Daiwa Securities Group Inc.
Green Finance Framework
JAN 2024

Framework Overview
Daiwa Securities Group Inc. Green Finance Framework (“Framework”) aligns with the four
core components and key recommendations of the Green Bond Principles 2021 establishedby the International Capital Markets Association (ICMA), the Green Bond Guidelines (2022)
and the Green Loan Guidelines (2022) established by the Ministry of the Environment andthe Green Loan Principles 2023 established by the Loan Market Association (LMA), the AsiaPacific Loan Market Association (APLMA), and the Loan Syndications & Trading Association(LSTA).
1. Use of proceeds
2. Process for Project Evaluation and Selection
3. Management of Proceeds
4. Reporting

1. Use of proceeds
The proceeds from the green finance will be allocated towards financing and/or refinancing
following eligible green projects.
Eligible Green Projects
Renewable Energy

SDGs

Eligibility Criteria
Expenditures

orinvestmentsfortheacquisition, development, construction andoperation of following renewable energy
generation projects.
・ solar power・ wind-power・ geothermal power（limited to projects withdirect emissions of less than 100gCO2/kWh）・ hydroelectricpower(excludinglargehydros with more than 20 MW capacity)
・ biomass energy power (limited to projectswithsourcing

fromthesameneighboring prefecture)

Daiwa Securities Group Inc.

Green Finance Framework

The Japanese Framework is the original and this English Framework is for reference purpose only.

orGreen Building

Expenditures

orinvestmentsfortheconstruction of green buildings as well as
refurbishment to convert existingbuildings

into green buildings to meet the following
criteria.
・ 3,4 or 5 Stars under the DBJ Green
Building Certification
・ B+, A or S Rank under CASBEE
・ 3,4 or 5 Stars under BELS

2. Process for Project Evaluation and Selection
Daiwa Securities Group Inc.’s Treasury Department (“the Treasury Department”) will evaluate
and select projects in accordance with eligibility criteria. The Treasury Department will
collaborate with relevant departments with specialized expertise, if necessary. The final
decision will be made by the Chief Financial Officer based on the selected eligible green
projects.

3. Management of Proceeds
The management and allocation of proceeds will be executed by the Treasury Department.
The Treasury Department will use a separate ledger and continuously track budgets andactual spending for eligible green projects. Pending allocation to finance eligible greenprojects, the amount equal to the balance of the proceeds will be temporally invested in cash
and/or cash equivalents and will be allocated to eligible green project as soon as practicably
possible.

4. Reporting① Allocation Reporting
Throughout the term of the green finance, Daiwa Securities Group Inc. ("DaiwaSecurities Group”) will report annually on allocation of proceeds on corporate website,
until the proceeds are fully allocated to eligible green projects. Daiwa Securities Groupwill also update the report in case where material changes. Allocation reporting will
include the following information.
・Description of projects
・Amount allocated・Whether each project is being refinanced or financed
・Amount of unallocated proceeds (if any)

Daiwa Securities Group Inc.

Green Finance Framework

The Japanese Framework is the original and this English Framework is for reference purpose only.

② Impact Reporting
Throughout the term of the green finance, Daiwa Securities Group Inc. will reportannually on the impact of eligible green projects on corporate website. Impact reporting
will include the following information as feasibly possible.
Renewable Energy

・ CO2 Emissions Reduction by the eligible green
projects
・ Power Generation by the eligible green projects

Green Building

・ Types of the certification
・ Level of the certification

Daiwa Securities Group Inc.

Green Finance Framework

The Japanese Framework is the original and this English Framework is for reference purpose only.

Daiwa Securities Group Inc.

Green Finance Framework

The Japanese Framework is the original and this English Framework is for reference purpose only.