SDGs Booklet 2022

Daiwa Securities Groupand SDGs

Facilitating the Flow of
Money to Benefit Society

Towards Realizing “Vision 2030”
In FY2021, Daiwa Securities Group set out the management vision“Vision 2030” and announced their “Net Zero Carbon Declaration”

Daiwa Securities Group 120th AnniversaryChildren’s Future Projectthat includes reduction targets for greenhouse gas emissions.
In recent years, transition finance has attracted attention as a financing mean towards transition to a carbon-neutral society. Support for the financing of companies’ efforts to solve social issues,
including transition finance, is one of the important missions of acomprehensive securities group.
Daiwa Securities Group Inc.
President and CEO

In May 2022, Daiwa Securities Group marked it’s 120th anni-

On May 1, 2022, the Daiwa Securities Group marked the 120th anniversary of its founding

versary. In its long history, the Group has fostered the pioneering

thanks to the support of our many stakeholders, including customers, shareholders, investors,

spirit of continuously implementing new innovations. We will con-local communities, business partners, and employees.

tinue to evolve with the times, and unite as one to create a newsustainable capital cycle towards realizing the SDGs.
In the world surrounding us, there are still a large number of sotake further action towards 2030—the target year for the SDGs.

selected by Daiwa Securities and its branches nationwide and ¥10 million yen to the Children’s“own” SDGs. We are also exploring ways in which, we as the Daiwa Group can contribute in achieving the SDGs.

Executive Head of Overseas Operations,
Head of SDGs and Think Tank

ed us to date and to support children, who will lead the future.
Under the project, we donated a total of ¥120 million — ¥110 million to child support groups*1

set of action guidelines and are encouraging all employees to

Director, Deputy President,

ry Children’s Future Project to express our gratitude to the local communities that have support-

cial issues that are unresolved, and companies are expected toAgainst this backdrop, we have positioned “Vision 2030,” as a

Daiwa Securities Group Inc.

In commemoration of the anniversary, we planned a Daiwa Securities Group 120th Anniversa-

In this booklet, we present the achievements in each of our fivepriority areas for the first year of “Vision 2030”. We will continue
to take on the challenge in partnership with our stakeholders.

Future Support Fund*2.
Daiwa Securities Group recognizes that poverty and wealth inequality are some of the key social issues to be addressed. Since 2017, we have been undertaking the “For Your Dreams—Daiwa
Securities Group Children’s Smile Project,” which aims to improve the environment for children
living in difficult situations and break the chains of poverty.
We will continue to work on activities to help improve the future of children.
*1 Non-profit organizations that work on initiatives to reduce the future poverty risks of children, such as improvement of living, learning,and growth environments for children in poverty*2 Established in 2015 as a public-private partnership project for alleviating child poverty

12Vision 2030
Under the core concept of “From savings to SDGs,” the management vision “Vision 2030” isaimed at realizing the SDGs by creating a sustainable capital cycle. We have identified priority
areas and issues we will focus on as materiality.

“Vision 2030” and materiality
Priority areas

Our current Medium-term Management Plan is also a strategy for the initial three years to-

Priority issues

wards achieving “Vision 2030” and we have set KPIs in the plan to manage and drive progress in

1.	Support for household asset formation and conservation toward therealization of a prosperous 100-year life

realizing the Vision.

2. Realization of local revitalization with private funds

100 years of life

Image of “Vision 2030”

Innovation

4.	Support for accelerating corporate metabolism toward the realizationof innovation that enriches society

Promoting innovation that enriches society
and realization of Self-transformation

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

Creating the future througheveryone's action

Vision 2030

From savings to
SDGs- Realize the SDGs by creatinga sustainable capital cycle -5. Reform of business portfolio to create new added value

Innovation
Green & Social
Promoting the transition toa carbon-neutral society andrealizing a resilient society

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3. Financial support for economic growth in Asia

Green & Sociale

6. Leading social transformation as a one-of-a-kind financial platformer
7. Promotion of green finance to support the realization ofa carbon-neutral society
8.	Development and provision of new financial products and services
that contribute to the realization of a sustainable society
9. Fostering human resources who can provide added value

Diversity & Inclusion

10.	Building an organization where everyone can play an active role byacknowledging diverse personalities
11. Strengthening a sound and highly transparent management base
12.	Leading the maintenance and development of financial and capital
markets

Foundation ofsustainable management

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 is a leading financial services provider; as such, it will provide
solutions that cater to diversifying customer needs, with the goal of realizing a society in which everyone can live a prosperous 100 years of life.

Daiwa Securities Co. Ltd.

Anshin-Tsunagaru Wrap for Asset Succession Support

100 years of life

Daiwa Securities has begun handling the “Anshin-Tsunagaru Wrap (Daiwa Fund Wrap with an Anshin-Tsunagaru special contract)” as a wrap account service for customers who are seniors.

Daiwa Securities Co. Ltd.

To ensure that senior customers can entrust their precious assets with peace of mind, the product enables those customers to choose “Asset Preservation-Focused Style,” a new investment styleDaiwa Future Designers

focused on asset preservation. Supplementary services for connecting customers’ assets to theirfamilies are also available to support asset succession in all aspects, such as inter vivos gifts and provision for inheritance.

As life plans become increasingly diversified and sophisticated with the arrival of theConsidering the 100-year life era, we will provide services that can
provide a sense of security not only to senior customers but also totheir families.

100-year life era, Daiwa Securities provides “Future Designers,” a financial consulting
service to help each of its customers realize their medium and long-term goals anddreams.
Daiwa Securities also encourages employees to gain qualifications, such as CFP®
and Certiﬁed Member Analyst of the Securities Analysts Association of Japan*, to ensure that the employees have enough knowledge to meet the various requirements of
its customers.
Combining the employees’ knowledge with the analyses of ‘Future Designers’ planning tools, Daiwa Securities supports its customers of all ages figuring out the life
plans, asset management plans and inheritance plans.

*D aiwa Securities has set the target of increasing the number of employees with CFP® andCer tiﬁed Member Analyst of the Securities
Analysts Association of Japan to at least 3,000
by FY2023. The number of its employees with
CFP® qualifications has exceeded 1,000, whichis the top level in the securities industry.

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Good Time Living Co. Ltd.

Enhancing Nursing Care Services Through Use of ICT(Information and Communication Technology)

Good Time Living strives to enhance its services and reduce non-client-facing operations. It sharesinformation and knowledge by utilizing network communications,and works to provide communication-oriented services. The company
records the health and lives of residents in a timely manner as it has
switched from paper recording to mobile device recording. It also coordinates information among various staffs, thereby improving environments, reviewing care, and providing services in a way that caters toeach and every resident, as well as operating efficiently.
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Daiwa Securities Group will promote innovation that enriches society through theprovision of innovative financial products and services, providing new investment
opportunities for its customers. In addition, the Group will seek to improve and inno-

Innovationvate by accelerating and refining its hybrid strategies.*

Daiwa Real Estate Asset Management Co. Ltd.
Daiwa Energy & Infrastructure Co. Ltd.

Private Core Solar Fund
Daiwa Real Estate Asset Management (“Daiwa Real”) established DSREF Amaterasu
Core Fund, Investment Limited Partnership (“Amaterasu”), a private solar fund investing in brownfield solar power generation projects in Japan.
Also, Daiwa Energy & Infrastructure (“Daiwa Energy”) plans to provide its stable-operating solar power plants to Amaterasu.
Daiwa Securities Group utilizes investment and loan functions of Daiwa Energy and infrastructure asset management
functions of Daiwa Real to promote its
capital recycling model in the renewableenergy field. The Group will continue tomeet investors’ needs for investing in alternative assets.

Solar power plant in Kurihara City, Miyagi Prefecture,
which is the first property incorporated in Amaterasu* Hybrid strategy
This is a strategy of expanding our business portfolio into new businesses expected to provide synergies, while positioning the securities business as our core, with the aim of delivering a wider, and more stable, revenue base.

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Daiwa Institute of Research Ltd.

Providing Solutions That Resolve Social Issues
For details, please scan here

Daiwa Institute of Research aims to contribute in the SDGs field by providing research, consulting
and system solutions for customers to resolve social issues through their business activities.
Following the expansion of ESG investment and the revision of the Corporate Governance Code, companies and investors are increasingly focusing on the disclosure of sustainability information. Against thisbackdrop, Daiwa Institute of Research assists customers in disclosing information based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), as well as planning strategies and formulating response measures in light of the recommendations. In the energy management
solutions field, the company provides a system that collects and analyzes information on the electricity
usage of customers’ buildings and visualizes electricity usage along with information on CO2 emissions.
Through the provision of this system, the company helps customers to reduce CO2 emissions.
In the health and productivity management field, Daiwa Institute of Research has developed andstarted to provide customers with the “Employee Wellness Report,” which visualizes the degree of
happiness of employees.

Fintertech Co. Ltd.

Lending Crowdfunding“Funvest”

For details, please scan here Japanese

The term “funvest” is coined from the words “fun” and “invest.”
It is a Lending Crowdfunding in which the capital provided by investors is loaned to borrowers inJapan and overseas.
As investment in an anonymous association, investors provide the fund with capital, which is thenmanaged by Fintertech. The interest revenue received from borrowers becomes a source of returns to
the investors. The investors can expect to gain returns without managing their money on their own.
8Daiwa Securities Group will focus on providing financial products and services that contribute to the resolution of environmental and social issues, with the twin goals of promoting

Expanding the Range of SDG-related Funds

a shift to a carbon-neutral society and of realizing a resilient society. The Group will also

Visit the special site from here JapaneseGreen & Social

proactively engage in advisory services and investments in the field of renewable energies.
We are expanding our line-up to enable customers to make SDG investments that meet their needs.

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 toachieve 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 Daiwa Securities Group Net Zero Carbon Declaration(1) Achieve net zero greenhouse gas emissions within our own operations* by 2030 (Scope 1
and Scope 2)(2) Achieve net zero greenhouse gas emissions within our investment and loan portfolios, etc.
by 2050 (Scope 3)(3) Support the smooth transition to a carbon-neutral society through our business activities

Daiwa Asset Management Co. Ltd.

Awarded Tokyo Financial Award 2021
In the Tokyo Financial Award 2021, hosted by the Tokyo Metropolitan
Government, Daiwa Asset Management was awarded the Governor’s
Special Prize for Green Finance in the ESG Investment Category inrecognition of the company’s “CANDRIAM Decarbonization Technology Fund (nickname: Carbon ZERO)” and initiatives under thetree-planting project “Foster Forests for Tomorrow Together.” The prize is awarded to one businessthat is particularly outstanding in its green finance initiatives.
Neither the Tokyo Metropolitan Government nor the Tokyo Financial Award recommends the purchase, sale, or holding of certain products, or guarantees their future per formance. The intellectual property rights, including copyright,
and any other right pertaining to the Tokyo Financial Award belong to the Tokyo Metropolitan Government. Reproduction or reprinting without permission is strictly prohibited.

Daiwa Securities Group’s main priority areas
Sustainable finance for thedelivery of a carbon-neutral society

Support for new technologies and promote businesssolutions that contributeto the delivery of a carbon-neutral society

Provide investment opportunities that contribute to the delivery of acarbon-neutral society

Reduce the environmental
footprint of the company

Set targets to align with
the Paris Agreement goals
and expand transparent
information disclosure

Strengthen our management system to achieve
net zero carbon* The company’s emissions will be calculated on a consolidated basis.

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Introducing the Group’s Renewable Energy into Head Office Building
In April 2021, we effectively switched to renewable energy for the entire amount of electricity consumed by all theGroup companies occupying the head office building by utilizing a non-fossil fuel energy certificate with tracking
information*. This initiative was implemented in collaboration with Mitsui Fudosan Co., Ltd., the lessor of the head
office building.
This turned into a group-wide initiative in July 2021 as we switched to a certificate that proves energy originatingfrom renewable energy plants owned by Daiwa Energy & Infrastructure Co. Ltd. in Japan.
* A non-fossil fuel energy certificate that provides information on solar, wind, and hydraulic and other energy by source, as well as added
information such as the locations of power plants.

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Promotion of SDGs Finance
Daiwa Securities Group has established a team dedicating SDGs finance, offering products,
services, and proposals that meet the needs for SDGs finance from our customers, issuers andinvestors. We also strive to contribute to spreading and expanding of SDGs finance.
Funds raised through SDGs bonds are appropriated to projects that contributeto the SDGs. Proceeds from SDGs bonds, unlike ordinary bonds, are designed to
be used for solving key global challenges.

Daiwa Next Bank, Ltd.

“Support Term Deposits” Supporting Society
Daiwa Next Bank donates an amount calculated by multiplying the balance of its “Support Term Deposits” by a certain rate to 10 or more organizations according to four themes.
The deposit balance stands at approximately ¥152.5 billion as of March 31, 2022. Daiwa Next Bank
donated ¥8.88 million in April 2022 (the amount for the second half of FY2021), which includes donations made through charity events commemorating the bank’s 10th anniversary of its founding.

Green Bonds

Used to raise funds required for green projects that contribute to solving global
warming and other environmental issues.

The cumulative total amount donated is approximately ¥62 million. Daiwa Next Bank has set a target of increasing the balance of Support Term Deposits to at least ¥200 billion by FY2023.

Social Bonds

Used to raise funds required for social projects that contribute to solving social
issues, such as hygiene, welfare, and education.

Feedback received from customers includes: “This was a good opportunity to learn about social
issues” and “I hope similar initiatives will become more widespread.” Through the deposits product,
we will continue to advance our initiatives for solving social issues.

Sustainability Bonds

Used to raise funds required for both green and social projects.

Examples of activities that can be supported through term deposits

Sustainability Linked
Bonds

Bonds that set KPIs and SPTs and urge companies to achieve the targets fortheir sustainability activities.

Transition Bonds

Used to raise funds required for green initiatives of core projects aimed attransition to a carbon-neutral society.

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Environmental protection, support to sports for persons with disabilities, medical support to children, support to children in poverty and other vulnerable situations, etc.

12Daiwa Securities Group will contribute to the delivery of societies which acknowledge
diverse forms of individuality, and in which everyone can flourish. In addition, theGroup will continue to focus on molding an organization in which each of its employ-

Diversity & Inclusion

ees can be their true selves and experience work satisfaction.

Promotion of Women’s Advancement

Employment of People with Disabilities
In FY2011, to enable employees with disabilities to handle a wide range of responsibilities, Daiwa
Securities Group broadened the scope of their recruitment as regular employees 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, forexample, creating opportunities for career track changes. To further strengthen our support to employees, we also introduced the Daiwa LEAP Plan* in 2018.
*The Daiwa LEAP Plan is comprehensive support that includes a leave program for outpatient treatment, subsidies for expenses incurred
to start work, and the introduction of support tools according to the type of disability.

Daiwa Securities Group implements training programs to support female employees
to provide opportunities to think about their career. We also strive to increase female
managers by helping to build networks across different generations. In addition, Daiwa
Securities Group has been selected as a “Nadeshiko Brand,” as a listed company thatexcels in promoting women’s advancement.
The Group has introduced “Daiwa Online Care,” an online medical care service for employees, as well as “Daiwa ELLE Plan,” which provides comprehensive support for healthissues specific to women. In recognition of these initiatives, the Group has been introduced as “a company to watch” in concrete examples of companies utilizing FemTech*
to solve health issues specific to female employees and develop an environment that
supports the empowerment of women.
Through these initiatives, we encourage women to succeed, aiming to increase theratio of female directors to at least 30% by 2030 and the ratio of women in managerial
positions to at least 25% by 2025.
*Products and services that can resolve women’s health issues with technology.

Selected by Both Brands for Eight Consecutive Years Since 2014
We will stay committed to further enhancing the level of ourservices for customers by raising employees’ job satisfaction
and developing an environment that ensures employees can
exhibit their capabilities to the maximum extent.

Daiwa Capital Markets Europe Limited (DCME)
Appointment of a Female CEO
In October 2021, DCME announced that it had appointed Megan McDonald as
its new CEO. With this appointment, the percentage of women on the company’s
Board of Directors is expected to rise to 40%.
In 2017, Megan McDonald was selected by Financial News as one of the 100
most influential women in European Finance.

“Pride Month” Campaign
In June 2021, DCME launched their pilot “Pride Month” campaign to raiseawareness for the LGBTQ+ community and express its support for theirsocial rights. In efforts to raise LGBTQ+ awareness, DCME disseminatedallyship training and information within the company, while changing thedesign of its company name logo used during the month, such as in email
signatures, to a rainbow flag, which is a symbol of LGBTQ+.

* “Nadeshiko Brand” and “Health & Productivity Stock Selection” are awarded jointly by Japan’s Ministry of Economy,
Trade and Industry and the Tokyo Stock Exchange.

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Providing Financial Knowledge
across the Generations

Supporting Sound
Financial and Capital Markets

Daiwa Securities Group provides opportunities for financial education to help

Daiwa Securities Group assists companies that need funds and supports the ef-

deepen financial literacy across the generations and increase money flows inficient allocation of capital. We will continue to support social infrastructure by

the market, helping to revitalize financial markets in the future.

contributing to the creation of a more active and stable financial markets.

Cooperation with the “Oshigoto Museum”
Daiwa Securities Group cooperates with the “Oshigoto Museum (itmeans a job museum)” a career education support project for elementary school and junior high school students. The project provides information on working and jobs through the book “Oshigoto Almanac (it meansa job almanac)” the “Oshigoto Museum Website,” and the “EduMall”
educational content distribution service. It helps children todevelop a vision of their future jobs.
Oshigoto Museum
Website Japanese

Digital Educational Material“Let’s Learn About Stocks”
Daiwa Securities Group created PowerPoint educational material forlearning about stocks in response to the progress of digitalization inschools under the government’s Global and Innovation Gateway for All(GIGA) School Program.
The material incorporates in its note function instruction plans andexplanation examples, enabling schools to immediately use it for classes.
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Securities Companies’ Roles in Society as Viewed
by the Daiwa Securities Group
Primary Market

Financial & Capital markets
Fund procurement

Companies

National
government

Issuance

Secondary Market

Investment

Equities

Bonds

Proceeds

ReturnInstitutional
investors

Investment

Individual
Investors

Securitized
products

Roles of Securities Companies
Protect market trust ―Work to ensure a fair and sound market
Fund procurementby companies, etc.

Support for initialpublic offerings

Assistance intrading of securities

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Assistance inasset building

Analysis and provisionof information

Implementation of “Jeans Day”
We have initiated “Jeans Day,” a one day a month charity event for those affected by

To coincide with International Women’s Day, Daiwa
Securities Group created a marketing campaign that
demonstrated the diversity of officers and employees!

COVID-19. On the day, officers and employees come to the office in casual clothes
and undertake fundraising activities.
The whole of the funds raised in the first half of FY2021 was donated to a nationwide campaign to support those engaged in welfare activities for people affectedby the COVID-19 pandemic run by Akai Hane Central Community Chest of Japan. In
March 2022, we selected the Japan Committee for UNICEF’s “Ukraine Emergency
Fund” as the destination for our donations in light of the recent situation involving
Ukraine. Through the Jeans Day event, we collected more than ¥20 million in one
year, creating opportunities to participate in social contribution activities. The event
has also contributed to generating an atmosphere and communication style that are
not seen in daily work, helping to develop an open working environment and improveengagement between employees.

(published in the morning edition of The Nikkei newspaper dated March 8, 2022)

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Published in June 2017
Updated in June 2018
Updated in December 2018
Updated in June 2019
Updated in June 2020
Updated in June 2021
Updated in June 2022

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

Daiwa Securities Group
SDGs Promotion Original Logo

An employee designed this logo while imagining
the realization of a sustainable society. We will
share the logo across the Group and advance ourinitiatives to achieve the SDGs.

Overview of Daiwa Securities Group ( as of June, 2022)■ Corporate Name

Daiwa Securities Group Inc.

■ Head Office

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

81-3-5555-1111■ President and CEO

Seiji Nakata
Group website