Board of Directors, in order to clarify and rectify any issues,
with the goal of improving its effectiveness.
The Company takes a survey for all of the Directors about the role and responsibility of the Board of Directors, its structure, its
operating methods, and the state of its discussions. Based on the results of the survey, the Company implements the interview forthem, and analyzes and evaluates the results of those interviews by expert organizations.
The results of the evaluation are 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.
Response to Feedback from FY2019 Evaluations
1. Strengthening support for the Outside Directors
The Company strengthened its support for outside directors in a number of ways: it used Outside Directors’ meetings—whichwere convened seven times in FY2020—and off-site meetings to hold discussions on diverse themes, and to encourage
exchanges of opinions between the Outside Directors and their departments of responsibility; the Group also promoted
information sharing among outside directors. In particular, the Company increased opportunities for discussing the new
Medium-Term Management Plan, so that outside directors could participate from the earliest stages.
2. Strengthening Group governance
Reports regarding important risks taken by Group companies as well as governance of overseas branches were submitted to theBoard of Directors, which verified key issues and responses to them.
3. Responses to and active discussions regarding important issues
Furthermore, the Group actively discussed “Customer First” operations, further promotion of SDG/ESG initiatives, DX (digitaltransformation), and potential risks related to the spread of COVID-19, etc.
Overview of the results of the Evaluations of the Effectiveness of the Board of Directors in FY2020
Regarding the evaluations of the effectiveness of the Board of Directors in FY2020, the Company evaluated the following itemswith reference to the advice of an external third-party organization And confirmed that the effectiveness is ensured.
Evaluation items:
1.Strategy and its execution
2. Risks and crisis management
3. Corporate culture
4. Performance monitoring
5. Investment and business alliance
6. Engagement with stakeholders
7. Composition and operation of the Board of Directors

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Directors pointed out that it is necessary to strengthen monitoring of the new Medium-Term Management Plan and risks, and to
discuss DX and SDGs/ESG.
Furthermore, there was an opinion that it is necessary to deepen the common understanding of the functions and roles of theBoard of Directors and to further streamline the operation of the Board of Directors.
The Company will continuously endeavor to enhance the effectiveness of the Board of Directors to earn trust from various
stakeholders and improve the corporate value sustainably.

Key Agenda Items for the Board of Directors in FY2020
Main agenda for the Board of Directors in FY2020
Main items to be resolved

Formulating the new Medium-Term Management Plan (including the 2030 Vision), andreviewing
the current Medium-Term Management Plan
Management policies
Formulating risk appetite statements (first and second-half), and corporate governanceguidelines

Main items to be reported

Monitoring the state of discussions regarding both the new Medium-Term Management
Plan and annual plans
State of progress regarding adoption of “Customer First” operations
Budget structure reforms
Various types of risk monitoring
Responses to COVID-19
Important new businesses, investments, and business partnerships; Group reorganization
New personnel systems
State of dialogue with shareholders and investors
Response to and evaluation of SDGs and ESG

Nominating Committee

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 for the CEO.
The meetings of the Nominating Committee are held once or more a year. In FY2020, 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)

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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 FY2020, there were 15 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.
Audit Committee’s Activities
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.
For example, in FY2020, the Audit Committee conducted hearings with employee unions and various divisions, including theCompliance Department and Sales Division. These hearings were designed to verify the Group’s initiatives for practicing“Customer First” operations, which is a key issue in its audit policy. The Audit Committee members also visited sales branches.
The Audit Committee visited the former Yokohama Station West Exit Branch*on December 10 and Shinjuku Branch on December
17, 2020 (some members took part via internet conferencing).
There, the committee exchanged opinions with branch managers, compliance managers, managing directors, managers, andsales employees regarding initiatives aimed at transitioning to “Customer First” operations; at Yokohama Station West Exit
Branch, the Audit Committee also received explanations on the progress of office consolidation. These were valuable
opportunities for the Audit Committee to hear at first hand the thoughts and diverse opinions of sales employees on various
topics.
Going forward, the committee intends to deepen its understanding of Group operations, and continue its initiatives tostrengthen the Group’s corporate governance systems.
* The former Yokohama Station West Exit Branch has now been integrated into Yokohama Branch86

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The Audit Committee inspects the sales floor of the former Yokohama
Station West Exit Branch/figcaption>

The committee receives explanations from Shinjuku Branch sales
employees

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 FY2020 there were five 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 Director’s Committee

The primary purpose of Outside Directors’ Committee is sharing of information among the Outside Directors and aims to exchange
their opinions on the issues including the contents of the proposal of the Board of Directors.
The meetings of the Committee are held once or more a year. In FY2020 there were seven meetings.

The Executive Management Committee

Role and responsibility
The Executive Management Committee deliberates and determine 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 FY2020, there were eighteen meetings in
total.
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Composition
The Executive Management Committee consists of all of 16 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 FY2020 there
were ten meetings in total.
Composition
The CEO is the chairman of the committee, and the Committee consists of ten Corporate Executive Officers (Shikkoyaku) and
one Executive Officer (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 FY2020 there werefour meetings in total.
Composition
The CEO is the chairman of the Committee, and the Committee consists of eleven 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
report or a quarterly report. Committee meetings are also held from time to time when certain important matters to bedisclosed occur. In FY2020, there were sixteen 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.

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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) and
four Executive Officer (Shikkoyakuin), a total of ten 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 FY2020 there were six meetings in total.
Composition
The CEO is the chairman of the Committee, The Committee consists of thirteen Corporate Executive Officers (Shikkoyaku), eight
Executive Officers (Shikkoyakuin) and two Senior Managing Director (Sanyo), a total of twenty three 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 meeting of the Group Internal Audit Committee are held once or more than once every three months. In FY2020 there were six
meetings in total.
Composition
The CEO is the chairman of the Committee, and the Committee consists of twelve Corporate Executive Officers (Shikkoyaku).

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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.
Executive Compensation that is Closely Linked to Performance
As stipulated by the Companies Act, the Compensation Committee has determined “Policies for Determination of Remunerationof Directors and Corporate Executive Officers”.

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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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Performance-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 (a subset of Financial KPIs), and Quality Evaluation that comprehensively
evaluates the KPIs of each strategic target. 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.
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.

Internal 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

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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.

Collaboration with Parties Inside and Outside the Group and Improvement of System
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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Compliance
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 compliance division of Daiwa Securities Group consists of the Compliance Control Department and the Compliance Department.
The former is mainly responsible for overall compliance planning and formulation and also plays a role as a gatekeeper to the market.
The latter is tasked with providing support to sales branches and headquarters departments and divisions. The two collaborate tobuild a compliance system, working concurrently for Daiwa Securities Group Inc. and its subsidiary Daiwa Securities.
At Daiwa Securities Group, the compliance system focuses on three key issues: securing the fairness and transparency of the market,
eliminating any relations with anti-social forces (including countermeasures against money laundering and funding of terrorism), andmaintaining information security. With these issues in mind, it supports Daiwa Securities and other Group companies.
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 lies in its stationing of full-time internal administrators belonging to the Compliance Department at
all sales branches. The internal administrators work on improving the effectiveness of the PDCA cycle (plan, do, check, act) at eachsales 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 division—the Compliance Control Department, the Compliance Department, and internal
administrators at sales branches—total approximately 250 as of April 1, 2021. They are striving to strengthen Daiwa Securities Group’s
compliance system.

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Full 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 FY2021, 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 countermeasures against money laundering/funding of terrorism
3. Exercising of proper functions as a gatekeeper to the market
4. Creation of firm 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.

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Daiwa Securities Group’s Customer and Client Inspection System
Daiwa Securities Group recognizes that the financial and capital markets are an important infrastructure for society. We also
believe that sustaining trust in the markets is an important role that we must play.
For example, to maintain trust, it is important for financial institutions, such as Daiwa Securities Group, to eradicate anti-social
forces in response to particularly strong social demands in Japan. Internationally, it is also important to prevent the use of thefinancial and capital markets by terrorists, organized criminal groups engaged in money laundering and other crimes, as well asorganizations and individuals designated by international institutions. For this reason, Daiwa Securities Group has put in place astructure to inspect new and existing customers and clients
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, the bar association, and other externalorganizations 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 countermeasures against money laundering and theprovision of funds to support terrorism, 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.
In particular, the importance of countermeasures against money laundering and the provision of funds to support terrorism has
grown worldwide. This has increased the need for implementing an effective structure based on a risk-based approach toprevent such acts from occurring. We will work on reinforcement of our structure as an important management issue to ensurethat Daiwa Securities Group is not used for money laundering or funding terrorism.

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Securing the Fairness and Transparency of the Market
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 investors and by Daiwa Securities itself. To prevent illegal transactions by investors,
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 trading from occurring, we ask about customers’ placeof employment and positions within their companies before registering their information. This practice allows us to checktransactions as soon as trading orders are placed by customers who are in a position to acquire internal 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 strictly manage not just material facts of listed companies but alsobroader information related to corporations in a similar way for both proprietary trading and trading by executives andemployees.
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, we have developed a structure for preventing illegal transactions.
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 considers it extremely important for each employee to always maintain a high level of complianceawareness. We have therefore adopted a compliance-related program in training for new employees and a number of otherinternal 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 broadcast compliancerelated content about 10 times a year in our internal TV program which is aired every morning. Moreover, at Daiwa Securities’sales branches, the branch chief and the internal administrator lead an initiative to provide training and instructions suited toeach 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, andcontinue to foster awareness among employees.

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Structure and Achievements of Whistleblowing System (Corporate Ethics Hotline)
Since January 2003, the Group has operated a Corporate Ethics Hotline for all executives and employees, including thoseworking at affiliated companies and temporary workers; the hotline enables employees to report problems in the workplace
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 hotline enables anonymous reporting; Group executives and employees are forbidden to retaliate or cause detriment of any
kind (dismissal, demotion, pay cuts, cancellation of worker dispatch contracts, replacement, etc.) in relation to reports bywhistleblowers.
Group regulations also provide for the protection of whistleblowers, forbidding Group executives and employees from asking
people who have information on whistleblowers to disclose such information, and from identifying callers or searching for any
other information about them in relation to reports. Email reports are accepted 24 hours a day, 365 days a year.
When the hotline is contacted, the corporate ethics officer, in cooperation with the internal control officers at each Group
company, carries out a factfinding investigation, while taking steps to protect the caller. In FY2020, 57 reports were received
through the whistleblowing system.

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Matters to be reported
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.

Number and breakdown of reports to Corporate Ethics Hotline （FY2020）
MatterNumber

Percentage

Power harassment

27

47%

Internal rule violations

9

16%

Workplace environments

916%

Law violations

6

11%

Etiquette and manners

3

5%

Sexual harassment

2

3%

Expenses and costs

1

2%

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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Important Issues for FY2021 and Beyond
We will continue with our initiatives toward the full implementation of “Customer-First Operations.” At the same time, we willcontinue to reinforce our countermeasures against money laundering and funding of terrorism as a challenge for particularfocus in FY2021. It is imperative that we comply with set rules, but we consider that the goal of our initiatives should not only beto achieve such adherence. Compliance is a common theme that must be addressed by the entire securities industry and it isalso a matter of trust in the industry as a whole. We will therefore exchange information with industry peers and proceed withmeasures while sharing good practices with each other. Daiwa Securities Group will strive to strengthen compliance as a leading
company in the industry going forward, and will make efforts to contribute to enhancing trust in the entire securities industry.

Information 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.
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.
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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.
Training on Protection of Personal Information
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 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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Prevention 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 for employees, such as conducting ethics training basedon the Code of Ethics and Conduct every year, and monitor the status of entertainment. Headquarters departments and offices havealso incorporated the status of observance of management rules on entertainment into self-inspection items. Each department andoffice therefore inspects their practice voluntarily, and the results of inspections are checked by relevant departments and divisions.
Officers in charge or relevant departments and divisions also monitor the use status of entertainment expenses at sales branches toconfirm 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 FY2020, 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
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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Risk Management
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.

Response to the TCFD

Risk management system

To manage risks for the entire Group based on its 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 foreach 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 ThreeLines of Defense and maintain a comprehensive structure for risk management.

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Basic 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 process
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 to the CRO as necessary. The CRO gives
directions to address the risk management system, risk status, and other issues for each company, verifies the effects of risk
management systems, and conducts reviews if necessary according to the business scale and characteristics and risk status of eachcompany. The risk status and other 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. The Board of Directors verifies the effects of risk management systems throughdeliberation and decisions on RAF-related matters. In addition, major Group companies regularly hold risk management meetings inorder to strengthen their risk management systems.

fiTypes 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
occurs as a result of deterioration in the business performance and credit status ofinvestee companies, and changes in the market environment. Therefore, the Grouputilizes stress tests*1 and top risk management*2 to manage risk on an integrated basis,including measuring the impact on capital and liquidity within the Group from aforward-looking perspective.

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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

SDGs report 2021

*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 Group*2. Top risk management is used to select and manage those risk events that stand to have a significant impact on the Group, in the event that suchrisks should emerge, as top risks(1) 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
Scope: Trading accounts
Confidence level: 99% (one-side test), Holding period: 1 day
Adjusted for price correlation between products(Billions of yen)
19/6

19/9

19/12

20/3

20/6

20/9

20/12

21/3

1.33

1.42

0.94

1.22

0.99

1.21

1.20

1.18

High

1.68

1.55

1.61

1.77

1.43

1.43

1.89

1.62

Low

0.74

1.02

0.94

0.87

0.75

0.90

0.94

1.05

Average

1.18

1.27

1.28

1.18

1.08

1.11

1.35

1.35

0.38

0.39

0.34

0.19

0.21

0.33

0.37

0.40

VaR (Month-end)
QuarterBy risk factor (Month-end)
Equity107

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(Billions of yen)
19/6

19/9

19/12

20/3

20/6

20/9

20/12

21/3

Interest

1.16

1.35

1.21

1.12

1.25

0.97

1.16

1.22

Currency

0.21

0.24

0.20

0.20

1.25

0.29

0.41

0.31

Commodities

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

(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.

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

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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 thestability 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 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

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Type

Definition

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 Japan

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.

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(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.
(7) Reputational risk management
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.

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Tax Policy
The Daiwa Securities Group has enacted "Daiwa Securities Group Tax Policy" in aiming to develop corporate tax
governance, and describes our code of conduct and standard of judgements in taxation.
Daiwa Securities Group Tax Policy
1. Daiwa Securities Group complies with laws and ordinances, and contributes to sustainable development ofsociety through appropriate tax payments with high ethical standards.
2. Daiwa Securities Group rewards our shareholders by achieving sound profits based on proper and fair tax
planning.
3. For cross border intra group transactions, Daiwa Securities Group sets an appropriate price, which can achieveadequate accountability under transfer price tax regulations.
4. The CFO, executive officer in charge of Finance, and Head of Finance Department of Daiwa Securities Group Inc.
from time to time provide guidance and advice to subsidiaries and other departments within the Group as
necessary, so that corporate governance over tax matters can be well shared and implemented throughout
Daiwa Securities Group.

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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
where 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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IT 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 believes it is important for those employees on thefrontlines who interact with customers to take the initiative on fully utilizing data and digital technologies in an effort to improve theexperience of the customer (CX: Customer eXperience). Similarly, the Group believes it must heighten the experience of the employee(EX: Employee eXperience) so that each and every employee can focus their efforts on enhancing CX. In order to achieve a higher orderof balance between business model reform and optimization for the entire Group, the Group has established and is strengthening a
digital transformation (DX) promotion system that includes training for digital professionals, the establishment of a new Digital CoE*,
and other avenues that are unique to Daiwa.
* An organization that provides knowledge and know-how associated with data and digital technologies in support of the business departments. CoEstands for Center of Excellence.

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, promote a digital transformation which aims at improving the efficiency of existing business andadvance business innovation and business process innovation in order to engage in high value-added business, establish basic
infrastructure that is indispensable to the continuation of business, comply with legal requirements, and enhance the risk
management system.
In FY2020, we worked toward implementing Investment Planning*1, Asset based free plan for investment trust *2, and web service forstock-based compensation and benefit plans*3 all of which are provided by Daiwa Securities Co. Ltd. In addition, by utilizing mobile
business devices, the Group worked on digitizing a series of processes related to customers’ services, and on increasing thesophistication of risk management such as by strengthening cyber security and compliance.

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*1 A customized risk analysis solution service WealthBench provided by MSCI Inc. Daiwa Securities is the first company in Japan to provide WealthBenchto individual customers.
*2 A new plan in which there is no purchase fee for investment trusts. Instead, a management fee is charged based on the appraised value of the fund.
*3 An Internet service that manages stock compensation plans, company benefits utilizing shares, etc., such as stock ownership plans, Workplace NISA,
defined contribution pension plan system.

Systems 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. We recognize the importance of cyber security as a group management issue, and continue to work toward improving its
resistance and resilience to ever-more sophisticated cyber-attacks. At the same time, we also collaborate with outside organizations inan effort led by a dedicated organization (Daiwa-CSIRT*) that works throughout the Group.
In line with the proliferation of telecommuting, full- fledged use of cloud services, and advancements in system coordination withpartners and other outside companies, the locations of and access routes to data assets have become increasingly diverse. This change
has led the Group to revise those conventional countermeasures intended to defend the boundaries between internal networks andthe Internet included in the new Medium-Term Management Plan, and to advance the development of a zero trust security
infrastructure that verifies the authenticity of every access request.
* Computer Security Incident Response Team: The organization that manages cyber security across departments.

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Human Rights Education and Awareness
Daiwa Securities Group states in its corporate principles that “the Group will strive to maintain a high sense of morality and duty,
endeavoring to continue contributing to the sustainable growth of the societies in which we operate.” To improve a corporate culture
rooted in the basic principles of respect for human rights, we are further strengthening our efforts to educate and enlighten our
employees about human rights. We therefore respect the Universal Declaration of Human Rights, the OECD Guidelines forMultinational Enterprises, ISO 26000, the UN Guiding Principles on Business and Human Rights, and the Act on the Promotion of
Human Rights Education and Human Rights Awareness-Raising. We have also joined the UN Global Compact.

Basic Policy for Initiatives Addressing Human Rights and Social Integration Issues
1. Daiwa Securities Group supports and complies with the protection of human rights as advocated internationally anddoes not infringe on human rights within the boundaries of its influence.
2. The Daiwa Securities Group educates and instructs Group employees with accurate information on human rights andsocial integration issues.
3. At the same time, the Group views human rights and social integration issues as our own problem, not somebody else’s
problem, and fosters a sensitivity that enables empathy with the suffering of others.
4. We provide an equitable working environment that values people and is free of discrimination or human rights
violations based on race, nationality, biological sex, sexual orientation, or gender identity.
5. Each employee is a member of society unburdened by prejudice.

Specific Efforts
1. We highly value the human rights of every stakeholder and our staff will always address clients, local communities andtheir members with great awareness of human rights.
2. We work to ensure that our hiring and recruiting, personnel evaluations and labor management practices are alwaysfair.
3. The Group is continually improving internal human rights education and awareness programs, including regulartraining and feedback and response loops.
Human Rights Awareness Promotion Committee
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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 2021). Federation members work together to further improve theiremployees’ awareness of human rights issues through research andcommunication.
Initiatives in FY2020
In FY2020, 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 young employees (annex education) and for those newly becoming
general managers, managers, and associate managers. 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 6,154.
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.
We also called for human rights awareness slogans between October and November 2020 in a contest designed to promote a
broader and deeper understanding of human rights issues. Contest participation was open not just to employees but also totheir families. The winning entries were presented in our in-house magazine.

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Human rights education for employees for FY2020
Training
participants

311 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

1,008 promoted employees

Objective

To acquire knowledge and raise awareness concerning human rights required for their respective
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Supply Chain Management
Responses to ESG Issues in Supply Chain
Daiwa Securities Group regularly checks documents disclosed by major business partners, including equipment and service providers,
as well as news reports about these companies and their reputation on the Internet, in order to address ESG issues in the Group's
supply chain. If any issues are found, we take steps such as urging the business partners to make improvements. Particularly withregard to the environment, in our “Approaches to Green Procurement,” we ask suppliers to understand the Group’s Environmental
Vision, Environmental Principles, and Basic Environmental Policies as well as our SDGs promotion system and the purpose of supply
chain management.
Approaches to Green Procurement
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. In June 2021, we also formulated the Environmental and Social Policy Framework tostrengthen our system for managing environmental and social risks in new investments and loans. We will carry out ESG due diligencefor businesses that may have significant negative impacts on the environment and society to determine whether or not to invest or
provide loans.
Environmental and Social Policy Framework
When underwriting an initial public offering, we carry out due diligence in accordance with the items stipulated in the Japan Securities
Dealers Association’s rules on securities underwriting and other matters. In such due diligence, we incorporate an ESG perspective andfocus not only on business performance and financial aspects but also on other items as key issues, such as the issuer’s businessmodel, social reputation, the status of compliance with laws and regulations, the implementation of a compliance system andcorporate 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 make proposals for improvement to the issuer. If major concerns remain
even after taking such measures, we report them to the Chief Risk Officer (CRO).

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Engagement 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) Fractions of less than 1,000 shares are discarded.
(Note 2) The percentages of shareholdings are rounded off to one decimal place.
(Note 3) “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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Shareholder Returns
We raised the target payout ratio 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 50.6% in FY2020.

Share buyback program for FY2020
Buyback period

From May 19, 2021 to March 24, 2022

Total number of shares repurchased

45 million shares (maximum)(Percentage of total number of issued shares excluding treasury stock: 2.95%)

Total amount of shares repurchased¥30 billion (maximum)*The program was announced on April 28, 2021 along with the announcement of financial results for the fourth quarter of FY2020

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
We will observe fair and timely disclosure of important financial, social and environmental information ("ManagementRelated Information") regarding the Daiwa Securities Group so that our stakeholders, (including shareholders, investors
and the communities we operate in) may understand and maintain realistic expectations of the Daiwa Securities Group.
We will comply with the Financial Instruments and Exchange Law and other laws and ordinances related to securities
transactions and the various rules of the financial Instruments exchanges where on which our stock is listed.
We will endeavor to achieve fair disclosure both in terms of content and timing.
We will utilize various communication channels including presentations, telephone conferences, the Internet and printed
materials to disclose information in an easy to comprehend manner for investors.
We will consciously act as a leader of the securities markets in terms of disclosure and set the standards for other listed
corporations.
To realize the above policies we will establish Disclosure Regulations* and set up a Disclosure Committee to lay down
procedures for disclosing information.
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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 in June 2021, we recommended that shareholders refrain from coming to the venue
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.
From 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 on a
weekly basis, 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 2019
When did you first purchase our shares?
Why did you choose to buy Daiwa Securities stock? (multiple answers allowed)
What types of disclosure and corporate communications activities would you like to see enhanced in the future? (multiple
answers allowed)
Are there any products you would like to have included in the shareholder rewards program? (multiple answers allowed)

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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 Single Mothers Forum, a certified NPO, as a donation recipient group from the shareholder
rewards offered to shareholders of record on March 31, 2019.
The contributions made will be used for initiatives to give congratulatory money to children in single-parent households whoenter elementary, junior and senior high schools and colleges.
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
residences 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 FY2020

Dialogue with Various Stakeholders

In FY2020, we held a total of 186 meetings with institutional investors and analysts. As face-to-face meetings were restricted dueto 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 the progress of our Medium-Term
Management Plan, an overview of our management 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 with overseas 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. In
FY2019 and FY2020, we conducted one-on-one ESG meetings, exchanging opinions with institutional investors. The topics forthese meetings varied widely, including materiality (important management issues), the status of responses to TCFD, Net
Promotor Score (NPS), the effectiveness of the Board of Directors, cross-shareholdings, and director compensation systems.
We also focused on briefings for individual investors, with the CEO participating. As all of these briefings for individual investors
were held online from the perspective of preventing the spread of COVID-19, we were able to attract the participation of moreinvestors and larger audiences than in the previous fiscal year. At these briefings, we provide a question and answer session andconduct a survey, thereby obtaining diverse feedback to use for the improvement of communication with individual investors in
the future.
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For details on IR events and briefings, click here＜Japanese only＞

Number of overseas IR activities held in FY2020
Number of meetings with institutional
investors and analysts(all held by phone or online)

186 meetings

including IR activities with investors
in North America:

12 events

including IR activities with investors
in Europe:

20 events

including IR activities with investors
in Asia:

11 events

Number of briefings for individual
investors(all held online)

9

Video streaming of company briefings
for individual investors:

2 video streams

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

17,600 (approx. 9,200 people in the previous fiscal year)

Internet streaming of May 2021 management strategy briefing (President and CEO Nakata)Video of May 2021 management strategy briefing
For a list of videos of company briefings for individual investors, click here＜Japanese only＞

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Environmental 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 made by Daiwa Securities Group Inc. and its major groupcompanies.
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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 investments or loans to a business, we will carry out ESG due diligence including environmental andsocial risk assessments ("ESG due diligence"), carefully assessing whether they will cause serious cultural, social andeconomic 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 investments or loans to a business, we will carry out ESG due diligence, carefully assessing whether
they result in land expropriation that forces residents to relocate against their wishes and whether appropriate
measures are taken to prevent them, and utilize these results in making decisions.
3) New construction of coal-fired power generation
We prohibit any investments and loans where the use of proceeds are utilized in this type of business.
4) Weapons of mass destruction / inhumane weapons manufacturing
We prohibit any investments and loans where the use of proceeds are utilized in 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 investments or loans to a business, we will carry out ESG due diligence, carefully assessing whether theloss of wildlife 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 toprevent them. We will utilize these results in making decisions.
In addition, when providing investments or loans to a business, we will confirm if RSPO (Roundtable on Sustainable
Palm Oil), an international certification system for palm oil, has been acquired. Where this is not in place, we willencourage the business to obtain certification.
6) Business involving deforestation
When providing investments or loans 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, and whether illegal logging is carried out. We will utilize these results in making decisions.
When providing investments or loans to a business, we will encourage the operator to obtain FSC (Forest StewardshipCouncil), an international forest certification system, or to have a commitment to NDPE (No Deforestation, No Peat and
No Exploitation) or other compatible policies.

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7) Coal mining
When providing investments or loans 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 and, in addition, whether or not themountaintop removal (MTR) method is used. We will utilize these results in making decisions.
8) Large-scale hydroelectric power generation construction
When providing investments or loans 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 investments or loans 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 these results in making decisions.
5. Assessment process
When providing investments or loans to the above businesses, we will carry out initial ESG due diligence. If it isdetermined that additional confirmation is necessary as a result of the assessment, we will apply enhanced ESG due
diligence to determine whether or not to provide investments or loans. If the implementation of the business may havea serious impact on the corporate value of the Group, the executive management will discuss further and make a final
decision on whether or not to provide the investment or loan.
June 23, 2021
Please also refer to the following.
Communication with Stakeholders
Supply Chain Management127

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Stakeholder Communication
Daiwa Securities Group recognizes that grasping social challenges as a company is an important issue.
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 communications 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 dialogue with a broad range of stakeholders, including
customers, shareholders, investors, local communities and NPOs, in pursuit of balancing social values and economic values.

Policy on Communication with Stakeholders
Basic Policy (1)Daiwa Securities Group will strive to maintain two-way
communication with a broad range of stakeholders based on
ISO 26000 and the Charter of Corporate Behavior of the Nippon
Keidanren.
Basic Policy (2)The Group will strive to deepen communication withstakeholders already known to us, including customers,
shareholders and other investors, business partners,
employees and local communities.
Basic Policy (3)The Group will strive to communicate actively with third-party
institutions, organizations, and individuals, etc. with whom wehave previously had no contact in order to identify otherstakeholders.
Stakeholders
Customers

Investors

We strive to improve customer,
satisfaction by providing
products and services that meet
Individual Investors, Institutional
Investors and the needs ofpotential investors who are
considering investing.

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Main Contact Points for
Dialogue

Relevant Web Pages

Retail marketing divisions
Corporate businessdivisionsContact Center
Customer Support Center

Providing Quality Service
to Customers

SDGs report 2021

Stakeholders

Main Contact Points for
Dialogue

Relevant Web Pages

Customers

Issuers

We propose optimal financing
methods among from a wide
range of methods tocorporations, publicorganizations, and others
seeking to raise funds throughthe issuance of stocks andbonds, and provide total
support for their financing
from formulation of plans to
execution.

Retail marketing
divisions
Corporate businessdivisionsContact Center
Customer Support Center

Providing Quality Service
to Customers

Society

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
and collaborate with them inorder to create a sustainable
society.

Government

We fulfill our tax obligations
and present policy
recommendations in order tocreate a better society.

Role and Social
Responsibilities of the
Securities BusinessSupply Chain
Management
Sponsorship Activities for
Culture and the Arts
Support for NPOs
Promotion of Volunteer
Activities
Economic and Financial
Education
Initiatives throughFoundations

NPOs/NGOs

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

Asset Management
division
Retail marketing
divisions
Various operations
divisions
Corporate
communication divisions
SDGs Promotion Office,Corporate Planning
Department
Daiwa Securities HealthFoundation
Daiwa Securities
Foundation
Daiwa Anglo-JapaneseFoundation
Daiwa Myanmar-JapanFoundation

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.
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Stakeholders

Main Contact Points for
Dialogue

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. 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 provide
highly transparent
information disclosure andmeet the expectations ofshareholders and others
through sustainable value
creation.

Investor Relations Office,Corporate Planning
Department

Engagement with
Shareholders andInvestors(*) Including investors in bonds
issued by Daiwa Securities Group

Important external initiatives
Daiwa Securities Group has participated in, signed, and supports the initiatives described below to contribute to developing asustainable society.
The United Nations Global Compact (signed by Daiwa Securities Group Inc. in 2010)
The United Nations-supported Principles for Responsible Investment (PRI) (signed by Daiwa to in May 2006)
United Nations Environment Programme – Finance Initiative (UNEP-FI) (signed by Daiwa Securities Group Inc. in May 2018)
Task Force on Climate-related Financial Disclosures (TCFD) (Daiwa Securities Group Inc. announced its support in April 2018)
30% Club Japan (the Board of Directors and President and CEO of Daiwa Securities Group Inc. started to participate as members in
May 2019)
Click here for details

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Workforce Statistics
Daiwa Securities Group (Consolidated)
Number of employees(Unit: persons)

As of March 31, 2020
Employees
Japan

As of March 31, 2021
Temporaryemployees

FA*1

Employees

Temporaryemployees

FA*1

Male

8,025

42

-

7,819

40

-

(Careertrack*2)

7,499

-

-

7,291

-

-

(Managers)

4,177

-

-

4,132

-

-

Female

5,347

38

-

5,292

32

-

(Careertrack*2)

3,741

-

-

3,843

-

-

(Managers)

562

-

-

654

-

-

Japan total

13,37280

535

13,11172

357

Overseas

1,868

-

112

1,913

-

33

Total

15,24080

635

15,02472

390*1. Financial advisors*2. Includes employees in broad regional career-track positions (with job transfers involving relocation within a certain area) and in regional careertrack positions (without job transfers involving relocation), and specialists

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Number 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 FY2020.
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 AssetManagement, Daiwa Institute of Research, Ltd., Daiwa Securities Business Center).
April 2017
April 2018
April 2019
April 2020
April 2021
Career-track
employees,
regional careertrack
employees, etc.

Male

345

289

337

244

164

Female

333

289

340

216

155

Ratio of women

49.1％

50.0％

50.2％

46.9％

48.6％

* 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)
FY2016Japan

FY2017FY2018FY2019FY2020

Male

5,128

5,216

5,204

5,144

5,018

Female

3,657

3,824

3,975

4,032

3,936

Total

8,785

9,040

9,179

9,176

8,954

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Number of New Graduates Recruited
April 2017

April 2018

April 2019

April 2020

April 2021

Male

275

219

262

169

121

Female

290

229

263

142

102

Ratio of women

51.3％

51.1％

50.1％

45.7%

45.7％

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

Average Age
FY2016FY2017FY2018FY2019FY2020

Average age (as awhole)

38.0

38.0

38.3

38.4

38.9

Average age (male)

39.6

39.6

39.8

39.7

40.2

Average age (female)

35.7

35.7

36.2

36.6

37.2

* This data covers Daiwa Securities

Average Number of Years of Service
FY2016FY2017FY2018FY2019FY2020

Average number ofyears of service (as awhole)

13.6

13.7

13.8

13.9

14.4

Average number ofyears of service (male)

15.2

15.3

15.4

15.5

15.9

Average number ofyears of service(female)

11.4

11.4

11.5

11.8

12.4

* This data covers Daiwa Securities

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Working Hours and Paid Vacation Usage Rate
FY2016FY2017FY2018FY2019FY2020

Annual regular
working hours (hours)

1837.51837.51830

1807.51837.5

Average monthly
overtime hours(hours)*1

23.5

23.2

22.8

21.7

21.2

Paid vacation usage
rate(Average number ofdays taken)

66％（14.0）

68％（14.2）

68％（14.3）

72%（16.0）

72％（15.9）* This data covers Daiwa Securities*1. Figures for employees who are members of Daiwa Securities Group Employees’ Union

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Hiring Initiatives
Hiring Approaches and Trends
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.

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 FY2021

319 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 FY2021

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Diversity and Inclusion
Diversity and Inclusion
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 Work-Life Balance Committee and a SDGs Promotion
Committee, which regularly engage in discussions.
The Work-Life Balance Committee was established in 2017 by its co-chairpersons, Chairman of the Board Takashi Hibino and President
and CEO Seiji Nakata. Staff from various positions and divisions, 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
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. We are trying to appeal more to women’s
individual interests by introducing thriving female employees as role models in internal publications in order to increase the number ofwomen in managerial positions. A career consultation service has been set up on the Group’s internal WLB promotion website. Female
executives as well as heads of each department, office, and branch give advice on the concerns and inquiries of female employees.
In 2015, the current Chairman of the Board of Daiwa Securities Group Inc. showed his support for the “Declaration on Action” by agroup of male leaders who will create “A Society in which Women Shine” spearheaded by Japan’s Gender Equality Bureau Cabinet
Office.
See also Work-Life Balance for more information on promoting women's activities.

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Women from our Group have been introduced by Nikkei Inc. in its Nikkei Womenomics 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"

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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Support 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
this context, there has been a sharp increase in female employees aspiring to advance their careers by switching to 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 havealso taken advantage of our Professional Return Plan, a system for re-hiring employees who left work to raise children or carefor 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 2,109 at the end of June 2021, 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.

Appointment of Female Executives and Women in Managerial Positions
Daiwa Securities Group has a total of twelve women in top managerial positions who work as directors, corporate executive
officers, and executive officers. They include three 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 standing at 666 as of the end of June 2020. The ratio of women in managerial positions has risen from 2.2% at the endof FY2004 to 13.2% on a group-wide basis (up from 2.3% to 15.9% 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.
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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 veteran employees with a wealth of experienceto 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 to continue 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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Employment of People with Disabilities
As of FY2019, 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 andemployees with disabilities, as well as issuance of educational brochures, ACE carries out awareness-raising activities for parties
concerned, creates role models, and makes proposals to management 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
FY2017FY2018FY2019FY2020

2.10％

2.33％

2.57％

2.58％

Promoting Increased Understanding toward the LGBT Community and
Related 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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Initiatives Addressing Human Rights and Social Integration Issues
The Group clearly states in its corporate principles that “the Group will strive to maintain a high sense of morality and duty,
endeavoring to continue contributing to the sustainable growth of the societies in which we operate," and we have formulated a Basic
Policy for Initiatives Addressing Human Rights and Social Integration Issues.
Please see our Human Rights Education and Awareness page for information regarding the contents of the Basic Policy for Initiatives
Addressing Human Rights and Social Integration Issues.

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Human Resource Development and Skill Enhancement
Employee Training Approaches and Trends
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. We have also introduced and improved othersystems aligned with our business environment and strategies, and have set a targetof 200 or more digital IT personnel as one of our Group-wide human resource
development key performance indicators (KPIs).
Daiwa Securities Group’s Education System
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SDGs report 2021

Training Records in FY2020
Number of times skill training was held in FY2020:

28 training courses held 49 times

Number of participants

4,966 people

Cumulative number of participants (FY2007-FY2020)

22,819 people

Cost for the Group’s educational investment:¥1.8 billion

Cost per employee¥140,000

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 roughly 30 kinds of e-learning,which employees can take when it is most convenient for them, and two-way online instructor-led training. We have thus
developed a training system that 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 then acquire practical skills by generating output through case studies. The course helps
the participants to acquire the skills and specialized knowledge necessary for conducting high-quality solutions business, andmany of participants have stated that the course helped them better understand customers’ issues and needs and provide
solutions to address them. In addition, a wide range of training programs on coaching, digital literacy and other topics havebeen made available 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 1,900 employees, accounting for morethan 60% of personnel aged 45 and older, have undertaken a total of over 26,000 training programs.
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Supporting 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, 2021)
Number of persons earning CFP®
certifications:

1,165 people

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

1,490 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.

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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 their
managerial 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.
We also evaluate employees comprehensively by taking their compliance-related performance into account. In addition, we endeavor
to create a personnel evaluation system that motivates all employees, regardless of years they are with 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 withgreater responsibilities. Even while on childcare leave, employees are still eligible for promotions as we properly evaluate theircontributions to date.

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Work-Life Balance

Support for women's advancement and work-life balance
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.
* WLB: Abbreviation for work-life balance.

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Daiwa Securities Group's approach to supporting women's
advancement
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."
Regarding support for women's advancement, in order to produce female leaders who will drive the Japanese financial world, we will
actively promote female employees and create an environment where they can continue to work actively even after life events such as
marriage and childbirth. We will support the efforts of companies by publicizing the status of support for women's advancement in theGroup.
In 2009, four female directors were appointed concurrently. To incorporate more diverse perspectives into our Group management, wehave appointed four female directors at Daiwa Securities Group Inc. and 12 female directors, officers, and executive officers
throughout the Group.
In addition, Daiwa Securities Group Inc. supports the 30% Club Japan activities launched in Japan in May 2019, with the Chairman of
the Board and the President and Representative Executive Officer participating as members. 30% Club Japan has set a goal ofincreasing the percentage of women in the TOPIX 100 board of directors to 30% by 2030, and aims to increase the percentage ofwomen in the top ranks of Japanese companies.
Roughly 20% of branch managers and one overseas base manager are women (as of June 30, 2021), demonstrating the increasing
advancement of women. As the number of role models increases, it becomes easier for women to plan their careers, and in recent
years, the number of female employees who are aiming to improve their careers through a shift to career-track and regional careertrack positions has significantly increased.
Furthermore, we support various systems and measures that go beyond legal requirements so that employees can continue to work
actively even after undergoing life events such as marriage and childbirth.
We will continue to build systems that improve the motivation and engagement of
employees, promoting greater trust and unity between them.

Kana Shirakawa, Executive
Managing Director
Head of Human Resources andChief Health Officer (CHO)
Daiwa Securities Group Inc.

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Various systems
Childcare leave

Can be taken up to the day before the child reaches the age of threeChildcare Support Leave

Can be taken when the spouse gives birth or returns to work (within the first two weeks ofchild care leave, while wages are guaranteed). Since its introduction in September 2014, it
has been used by a cumulative total of 1,600 people. We continue to aim to maintain a 100%rate of childcare leave use by male employees and a childcare leave duration of 14 days or
more.

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.This system has been used by a total of roughly 70
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
schoolNursing care leave

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 1,200 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 60 employees.

Birth gift of 2 million yen
from the third child

The Group pays 2 million yen as congratulations for the birth of the third and subsequent
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Nursing 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, to attend
hospital, etc. or to carry out procedures on behalf of family members. Up to 5 days per year
can be taken (half days can also be taken, 10 days for 2 or more family members). Thissystem has been used by a total of over 1,700 employees.

Nursing Care Travel
Home Expense
Allowance

The Group subsidizes travel expenses incurred when employees return to their parents’home to provide nursing care. This system has been used by a total of roughly 150
employees.

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)

Work-Life Balancephoneline

The Work-Life Balance phone line provides various types of advice to employees regardingbalancing 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
Used by about 70 people in total

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

The telecommuting
systemTelecommuting has been introduced in all divisions, including Retail marketing, andpromotes greater autonomy by individual employees and work styles which increase theproductivity of the organization as a whole.

Flex time system

Depending on the operational characteristics of each department, employees can select"Flex time (with core times)" or "Super flex time (with no core times)," promoting work styles
which increase the productivity of the organization as a whole.

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

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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.
In 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
Supporting career advancement among female employees
To help female employees move closer to their ideal future image while going through various life events, the Group
implements a career support training initiative for female employees named Daiwa Woman’s Forum. The initiative provides anopportunity to make it easier for female employees to picture their future work style and career image. Every year, 100 to 200
female employees who are one step before a managerial position participate across divisions and departments. In addition tocareer plan training and skill training, the curriculum incorporates interaction with role models such as female directors andfemale managers. The program thus contributes to building networks among women.
In addition, based on the experience to date, the Group holds a training event for female managers, "Daiwa Woman's
Management Forum," to further improve the future image that each person envisions.
Against the backdrop of extended working lives amid the shift toward people living to 100 years old, in FY2019, we expanded therange of career choices to include “regional career-track” (positions that do not involve relocations). We have also established a
new “broad regional career-track” system that allows employees to be relocated within a certain area, seeking to enable staff tocontinue to play active roles and remain strongly motivated.

Various skill training
For the purpose of fostering true professionals, the Group provides various skill training sessions that are opportunities for
employees to acquire various skills and specialized knowledge. We are making efforts with the goal of setting the ratio of female
participants to 50% by FY2025 (46% in FY2020).

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Job shift system
With regard to job shifts, up to now more than 1,500 people have shifted to career-track or large area career-track positions (thatcan be relocated within a certain area or area career-track that does 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.
Work-Life Balance Committee
In 2017, Chairman of the Board Takashi Hibino and the President and CEO Seiji Nakata were appointed co-chairpersons theWork-Life Balance Committee, which is launched to promote women's activities and dramatically improve productivity understronger leadership. Staff from various positions and departments, from executives and managers to young employees,
participate as advisors to discuss and verify the status of various measures, including efforts to achieve goals for the promotionof 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.
Return to work guideline
The Group has established guidelines for department managers so that employees can take child care leave and return to worksmoothly. These guidelines encourage appropriate consideration to make it easy for employees to use the system according totheir physical condition and individual circumstances. They also promote understanding among other employees, and describe
how to distribute work according to the situation and how to provide training as a role model. They go on to describe how togive fair and impartial evaluations and feedback to employees with various circumstances, such as those who will use thesystem and those who have returned to work. Through training and other measures managers can remain informed andeducated.
In addition, the Group has distributed a list of the various work-life balance systems to managers as "Work-life balance systems
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Education for managers
Top management continually communicates about the Group's work-life balance efforts including women's advancement andtheir 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 careers of
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.
ANSWERSIn 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.
Career Consulting Salon
The Group set up a "Career Consulting Salon" on the work-life balance promotion site (inside the Daiwa WLB station) for
employees only, and female executives and female department managers act as "career advisors" to discuss career paths andwork-life balance with junior employees across divisions and departments.

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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.

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 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.

Daiwa Securities Group2006
As of March 31

2017
As of March 31

2018
As of March 31

2019
As of March 31

2020
As of March 312021
As of March 31

Number of
women inmanagerial
positions(Consolidated)

97

375

424

490

562

654

Ratio of female
managers

2.7％

8.8％

9.4％

10.5％

11.9％

13.7％

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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 9.3% (44/471), and the ratio of
women at the level of section manager is 16.3% (494/3,040) (as of March 31, 2021).
2006
As of March 31

2017
As of March 31

2018
As of March 31

2019
As of March 31

2020
As of March 312021
As of March 31

Number of
women inmanagerial
positions(Consolidated)

77

295

329

378

432

504

Ratio of female
managers

2.8％

10.6％

11.6％

12.9％

14.5％

16.3％

* Deputy managers and above are counted as managers

FY2016FY2017FY2018FY2019FY2020

Number of new
female managers(Daiwa Securities)

62

40

61

61

83

Ratio of womenamong new managers

32.3％

24.4％

26.2％

26.8％

29.6％

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
FY2016FY2017FY2018FY2019FY2020Female

671

695

696

680

538

Male

327

437

420

378

170

Total

998

1,132

1,116

1,058

708

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○Trend in the number of employees taking nursing care leave
FY2016FY2017FY2018FY2019FY2020Female

0

2

5

10

5

Male

2

3

3

3

3

FY2016FY2017FY2018FY2019○Other data
FY2020Childcare leave
usage rate

Female100.0％

100.0％

100.0％

100.0％

100.0％

Male

96.8％

100.0％

100.0％

100.0％

100.0％

Return ratefrom child care
leave

Female

91.5％

89.5％

91.4％

91.9％

92.1％

Male

100.0％

100.0％

100.0％

99.0％

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

324

373

446

505

474

Daycare subsidy users

625

702

759

909

833

Birth gifts for third child

33

54

45

28

30

Promotion of WLB
With the goal of 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, the Group is making efforts to promote work-life balance, aiming to achieve work styles in which work and life arein harmony, and to enhance the work environment, in which both men and women can work using a variety of work styles.
The Work-Life Balance Committee, which is chaired by the Chairman of the Board and the President and CEO, is held every quarter,and under strong leadership, officers and employees working in various positions at various departments, from executives anddepartment managers to young employees, participate in a wide range of discussions on various measures such as work-life balanceand promotion of women's advancement. The Group has also set up a Work-Life Balance Promotion Office in the Human Resources
Division to plan, make proposals, and promote work-life balance and support for women's advancement. The Work-Life BalanceCommittee and the Work-Life Balance Promotion Office are working together to implement various measures, and hold regular crossGroup women's advancement promotion meetings in order to advance efforts across the Group.

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Expanding 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 the WorkLife Balance 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 a "shift work 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.
Family 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.

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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. In addition, the Group has set up a "Career Consulting Salon" that utilizes
the bulletin board function, and female executives and female managers give advice to junior female employees about theirconcerns and questions.

Work-life balance promotion site
"Daiwa WLB Station""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.
Questionnaire 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 "Everyone's Work-Life Balance Open Space,"
which introduces the Group's initiatives and systems for work-life balance, 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.

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Initiative results/evaluation
External evaluations of initiatives

Results from the Group's efforts to support women's advancement and promote work-life balance have been steadily realized, and theGroup has been highly praised by many external evaluation organizations in recent years.
2006

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)2009

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)

2010

The 3rd Diversity Management Award "Work-Life Balance Award" (sponsor: Toyo Keizai
Inc.)

2011

3rd overall in "BEST 100 Companies in Which Women Play an Active Role" 1st in Utilizationof Women category (sponsor: Nikkei WOMAN)

2012

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)2013

Career Supporting Company Award 2013 "Minister of Health, Labour and Welfare Award"(sponsor: Ministry of Health, Labour and Welfare)2014

Selected for "Diversity Management Companies 100 Selection" (sponsor: Ministry of
Economy, Trade and Industry)

2015

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)

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2016

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)2017

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)

2018

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)

2019

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)

2020

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)

2021

Selected 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)160

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Selected for "Nadeshiko Brand" jointly sponsored by the Ministry of Economy, Trade and Industry and the Tokyo Stock
Exchange!
Daiwa Securities Group Inc. has been selected as a "Nadeshiko Brand" by the Ministry of Economy, Trade and Industry and theTokyo Stock Exchange for six 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.

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.

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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: 89.6 KB]（Japanese）[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: 103 KB]（Japanese）
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.
Furthermore, 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]

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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"163

SDGs report 2021

Health Management
Our Beliefs and Policies
The Group's Corporate Principles include "placing importance on personnel." Based on the idea that the source of the Group’s
competitiveness lies in the capabilities of its employees, we believe that we must make our employees happy as we improve our
productivity. We are also seeking to create an environment in which employees feel motivated to work actively over the long term. We
have set various KPI, implement the PDCA cycle, and are working strategically to maintain and improve the health of our employees.

Goals

Reduce obesity rate at age 35 by 30% by 2024
[Target] Obesity rate for 35-year-olds in FY2024 Male: 20%, Female: 8% (FY2018 results: Male: 28%, Female: 12%)Structure to Promote
Appointment of Chief Health Officer (CHO)

In 2008, when specific health checkups and specific counseling guidance were started at the workplace, the Human Resources
Department, Human Resources Department, and occupational health staff began to work in earnest to strengthen employees' healthin the Group. Then, in 2015, a Chief Health Officer (CHO) was appointed to strengthen the health management promotion system, andthe Health Management Promotion Section was established within the Human Resources Department.

Held "Health Management Promotion Meetings" sponsored by CHO

In addition, "Health Management Promotion Meetings," which are chaired by the CHO and attended by executives from each Group
company, are held quarterly. Occupational health staff, Heath Insurance Society, employee unions, and outside experts participate in
the meetings to verify and share health management initiatives.

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Promote Health Management Meetings

History 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 "Ministerof Health, Labour and Welfare White Paper"

165

Selected as "Health Management & Productivity
Stock Selection"

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Main achievements
FY2015External 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

Selected as "Health & Productivity Stock Selection
2016"
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＞

Selected as "Health & Productivity Stock
Selection 2017" and "Excellent Health andProductivity Enterprise 2017 (White 500)"
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＞

Selected as "Health & Productivity Stock
Selection 2018" and "Excellent Health andProductivity Enterprise 2018 (White 500)"
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＞

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Main achievements

External Evaluations

FY2018Introduced Daiwa ELLE Plan
Press Release [PDF: 191KB]＜Japanese only＞

Selected as "Health & Productivity Stock Selection2019" and "Excellent Health and Productivity
Enterprise 2019 (White 500)"
Press Release [PDF: 98KB]＜Japanese only＞

FY2019Introduced 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)

Selected as "Health & Productivity Stock Selection
2020" and "Excellent Health and Productivity
Enterprise (White 500)"
Press Release [PDF: 113KB]＜Japanese only＞

FY2020Introduced Daiwa Online Care
Press Release[PDF:84KB] ＜Japanese only＞

Selected as "Health & Productivity Stock Selection
2021" and "Excellent Health and Productivity
Enterprise (White 500)"
Press Release [PDF: 113KB] ＜Japanese only＞

FY2021

Mindfulness Training for New Employees in
Cooperation with Keio University

Three-Part system

In fiscal 2008, we established the Three-Part system through cooperation by the Human Resources
Department, the General Health Development Center, and the Health Insurance Society from theperspective of the company's obligation to give consideration to safety and promote health among
insured persons, with the aim of enhancing the viability of our health business.

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Initiatives
Regular health checkup (including cancer
screening)
Daiwa Online Care

Employees can access the medical office at any time from branches across Japan orfrom their own homes when teleworking. It provides diagnosis and medicationprescriptions.

Employment Support Plan for Employeeswith Cancer

Support for balancing work and cancer treatment

Daiwa ELLE Plan

Comprehensive support for women's health"yellow paper"

Sent to employees who have a possible medical issue following the regular healthcheckup. Promotion of medical institution consultation

KA-RA-DA iki-iki Project～Healthy Lifestyle～

A project aimed at raising the health awareness of all employees, including those
who are indifferent to health (young customers, etc.).We introduced a system
whereby employees are awarded points for taking part in health promotion events
that can be exchanged for gifts such as health-related goods, healthy beverages, anddonations to TABLE FOR TWO

Smoking cessation support

Quit smoking program and quit smoking challenge where applicants take part ingroupsWalking challenge program(point incentive)

Participants join a group with the goal of walking 10,000 steps a day for threemonths. Gifts are awarded by the Health Insurance Society

Harahachi program to promote moderatemeal portions(point incentive)

Participants join a group with the goal of eating to 80% full for one month

Lectures on health literacy (point
incentive)

Participants learn about lifestyle diseases, exercise, nutrition and mental health toimprove their health literacy

Disseminating information to all Group
employees

Disseminate information from the General Health Development Center to all Group
employees via the company intranet
Provide a wide range of knowledge on measures to combat lifestyle-relateddiseases, cancer, hay fever, infectious diseases, and women's health problems

Influenza vaccination

The medical office provides influenza vaccinations. The Heath Insurance Society
provides subsidies, including for family members

White Book on Health

Issued "Daiwa Securities Group White Book on Health"Mental health support

Stress check, mental health consultation, mental health training

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Employment Support Plan for Employees with Cancer
Since 2017, we have introduced the Employment support plan for employees with cancer, a support system for balancing workand cancer treatment. In addition to flexible working systems such as short working hours and telecommuting, we provide
financial support and have set up a helpdesk. We are also striving to create workplaces that make it easy to work by deepening
understanding of cancer patients.

Daiwa ELLE Plan
In October 2018 we introduced the "Daiwa ELLE Plan" as a comprehensive support system for women's health issues. We
provided support for women's menopause, established of ELLE leave (leave for menstrual/menopausal conditions or infertility
treatment), improved employee health literacy, and enhanced support for balancing work and infertility treatment. In order tosupport the balance between work and infertility treatment, in addition to ensuring that women have time for treatment, wenewly established a subsidy system for specific types of infertility treatment.

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KA-RA-DA iki-iki Project
Since 2016, the Human Resources Department, Health Insurance Society, and General Health Development Center have worked
together to introduce the "KA-RA-DA iki-iki Project" targeting all employees, including young employees who have less interestin health, with the aim of further improving health awareness.
When an employee participates in a health promotion event, they receive "SDGs points," which are converted into money anddonated by the company to TABLE FOR TWO. The "Kara-Iki points" collected from participating in events can be donated tosocial contribution activities or exchanged for health related prizes, so that employees' health efforts help to contribute tosociety.
Events10 minutes per day of physicalactivity (Plus 10)
No alcohol challenge program
Breakfast Everyday
Diet recording
Stop eating between meals
KA-RA-DA iki-iki seminars
Harahachi program to promote
moderate meal portions
Walking challenge program
Smoking cessation challenge
programStaff taking part in KA-RA-DA iki-iki Project

Initiatives for Mental Health
The Human Resources Department, the General Health Development Centers, and the Health Insurance Society work together
to provide detailed advice to employees seeking consultations about their concerns, mental health problems, anxiety, stress,
etc., while helping them to manage their mental health. Highly-specialized counseling is also conducted by collaboration
between a psychiatrist and a certified clinical psychologist.

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Results of initiative
The number of employees with a healthy lifestyle has increased.

We were able to confirm a heightened level of employee health awareness.

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Health issues(Excerpt from White Book on Health)The proportion of obese people is increasing as a whole. Since the number of obese people tends to increase with age, it is necessary
to raise awareness of health from a young age. Especially for young people, there is a problem with lifestyle habits, such as an increasein the percentage of both men and women who do not eat breakfast. In addition to measures against obesity, it is necessary to takemeasures that will lead to awareness about establishing a healthy lifestyle from the start of employment.
In addition, the number of both men and women with blood pressure for which medical examination is recommended is increasing.
Furthermore, a high percentage of employees with this level of blood pressure remain at the same level the next year and the year
after. Therefore, it is necessary to take prompt measures to support employees who are at or above the blood pressure level for which
medical examination is recommended.

Health issues recognized by Daiwa Securities Group and examples of efforts toaddress them

Daiwa Securities Group recognizes the following health issues and is working to address them.

Health issues
Reducing obesity and hypertension among employees with health risks
Improving the health consciousness of young employees
Addressing the unique health issues faced by women
Early stage cancer detection and treatment
Improving mental health

Goals for improvement initiative
Focus on obesity control and hypertension control, continue to provide thorough counseling guidance to each risk group, andencourage them to participate in the "KA-RA-DA iki-iki Project" to make them aware of their lifestyle habits.
In order to ensure that young people have awareness of health from an early stage, implement new health events using ICT to increase
the participation rate. Provide counseling guidance to employees who are obese and enhance opportunities to obtain knowledge andinformation on health.

Investment in health management (total amount and per capita amount)

We have invested a total of 840 million yen, or 61,000 yen per person, in health management. (As determined through a healthmanagement survey questionnaire)

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External Evaluations

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Other related data
Percentage of obese employees

35-year-old obesity rate Male: 30.4% Female: 7.9%

Non-smoking rate

78.4％

Percentage of employees who took thestress chec

90.8％

Work Motivation Survey

Work 3.3 Organization 3.2 Colleagues 3.2 Growth and career advancement 3.2
Remuneration 3.0

Number of women in managerial
positions

654

Ratio of women in managerial positions

2.2% [March 2005] → 13.7％[End of March 2020] (Daiwa Securities 2.3% → 16.3％)

Rate of participation in regular healthcheckups:

almost 100%

Percentage of employees who regularly
exercise:22％

Proportion of those seeing doctors after
regular employee health checkups withproblematic results in such checkups:

80.5％

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Communication with Employees
We believe that good communication with employees is vital for a better workplace environment. We have thus implemented asemiannual self-assessment system whereby employees can communicate their career plans to their superiors and the Human
Resources Department. Under the system, employees can also communicate to the Human Resources Department not only theircareer visions but also their thoughts on the duties they assume, personnel and training systems, the workplace environment, andother matters. Daiwa Securities Group uses such feedback to develop an environment that enables employees to work with a highlevel of motivation.
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.
We also regularly conduct surveys on work-life balance for all employees. We incorporate employees’ feedback, and have introduced
the Nursing Care Concierge Service to remove employees’ concerns about nursing care. We have also introduced a support desk for
employees looking for nursery schools to ensure that those on leave can have a smooth return to work, while expanding a program forsubsidizing 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 to resolve
any worries they may have and provide a support system that employees can use until their children finish elementary school.
These inputs from employees help us to identify areas for improvement in our systems and initiatives and to create a better workplaceenvironment.
Work Motivation Survey
In August 2018, we introduced a Work Motivation Survey as a monitoring indicator. It is designed to raise employees’ motivation
to work through challenges for higher value-added operations and contribute to customers and society, thereby achieving avirtuous cycle of improved employee and customer satisfaction. Based on assessed results, we identify factors leading toincreases in employees’ motivation and use such factors for various measures.

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 March 2021, 20 clubs and five circles were active across the Group.In 2021, we introduced ANSWERS, an internal online social
network through which employees can feel at ease consulting with each other, help each other with difficulties, and build networks.

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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 FY2020, 6,640 employees belong to employee unions, and the union membership ratio is 58.7%.

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. Other initiatives for supporting our employees’ families include the new creation of Kid’s Ceremony Leave, Family
Day Leave, and Parents’ Longevity Celebration Leave, as well as the extension of mental health support to employees’ families.

Active 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.

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Activities to Support Communities through Our Foundations
Daiwa Securities Group proactively works on social contribution activities through public interest incorporated foundations and funds
to realize a prosperous society.

Daiwa Securities Health Foundation
In 1972, Daiwa Securities Health Foundation was established in commemoration of Daiwa Securities' 30th anniversary. It
currently targets research projects on medicine and medical care for diseases specific to middle-aged and elderly people,
preventing the elderly from becoming bedridden, rehabilitation, and home-based medical care and nursing care. In FY2020,
additional grants for research projects relating to COVID-19 provided to meet the needs of the times. Grants are provided
primarily to support young researchers. In FY2020 (the 47th year of support, COVID-19 related support), the Foundation awarded
a total of ¥40.6 million to 43 recipients. In addition to grants, the Foundation issues reports on research results and works tocontribute to local communities.

FY2019 presentation ceremony at Daiwa Securities Health Foundation (Head Office)In FY2020, a presentation ceremony was not held in consideration of the COVID-19 pandemic.

Daiwa Securities Health Foundation's cumulative grants awarded through FY2020
Number of recipients

1,341 people

Total amount of grants¥1,319,1 million

For details on Daiwa Securities Health Foundation, click here <Japanese only>
Daiwa Securities Foundation
In 1994, Daiwa Securities Foundation was launched as part of commemorative activities for the 50th anniversary of theestablishment of Daiwa Securities. It has provided grants to activities for supporting the elderly, children with disabilities, andchildren, and other volunteer work with great social significance, as well as disaster relief efforts for victims of large-scale
natural disasters such as those from earthquakes and torrential rain. In FY2018, the Foundation expanded its scope of support
by adding activities for supporting children living in poverty or other harsh environments to its grant targets. In FY2020 (its 27thyear of support the third year of grants for children), the Foundation awarded a total of ¥47.64 million to 185 organizations.
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FY2019 presentation ceremony at Daiwa Securities Foundation (Nagoya Branch)
In FY2020, a presentation ceremony was not held in consideration of the COVID-19 pandemic.

Daiwa Securities Foundation's cumulative grants awarded through FY2020
Volunteer Activities Grants

Number of projects receiving grants : 3,878 projects
Total amount of grants : ¥977.90 million

Grants to activities supporting children

Number of projects receiving grants : 17 projects
Total amount of grants : ¥8.18 million

Media reports concerning grant activities
In FY2020, there were no media reports as the presentation ceremony was not held due to the COVID-19 pandemic.

For details on Daiwa Securities Foundation, click here ＜Japanese only＞
Daiwa Anglo-Japanese Foundation (Chartered in the United Kingdom)
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 Japanfor about 20 months, administers grant applications from Japan and collaborates with other institutions promoting AngloJapanese relation

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Activities
1. Awarding grants to individuals, institutions, and organizations working to promote ties between the United Kingdom
and Japan
2. Awarding scholarships (Daiwa Scholarships) for British graduates to study Japan and the Japanese language
3. Awarding the Daiwa Scholarships in Japanese Studies, which are supported by Daiwa Securities, for students from theUnited 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 currently being held online (as webinars) due to the COVID-19 pandemic.
5. Organizing events in Japan in collaboration with the British Embassy and others
For details on Daiwa Anglo-Japanese Foundation (Chartered in the United Kingdom), click here

Daiwa Scholars and Daiwa Scholars in Japanese Studies
After getting PCR test of the COVID-19, Daiwa Scholars 2019 ,who had arrived in Japan and completed their one-year Japanese
language study in 2019 , finished for four-week home-stays in Kasuga City, Kyoto, Mima City, Tanegashima, Sado Island, Kochi
City, Kuroshio-cho, Akita City, and Kunitomi-cho upon completion of their one-year Japanese language study. This year, visits to
Daiwa Securities branches at the homestay sites were not conducted.
A closing ceremony was held online for the first time at the Head Office building on March 23, 2021 as the final event of the
Daiwa Scholarships.
Chair of the Trustees of Sir Tim Hitchens gave a congratulatory speech in Japanese, and a video message in Japanese fromAmbassador Julia Longbottom of the United Kingdom to Japan was played. Takashi Hibino, Vice Chair of the foundation, who isalso the Chairman of the Board of the Group, gave a congratulatory speech and presented certificates of completion, followedby speeches by the 2019 scholarship recipients (one of whom participated online from the UK) expressing their gratitude for the
program, bringing the 19-month scholarship program to a conclusion.

The Daiwa Scholar 2019 completion ceremony

Cumulative number of people completing the
Daiwa Scholar program by FY2019

190 people

For details on Daiwa Scholarships, click here179

SDGs report 2021

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 in Japan. To date, it has supported a total of 30 scholarship students.*1 After completing their studies, thestudents 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 thetripartite memorandum of understanding signed with the Myanmar Institute of Certified Public Accountants and the JapaneseInstitute 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 sectors have worked on together to invigorate Myanmar's
capital market. They contribute to developing and creating a network of the human resources that will form the country’s future
leaders.
*1 In consideration of the COVID-19 pandemic, the FY2020 program was postponed.
*2 In consideration of the COVID-19 pandemic, training was conducted online in FY2020.

Contributions by Daiwa Myanmar-Japan Foundation
Number of Myanmar citizens receiving
scholarships

30 people

Number of participants in public accountant
training

100 people* Cumulative contributions through FY2020

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For Your Dreams - Daiwa Securities Group Children’s Smile Project
The Daiwa Securities Group has launched the "For Your Dreams - Daiwa Securities Group Children’s Smile Project" to help solve theproblem of child poverty.

Outline of the ProjectAs part of its "Children’s Smile Project," Daiwa Securities Group has created"Daiwa Securities Group Child Support Fund for Bright Future" in collaboration
with the Public Resources Foundation, a public interest incorporated foundation.
And we have donated gifts to children through the "Santa Charity Program", afund-raising activity by executives and employees and volunteers of OBs and OGs
to help children to create fun memories of Christmas.

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.

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View details

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
Daiwa Securities Group decided to donate \102.5 million of the total amount raised through the issuance of bonds (nicknamed “Daiwa
Securities Group Future Support Bonds”) in June 2020 to the “Daiwa Securities Group Future Support Bonds Child Support Group
Sustainable Fund,” which is to be established in collaboration with the Public Resources Foundation.
View details
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Daiwa Securities Group Child Support Fund for Bright Future
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.
Daiwa Securities Group intends to contribute a total of around ¥100 million in the initial five years and will select grant recipients after
soliciting applicants.

Total amount of grants
for FY2020 (the fourth
call)

Total amount of grants
for FY2019 (the third
call)

Total amount of grants
for FY2018 (the second
call)

View details

Santa 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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Support for Culture and the Arts
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
The Land of Hope: The Promises of the Technical Intern and the President (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.
Second Daiwa Securities Group Award
Ryuzo Tanaka, Taki Corporation, “TAKI SMIKLE DESIGN LABO × Chonmagetai—Lala Tree” (Japanese)184

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Second SDGs Creative Award: Other Recommended Works (Japanese)First Daiwa Securities Group Award
Yusaku Kanagawa, “Verde Africa Forever” (Japanese)

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First SDGs Creative Award: Other Recommended works (Japanese)

Children’s Art Exhibit Held
Since 2017, we have been holding children’s art exhibits on the first floor of the head
office building.
With cooperation from the Japan National Council of Social Welfare and the National
Council of Children’s Homes, we borrow paintings created by children living inchildren’s homes and display 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)* In FY2020, the exhibition was not held as a result of effects of the COVID-19 pandemic.

Other Support Programs
Daiwa Securities Group continues to provide support to promote sports, culture, and the arts.
Media Gallery (support programs)

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Action with NPOs
The Daiwa Securities Group plans various programs such as disaster relief programs and programs to donate part of the trust fees ofinvestment trusts. By subsidizing NPOs rooted in the community, we are working steadily to provide support where needed.

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

Contribution to Areas Damaged by the Torrential Rain in
July 2018

10 million yen

About 11.22 million yen (donation activities by officers andemployees)* Also refer to “Support for the 'New Tohoku' Reconstruction Business Contest 2020”.
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Donation in response to the heavy rain disaster in
10 million yen
northern Kyushu in FY2017* Also refer to “Support for the 'New Tohoku' Reconstruction Business Contest 2020”.

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 the reconstruction of areas affected by theSumatra 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 each year (100 million yen in total).
(Monitoring: Authorized NPO Asia Community Center 21, Fund management:
Sumitomo Mitsui Trust Bank, Limited)Society

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)

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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）
Session Three: President Yoshiki Takemoto of tobimushi Inc. (held on February 14, 2011)
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）

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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）
Session Eleven: Representative Director Takashi Iwasa of Yamamoto Ichigo Farm Co., Ltd. (held on July 17, 2012)
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.

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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)

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Promotion of Social Contribution Activities
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
in-house magazine and internal TV programs.

In-house magazine "Fuji"

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Collection Drive
The Daiwa Securities Group has been running the following collection drives as initiatives that areeasy for employees to participate in. Collected items are donated to various NPOs and sold by themto fund their activities, including support for education, medical services and assistance to thedisabled 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 FY2020 through collection drives (equivalent monetary value)
Used Book Sale Donation for Children's Future : ¥37,218
Japan Committee "Vaccines for the World's Children" : ¥113,802
Live with Friends on the Earth : ¥105,561

Donation 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.

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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 through the 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 forcontributions to the TFT Program. We have thus expanded the platforms for participating in the TFT activities.
The contributions made through the TFT Program during the period of January to December 2020 were equivalent to around 77,554
school lunches in developing countries (calculated on the assumption 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.
In FY2020, we also continued to make donations to organizations that provide food for children.

Initiatives in Japan
Participation in Project to Subtitle Video Lessons for Elementary and Junior High School Students
The Daiwa Securities Financial Institutions Division participated in the "Gengle Subtitles Project", an educational support
program for elementary and junior high school students implemented by eboard, a non-profit organization. By providing easyto-read subtitles for video lessons, this project is an initiative to ensure the proper education of more than 70,000 children who
are deaf or hard of hearing or whose first language is not Japanese. A total of 17 volunteers from the Financial Institutions
Division and Group companies created subtitles for lessons.
One volunteer commented, "The work is different from simply transcribing speech, and it's difficult to create subtitles that areeasy to understand for deaf children and children who are not proficient in Japanese. This was an opportunity to think about
the issues that can arise in educational settings."

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Subtitled materials for video lessons

A volunteer creating subtitles

Bringing Dreams, Joy and Excitement to Children Through Soccer
The Daiwa Securities Shizuoka Branch continues to donate, through the Social Welfare Council, tickets for Shimizu S-Pulse
soccer matches to children within the prefecture in welfare facilities or receiving support from welfare organizations.
Shimizu S-Pulse is a J League soccer team that engages in charity work to bring dreams, joy, and excitement to children throughsoccer. In support of these efforts, the Shizuoka Branch launched this initiative five years ago. While the climate of self-restraint
continues during the COVID-19 pandemic, the hope is that the soccer matches will provide an opportunity lift the mood of thechildren. Kota Sugiyama, formerly a midfielder for Shimizu S-Pulse, visited the Shizuoka Branch and presented a certificate ofappreciation.

Kota Sugiyama (second from the left) presents a certi cate ofappreciation.

Shimizu S-Pulse’s home stadium

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Initiatives Taken by the Group's Overseas Offices
Activities at the Group's London Operational Base2020 saw Daiwa Capital Markets Europe (“DCME”) make a step change in its sustainability initiatives with the establishment of
the Sustainability Oversight Group, chaired by the Head of Strategy and Executive Governance and comprising six working
groups: Business Development; Regulation & Risk; Sustainability; Charity; Wellbeing and Diversity & Inclusion.
This structure has enabled better coordinate of the initiatives already in place, whilst developing a new range of initiatives
aligned with the UN's Sustainable Development Goals ("SDGs") and materially increasing DCME's expertise and credentials inthe sustainability space. This firm-wide approach is designed to ensure that sustainability becomes ever more deeply
embedded in DCME's practices and values.

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.
Recent initiatives have seen the development of a regular wellbeing newsletter that is distributed to all staff focusing on thevarious aspects of wellbeing, what the firm is doing to support them and resources available to them. 2020 also saw the
introduction of a Wellbeing allowance to support the physical and mental wellbeing of staff. In addition, a ‘Mindfulness
Network’ has been set up, and a “Coping with Covid” session hosted by a psychotherapist held. Future mindfulness sessions arebeing planned for the rest of the year. A team of Mental Health First Aid trained employees has been established and the firm hasa target to have a suitably qualified individual in every division and branch by 2022.

DCME’s Wellbeing newsletter for staff

The Diversity & Inclusion Working GroupThe Diversity & Inclusion Working Group has been formed to assist the firm in delivering its D&I objectives. The working groupresearches, proposes and, where appropriate, implements and organises D&I initiatives and events, working closely with
Human Resources. It is organised into four sub-groups on Gender & Family, Race & Ethnicity, LGBTQ+ and Multi-Faith. All otheraspects of D&I are managed by the D&I WG as a whole.
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In February 2021 the first D&I panel discussion was held to explore and create awareness around the issues that affectindividuals within the financial services industry. Some of DCME’s senior stakeholders shared their own experiences ofprogressing within the financial services sector and the challenges they have faced. The firm also celebrated International
Women’s Day on 8th March with members of the Executive team pledging their support. In June 2021, the D&I Working Group
produced a guide for Pride Month with a schedule of online events and seminars being held virtually that staff could sign up to.

Message from the CEO celebrating International Women’s Day

International Women’s Day – Executive Committee pledges of support via social
media

DCME D&I Panel Discussion Event

CEO Meekins and the “School Bag” he made and donated to a schoolin Ghana197

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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 is running a ‘Do Just 1 Thing’campaign from 11th May to 27th August, to encourage everyone at DCME to pledge one thing they will do during the next 3
months to adopt a sustainable 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

The Charity Working GroupThe Charity Working Group oversees DCME’s charitable activities. Emphasis is placed on supporting local initiatives andcharities that can enhance the local community. Initiatives include support for areas in food poverty, disadvantage mentoring
and gender and health equality. In the last 12 months, DCME has supported the following projects and initiatives:
Direct financial support to Hackney Foodbank which provided 3,000 food packages to those suffering from food poverty in
Hackney, London.
Direct financial support to Hackney Cookery School to provide 6,000 food packages to those suffering from food poverty in
Hackney, London.
Direct financial support to For Jimmy (Smart Choices Charity) which funded places for 30 vulnerable children to attend a 5
week summer school to help them avoid and break away from street crime and gang violence.
DCME employee support for the Smart Works 500 mile cycle challenge where 5 teams (25 DCME Employees) took part in the
Smart Works 500 mile cycle challenge raising £4800 to support the work the charity does to support vulnerable women trying
to get back into the employment market.

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DCME team making Hackney Foodbank donation

DCME Internal Newsletter – Hackney Foodbank donation

DCME Intranet – Smart Works Cycle Successful Campaign andDonation Amount

DCME Internal Newsletter – Smart Works Charity Cycle Campaign

DCME employees taking part in the Smart Works Charity Cycle event
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The Business Development Working Group
The Business Development Working Group is charged with further promoting and exploring business opportunities linked to the
ESG market in all relevant business lines with an open, forward-looking, opportunistic and well-balanced mind-set.
Daiwa Securities Group and DCME have a long history of supporting the financing of social and environmental initiatives. The
firm has been supporting “Green bonds” and other ESG initiatives since 2008 and has since lead managed over 50 transactions
that align to the objectives of the SDGs. DCME’s Debt Capital Markets Department recently won The Environmental Finance
Magazine’s Lead Manager of the Year – Social Bonds Award, selected by a panel of the world’s largest green, social andsustainability bond investors. In addition, EMEA Finance magazine awarded the team “Best ESG Bond House” recognising 2
ground-breaking ‘Social’ Samurai issues and a EUR ‘Education’ private placement bond. In a 2020 ESG scoring survey conductedby International Finance Corporation, a member of World Bank Group, Daiwa finished joint first.

DCME Website Awards Section

The Regulation & Risk Working GroupIn recognition of the rapidly developing market, supervisory environment and associated risks, a Regulation & Risk Working
Group has been established to review current and emerging regulation or guidance in the context of Environmental, Social andGovernance (ESG) matters. The Regulation & Risk Working Group works closely with the Business Development Working Groupto advise on any implications to proposed business initiatives.

Other Initiatives
As part of the Daiwa Group, DCME promotes and distributes “Vaccine Bonds” – bonds that raise money from Japanese investors
to fund immunisations for children in the World’s poorest countries. The firm is proud to work with the World Bank, theInternational Finance Facility for Immunisation Company (IFFIm) and the GAVI Alliance on the issue of these bonds.
DCME has also been accredited as a “London Living Wage Employer” as part of our support to eradicating poverty and reducing
inequality. We continue to work with inner city charities and offer a small number of apprenticeships each year targeting
disadvantaged young people. We hold regular fund raising events and support individuals participating in sponsored charity
events.
There is increasing interest in DCME’s promotion of SDGs, and the firm seeks to raise awareness and keep staff members
informed through regular articles in the all staff newsletter “Daiwa Digest” via the weekly intranet news, and through “Town
Hall” presentations by members of DCME senior management.

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Activities at the Group's New York Operational Base

Take Our Daughters and Sons to Work Day
In April 2021, Daiwa Capital Markets America, Inc. (DCMA) held an online event called “Take Our Daughters and Sons to WorkDay” to enable children to learn about the company. With the increase in working from home due to the COVID-19 pandemic,
children’s interest in their parents’ workplaces has risen, so an online program was created to teach the children about the
DCMA’s history and finance. Innovative educational materials used illustrations and comics to enable children and adults tohave fun while learning together. By introducing society, finance, and various ways of working to the children, the event served
not only as an opportunity for financial education, but also as a fun chance for family contact.

CEO Meekins and the “School Bag” he madeand donated to a school in Ghana

DCME D&I Panel Discussion Event

Mental Health Awareness Month 2021
DCMA has designated May Mental Health Awareness Month every year since 1949 in an effort to maintain and improve themental health of employees. In May 2020, the company conducted a 15-day mindfulness challenge. This event encouraged
meditation and mindfulness during everyday activities, providing an opportunity to adjust the balance between the mind andbody. In addition to meditation and mindfulness, employee health was supported through programs for yoga, exercise, andcontact with nature. Many employees continue to work from home as the COVID-19 pandemic continues, and this program
contributed to a change of mood and enhanced motivation of employees.

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Let’s Support COVID-19 Fighters!Feeding the Frontline in NYC
DCMA donated a total of $16,000 to the “Let’s Support COVID-19 Fighters!” a program that provides meals to frontline healthcare
workers combatting COVID-19. Two donations were made, in May 2020 and January 2021. The project was launched in May 2020
with the hope of providing a moment of peace and relaxation to those who are working under extremely demanding conditions.
As of the end of May 2021, a total of 9,490 meals had been provided. Japanese-style boxed lunches are popular in New York City,and many recipients expressed their pleasure and gratitude. The considerable social contributions of this project wererecognized, and a commendation was received from the Consulate General of Japan in New York. DCMA remains committed tosupporting activities that lead to social contribution.

A photo from The Mount Sinai Hospital

A photo from NewYork-Presbyterian/Columbia University Irving
Medical Center

Activities at the Group’s Singapore Operational Base
Daiwa Capital Markets Singapore Limited (“DSL”) conducts various activities that proactively support promotion of SDGs. For
example, dozens of DSL staff participated in a volunteer sewing activity sponsored by a charity. They effectively utilized
resources by creating pocket tissue pouches at the office, using cloth from used clothing, during lunch time and other occasions
and donating the completed pouches. Moreover, DSL has also set up a space for collecting used clothing, unopened foodproducts, and other items within the office and has continued to use resources effectively. These initiatives have helped topromote a deeply-rooted sense of ownership among employees.
(These activities were suspended in FY2020 due to effects of the spread of COVID-19.)

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Activities at the Group's South Korea Operational Base

Participation in Eco-Bag Production
Daiwa Securities Capital Markets Korea (“Daiwa Korea”) participated in a project for production of eco-bags for needy children
in developing countries, one of the support programs of the World Education Cultural Association (WECA), a local NGO. As the
COVID-19 pandemic became protracted, for this program, in which participation from home is possible, participants purchased
eco-bag production kits, colored them however they wished, and filled the completed bags with daily necessities, medicines,
and other goods for provision to children in developing countries.
Daiwa Korea also makes monthly donations to Korea Food for the Hungry International, an NGO that supports children in needyfamilies around the world to support the development of a harmonious society.
Interest in ESG and the SDGs has been rising in South Korea in recent years, and in accordance with a request from a Korean
governmental agency, Daiwa Korea has provided special reports on the current status of ESG-related investment by public
pension funds in Japan and other major countries.
The Korean government has recently been making strong calls throughout society to achieve a proper work-life balance, andDaiwa Korea has been making the following efforts in response: (1) encouraging proactive participation in social service
activities (investigating and providing information on social contribution activity programs and granting compensatory leave toemployees who participate in weekend activities); (2) creating comfortable work environments for women (improvement ofwelfare 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 thedepartment head); and (3) encouraging employees to leave the office on time and take their annual paid leave to achieve worklife balance, and enhancing the welfare benefit system (subsidizing employees' self-development expenses, such as for studying
languages, and expenses for promoting and maintaining health). In addition, Daiwa Korea is working to ensure the safety of its
employees and sustain its business by establishing a work-from-home environment and will continue its CSR activities, such as
granting paid leave after getting a COVID-19 vaccination, so that it can make further contributions to society in Korea by
responding positively to demands made by society on companies.

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Collaborative Programs
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.

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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.
Food Culture Exchange with Daiwa Scholars

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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Economic and Financial Education for the Young Generation
Capitalizing on financial and economic expertise accumulated through its securities business, Daiwa Securities Group engages inbusiness-academia collaborations and supports programs for junior and senior high school students as well as teachers. We believethat economic and financial education is important in helping young people develop the capacity to build their own lives and shape
the future world.

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, the project has
drawn nearly 500 students and other participants, leading to the launching of several companies each year. Among suchcompanies, teTra aviation corp., has achieved success. Established in 2018, the company became the sole prize-winning team in
the world competition for personal flying devices sponsored by Boeing in February 2020.

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Lecture for Junior High School Students Conducted (December 2020)
Daiwa Asset Management Co., Ltd. conducted a lecture using Zoom for students in the third year of high school at Takamatsu
Junior High School, which is affiliated with the Faculty of Education of Kagawa University. The students prepared fundproposals based on the concept of an investment trust that contributes to individual and societal prosperity in the future. Daiwa
Asset Management fund managers and product development personnel then provided feedback.
The lecture conducted by personnel who currently work for an asset management company was well received and provided an
opportunity for the students to deepen their understanding of finance and investment trusts.
In the future, Daiwa Asset Management plans to expand the scope to include high school students and will take further
measures to promote economic and financial education.

Students discussing fund plans in groups

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Financial Education Textbook "Let's Learn about Stocks"

Daiwa Securities Group Inc. prepared "Let's Learn about Stocks," a financial education textbook targeting upper-grade
elementary school children and above, with support from school teachers.
Published by DAN Advertising, Inc.

TargetUpper-grade elementary school children and above

Content
Company role
Structure of the corporation and financing with shares
The role of stock exchanges and how stocks are helping
Role of securities companies
Click here for details [Japanese][PDF:849KB]
Support to "Job Museum" and "Job Almanac"

Support provided for “Job Museum,” career education materials for elementary and junior highschool students released by The Asahi Shimbun Company.
Click here for details [Japanese]
The web version, "Job Museum Kids," has a quiz and other features enabling visitors to enjoy
the site like a game.
The “Job Museum Repository” is a Website that presents information on hands-on learningand other topics"The “Job Almanac 2021” complies with the guidelines for teaching.
"Job Almanac 2021" Donation of 70,000 copies (published on June 21, 2021)"Job Almanac 2020" Donation of 70,000 copies (published on June 29, 2020)"Job Almanac 2019" Donation of 67,000 copies (published on June 17, 2019)"Job Almanac 2018" Donation of 64,000 copies (published on June 15, 2018)208

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Pages Posted by Daiwa Securities＜Japanese only＞"Job Almanac 2021"
What are SDG Bonds?
Click here for details [Japanese]"Job Almanac 2020"
What does a securities analyst do?
Click here for details [Japanese]

Job Almanac 2019
What happens in a trading room?
Click here for details [Japanese]a>Job Almanac 2018
What jobs do people do at a securities company?
Click here for details [Japanese]

Job Almanac 2017
How can money be raised to expand a company?
Click here for details [Japanese]209

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Job Almanac 2016
What are stocks?
Click here for details [Japanese]

Information on economic and 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＞

Picture 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＞

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Daiwa Internet TV

In 2000, Daiwa Securities Group began "Daiwa Securities Information TV," Japan's only
channel dedicated to securities information, on the multichannel pay TV broadcast service"SKY Perfect TV!" Since April 2011, we have been producing "Daiwa Internet TV" at our own
studio and distributing it online in an effort to target a wider range of viewers. We distributeinformation on the Tokyo market five times a day in a timely manner, while providing 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! SDG/ESG Investment will Change the World” that was
launched in July 2020, Daiwa Securities strategists provide straightforward explanations of
SDG/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.
Daiwa Internet TV＜Japanese only＞
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.

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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.
Number of participants in Finance Parks for FY2020
1,252 people(In FY2020, the program was conducted in a school style from the perspective ofpreventing COVID-19 infections.)

Finance Parks (Shinagawa)Breakdown
Shinagawa: 153
Iwaki: 246
Sendai: 853
CEE Japan

Daiwa Securities Group supports CEE Japan, a general incorporated association, to provide economic education programs forschool teachers. In partnership with the U.S. Council for Economic Education (CEE), we seek to implement programs tailored toJapanese schools.

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Introduction of Books
Economic Puzzle Sleuths: Understanding the True Meaning of Money

Written by Susumu Okano
The Asahi Gakusei Shimbun Company
This book explains the economy as a whole in an easy to understand way, from the beginning ofmoney to recent worldwide financial crises. On reading through the book, readers will be able
to see the flow of the global economy and acquire a general knowledge of money, as hints forliving a wise life.
Click here for details＜Japanese only＞
Economics Learned by American High School Students

Written by Gary E. Clayton
Translated by the Product Planning Department of Daiwa Securities
Translation supervised by the Education Business Department of Daiwa Institute of ResearchWAVE Publishers
This book is the translation of the 1999 version of “Economics: Principles and Practices,” which
is a textbook generally used by U.S. high school students. The translation work was carried out
by the Product Planning Department of Daiwa Securities and the Education Business
Department of Daiwa Institute of Research. The book explains in an easy to understand way themechanisms of the economy, such as how the prices of goods are determined.

Past Activities
Student Company Program (Company Management Experience Program)Daiwa Securities Group cooperates with the Student Company Program provided by Junior Achievement Japan. In the program,high school students learn about management and the functioning of companies by actually managing a stock company. In
FY2013, high school students in Tokyo established a stock company during an extracurricular class. Daiwa Securities Group
employees participated as outside directors for six months, providing advice on company management.
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Environmental Management / Initiatives to Environmental Load
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.

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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.
Daiwa Securities Group Inc. (May 22, 2012)

Targets for FY2021

Initiatives for the reduction of CO2 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 20% from the FY2009 level (as of FY2030)* On a per unit area basis for both targets

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.
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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
Supply Chain Management

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 FY2021, 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.
Company cars in Japan (Daiwa Securities) 1,031 vehicles
including819 eco-cars
157 hybrid cars

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(As of March 31, 2021)
Introduction results for FY2020
409 eco-cars
11 hybrid cars
Introduction plan for FY2020
64 eco-cars
61 hybrid cars
Investment in energy-saving air conditioning systems for FY2020 ¥158 million (including installation costs)
Instances of soil and groundwater contamination at office sites in FY2020: Zero
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 by displaying operational guidance and thequarterly rate of reduction of paper usage 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 51% year on year in
FY2020, a substantial decrease.
Offering Environmentally Friendly Services
Daiwa Securities uses mobile work terminals and online trading and provides the following environmentally-conscious 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) accounting for about 70% of all
notifications received without the use of paper or a personal seal. As a result, in FY2020 a total of 140,000 pages of
documents were digitalized (equivalent to about 14 trees planted for paper).

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2. Paperless delivery of documents and sales promotion materials
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, 2021, 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. 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.
4. Introduction of printers that require authorization for each use (secure printers)
Introduction of secure printers at sales branches was completed at the end of June. The number of pages printed is now
visible, and the number of pages printed has been reduced by about 35% by making and providing guidance on curtailingprinting from the perspective of preventing information leaks and encouraging telework.
5. 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.
6. 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.
7. 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.
CO2 Emissions
In comparison with the previous fiscal year, CO2 emissions in FY2020 fell by approximately 21% for Daiwa Securities Group's
domestic offices, as a result of a positive initiative to conserve energy.
Refer to "SDGs Data Edition 2021" for details
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Initiative to Reduce CO2 Emissions
We have set up the goal of reducing CO2 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 FY2020, we continued energy saving initiatives,
including implementing the "Cool Biz" program, and continued efforts to save electricity even during periods when there issome 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 inbusiness. 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 the TCFD.”

Initiatives in Real Estate Management (Daiwa Real Estate AssetManagement Co. Ltd.)
Daiwa Real Estate Asset Management launched a Sustainability Promotion Committee in FY2013 with a view to systematicallyaddressing a variety of ESG related challenges. In June 2021, the company established the Sustainability Promotion Office, further
strengthening the system for undertaking sustainability activities by the asset management company as well as the investment
corporations and funds it manages.
Initiatives to Obtain Environmental Certification
We are taking active measures to obtain green building certification. As of May 31, 2021, Daiwa Office Investment Corporation(DOI) had a total of 31 properties with green building certification, accounting for 60.3% of its total holdings (on a floor areabasis), up from 23.6% as of May 31, 2020.

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Initiatives at Shinjuku Maynds Tower
At the Shinjuku Maynds Tower building, which is owned by DOI, we have continued to install LED lighting systems since 2012.
Since 2014, DOI has adopted a green lease scheme*1 for tenant exclusive areas that enables both tenants and the owner to enjoy
the benefits. With the installation of LED lighting, tenants can reduce their electricity costs by about half compared to before
installation, and the building owner receives green lease fees, which leads to lower investment burdens and higher property
values.
The Shinjuku Maynds Tower has obtained multiple environmental certifications including certification by the Development
Bank of Japan Inc.(DBJ) as a DBJ Green Building*2 with “exceptionally high environmental and social awareness (Four Stars)” in
February 2019 and S Rank, the highest rank, of the CASBEE Real Estate Evaluation Certification*3 in March 2021.
DOI is a steadily installing LED lighting in common and exclusive areas of all office buildings that it owns and has set a target of
100% LED lighting by the end of the fiscal year ending May 2026. (If this target is achieved, the expected reduction effects during
the period from the fiscal year ended May 2021 to the fiscal year ending March 2026 will be approximately 11% for electricity, theequivalent of approximately 5,000 tons of CO2.) The company is also taking measures to raise awareness of energy conservation
among tenants such as by displaying energy usage on digital signs in the elevator halls or other areas of each building.
*1 A method enabling the landlord and the tenant of a rental building or other type of rental property to cooperate and reduce the environmentalload in a scheme benefiting both sides. Such methods include an arrangement where part of the tenant’s savings attributable to the landlord’s
investment in energy-saving facilities, such as a decrease in electricity charges, is returned to the landlord as a green lease payment.
*2 DBJ Green Building Certification is a comprehensive scoring model developed independently by the Development Bank of Japan. The DBJ
grants certification to real estate properties that are highly environmentally and socially friendly (“Green Buildings”) based on a five-level
ranking system.
*3 CASBEE real estate evaluation certification is 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
on a five-level ranking system based on both an evaluation of the environmental quality and performance of the building itself and anevaluation of the environmental load imposed outside the building.

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, and eco-friendly wallpaper into the rental residences it owns. It also
posts notices in the residences, encouraging residents to save electricity, water, and other resources.
Status of FY2020 initiatives
Installation of LED lighting: 708 units
Installation of energy-saving air conditioners: 859 units
Replacement with eco-friendly wallpaper: approximately 80,000 m² (reductions of CO2 emissions: approximately 15,250 kgCO2)

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Toward Achieving a Hydrogen Society: Entrusted with Global Trends
Survey by NEDO
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. The commissioned work encompasses thecollection and analysis of information on the latest trends across the world (the United States, Canada, EU countries, China, and South
Korea) concerning hydrogen fuel cells, as well as identification of issues for development strategies in hydrogen fuel cell technology inJapan.
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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The Daiwa Securities Group Net Zero Carbon Declaration
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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Roadmap for achieving Net Zero Carbon

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Response to the TCFD
Daiwa Securities Group recognizes the risks and opportunities related to climate change as one of its important management issues. In
April 2018, the Group expressed its support for the recommendations of the Task Force on Climate-related Financial Disclosures(TCFD). Based on the recommendations, the Group used strengthened climate-related scenarios, and implemented and disclosed theresults of a qualitative analysis for the first time in addition to its conventional qualitative analysis.

GovernanceOversight by the Board of Directors

In terms of oversight by the Board of Directors regarding climate-related issues, the Board receives reports as appropriate on thoseclimate-related issues and responses discussed by the executive team, and makes decisions on these following deliberations asnecessary.
In two cases, the Board received a report from the executive team and made decisions regarding the formulation of the Environmental
and Social Policy Framework in June 2021, and regarding the Daiwa Securities Group Net Zero Carbon Declaration in July 2021.
Moreover, in order to increase the incentive for executives to take action on climate-related issues, following deliberations by theCompensation Committee, the Board has decided to incorporate the Sustainability KPI into the evaluation system for performancelinked compensation for executives for the first time.
Governance Framework

Board of Directors

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Management’s role

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, as part of the Executive Management Committee, which serves as thebusiness execution body, and as part of the Group Risk Management Committee, one of its subcommittees under this Commitee.
In one case, after the SDGs Promotion Committee (chaired by the President and CEO) discussed the formulation of the Environmental
and Social Policy Framework during its meetings in March and June 2021, the Executive Management Committee received a report on
and discussed this matter before making its decision in June of that year. The Board of Directors then made its decision regarding thismatter that same month. Moreover, the Group Risk Management Committee received a report on and discussed the TCFD climaterelated scenario-based quantitative analysis results during its May 2021 meeting.
Related Links
SDGs Promotion System
Executive Compensation System
Environmental and Social Policy Framework
Daiwa Securities Group Net Zero Carbon Declaration

Strategy"Vision 2030" and Materiality

In May 2021, the Group formulated and announced its long-term management vision for 2030 as "Vision 2030". The Group identified
Materiality (priority areas and priority issues linked to those) during the formulation process. As part of one of these priority areas,"Green & Social: Promoting the transition to a carbon-free society and realizing a resilient society", the Group defined the priority
issues of "Promotion of green finance to support the realization of a carbon-free society" and "Development and provision of new
financial products and services that contribute to the realization of a sustainable society".

Climate-related Scenario analyses

Under this long-term vision, the Group seeks to appropriately capture climate-related risks and opportunities, and investigate actions
to take in response. In particular, based on climate-related scenarios, which were strengthened from the previous fiscal year, the Group
conducted scenario analyses (quantitative analysis) in the current fiscal year as follows.
Overview of Scenario Analysis, Impact on the Group, and Business Opportunities
These scenarios assume several patterns classified by temperature rise (1.5ºC, 2ºC, etc.) as based on the relationship between
carbon dioxide (CO2) and temperature change. In reference to the latest targets announced by Japanese government in April
2021 (greenhouse gas emissions: 46% reduction by 2030 [compared with 2013] and net zero by 2050), the Group established its
conditions for CO2 reductions in accordance with these temperature rise classifications. Moreover, the Group laid out areas toconsider regarding changes in economic and social matters (transition risk), such as conversion to renewable energy, andnatural disasters (physical risk)*1. Based on an economic model that includes these elements, the Group prepared several
scenarios that present macroeconomic course changes through 2050.
Using this series of scenarios, the Group calculated the estimated value of loss on those carbon-related assets*2 held by theGroup.
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*1. The five areas are: increased credit risk, drastic changes or reductions in arable land, more frequent heavy rains and large typhoons, more frequent abnormally hightemperatures and heavy snowfalls, and sea level rise.

*2. Based on the definitions in the TCFD recommendations, such assets fall under three of the 33 TOPIX Sector Indices, namely Electric Power and Gas (excluding renewableenergy), Oil & Coal Products, and Mining

The results of these estimates indicated that the impact of transition risk coinciding with action to mitigate temperature rise isrelatively large, and that a delay in action regarding a move to fossil fuel-free economy will exacerbate this impact. Among theselected scenarios, the case of a 1.5ºC temperature rise coupled with delays in action regarding a fossil fuel-free economy, which
predicts the greatest economic loss, indicates the Group will incur a cumulative loss of approximately 10 billion yen comparedwith the reference scenario over the 30-year period through 2050.
Meanwhile, these most recent scenario analyses are based on the limited information and data available at the present time,and calculations were made by narrowing the focus of analysis and establishing required assumptions. The range of areas to beconsidered for climate-related risk is broad, and the timing and scale of risk occurrence is assumed to follow several patterns.
Along with carefully 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, and will strive to refine the extraction of risks throughscenario analysis and strive to appropriately reflect the results in the Group’s disclosures.
Scenario Analysis Overview
Climate-related
scenarios(multiple)

Establish assumptions for the underlying factors of climate change
Statically estimate the course of macroeconomics and financial markets
Daiwa Securities Group carbon-related assets (Target
industries: electric power and gas, oil & coal products, mining)
Establish assumptions and hypotheses forstock prices and credit spreads by industry

Apply estimates for stock prices and credit spreads
in target industries to relevant assets

Impact Estimation
Estimated loss value calculation (Maximum cumulative total of
10 billion yen 2021 to 2050 compared with the reference scenario)

The Group also conducted a qualitative analysis. Specifically, it conducted hearings regarding the businesses among eachheadquarters and Group company that are expected to be impacted during the period through 2050 based on the above
scenarios. The results are shown in Table 1 below.
Table 1 Assumed Impact on Daiwa Securities Group
Category
Transition risk

Assumed impact

Relevant business divisions

Decrease in business from companies and others
significantly affected in the course of transition

Wholesale Division

Increase in reputational risk associated with investment
and underwriting related to businesses with a heavy
environmental load

Wholesale Division
Investment Division

Decline in the value of assets held and decrease in selling
opportunities

Investment Division

Decrease in assets under management resulting from adecline in the value of assets held by funds

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Table 1 Assumed Impact on Daiwa Securities Group
Category
Physical risk

Assumed impact

Relevant business divisions

Decrease in business significantly affected by abnormal
weather

Investment Division

Decline in the value of held assets
Increase in costs associated with disaster risk(e.g. real estate operation costs, costs associated withcountermeasures)

Asset Management Division
Think tank / Information System
Division

Meanwhile, the following table (Table 2) lists the business opportunities for Daiwa Securities Group. In consideration of thepriority issues in Vision 2030, the Group will leverage these opportunities to further enhance its ability to provide various
financial products and services, including green finance and transition finance. The Group also believes that improving its
reputation among stakeholders through the appropriate disclosure of these initiatives will connect to an increase in business
opportunities.
Table 2 Business Opportunities for Daiwa Securities Group
Opportunities

Relevant business divisions

Increase in business opportunities related to green finance andtransition finance intended to realize the transition to a carbon-freesociety

Wholesale Division

Increase in M&As in the renewable energy field
Increase in opportunities for investing in new industries andcompanies that contribute to the transition to a carbon-free society

Investment Division

Increase in assets under management resulting from the higher valueof fund-held companies with technologies that contribute to solutions
for climate change issues

Asset Management Division

Inflow of capital to funds that incorporate companies actively working
to address climate change

Asset Management Division
Retail Division

Increase in business opportunities for providing solutions to assist in
the transition to a carbon-free society

Think tank / Information Systems Division

Related Links
Daiwa Securities Group’s Management Vision “Vision 2030” and Materiality
Action through Product Development and Distribution
Support for Creating Our Future Society
Investment in Green Giraffe227

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Risk Management

Managing climate-related risks

In order to strengthen risk management related to the environment and society, the Group formulated and announced its
Environmental and Social Policy Framework in June 2021. This Framework stipulates the businesses for which investments and loans
are prohibited and restricted when considering new investments and loans.
Moreover, Daiwa Asset Management (a company under the Asset Management Division) discloses its ESG priority issues (materiality),
as has been conventionally required of investee companies. It includes climate change among its ESG priority issues. As part of its
engagement with investee companies and in aims 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.

Integration into existing risk management

Because climate-related risks are an underlying factor in causing and amplifying other risks (market risk, credit risk, liquidity risk, etc.),
the Group will create a system that can account for the impacts of climate-related risks within the existing risk management
framework.
Related Links
Formulation of the Environmental and Social Policy Framework
Supply Chain Management
Daiwa Asset Management Co. Ltd. "About Stewardship Activities”
Daiwa Asset Management Co. Ltd. "ESG Investment Policy"
Daiwa Real Estate Asset Management Co. Ltd. Policy Regarding ESG

Metrics and Targets

Targets used to assess and manage climate-related risks and opportunities

Based on "Vision 2030", the Group has established targets (Table 3) for assessing and managing climate-related opportunities.
Initiatives intended to achieve these targets are assumed to be tied to the creation of medium- to long-term value for the Group.
Table 3 Metrics and Targets
Metrics

Targets

Investment balance in SDGs-related business
At least 150 billion yen (FY2023)
Note : In addition to the above, a separate target has been established and will be monitored for the SDG bonds league table (Within
the top 3).

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Greenhouse gas (GHG) emissions reduction target

As part of its responses to climate change, the Group monitors and discloses Scope 1, Scope 2, and Scope 3 GHG emissions every year.
(SDGs Data Edition 2021)
The Group also announced the Daiwa Securities Group Net Zero Carbon Declaration, which includes medium- to long-term GHG
emissions reduction targets, in consideration of the Japanese government’s latest target of achieving net zero GHG emissions by 2050.
The specific targets in this Declaration are as follows :Achieve net zero greenhouse gas emissions within the Group’s own operations* by 2030 (Scope 1 and Scope 2)
Achieve net zero greenhouse gas emissions within the Group’s investment and loan portfolios, etc. by 2050 (Scope 3)*The Group’s emissions will be calculated on a consolidated basis.

In regard to Scope 3, during FY2023 the Group plans to establish an intermediate targets to align with the Paris Agreement by utilizing
SBT.
Related Links
Sustainability KPIs＜Japanese only＞
Daiwa Energy & Infrastructure Co
Investment in Green Giraffe
SDGs Data Edition 2021
Daiwa Securities Group Net Zero Carbon Declaration

Outlook
The Group recognizes climate-related risks and opportunities as one of the most pressing issues for management, and is therefore
working to build a sustainable business structure. The Group will continue to further improve disclosure based on the TCFD
Recommendations and strive to strengthen communication with stakeholders in order to contribute to the realization of a carbon-freesociety.

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Issuance 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 2021)
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 2021)
Category

Sub-category

Commencement of
Finance/Refinance

Finance/Refinance

Balance(units of ¥ billion)

Renewable energy

Photovoltaic power generation

November 2018

Refinance

1.6

Renewable energy

Photovoltaic power generation

February 2019

Finance

1.7

Renewable energy

Photovoltaic power generation

June 2020

Finance

1.5

Renewable energy

Photovoltaic power generation

June 2021

Finance

3.2

Green Building-

November 2018

Refinance

2.0

total

2. Environmental Impact

10

As of the end of June 2021, the eligible Green Projects for which the proceeds from Green Bonds were appropriated have an energy
output/assumed energy output of 115,611 MWh. They have the effect of reducing carbon dioxide (CO2) emissions by 52,834 t-CO2
annually.

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Report on Environmental Impact (as of the end of June 2021)
Category

Sub-category

Energy output/
assumed energy output (MWh)Estimated CO2
emissions
reduction effect (tCO2)

Renewable energy

Photovoltaic power
generation

115,61152,834

Category

Progress of application for certification

Green BuildingAwarded Five Stars in plan certification 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. and Daiwa Next Bank, Ltd.
Daiwa Securities Co. Ltd. and Daiwa Next Bank, Ltd. have been selected as Eligible counterparties of the funds-supplying operations to
support financing for climate change responses by BANK OF JAPAN.

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 >231

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ESG 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
Policy on Communication with Stakeholders

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 2021) [PDF:56.571MB]

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-232

SDGs report 2021

How to think about
investing

Environmental and Social Policy Framework[Daiwa Securities Co.Ltd.] Acceptance of the Japanese version of the Stewardship Code(Japanese)[Daiwa Asset Management Co.Ltd.] Acceptance of the Japanese version of the Stewardship
Code[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
Contact Center Functions
Working to Incorporate Customer Voices

Develop and Provide
Products

Impact Investment
SDG Related Funds
Daiwa Asset Management Offers Investment Trusts with ESG and SDG Targets
Response to FinTech and artificial intelligence (AI)

Inclusion (Financial
Inclusion, etc.)

Improving In-Branch Customer Service Quality
Private Equity Investment in Southeast Asia
Toward Global Realization of Financial Inclusion

Analysis andRecommendations for
Economic, Social andInvestment Information

Initiatives to Provide Information on ESG
Initiatives by Daiwa Institute of Research233

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Investing in Businesses that
Solve Social Problems

SDGs × “Technology”
SDGs × “Local Community”
SDGs × “Life”
SDGs×New Technologies and Ideas
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 FY2021
Response to the TCFD
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:3.92MB]

Society
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 2021 Social Report)[PDF:3.92MB]
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Average Number of Years of Service (SDGs Data Edition 2021 Social Report)[PDF:3.92MB]
Employee Turnover Statistics (SDGs Data Edition 2021 Social Report)[PDF:3.92MB]
Working Hours and Paid Vacation Usage Rate (SDGs Data Edition 2021 Social Report)[PDF:3.92MB]
Workforce Statistics
Diversity & Inclusion

Basic Policy for Initiatives Addressing Human Rights and Social Integration Issues
Recruitment of University Graduates
Support for the Success of Veteran Employees
Number of Employees Re-employed after Retirement Age (SDGs Data Edition 2021 Social
Report)[PDF:3.92MB]
Employment of People with Disabilities
Employment Rate for Persons with Disabilities(SDGs Data Edition 2021 Social Report)[PDF:3.92MB]
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 2021
Social Report)[PDF:3.92MB]
Welfare Program Usage (SDGs Data Edition 2021 Social Report) [PDF:3.92MB]
Childcare leave usage rate and other data
Various systems and measures

Employee Satisfaction

Communication among Employees
Work Motivation Survey (SDGs Data Edition 2021 Social Report)[PDF:3.92MB]

Internal Communication

Active Use of In-House Magazine
Communication with Employees
Initiatives for Families
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Labor-Management
Dialogue

Relationship with Employee Unions

Human Resource
Development andCapability Development

Employee Training Approaches and Trends

Number of Employee Union Members (SDGs Data Edition 2021 Social Report)[PDF:3.92MB]

Education and Training System
Supporting Employees Trying to Earn Credentials

Human Rights

Basic Policy for Initiatives Addressing Human Rights and Social Integration Issues
Human Rights Education and Awareness System
Initiatives in FY2020
Supply Chain Management[Daiwa Capital Markets Europe Limited.] Modern Slavery Act 2015

Health Management andOccupational Safety and
HealthHealth Management

Economic and Financial
Education

Economic and Financial Education for the Young Generation
Information Website for Child Rearing and Money “SODATTE” (Japanese)
Daiwa Internet TV (Japanese)
Results in Economic and Financial Education Program (SDGs Data Edition 2021 Social
Report) [PDF:3.92MB]

Social Contribution
Activities and Corporate
Citizenship Activities

Stakeholder communication
Activities to support Communities through Our Foundations
Action with NPOs
For Your Dreams - Daiwa Securities Group Children’s Smile Project
Support for culture and the arts
Promotion of Social Contribution Activities[Daiwa Capital Markets America Inc.] Corporate Social Responsibility[Daiwa Capital Markets Europe Limited.] Corporate Social Responsibility
Expenditures for SDGs Related Activities (SDGs Data Edition 2021 Social Report)[PDF:3.92MB]
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SDGs report 2021

GovernanceCorporate 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”
Summary of the Management Policy for Conflict of Interest

Prevention of Money
Laundering, etc.

Daiwa Securities Group’s Customer and Client Inspection System
Basic Policy on Avoiding Involvement with Anti-Social Forces
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Anticorruption

Prevention of corruption
Daiwa Securities Group Anti-Corruption Policy
Political Contributions (SDGs Data Edition 2021 Social Report)[PDF:3.92MB]

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 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 2021 Social Report) [PDF:56.517MB]

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Participation 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.

The 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.

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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). The Forum works to promote and advance ESG investment andother sustainable investment throughout Japan. We also support these
activities in our capacity as a financial institution.

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")

Environmental 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.

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. announced its support for
TCFD in April 2018, and Daiwa Asset Management announced its support in
December 2020. Both also participate in the TCFD Consortium, which wasestablished in May 2019 in Japan.
Response to the TCFD

CDP

CDP is a project in which institutional investors interested in climatechange collaborate and require global companies to disclose informationon their attitudes and approaches to environmental issues.
Daiwa Securities Group Inc. announced its support for the project in 2004.

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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 Group has been actively involved since the drafting stage of thisprinciple, Daiwa Securities Group Inc. and Daiwa Asset Management
signed the principles in 2011, when they were established.

Registration System of Green Bond Issuance
Supporters

The Financial Support Programme for Green Bond Issuance implemented
by the Ministry of the Environment subsidizes the external costs incurred
other than the cost for the ordinary bond issuance procedure. It grants a
subsidy to those who provide issuance support to green bond issuers(issuance supporters) for their issuance support costs. The Ministry has
established a system for announcing the issuance supporters on the“Platform for promoting Green Bond issuance.”
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.
Initiative Based on the Declaration of
Biodiversity by Keidanren

In 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 its "Declaration of Biodiversity by
Keidanren and Action Policy (Revised Edition)." Daiwa Securities Group Inc.
supports this Declaration.

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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.

Diversity initiatives
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.

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Human rights initiatives
The United Nations Guiding Principles on Business and Human Rights（Japanese only）
Children’s Rights and Business Principles（Japanese only）

Labor management initiatives
The eight fundamental conventions of the International Labour Organization

Governance 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 Code243

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Third-Party Evaluations
Three consecutive years of top ranking by Nikkei Veritas and twoconsecutive years of top ranking by Institutional Investor
Daiwa Securities Group Inc. took first place for three consecutive years in the Nikkei Veritas Popular Analysts Survey rankings*1 stockcategory (by company).
It was also selected for first place in the All-Japan Research Team for two consecutive years by Institutional Investor *2, a financial
information magazine that is well-known overseas.
Click here for details.(Japanese only)*1 One of Japan's most recognized rankings, with a history extending over 30 years. Rankings are determined through voting by institutional investors inJapan.
*2 One of the highest profile rankings from a global perspective. Rankings are determined through voting by institutional investors, primarily overseas.

Third place overall in the Weekly Toyo Keizai SDG Corporate Ranking
In its July 3 issue, Weekly Toyo Keizai announced "SDGs - Japan's Top 500 Companies," its first ranking of the top 500 companies inJapan in terms of their SDG initiatives. Daiwa Securities Group Inc. was ranked number 3 overall.
The rankings were based on the human resource usage, environmental activities, social contributions, and corporate governance ofeach company. We believe that our efforts, and the efforts of our executives, to recognize these issues as ones that directly involve
them directly contributed to our high evaluation.

Dow Jones Sustainability Indices
The Dow Jones Sustainability Indices (DJSI) are stock indices of companies with sustainable
practices selected by S&P Global. Daiwa Securities Group Inc. is a constituent of DJSI Asia Pacific.
Since DJSI World was launched in 1999, it has continually been included in DJSI World and DJSI Asia
Pacific.
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FTSE Indices
FTSE is a subsidiary of the London Stock Exchange. It develops global indexes and provides data forinvestment.
Daiwa Securities Group Inc. has been included in the FTSE4Good, an index of socially responsible
companies compiled by FTSE, for 16 consecutive periods since September 2006.
Daiwa Securities Group Inc. has also been selected as a constituent of the FTSE Blossom Japan
Index for five consecutive periods since July 2017. This index is used as an ESG passive
management benchmark by the Government Pension Investment Fund.
FTSE Russell
FTSE Blossom Japan Index

MSCI Indices
MSCI measures and publishes various indices.
Daiwa Securities Group Inc. has been selected as a constituent of the MSCI Japan Empowering
Women Index for three consecutive periods since July 2017.
This index is used as an ESG passive management benchmark by the Government Pension
Investment Fund.
MSCI

Institutional Investor, 2021 All-Japan Executive TeamUS financial information magazine “Institutional Investor” publishes 2021 All-Japan Executive Teamrankings, based on voting by institutional investors, portfolio managers and analysts all over theworld.
Daiwa Securities Group Inc. has been selected as “Most Honored Company” and has ranked firstplace overall in the Insurance & Other Nonbank Financials sector of “The All-Japan Executive Team”.
This selection is based on The Group’s being ranked first place in “Best CEO”, “Best CFO”, “Best IR
Professional”, “Best IR Team”, “Best IR Program”, and “Best ESG”, respectively, in the sector.
Institutional Investor website

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Nadeshiko Brand
Daiwa Securities Group Inc. has been selected as a “Nadeshiko Brand” for seven consecutive years
since FY2014. This title is awarded by the Ministry of Economy, Trade and Industry and the Tokyo
Stock Exchange to listed companies for having excellent track records in empowering women in
their companies.
We have introduced "wide area career track positions," in which employees can be relocated withina designated area in conjunction with reassignment within the company, and ANSWERS, an internal
online social network through which employees can consult with each other without hesitation,
help each other with difficulties, and build networks. We have expanded the range of career options
available to female employees so that they can play active roles through various stages of theirlives. Through efforts such as these, we are cultivating a stronger career mentality and continuously
working to create a work environment in which all employees, men and women alike, can continue
to work energetically.
Nadeshiko Brand (Ministry of Economy, Trade and Industry website)＜Japanese only＞

Health & Productivity Stock Selection
Daiwa Securities Group Inc. has been selected as a "Health & Productivity Stock Selection" for sevenconsecutive years since FY2014. This title is awarded jointly by Japan's Ministry of Economy, Tradeand Industry and the Tokyo Stock Exchange to companies promoting the health of their employees.
We appoint a Chief Health Officer (CHO) and implement various measures in which executives
actively participate. We are a health management pioneer, having been selected for sevenconsecutive years, from the very first "Health & Productivity Stock Selection." As a pioneer, we share
our know-how with other companies and actively provide lectures on the topic. We use ICT toprovide specific counseling guidance, offer a rich system for supporting both the treatment andwork of employees with cancer, and have introduced a fitness app. Efforts such as these, which
evolve based on the challenges specific to our company, societal changes, and the needs of ouremployees, have been highly evaluated.
Health & Productivity Stock Selection (Ministry of Economy, Trade and Industry website)＜Japanese only＞

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DX Companies to Watch, Digital Technology + COVID-19
Countermeasure Company
In June 2021, Daiwa Securities Group Inc. was selected as one of the "DX Companies to Watch 2021" as part of the DX Stock Selection
program* operated jointly by the Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange. We were selected as acompany to watch in recognition of the contributions to our corporate value made by our Group's DX initiatives, such as the
deployment of our "System Product Web Service" and our "Asset Management Planning Tool,"
We were also selected as a "Digital Technology + COVID-19 Countermeasure Company" in recognition of the exceptional initiatives wehave implemented in response to COVID-19. We were highly evaluated for our video communication tool, which uses mobile work
devices and aims to enable smooth online communications with customers in the face of the COVID-19 situation while allowing
employees to work from anywhere, the use of a paperless approach in office operations, and our introduction and promotion of work
processes that eliminate the need for seals.
* This program selects companies that continue to boldly take on the challenges of transforming business models and management through the use ofdigital technology.

DX Companies to Watch, Digital + COVID-19 Countermeasure Company (Ministry of Economy, Trade and Industry website)"Kurumin" and "Platinum Kurumin" -Certified as a Family-Friendly
Employer
The certified family-friendly employer logo (nicknamed "Kurumin") is the certification symbol forfamily-friendly employers provided by Japan's Ministry of Health, Labour and Welfare, based on the
Act on Advancement of Measures to Support Raising Next-Generation Children. Daiwa Securities
Group Inc. obtained certification as a family-friendly employer on June 9, 2008, and Daiwa
Securities, Daiwa Institute of Research Holdings, Daiwa Institute of Research, Daiwa Institute of
Research Business Innovation, and Daiwa Securities Business Center have also been certified.
Moreover, as of March 11, 2016, Daiwa Securities and Daiwa Securities Business Center received a"Platinum Kurumin" certification as did Daiwa Institute of Research and Daiwa Institute of ResearchBusiness Innovation as of February 4, 2019.. That certification is given to especially excellent
companies among the certified family-friendly employers that have implemented higher levels of
initiatives.
Certified as a Family-Friendly Employer (Ministry of Health, Labour and Welfare website)＜Japanese only＞

247

SDGs report 2021

"Tomonin"-Logo for Promoting Work Environments for Balancing Work with LongTerm Care
Daiwa Securities Group has continually built a working environment where employees can find it
easy to use work-life balance support programs, in an effort to help them to continue working whilebalancing work and nursing care. The Ministry of Health, Labour and Welfare conferred the logo
(nicknamed "Tomonin") on us for promoting the provision of a working environment favorable forbalancing work with long-term care.
Logo for Promoting Work Environments for Balancing Work with Long-Term Care(Ministry of
Health, Labour and Welfare website)＜Japanese only＞

GRESB 2020
Daiwa Office Investment Corporation has participated in the Global Real Estate Sustainability
Benchmark (GRESB) Survey for nine consecutive years (awarded Two Stars in FY2020), and Daiwa
Securities Living Investment Corporation has participated for three consecutive years (awarded One
Star in FY2020).
GRESB 2020 (Green Building Japan website)＜Japanese only＞

248

SDGs report 2021

ISO Certification
ISO 14001
Daiwa Institute of Research has received ISO 14001 certification, which is an international standard for environmental management
systems. Through its business activities, Daiwa Institute of Research Business Innovation has endeavored to realize a harmonious
relationship with the global environment, and actively works to reduce the environmental load. (Business site name: Daiwa Eitai
Building Office, Scope: All business activities involved in system consulting and system integration by Daiwa Institute of ResearchLtd.)
ISO 27001
Daiwa Institute of Research (Systems Management Division BPO Operation Department, former Daiwa Institute of Research Systems
Management Division, and former Daiwa Institute of Research Business Innovation Systems Management Division) has received ISO
27001 certification, which is an international standard for information security management systems. In order to maintain andmanage the confidentiality, integrity, and availability of their information assets, both companies are continuing to improve theirinformation security.
ISO 27017
Daiwa Institute of Research (former Daiwa Institute of Research Systems Management Division and former Daiwa Institute of
Research Business Innovation Systems Management Division) has received ISO 27017 certification, which is 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.
ISO 20000
Daiwa Institute of Research (former Daiwa Institute of Research Systems Management Division and former Daiwa Institute of
Research Business Innovation Systems Management Division)has received ISO 20000 certification, which is an international standard
for IT service management systems. In order to provide customers with a high-quality IT service in a stable manner, both companies
are engaged in organizational enhancement of the quality of their IT services, including cost management, business processoptimization, and continual improvements.
* ISO27001, ISO27017, and ISO20000
We are currently in the process of updating the certifications acquired by the former Daiwa Institute of Research and the former Daiwa Institute of
Research Business Innovation following the April 2021 corporate merger.
The ISO27001 certification update request for Daiwa Institute of Research Systems Management Division BPO Operation Department (former Daiwa
Institute of Research Business Innovation Systems Consulting Division, Social Insurance Customer Support Department, and BPO Center) was approvedin May 2021.

ISO website

249

SDGs report 2021

GRI Content Index
Our report refers GRI Standards 2016 of the Global Reporting Initiative (GRI).

102: General Disclosures
Organizational Profile
Number

Disclosures

Applicable web page

102-1

Name of the organization.

Corporate Profile

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 2021

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 Business

250

SDGs report 2021

Number

Disclosures

Applicable 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 the TCFD

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
Number

Disclosures

Applicable web page102-18Governance structure

Corporate Governance102-19Delegating authority

Our strategy for achieving SDGs
251

SDGs report 2021

Number

Disclosures

Applicable web page102-20Executive-level responsibility for economic,
environmental, and social topics

Message from CEO
Our strategy for achieving SDGs
Structure of SDGs Promotion

102-21

Consulting stakeholders on economic,
environmental, and social topics

Stakeholder Communication
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 Governance102-26

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

Our strategy for achieving SDGs
Risk Mamagement102-31

Review of economic, environmental, and social
topics

Our strategy for achieving SDGs

102-32Highest governance body's role in sustainability
reportingOur strategy for achieving SDGs
Structure of SDGs Promotion

102-33

Communicating critical concerns

Our strategy for achieving SDGs
Compliance102-34Nature and total number of critical concerns

Compliance252

SDGs report 2021

Number

Disclosures

Applicable web page102-35

Remuneration policies

Corporate Governance
SDGs Data Edition 2021

102-36

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 Communication

102-41

Collective bargaining agreements

Communication with Employees
SDGs Data Edition 2021

102-42

Identifying and selecting stakeholders

Stakeholder Communication

102-43

Approach to stakeholder engagement

Stakeholder Communication

102-44

Key topics and concerns raised

Daiwa Securities Group’s Management Vision“Vision 2030” and Materiality
Stakeholder Communication

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

Our strategy for achieving SDGs

253

SDGs report 2021

Number

Disclosures

Applicable web page102-48

Restatements of information

Not Applicable

102-49Changes in reporting

Our strategy for achieving SDGs

102-50

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 2021

103: Management Approach
Number

Disclosures

Applicable web page

103-1

Explanation of the material topic and its
Boundary

Our strategy for achieving SDGs

103-2

The management approach and its components

Our strategy for achieving SDGs

103-3

Evaluation of the management approach

Our strategy for achieving SDGs

200: Economic
Economic Performance
Number201-1

Disclosures

Applicable web page

Direct economic value generated anddistributed

254

Disclosure Report 2021＜Japanese only＞

SDGs report 2021

Number

Disclosures

Applicable web page

201-2

Financial implications and other risks andopportunities due to climate change

Response to the TCFD
Environmental Management / Initiatives toEnvironmental 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
Number

Disclosures

Applicable web page202-1

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-

Indirect Economic Impacts
Number

Disclosures

Applicable web page203-1

Infrastructure investments and services
supported

Action through Product Development andDistribution
Support for Creating Our Future Society
Action with NPOs
SDGs Finance
Promotion of Social Contribution Activities

203-2

Significant indirect economic impacts

Not applicable

Procurement Practices
Number204-1

Disclosures

Applicable web page

Proportion of spending on local suppliers

255

Impact is insignificant, due to the nature of ourbusiness

SDGs report 2021

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

Not applicable

Tax
Number

Disclosures

Applicable web page207-1

Approach to tax

Risk Management

207-2

Tax governance, control, and risk management

Risk Management

207-3

Stakeholder engagement and management ofconcerns related to tax

-

207-4

Country-by-country reporting-

300：Environment
Materials

Number301-1

Disclosures

Applicable web page

Materials used by weight or volume

Not applicable256

SDGs report 2021

Number

Disclosures

Applicable web page301-2

Recycled input materials used

Not applicable

301-3

Reclaimed products and their packaging
materials

Not applicable

EnergyNumber

Disclosures

Applicable web page302-1

Energy consumption within the organization

SDGs Data Edition 2021

302-2

Energy consumption outside of the organization

SDGs Data Edition 2021

302-3

Energy intensity

SDGs Data Edition 2021

302-4

Reduction of energy consumption

SDGs Data Edition 2021

302-5

Reductions in energy requirements of products
and services

SDGs Data Edition 2021

Water 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 2021

303-4

Water discharge

-

303-5

Water consumption-

Biodiversity
Number304-1

Disclosures

Applicable web page

Operational sites owned, leased, managed in, or
adjacent to, protected areas and areas of highbiodiversity value outside protected areas257

Not applicableSDGs report 2021

Number

Disclosures

Applicable web page304-2

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 2021

305-2

Energy indirect GHG emissions

SDGs Data Edition 2021

305-3

Other indirect GHG emissions

SDGs Data Edition 2021

305-4

GHG emissions intensity

SDGs Data Edition 2021

305-5

Reduction of GHG emissions

SDGs Data Edition 2021

305-6

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 2021

306-4

Waste diverted from disposal

Not applicable306-5

Waste directed to disposal

Not applicable

Waste
Number258

SDGs report 2021

Environmental 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 applicable

400: Social

Employment
Number

Disclosures

Applicable web page401-1

New employee hires and employee turnover

SDGs Data Edition 2021

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 2021

Labor / Management Relations
Number402-1

Disclosures

Applicable web page

Minimum notice periods regarding operationalchanges259-

SDGs report 2021

Occupational Health and Safety (2018)
Number

Disclosures

Applicable web page403-1

Occupational health and safety management
systemWork-Life Balance
Health Management403-2

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

403-6

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
260

SDGs report 2021

Diversity and Equal Opportunity
Number

Disclosures

Applicable web page405-1

Diversity of governance bodies and employees

SDGs Data Edition 2021

405-2

Ratio of basic salary and remuneration of
women to men

SDGs Data Edition 2021

Non-discrimination
Number406-1

Disclosures

Applicable web page

Incidents of discrimination and corrective
actions taken

Not applicable due to the nature of our business

Freedom 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

261

SDGs report 2021

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

Not applicable due to the nature of our business

Human 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

Human Rights Education and Awareness412-3

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

262

SDGs report 2021

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
SDGs Data Edition 2021

Political contributions

Customer 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 applicable263

SDGs report 2021

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 area

264

Not applicableSDGs report 2021

Editorial Policy
The Daiwa Securities Group has promoted the SDGs and ESG through its business and non-business activities. We have created an"SDGs" page on the Daiwa Securities Group Inc. website, providing greater convenience to readers and disclosing information in atimely fashion, with the aim of evaluating the current state of affairs and the challenges we face.
This page presents comprehensive data on the Group's SDG and ESG activities, and we will strive to further enrich it in the future.
(The SDGs Data Book, CSR Reports, and other materials previously disclosed in PDF form until FY2019 can be viewed from the SDG
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
ReportFY2020 (April 1, 2020, to March 31, 2021) The report, however, also includes some
information on events and activities carried out prior to the beginning of or after the end of
FY2019, or scheduled to take place during FY2021

Inquiries

SDGs Promotion Office, Corporate Planning Department, Daiwa Securities Group Inc.

Tel

+81-3-5555-1111(Main)

E-maildaiwacsr@daiwa.co.jp

URL

https://www.daiwa-grp.jp/english/sdgs/

Reference Guidelines

GRI Sustainability Reporting Standards
ISO 26000: Guidance on social responsibility
Sustainability accounting standards for the Financials sector, Sustainability AccountingStandards Board (SASB)
Environmental Reporting Guidelines 2018 and Environmental Accounting Guidelines 2005,
Ministry of the Environment, Japan265

SDGs report 2021

For 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 disclosure

266