Daiwa Securities GroupCSR Report
2012
Building a Sustainable Society

What we can do
What will the world be like when thesebabies become adults?
The precious faces of these infants–allchildren of Daiwa Securities Group
executives and employees–express ourhopes for the future. At the Daiwa
Securities Group, we are determined
to take responsibility as individuals andto do our part as a company tocreate a sustainable society living inhappiness and in harmony with anunspoiled Earth.

CSR Report 2012

Message from the President and CEO“New” Daiwa Securities and“New” Medium-Term Management Plan
In the year since I was appointed CEO, I have been
constantly impressed by the vast management resources
possessed by the Daiwa Securities Group. In the past,
the qualities that have allowed the Group to thrive were notambitious M&A-based strategies but, rather, the importancethat Daiwa places on developing a corporate culture
committed to excellence. The unity and reliability of thisorganization are the Group’s most valuable assets.
Even when considering the broad sweep of its 110-year
history, I believe that FY2012 will go down as a historic year
for the Daiwa Securities Group. To guide the “new” Daiwa
Securities as it enters the next phase of its evolution, we haveformulated a “new” Medium-Term Management Plan—“Passion for the Best” 2014. This plan, which commenced
in April 2012, contains the Group’s roadmap for the next
three years. I take pride in having the opportunity tocontribute to this important transition and I would like tothank all Daiwa Securities Group stakeholders for theirsupport as we strive to build a sustainable corporate
structure and pursue a new phase of growth.

On April 1, 2012, Daiwa Securities Co. Ltd. merged with
Daiwa Securities Capital Markets Co. Ltd., opening a newchapter in the Daiwa Securities Group’s history. This merger
will reunite the Retail operations of Daiwa Securities with
the Wholesale activities of Daiwa Securities Capital Markets
for the first time since 1999, when the Group adopted
a holding company structure. We have concluded that thisre-unification is an essential step in our effort to “establish
a robust business structure.” Indeed, we see it as one of
the most important decisions in the 110-year history of
the Daiwa Securities Group. Preparatory work to merge
the two companies and a project to revise the Group’s
organizational structure has been under way since early
2011. The consolidation and streamlining project aims toeliminate all the inefficiency and duplication that developed
over the 13 years during which operations were managed
separately, while aggressively cutting costs, especially in
the Wholesale business, to address today’s highly competitive
business environment. These efforts have already lowered
break-even levels dramatically. In this way, we are laying
a firm foundation on which the Daiwa Securities Group canwrite a new chapter in its history. As the “new” Daiwa
Securities begins operations, we will strive to create theefficient management structure and powerful sales
capabilities needed to succeed as a comprehensive,full-service securities company.

Daiwa Securities Group

September 2012

Takashi Hibino
President and CEO
Daiwa Securities Group Inc.

1

CSR Report 2012

CSR Report 2012

Message from the Chairman

Securities Group aims to be a company that employees
want to work for. Management strives to earn the trust of
employees, and to create a work environment that
promotes cooperation, camaraderie and pride in one’s
work. Cooperation in turn contributes to greater efficiency,
effective teamwork in pursuit of shared goals, and a spiritof determination that is impossible to quantify. I believe thatthe merger of Daiwa Securities Co. Ltd. and Daiwa Securities
Capital Markets Co. Ltd. to create a “new” Daiwa Securities
will promote even greater cooperation and teamwork among
business divisions, create a unified spirit among the employees
and executives, and further refine our efforts to create value.
Today, the very purpose and role of a financial company
is changing to reflect changes of the society. Nevertheless,I am confident that the unchanging values and strong
loyalty of Daiwa Securities Group employees will serve us
well, as we try to draw on traditions from the past andbuild bridges to the future. I have no doubt that the Daiwa
Securities Group will continue to play an important rolein Japan’s capital and financial markets and to provide
continued value to the societies in which we operate.

Over the 110 years since it was founded, the Daiwa
Securities Group has contributed to economic growth
and the progress of society, through its activities in capitaland financial markets. Since it was established in 1902,
the Group has been noted for the loyalty and dedication
to corporate principles that employees and executives
demonstrated—qualities that have carried Daiwa Securities
through eleven decades of external change and reform.
We have cultivated a corporate culture in which employees
and executives consistently place cooperation andcontributions to the success of the Group ahead of theirown personal gain.
This sort of loyalty is a critical element in the growthand health of a business organization. I view it as themost important source of the Daiwa Securities Group’s
competitiveness—an “invisible asset” that prompts
employees and executives to seek ways to improve theirworkplace and which discourages actions that might hurt
the company, thus facilitating internal control policies.
In addition, a company can continuously invest in theadvancement and training of the workforce to enhance its
own long-term security, as it can depend on the unceasing
efforts of talented, motivated personnel.
These bonds of loyalty run in both directions. The Daiwa

Daiwa Securities Group

Shigeharu Suzuki
Chairman of the Board
Daiwa Securities Group Inc.

2

CSR Report 2012

CSR Report 2012

Contents

Editorial Policy
The Daiwa Securities Group has been publishing this reportannually since 2002 with the aim of clearly disclosing our
CSR activities, which are intended to support the creationof a sustainable society. We also use this opportunity toevaluate the company’s current status and the challenges
it is facing.
In "CSR Report 2012", we aim to explain in good faith ouractivities about environment, society and governance (ESG)
along with annual report 2012. We also aim to view anintegrated report that contemplates further enhance
non-financial information. We added new activities on ourefforts to Socially Responsible Investment (SRI), because
we wish to convey to many stakeholders that the way
money is used is key to resolving society’s problems suchas climate change and poverty.
We post our CSR report 2012 only in the website by PDF,
since we published an annual report 2012 which contains
essential parts of our ESG activities.
This CSR report is edited based on the guidelines of the
global reporting initiative (GRI)* and ISO26000.

1 Message from the President and CEO/
Message from the Chairman
3 Editorial Policy
4 Daiwa Securities Group Profile
5 Daiwa Securities Group Corporate Principles
and Key Issues
Management Report
6 Social Responsibilities of the Financial Service
9 CSR Management
11 CSR Issues: Performance and Targets
14 Management* GRI (Global Reporting Initiative): An organization dedicated toproposing and promoting common international guidelines forsustainability reports.

14

Corporate Governance

16Compliance17

Risk Management

19

IT Governance, Disclosure,and Information Security
Social Report

20 Relationship with Customers
22 Relationship with Shareholders and Other Investors
24 Relationship with Exectives and Employees
Scope of Report

30 Human Rights Initiative

Intended ReadershipThis report is intended for Daiwa Securities Group’s stakeholders,which primarily include customers, shareholders and investors,
executives and employees, as well as business partners,
government agencies, non-profits (NPOs, NGOs), local
communities where Daiwa Securities has offices, educational
institutions, and the families of executives and employees.
Scope of Reporting
This report basically covers the principal companies of the Daiwa
Securities Group (see page 4). The report 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. Each set of numerical
data specifies the scope of coverage.
Period Covered by Report
Fiscal 2011 (April 1, 2011 to March 31, 2012). The report
also includes information on events and activities carried out
prior to fiscal 2010, as well as those scheduled to take place
during fiscal 2012.
Date of Publication
October 2012 (The previous report was published in August
2011; the next report is planned for August 2013).

31 Relationship with Society
Environmental Report
38 Environmental Initiatives
Economic Report
42 Delivering Economic Value to Stakeholders
44 Third-party Opinion / Response to Third-party Opinion
45 Third-party Evaluations
45 G3.1 GRI/ISO26000 Content Index◆ A reorganization of group companies

The Group decided to merge Daiwa Securities Co. Ltd. with
Daiwa Securities Capital Markets Co. Ltd. on April 1, 2012,
reuniting Retail and Wholesale operations for the first timein 13 years. As the “new” Daiwa Securities Co. Ltd. opens
a new chapter in its history.
It aims to strengthen the group total solution capacity byintegrating both expertises.
This report uses both“Daiwa Securities Co. Ltd.” and “Daiwa
Securities Capital Markets Co. Ltd.” to describe FY2011
activities.

Inquiries: Daiwa Securities Group Inc.
Corporate Communication Department, CSR Group
Tel: +81-3-5555-1111 (main)
E-mail: daiwacsr@dsgi.daiwa.co.jp
Website: http://www.daiwa-grp.jp/english/csr/

Daiwa Securities Group3

CSR Report 2012

CSR Report 2012

Daiwa Securities Group Profile
Corporate Data

Description of the Daiwa Securities Group’s Businesses● NameThe Daiwa Securities Group is a comprehensive financial services firm with a strong
domestic base nationwide and a global network of operating offices covering 20
countries and regions. The primary businesses at the core of the Group are Retail,
Wholesale, and Asset Management. The Group offers expert advice and service tomeet customer’s diverse needs.

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● Established
December 27, 1943 (Founded 1902)● President and CEO
Takashi Hibino● Capital¥247.3 billion● Number of Employees (consolidated)*1
14,432● Number of consolidated subsidiaries
60● Number of equity-method affiliates
5● Shares issued and outstanding
1,749,378,772

1. Retail Division

4. Asset Management Division

Through its domestic network of 120
branches*2, a call center, and the Internet,
Daiwa Securities offers two retail services,
Daiwa Consulting and Daiwa Direct,
which provide a wide range of financial
products and services as well as support
for customer asset management, mainly
for individuals and unlisted companies.

This business creates and manages stock,bond, and private investment trusts, andprovides other investment management
services for real estate investment trusts,
pensions, and other funds.

2. Global Markets DivisionThis business, engaged in sales andtrading, provides brokerage of securities
and other financial products mainly forinstitutional investors.

(As of April 1, 2012)*1 As of March 31, 2012
*2 As of June 30, 2012

3. Global Investment Banking
Division
This business offers support forcorporations and financial institutions inbusiness expansion to finance and capital
strategies, by assisting financing activities.

5. Investment DivisionThis business invests in areas such asprivate equity, venture capital
opportunities, business regeneration,monetary receivables, and real estateusing its own funds or through theformation of investment funds.

6. Others
The Daiwa Securities Group provides
information via research reports and otherdocuments, management consulting, IT
services, and other offerings to institutional
investors, corporate clients, financial
institutions, and public organizations inJapan and overseas.

Daiwa Securities Group Inc.

RetailWholesale
Global Markets

Global IB

Daiwa Securities

Daiwa Capital Markets Europe Limited

Asset Management

Investment

OthersDaiwa AssetManagement
Co., Ltd.

Daiwa Corporate
Investment Co., Ltd.

Daiwa Next
Bank, Ltd.

Daiwa SB
Investments Ltd.

Daiwa Securities
SMBC Principal
Investments Co., Ltd.

Daiwa Real Estate
Asset Management
Co., Ltd.

Daiwa Capital Markets Asia Holdings B.V.

Daiwa PI
Partners Co., Ltd.

Daiwa Instituteof Research
Holdings Ltd.
Daiwa Instituteof Research Ltd.
Daiwa Institute of
Research Business
Innovation Ltd.
Daiwa Securities
Business Center
Co., Ltd.

Daiwa Capital Markets America Inc.

Daiwa Property
Co., Ltd.

Daiwa Securities Group4CSR Report 2012

CSR Report 2012

Daiwa Securities Group Corporate Principles and Key Issues
The Daiwa Securities Group’s mission is to contribute to the development of society and the economy through daily operations,
including wealth management for investors and support for the financial strategies and other aspects of corporations and public
institutions. Deepening the bond of trust we share with our stakeholders, including customers, shareholders, employees andsociety, is essential to the accomplishment of our mission and sustainable growth together with society.

Key Issues for Daiwa Securities Group

Corporate Principles of the Daiwa
Securities GroupTo achieve its corporate principles and realize a sustainable society,
the Group seeks to initiate even more effective CSR activities. Based on
the requests and opinions we have received from our stakeholders thus
far, we have addressed the following key issues:

Building trust
The trust and approval of customers forms the very foundation of
the Daiwa Securities Group. The Group will always place the needsof customers first, and strive to develop the advanced, specializedskills to offer them the most attractive products and services ofany securities group.

1. L everaging financial capabilities tocontribute to a sustainable society

Placing importance on personnel
The source of the Group’s competitiveness lies in the capabilities
of its employees. The Group will promote the creativity of
employees by offering them a challenging and self-directedworking environment that encourages their abilities andappropriately rewards their contributions.

2. D eveloping sound financial and capital
markets for the next generation

Contributing to society

Human resources are the key to addressing these issues. We believe
keeping each and every one of our executives and employees motivatedand proud of their work is essential for tackling these key issues.

The Daiwa Securities Group will seek to benefit the economy
and society through the development of healthy financial markets.
In addition to scrupulously observing both regulations andinternal policies, the Group will strive to maintain a high senseof morality and duty, endeavoring to continue contributing to
the sustainable growth of the societies in which we operate.

In addition to these two CSR issues, theGroup strives to create a rewarding
workplace in which our executives andemployees can take pride.

Maintaining healthy earnings results
The Group will always seek to develop healthy business
operations and to increase corporate value for the benefit ofshareholders. By providing customers with attractive products
and services, the Daiwa Securities Group will seek to generatestrong profits and healthy returns for shareholders.

To achieve its corporate principles, the Daiwa Securities
Group anchors its CSR activities in these goals.

Daiwa Securities Group Stakeholders

Customers● Investors
We are committed to improving customer satisfaction
by offering products and services that meet the needsof individual investors, institutional investors, andpotential investors who are considering investingin the future.

Investors● Issuers
For private corporations, public institutions and otherentities seeking to raise funds through equity, debt, orother sources, we propose optimal solutions from awide range of financing options and provide full-scale
support, from planning to execution.

Issuers● Business Partners

Shareholders● Shareholders
To earn the confidence of our shareolders,we aim to provide fully transparent
information disclosure, and meet their
expectations by continually creating value.

Business
Partners

Shareholders

Daiwa Securities
Group● Government
We fulfill our tax obligations and offer policy
suggestions to create a better society.

● Employees
We are endeavoring to create aworkplace where our employees,
who create added value for all otherstakeholders, are fully motivatedand can find satisfaction in theirwork and lives. Our employees’
families are also important
stakeholders.

yees’ Famil

SocietyiesEm

Governmentplo

We maintain fair relationships with all ourbusiness partners and work together to create asustainable society.

NPOs/
NGOs

Employees
Local
Communities

Employees● NPOs/NGOs
We collaborate with NPOs and NGOs in such fields asfinancial and economic education and disaster relief.
We reflect social values in our management throughactive dialogue.

● Local Communities
As members of their local communities, our branches and overseas
offices promote community-based efforts.

Daiwa Securities Group5CSR Report 2012

CSR Report 2012Management ReportSocial Responsibilities of the Financial Service
Approach and Basic Stance
The mission of the financial service companies is to contribute to the development of society and the economy through daily
operations that help build investors’ wealth and support financial strategies across the private and public sectors. We at the
Daiwa Securities Group consider strong, trusting relationships with customers, shareholders, employees, and society–asexpressed by our corporate principles–foundational to the ongoing fulfillment of this mission and continuous growth.

Role and Social Responsibilitiesof the Financial Service

have committed to sustainable and responsible businesspractices shape their policies. The Group pursues businessactivities consistent with the UN Global Compact. Further,in line with the United Nations Millennium Development
Goals (MDGs)*5 the Group is endeavoring to develop
products and services that help resolve social issues.

The financial service company such as Daiwa Securities
Group plays a vital social role by building a bridge between,on the one side, the need of companies to raise capital or
the need of governments to finance public work projects,
and on the other side, the need of individual and institutional
investors, pension funds, and others for efficient investment.
On the fund-raising side, the Group provides advice andassistance in implementation for companies raising money
for capital expenditures and R&D, as well as for national
governments, local governments, international institutions
and public corporations seeking to raise funds for public
works projects. It does so by issuing marketable securities
such as stocks and bonds, and by creating other securitized
products.
On the investment side, the Group provides appropriate
investment information and advice tailored to eachcustomer’s situation and goals. It offers a comprehensive
and diverse line-up of financial instruments and services tomeet the various needs of individual and institutional
investors as well as pension funds. Human rights, labor andenvironments are issues in a society. Financial service industry
has a social responsibility and a key role in contributing asustainable development in countries, regions, communities
and industries by creating a flow of money through financial
and capital markets in promoting circulation of blood in
the economy.

*1 United Nations Environment Programme Finance Initiative(UNEP FI)
UNEP FI is a partnership between the United Nations Environment
Programme, which is a UN organization, and financial institutions
around the world. Based on the recognition that the money handled
by the financial industry has a major impact on the world, thisinitiative pursues better ways of doing business, taking into accountthe environment andsustainability, and seeks tospread and encourage thiscommitment.
*2 Principles for Responsible Investment (PRI)
PRI is a set of six principles launched by the UNEP Finance Initiative
and the UN Global Compact in April 2006. This initiative asks
corporate investors to incorporate
ESG into their investment decisionmaking practices.

*3 Carbon Disclosure ProjectThis project is an affiliation of institutional investors concerned
about climate change who demand that companies disclose
information about their stance on environmental problems andinitiatives addressing such problems.

External Initiatives Using Financical capability
to Resolve Social Issues*4 UN Global Compact
The UN Global Compact was established in 2000 under the UN
Secretariat after an initiative launched in 1999 by then-Secretary
General Kofi Annan. The membership consists of global corporate
leaders who are expected to align their business practices with ten
principles in the fields of human rights, labor,
environment, and anti-corruption in their businessactivities, in partnership with UN agencies, labor,
and civil society. Signatory members are required
to implement these principles with a top
management commitment.

The business sector plays an important role in enhancing
the sustainability of society. Financial institutions have asocial mission to make the most of their core capacities tocontribute to sustainable social development. At the Daiwa
Securities Group, we believe that our role is not only tomaintain and develop an equitable and dynamic financial
market, but also to reflect a socially conscious perspective
in finance and facilitate the flow of money to build
sustainable societies.
On the basis of this philosophy, the Daiwa Securities Groupis a signatory to UNEP FI*1 PRI*2 and the Carbon Disclosure
Project (CDP)*3 fulfilling this role as an upstanding memberof the international community.
In January 2010, the Daiwa Securities Group became thefirst Japanese securities company to sign the United Nations
Global Compact (GC)*4 a platform to help companies that

Daiwa Securities Group*5 United Nations Millennium Development Goals (MDGs)
The MDGs consist of eight goals that 189 representatives from UN
Member States, including 147 heads of state, participating in the UN
Millennium Summit held in New York in September 2000, designatedas 21st century goals for the international community. It aims toachieve numerical goals in eight fields such as Poverty alleviation,
education and public healthcare and so on by 2015.

6

CSR Report 2012●Daiwa Securities Group: Principles for Financial● Socially Responsible Investment (SRI ) Funds

Action Toward a Sustainable Society (Principles for
Financial Action for the 21st Century)
The Principles for Financial Action for the 21st Century weredrawn up by a committee comprising representatives froma range of Japanese financial institutions that was tasked
with drafting a Japanese version of Principles forEnvironmental Financial Action. This was based on arecommendation issued by the Japanese environment
ministry’s Central Environment Council with the objectiveof promoting environmental finance. Signatory institutions
endeavor to embed ESG into their activities to the extent
that their business context allows. The Group was involvedin the establishment of these principles from the draftingstage to laying out the final framework. The Daiwa
Securities Group and Daiwa Asset Management signed up
in November 2011.

SRI funds evaluate and select potential component stocks
and bonds for their social and environmental efforts, ethics,
and other nonfinancial performance, as well as the level ofsales and profit. These include eco-funds, for which
nonfinancial criteria are limited to environmental performanceor which invest exclusively in companies operating
environment-related businesses. Investing in such funds
enables investors to indirectly support countries and firms
actively engaged in environmental conservation efforts andCSR activities via the financial market.
Total net assets held in the Daiwa Securities Group’s SRI
funds stood at ¥90.6 billion at the end of March 2012
(Source: Daiwa Fund Consulting).
● Impact Investing

Impact Investing differs from SRI in that it places emphasis
on investments directly affecting society. It is a way to allocate
assets solely to activities targeted at resolving social issues
such as poverty and environmental issues, in combination
with generating economic gains.
As a financial institution, we have supported the resolutionof problems in society by offering various types of Impact
Investment bonds.
Cumulative offerings of Impact Investment bonds in Japanamounted to some ¥563.2 billion at the end of March
2012, of which ¥378.2 billion, or 67%, was arranged dby
the Daiwa Securities Group (Source: Daiwa Securities).

Daiwa Securities Group Initiatives●Daiwa Institute of Research: Strengthening ESG

research
The year 2011 saw ESG take on a more prominent presence
within the Daiwa Institute of Research. The Environment
and CSR Research Section, which had been established inAugust 2010 as part of the Capital Markets Research
Department, was upgraded to a department in its own
right (renamed the Environmental Research Department inApril 2012). The Institute’s website publishes reports on
topics such as environment/energy issues, governance, SRI,
and corporate disclosure of ESG information.

●JICA Bonds: Connecting developing countries andretail investors
Japan provides a large amount of “yen loans” to emerging
economies and developing nations to support infrastructuraldevelopment and the battle against climate change andinfectious diseases. The Japan International Cooperation
Agency (JICA) had traditionally procured the funds for theselong-term, low-interest loans by issuing so-called JICA
bonds to institutional investors. In December 2011, JICA
bonds were issued to retail investors for the first time. Thisfinancial product is akin to a bridge connecting developing
countries with the funds of Japan’s retail investors, enablingthem to use their personal assets to support developing
countries in the form of yen loans.
In connection with the issuing of these bonds, we organized
a seminar and an exhibition at the JICA Global Plaza topresent the Group’s CSR activities.

●Daiwa Asset Management: Research structure

Since March 2010, fund managers and analysts acrossoperations and research departments have been leading thedevelopment of new research systems at Daiwa AssetManagement. It is necessary to evaluate from a long-term
perspective the corporate values born out of nonfinancial
initiatives such as those seeking to reduce environmental
burdens or consider the social impact of activities. Daiwa
Asset Management seeks to improve the accuracy ofcompany valuations by trying to clarify the purpose of using
nonfinancial performance indicators in company valuations.
In fiscal 2011, we gathered information on research methods
used by external research institutes and engaged in debatesconcerning how these could be applied to our company
valuations and investment research processes.

●Green Bonds purchased by regional banks and● Daiwa Asset Management

universities
World Bank green bonds support projects addressing theissue of global warming in developing countries. To date,a total of $3 billion in green bonds has been issued toinvestors throughout the world. The types of projects that
may be supported by World Bank green bonds include
renewable energy installations, funding for new technologies
that reduce greenhouse gas emissions, reforestation,watershed management, and flood protection.
Fiscal 2011 saw Japan’s local banks and educational
institutions investing in these bonds, which were arranged
by Daiwa Capital Markets.

    established investment policy against cluster
munitions producers
Since the implementation of the Oslo Convention on Cluster
Munitions in August 2010, Daiwa Asset Management, as
an asset management company operating in a signatory
country, has followed the principles outlined below wheninvesting in or otherwise dealing with cluster munitions
producers.
1. Do not include the securities of cluster munitions producers
in active funds. Promptly sell those already included.
2. In exercising voting rights associated with shares issued
by cluster munitions producers, vote in favor of any
shareholder proposals to withdraw from, or scale down,cluster munitions production.

Daiwa Securities Group7

CSR Report 2012

Daiwa Securities Group’s History of SRI Funds and Impact Investment Bonds
Share in net assets of SRI funds in Japan*1● Reconstruction Assistance

Daiwa Securities¥90.6 billion (end-March 2012)● Daiwa Microfinance Bonds● Daiwa Nippon Support Fund23％

● Global Eco

Growth Fund
Course A● Global Eco
Growth Fund
Course B Sold
(redeemed)● Daiwa/Blackrock Green New● Daiwa Energy

Energy Fund

Technology Fund(limited open-type
fund)● Russell Global
Environmental
Technology Fund

Total ¥389.3 billion● Six Asset Balance● GlobalFund (distribution
type)● Six Asset Balance
Fund (growth type)● Daiwa Eco FundEnvironment
Equity Fund
● Global
Environment
Foreign Bond
Balance Fund● Next-Generation

Open”

2011
2010
2009

● Water Bonds● Poverty Reduction

2008

Bonds for Latin America
and the Caribbean● Vaccine Bonds● Ecology Bonds● JICA bonds

2007
2006

● Ecology Bonds (2 times)● Microfinance Bonds (IFC)● Education Bonds for Africa● Poverty Reduction Bonds for Latin

2004
2001

America and the Caribbean● Microfinance Bonds (EBRD)● Water Bonds● Vaccine Bonds● Green World Bank Bonds● World CO2L Bonds● Vaccine Bonds● CO2L Bonds

2012

Environmental Business Fund
● “Eco Business Japan Stocks● Daiwa SRI

Fund● DC Daiwa
SRI FundFund for SMEs affectedby the Great East Japan
Earthquake and Tsunami

Share in cumulative salesof Impact Investment bonds
for individual investors*2
Daiwa Securities¥378.2 billion (end-March 2012)67％● Microfinance Bonds (IFC)● Vaccine Bonds

Total ¥563.2 billion*1 Based on Daiwa Fund Consulting Co.Ltd. *2 Based on Daiwa Securities

Daiwa Securities Group8CSR Report 2012

CSR Report 2012Management Report

CSR Management
Approach and Basic Stance
Daiwa Securities Group’s vision is to become Asia’s leading financial services group possessing and leveraging asolid business platform in Japan. With the goal of making this vision a reality, we have begun implementing a new
three-year mid-term management plan, “Passion for the Best 2014.” This plan involves ensuring that all executives
and employees are bringing a constant awareness of environmental, social, and corporate governance (ESG) to their
daily tasks and engaging in active dialogue with stakeholders to further awareness of CSR and to make us better able
to address key CSR issues. We are also creating systems to encourage related departments to work together to address
key CSR issues.

CSR Promotion Systemtraining, information on CSR is shared in department headmeetings and departmental liaison meetings, thus promoting
awareness of CSR throughout branches across Japan andmajor overseas sites and building systems for cooperation.
The section also organizes dialogues on various CSR issues
with opinion leaders in the broader society and posts themon the CSR website of Daiwa Securities Group Inc. as “CSR
Dialogue” (only selected dialogues are available in English).

The CSR section of the Corporate Communication
Department at Daiwa Securities Group Inc. compiles
information in external and internal meetings and actively
holds dialogues to ensure that feedback from a wide rangeof stakeholders is reflected in the Group’s activities. As wellas through CSR lectures during the Group’s new hire
CSR Promotion System

Daiwa Securities Group Inc.
Foundations
Daiwa Securities Health Foundation
Daiwa Securities Foundation

President and CEO
Dialogue

Stakeholders

Executive officers

Customers
Shareholders

Daiwa Anglo-Japanese Foundation (UK)
Dialogue
CSR Promotion Group, Corporate
Communication Department

Business partners
Government
NPOs / NGOs
Local communities

Group companies

Dialogue
Departments within
Daiwa Securities Group Inc.

Daiwa Securities Group9CSR Report 2012

Management Vision

A new Medium –Term Management Plan– “Passion for
the Best” 2014
In April 2012, the Daiwa Securities Group unveiled a new
Medium-Term Management Plan entitled “Passion for theBest” 2014 to achieve one of its Corporate Principles,“Maintaining healthy earnings results”.
Its management vision is to become a leading financial
services firm in Asia while possessing and leveraging a solid
business platform in Japan. To meet this objective, we will
have to establish a robust earnings structure capable ofgenerating profits even in times of economic stress. In
addition, the Group must achieve sustainable growth bylinking Japan and the growth of Asia. These two objectives
form our basic management policies.

"To become Asia’s leading financial services firm
possessing and leveraging a solid business platform
in Japan."
Based on its established business foundation, the Daiwa
Securities Group will materialize its vision and corporate
principles in order to achieve higher goals.
The Daiwa Securities Group is working to achieve sustainablegrowth by building even stronger trust with stakeholders
and contributing to the ongoing development of society.
The Group aims to be an upstanding enterprise that
executives and employees and their families can feel more
and more proud to be part of, as it strives to "To become
Asia’s leading financial services firm possessing andleveraging a solid business platform in Japan."Medium –Term Management Plan– “Passion for the Best” 2014
FY2012Turnaround

FY2013GrowthFY2014
Expansion

Basic Policy I: Return to profitability by pursuing management efficiencies(Focus of execution in the first fiscal year)■ Steadily implement the plan to reduce SG&A
■ Realize greater organizational efficiencies by shifting personnel
from the middle-and-back offices to the front divisions

Basic Policy II: Achieve client based high-quality earnings growth■ Drastically expand our client base in Japan by investing management resourcesin the Retail and Asset Management businesses–Expand stable earnings by increasing investment trusts and deposit balances–■ Strengthen revenue capacity centered around the launch of the “new”
Daiwa Securities–Step up approaches to high net worth individuals and the middle market–■ Rebuild our Wholesale business–Re-strengthen the brokerage business and build an efficient global network–

Daiwa Securities Group10CSR Report 2012

CSR Report 2012

CSR Issues: Performance and Targets
Rating indicates self-evaluation of fiscal 2011 results:◦ = success (significant), ◦ = success (moderate), △ = additional effort needed, × = not achieved.

Key Issue 1 Leveraging Financial Capabilities to Contribute to a Sustainable Society
Targets for Fiscal 2011

Results for Fiscal 2011

Rating•Expand design and sales of Impact•Established a reconstruction assistance fund for SMEs affected by theInvestment products relating toGreat East Japan Earthquake and Tsunami
earthquakes, the environment, poverty,•Developed and provided Impact Investment products
and other issues in Japan and abroad○•Enhance disclosure of environment andCSR information to investors○•Reorganized and enhanced disclosure of ESG information

Targets for Fiscal 2012
•Develop and sell SRI and Impact
Investment products•Enhance provision of CSR and SRI
information•Continue to provide reconstruction
assistance for the Great East Japan
Earthquake

Key Issue 2 Developing Sound Financial and Capital Markets for the Next Generation
Targets for Fiscal 2011
•Continue alliances with Japanese andforeign universities and continue theSocial Business College (participation
target of 80 people per lecture)

Results for Fiscal 2011
•Seven lectures on CSR and SRI at universities•Held Social Business College (six times)○•Bolster environment and CSR research•Upgraded environment and CSR research section to research group so as
conducted by group research
to bolster environment and CSR research (Daiwa Institute of Research)departments•Hold seminars and forums for ordinarycustomers (at least 3)

Rating•Held event in association with JICA
•Held event to commemorate 10th anniversary of sign language classes(with sign language interpretation)•Sponsored event organized by Iwate prefecture: The Great East Japan
Earthquake and Tsunami–Iwate reconstruction forum○○

Targets for Fiscal 2012
•Contribute to economic andfinancial education

──•Hold seminars and forums forcustomers (at least three)

CSR Management
Targets for Fiscal 2011
•Maintain dialogues with specialists inspecific themes and strengthen
relationships with departments andsections responsible within group(target of at least 12 dialogues)

Results for Fiscal 2011
•Held “CSR Dialogues” (five times)•Put in two panelists for TBLI conference Asia 2011

RatingTargets for Fiscal 2012△

•Hold dialogues with specialists on
specific themes•Strengthen relationships between
related departments and sections
within the Group

Corporate GovernanceTargets for Fiscal 2011

Results for Fiscal 2011

RatingTargets for Fiscal 2012

•Maintain healthy business by
disclosing adequacy of capital•Published a quarterly report on health of business as stipulated by law,demonstrating to the public the Group’s higher consolidated capital
adequacy ratio standards compared to other companies, and showing that
the Group is financially sound.

◎──•Increase awareness of crisis
management system for disasters•Increased awareness within the Group of crisis management system byimplementing training on checking employee safety together withemergency drills○•Strengthen crisis management
system for disasters◎•Continue efforts to reduce electricity
consumption•Reduce group-wide power
consumption by 15% in response topower shortage this summer•Reduced electricity consumption during the summer months in excess ofrespective requirements set forth by Tokyo Electric Power Company,
Tohoku Electric Power, and Kansai Electric Power Company*•Reduced electricity consumption during the winter months in areas suppliedby Kansai Electric Power Company and Kyushu Electric Power Company** Electricity-saving measures were also enforced in areas controlled by other electric powercompanies.

•Maintained efforts to reduce electricity consumption during periods oflower demand

Daiwa Securities Group11

CSR Report 2012

Compliance

Daiwa
Securities

Daiwa
Securities
CapitalMarkets

Targets for Fiscal 2011

Results for Fiscal 2011

Rating•Further strengthen
self-monitoring of ethics
at branches•Strengthened accountability during sales and marketing by establishing asystem of checking by superiors, and strengthening cooperation between
sales managers, internal control managers, and line managers◎•Strengthen commitment
to internal control in all
headquarter departments
and sections•Enabled horizontal visualization across headquarter departments andsections by integrating compliance functions across three Group companies•Developed internal control systems through cooperation with Daiwa Next
Bank and Banking Business Office during the launch of bank agency business•Strengthened internal control system by appointing a new internal control
officer, compliance officer, and so on within the online trading planningdepartment◎•Strengthen commitment
to preventing unfair
trading•Set up an integrated system for the retrieval of trading data for both
Daiwa Securities and Daiwa Capital Markets with the objective of making
transaction monitoring more effective•Strengthened systems to eradicate organized crime and money laundering
by implementing training to prevent these throughout branches◎•Create and strengthen aglobal compliance system•Strengthen systems toeradicate organized crime•Establish rules relating to
the Financial Instruments
and Exchange Law•Strengthened global cooperation by requiring monthly compliance reports
from overseas companies and developing effective systems to manage
classified information by enhancing systems to manage conflicts of interest•Developed internal control systems by consolidating within the compliancesection the monitoring of crime prevention and legal amendments such as
those concerning regulations on short-selling during public offering period•Set up system for inspecting all emails sent to personal email addresses◎

Results for Fiscal 2011

Targets for Fiscal 2012

•Build effective and efficient internal
control systems for “new” Daiwa
Securities•Further improve customer marketing and solicitation systems•Raise the quality of internal control
systems through inspection•Implement the improvement measures set out in the Group’s press
release dated July 27, 2012, in aswift and steady manner (Investigation Committee’s Investigation
Report on the Securities and Exchange Surveillance Commission’s
Recommendations and Daiwa’s
Improvement Measures)

Information Disclosure
RatingTargets for Fiscal 2012

•Actively disclose information, including •Clearly communicated to shareholders, investors, media, and so on details
non-financial content, demonstratingof the new basic company policy instituted following April’s appointment
the unique or differentiating featuresof a new president, by giving specific details of progress at theof the Group (continued)
management strategy briefing session

Targets for Fiscal 2011◎

•Focus on conveying information on
the “new” Daiwa Securities Inc.
and the “new” mid-term
management plan

•Carry out cost-conscious, efficient IR
activities (continued)•Reduced costs without compromising on information volume by printing
multiple pages on a single sheet and minimizing printing costs in external
IR documents such as annual reports and business reports◎•Implement cost reductions andoptimization regarding IR tools•Improve and make effective use of IR
channels (continued)•Disseminated information in a straightforward manner to shareholders andinvestors by providing a clear explanation of the management strategy
that was announced at the management strategy briefing session inexternal IR documents such as annual reports and business reports◎•Implement IR activities that appeal
to investors’ every need

Relationship with Shareholders and Other Investors
Targets for Fiscal 2011

Results for Fiscal 2011

RatingTargets for Fiscal 2012

•Take actions to expand shareholder
reward program (continued)•Enhanced the shareholder rewards program by providing a clearer
introduction to the reward program catalogue and adding frozen foods,
products related to earthquake relief, and monetary donations to therewards product selection. This resulted in a record high number ofapplications for reward products.

◎

──Targets for Fiscal 2011

Results for Fiscal 2011

RatingTargets for Fiscal 2012

•Actively pursue post-sales follow-up(continued)•Held investor seminars on the 5th of every month, providing information
on overseas and Japanese markets on an ongoing basis•Held impromptu seminars when the market fluctuated, such as seminars
on the foreign currency market when the yen appreciated significantly andfollow-up seminars when the value of trust funds depreciated•Presented current status and forecasts for customers’ investment trusts ingraphic format via the Daiwa Online Trading “notice box”
•Held New Spring Investment Forum in January 2012 across all branches,with about 6,330 customers attending•Continuously provided up-to-date information by publishing daily market
reports and fund management companies’ fund reports on our website◎•Improve customer-interface skills of
branch counter staff (continued)•Emplemented regular verification tests using our e-learning system•Head office staff conducted twice-yearly on-site checks and guidanceacross all sites•Continuously shared and disseminated information on the intranet◎•Develop professional workforce thatcombines expertise and loyalty(continued)•Focused on business skills training, encouraged and supported staff in
obtaining credentials, and enhanced foreign language training◎

Relationship with Customers

Daiwa Securities Group12CSR Report 2012

•Post-sales service──Relationship with Executives and Employees
Targets for Fiscal 2011

Results for Fiscal 2011

Rating•Improve customer-interface skills of
branch counter staff (continued)•Develop professional workforce thatcombines expertise and loyalty(continued)•Ongoing skills training and cross-Group training opened up to more Group
companies•Delivered group training and e-learning training for new hires andimplemented campaigns for each product•Continued to develop a working environment conducive to high motivation•Revised system for supporting acquisition of credentials•5,255 and 452 staff obtained AFP and CFP certifications respectively•Showed an increase in staff trying to improve language skills (1,418 took
the TOEIC test)○•HR development through targeted
recruiting and appointing•Worked to change employee awareness by encouraging employees toleave work before 7 p.m., welcoming family visits (3,868 family members
participated), and encouraging staff to take childcare leave (408 staff
members did)
•Increased awareness of systems (e.g., revised and circulated guidelines on
returning to work among managers; broadcast information internally tostaff; showed an increase in visitors to revamped Daiwa WLB Station)•Increased numbers using the Job Location Change system (cumulative totalof 82)○•Increased number of female managers (170 at end of fiscal 2011)•Accelerate appointment of female•Increased number of female staff aspiring to advance their careers (total ofmanagers who will assume leadership
659 female staff members transferred to career-track employee or regionalroles in the Japanese financial industry
career-track employee streams between fiscal 2009 and fiscal 2011)(continued)•Female employee success promotion team considered additional measures○•Achieve a far-reaching work-lifebalance program (continued)

Targets for Fiscal 2012•Demand high levels of specialist
skills to merit customers’ trust•Create a working environment
conducive to high levels of
motivation among all employees

Relationship with Society
RatingTargets for Fiscal 2012

•Raise employees’ interest involunteering, including in earthquake•Published information on internal volunteer activities as well as thoserelief efforts, and improve provision ofplanned by external groups on the intranet
appropriate information regarding
volunteering

Targets for Fiscal 2011

Results for Fiscal 2011○

•Raise awareness of volunteering–
including earthquake relief work–
among staff and strengthen
dissemination of appropriate
information•Enhance volunteering system•Reached a consensus with employee unions on “volunteer leave” andcurrently working toward its introduction△•Enhance systems to enable
employees to get involved involuntary work•Improve coordination with employee
unions•As a result of dialogue with employee unions: Coordinated with charity
events, encouraged union members to get involved in voluntary work, anddeveloped cooperative relations working toward introduction of systems topromote volunteering○•Strengthen coordination with
employee unions•Promote programs that the wholeGroup can get involved in

Results for Fiscal 2011

RatingEnvironmental Initiatives
Targets for Fiscal 2011

Targets for Fiscal 2012

•Introduce new environment
management system•Introduced new energy data management system to get a quicker overview
of energy use across Japanese branches○•Further exploit energy data
management system•Enhance energy conservation efforts•Renewed air conditioning units in Osaka branch building•Reduced intensity of lighting to appropriate levels•Switched off the lights on signs and stock-price boards•Set photocopiers to energy-saving mode
•Promoted use of double-sided printing and printing multiple pages on
one sheet•Promoted the clear desk and clear screen policy•Separated office waste and reused resources◎•Strengthen energy conservation
efforts

Daiwa Securities Group13

CSR Report 2012

CSR Report 2012Management Report

Corporate GovernanceApproach and Basic Stance
The Daiwa Securities Group clearly separates the supervisory and executive functions of management to create ahighly transparent and objective corporate governance system. The Group is pursuing a management structure that
improves the efficiency of head office operations and maximizes synergies between the Group companies. Under thisstructure, employees responsible for head office functions also perform similar roles for securities subsidiaries, inaddition to the corporate executive officers of Daiwa Securities Group Inc.

Features of the Corporate Governance System

The Nominating Committee met three times in FY2011 to
discuss the composition of the Board of Directors and its
effect on corporate governance, the basic policy fornominating candidates for directorships, and the selectionof these candidates. The Nominating Committee selects
candidates for directorships in light of the Group’s
selection standards for the appointment of directors.
These standards include criteria that ensure the independenceof outside directors.
The Audit Committee met 12 times during FY2011.
The committee evaluated the activities of directors andcorporate executive officers, audited documentation including
financial statements and business reports, and prepared an
audit report for the period under review.
The Compensation Committee met six times in FY2011 to
discuss compensation policy and determine the compensationof each director, and also studied a Group-wide incentive
plan aimed at improving consolidated earnings results.
The Board of Directors met 10 times during FY2011 andoutside directors had a 98% record of attendance.

In 1999, the Daiwa Securities Group became the first listed
Japanese company to adopt a holding company structure.
Since then, we have been pursuing a highly transparent andobjective corporate governance system that maximizes
synergies between Group companies while showcasing theindependence and unique expertise of each Group member.
In June 2004, Daiwa Securities Group Inc. made a transition
to a “Committee System” of corporate governance andaccelerated the decision-making process by transferring asubstantial portion of authority from the Board of Directors
to corporate executive officers. In addition, we strengthened
the supervisory functions of management by increasing thenumber of outside directors and establishing the Nominating
Committee, Audit Committee, and Compensation Committee.
The representative directors of the major Group companies
also serve as corporate executive officers of the holding
company, thereby allowing them to efficiently implement
individual business strategies based on Group strategies.
Corporate Governance System at Daiwa Securities Group
Shareholders’ Meeting

Board of Directors, 12 members(including 5 outside directors)
Basic management policy

Executive Management
Committee, 12 members
Group-wide business strategy
and management issues,
important financial matters

Representative Executive
OfficerWeb

Nominating Committee, 6 members(including 4 outside directors)

Audit Committee, 4 members(including 3 outside directors)

Compensation Committee, 5 members(including 3 outside directors)

Nominates directors forselection, or recommends
dismissal

Audits the activities of
directors and corporate
executive officers

Sets policy for compensation of directors
and corporate executive officers, anddetermines compensation amount for eachGroup Risk Management
Committee

Disclosure Committee

Group IT Strategy
Committee

Overseas Management
Committee

Gathers information on the systemand current situation of risk
management, and sets policy andstrategy regarding risk management

Determines scope of consolidated
financial reports, scope of evaluationof internal control reports anddisclosure of important information

Prepares original IT investment
budget, evaluates and monitors
IT investments

Makes decisions on issues
related to the managementof overseas offices and otheroperations abroad

Group Internal Audit
Committee
Makes decisions on issues relating to
the internal audit system and theverification of internal control activities

Report on Corporate Governance (available only in Japanese)

Daiwa Securities Group14

CSR Report 2012

Executive Compensation More Closely Linked
to Performancebased compensation, and stock-price-linked compensation.
Comprehensive criteria used in calculating performancebased compensation include consolidated ordinary income
and ROE, as well as other factors such as which of the
management goals outlined in the Medium-Term
Management Plan have been met.

Compensation for directors and corporate executive officers
is determined by the Compensation Committee. It generally
has three components; basic compensation, performance-

Compensation Paid to Directors and Corporate Executive Officers of Daiwa Securities Group Inc. in FY2011
Directors
Amounts based on resolution of theCompensation Committee

Recipients
9 persons

Corporate Executive Officers

Total

AmountRecipients

AmountRecipients

Amount¥107 million

14 persons¥424 million

23 persons¥531 million

Notes: 1. No performance-based compensation was paid in this fiscal year.
2. The above compensation amounts include a total of ¥94 million in stock acquisition rights granted as stock options to directors and corporate executive officers.
3. Compensation paid to the six outside directors totaled ¥80 million.
4. Seven directors also served as corporate executive officers; their total compensation is included in the “Corporate Executive Officers” category.

Internal Control System and Internal Audit

To maintain oversight and ensure the proper and efficient
conduct of Group internal auditing activities, the Internal
Audit Department holds periodic meetings and collaborates
in auditing activities with the internal auditing segmentof each Group company, and maintains contact andcoordination with the Group’s Audit Committee andaccounting auditor.

In recognition that management is responsible for maintaining
an effective internal control system to ensure the sound andproper execution of business, the Group, under the main
initiative of Daiwa Securities Group Inc., has establisheda system for managing the Group’s major business risks.
The Group also maintains this internal control system forensuring “business effectiveness and efficiency,” “reliablefinancial reporting,” “compliance with laws related tobusiness activities,” and “asset preservation.” The Internal
Audit Department verifies the internal control system.
This department, established independently from all otherdepartments and reporting to a full-time corporate executive
officer, ensures internal audits to act as an important functionof raising Group value through the creation of sound andefficient internal controls. The department’s internal auditing
plans and the results of internal audits are reported to andapproved by the Group Internal Audit Committee, which
is directly under the control of the CEO of Daiwa Securities
Group Inc.
The department also reports the results of internal audits toan Audit Committee. This Audit Committee, comprised ofmembers of the Board of Directors of Daiwa Securities Group
Inc., in turn has the authority to conduct internal audits incollaboration with the Internal Audit Department and havethe department perform its research. The Internal Audit
Department directly audits major Group companies. Major
Group companies also have internal auditing departmentsof their own, which are subject to monitoring and alignmentby the Internal Audit Department.
The Group’s internal audits, in following a common Group
internal audit policy and audit plan formulated on a risk-byrisk basis, are managed and monitored primarily by the Internal
Audit Department. The internal audits that Group companies
perform are monitored and directly audited as required by
the Group in view of the status of control over the Groupand collaboration within the Group. The Group seeks toraise corporate value by conducting internal audits that pay
special attention to the legal and regulatory compliance andrisk management position of Daiwa Securities Co. Ltd. and
the Group’s overseas securities business sites as a global
financial instruments business operator, and Daiwa Next
Bank, Ltd. as a bank.

Daiwa Securities Group

Supervisory function
The Board of Directors consists of 12 directors, including
five outside directors.* The Board of Directors determines
key management policy and supervises executive duties.
In order to perform this supervisory role from multiple
viewpoints in accordance with the demands of society,the policy for selecting new board members states thatcandidates must have a strong sense of ethics anddemonstrate initiative and leadership. Additionally,
external directors are experts in such fields as executive
management and accounting. In addition, the supervisory
function of Daiwa Securities Group Inc. is reinforced by the
Audit Committee and the Office of the Audit Committee.
The Audit Committee, which consists of a majority of outside
directors,* plays a pivotal role in the supervision of executive
duties. The Audit Committee is assisted by the Office of the
Audit Committee, which is an independent department.
* Outside directors as defined by Article 2-15 of Japan’s Companies Act.

Preventing conflict-of-interest transactions
between group companies
Conflict-of-interest transactions between group companies
can occur in situations such as intra-Group trading.
The Daiwa Securities Group applies rules regarding conflictsof interest stipulated by Japan’s Companies Act to Executive
Committees as well as Board meeting. Conflicts of interest
within the Group are prevented through a rule prohibiting
an executive officer from voting when he or she is also thedirector of an interested group company.

15

CSR Report 2012

CSR Report 2012Management ReportComplianceApproach and Basic Stance
The Daiwa Securities Group’s corporate principles identify “building trust” and “contributing to society” as among
the most important goals of our business operations. We believe that compliance is necessary to “build trust.” Thegoal of the Group’s compliance activities is not merely to “comply with laws and regulations,” but to earn the trust ofcustomers, the market, and society.

The Daiwa Securities Group’s Approachto Compliance

Compliance Initiatives at
Daiwa Securities Co. Ltd.

The Daiwa Securities Group is constantly taking steps to
educate and train executives and employees to upholdexternal regulations, exercise self-discipline and appropriate
conduct, and thereby maintain high ethical standards tofulfill its role in society. We aggressively conduct compliancetraining programs for our employees. These programs
commence as soon as employees join the Group andcontinue through regularly scheduled training sessions
throughout their career, thus ensuring that every employee
is aware of, and thoroughly understands, compliance issues.
As the Group pursues new business ventures in areas where
the regulatory structure is still incomplete, employees aretrained to approach all matters with strong self-discipline
and legal awareness, refer to existing legal precedents
whenever possible, and always adhere to accepted social
norms of proper behavior.
In FY2011, Group companies continued to hold training
related to insider trading regulations from FY2010.
Furthermore, the Group promoted the integration of head
office functions in pursuit of efficiency by consolidating theoverlapping functions within Daiwa Securities Co. Ltd., Daiwa
Securities Capital Markets Co. Ltd., and Daiwa Securities
Group Inc. The consequent unification of management
structures of the companies enabled the Group tostrengthen its compliance systems further.
Initiatives the Group took to eliminate any and all relations
with corporate racketeers and other antisocial groups
involved collecting information on their increasingly
sophisticated methods by working in close contact withmainly police organizations and legal experts, and enhancing
the Group’s various outward procedures for scrupulously
severing contact with such undesirable groups. As a result,a system of cooperation among Group companies to perform
checks preventing the outflow of funds to antisocial forces
is now in place.

Daiwa Securities Co. Ltd. is taking measures, under thecompliance program, to ensure the effective operationof its internal control system in order to ensure strict
compliance with laws and regulations.
Measures taken in FY2011 included strengthening theselfcorrecting mechanism of sales branches, an internal
control system for head office departments as a whole,a structure to prevent unjust trade practices, and acompliance system that is being used on a global basis.
In FY2012, the Company will formulate the following
three compliance programs aimed at bolstering internal
control systems further, in moving us towards meeting ourmanagement targets.

Web

1. P rogram for building effective and efficient internal
control systems
2. P rogram for further improving customer sales andmarketing manners
3. P rogram for raising the quality of internal control systems
through thorough inspection
We will implement the improvement measures set out in
the Group’s press release dated July 27, 2012, in a swift
and steady manner (Investigation Committee’s Investigation
Report on the Securities and Exchange SurveillanceCommission’s Recommendations and Daiwa’s Improvement
Measures)
Web

Investigation Committee’s Investigation Report on
the Securities and Exchange SurveillanceCommission’s Recommendations and Daiwa’s
Improvement Measures (available only inJapanese)

Basic Policy on Avoiding Any Involvement with
Criminal Elements (available only in Japanese)

Daiwa Securities Group16

CSR Report 2012

CSR Report 2012Management Report

Risk Management
Approach and Basic Stance
While the Daiwa Securities Group pursues profitability and growth, it also recognizes the importance of accurately
identifying, evaluating, and effectively controlling the various risks associated with its business operations. Our objective
is to steadily improve corporate value by maintaining a sound financial base and profit structure by properly balancing
risks and returns and by implementing effective risk control and management.

Basic Risk Management Policy

Types of Risks

The Daiwa Securities Group Inc. has established “basic risk
management regulations” governing all activities by theGroup companies to manage risk in order to ensure thatthey conform to the following basic policies:
1. Management shall demonstrate an active concern for risk
management.
2. A risk management system shall be established to address
the specific characteristics of risk faced by the Group.
3. Management shall, through the aforementioned
comprehensive risk management structure, ascertain theaggregate risk faced by the Group and enhance capital
adequacy accordingly.
4. All risk management processes shall be clearly identified.
Limits are set for each type of risk so as to control risk within an
amount suitable for the management strength of the Group.

The Daiwa Securities Group faces various risks in the courseof its business activities. The Group therefore believes that
it is important to properly identify, evaluate, and manage
these risks in order to maintain healthy financial and earnings
structures. Daiwa Securities Group Inc. engages in risk
management to clearly identify risks based on the respective
Group company’s business characteristics and risk profile.
The types of risks that have been deemed important tomanage include market risk, credit risk, liquidity risk,
operational risk, and reputation risk.

Risk Management System
Daiwa Securities Group Inc.

Group companies

Nominating Committee

Daiwa Securities

Board of Directors

Audit Committee

Daiwa Capital Markets Europe

Executive Management
Committee

Compensation Committee

Representative Executive
OfficerGroup Internal Audit
Committee

Policyformulationand instruction

Daiwa Capital Markets Hong Kong……

Group Risk Management Committee

Daiwa Asset Management

ReportingCRO

Daiwa Corporate Investment
Discussion
and reporting

Comprehensive risk management structure

Operational risk
CreditRisk

Liquidity
Risk

OfficeWork
Risk

Systems- Information CompliancerelatedSecurity
Risk
Risk
Risk

Daiwa PI Partners
Daiwa Securities SMBC
Principal Investments

Risk Management Department

MarketRisk

Daiwa Capital Markets America

Legal
Risk

Human
Resources
Risk

Tangible
Asset
Risk

Daiwa Next Bank
Other Group companies

Daiwa Securities Group17

CSR Report 2012

Risk Management System
The Board of Directors of Daiwa Securities Group Inc. hasapproved “basic risk management regulations.” These
regulations define basic policies related to risk management,
the types of risk that are necessary to be managed, and theexecutive and department for each major risk. Each subsidiaryconducts risk management suitable for the risk profile andsize of each business in accordance with these basic policies
related to risk management. Daiwa Securities Group Inc.
monitors the system and situation of its subsidiaries’ risk
management. Also, the Group Risk Management Committee,
as a sub-committee of the Executive Management Committeeof Daiwa Securities Group Inc., receives reports about risk
exposures obtained via the aforementioned monitoring ofsubsidiaries and themes concerning their risk management
system and discusses and resolves those issues. In addition,
major Group companies regularly hold risk management
committees in order to strengthen their risk management.

Business Continuity Plan
In anticipation of possible damage to its sales branches orhead office/head office functions and/or data center due
to social infrastructure shutdowns caused by earthquakes,
fires, storm and flood damage, and abnormal weather,
as well as serious outbreaks of infectious diseases, such as
new strains of influenza, the Daiwa Securities Group drew
up a business continuity plan (BCP) prioritizing important
operations*1 to be restored or continued in the event ofa natural disaster, in order to keep the financial market
functioning and protect customers’ economic activities.
In accordance with this plan, the Group will ensure thesafety of customers and Group executives and employees
and protect assets while continuing to pursue vital operations
based on the public-interest aspect of its business as afinancial services firm.
Specifically, the Group has promoted the digitization of datanecessary for its business operations to establish a state-ofthe-art business continuity system in the financial industry.
Equipped with Japan’s highest-level backup center, Daiwa
Securities Group Inc. has already completed the installationof thin client technology.*2 This enables the Group to easily
switch to an alternate system in case the headquarters cease
to function and thereby continue vital operations througha substitute office location.
*1 Priority operations to be restored or continued:
1. Market settlement of securities transactions contracted but
not yet delivered
2. Payment operations
3. New orders from customers to sell or to liquidate longpositions on margin transactions for the products below○Domestic listed equities○MRF (money reserve funds), MMF (money market funds),
medium-term government bond funds○Japanese government bonds for individual investors*2 Thin client:A technology for the storage and administration of the totalityof data on a single server instead of having individual employees
control application software and files distributed among various
terminals. This can streamline administration processes and costs
while reducing operational risks.

Daiwa Securities Group18

CSR Report 2012

CSR Report 2012Management Report

IT Governance, Disclosure, and Information Security
Approach and Basic Stance
The Daiwa Securities Group aims to provide customers with high value-added products and services quickly, precisely,
and reasonably priced. To this end, it uses IT strategically. As an active participant in the financial and capital markets,
the Group possesses information resources, including personal information. In order to protect these information resourcesfrom outside threats, the Group is working to maintain and improve the level of its information security.

IT Governance System

Measures for Maintaining Information
Security

The Group has established the Group IT Strategy Committee
as a subcommittee of the Executive Management Committee.
This committee deliberates and makes decisions on such
issues as budgets for IT investment and the allocation of IT
functions. In regard to IT investment planning, the Group IT
Strategy Committee rigorously selects the IT investments
necessary for the Group and allocates budgets based on
the strategic importance of each investment.
Additionally, the Group IT Strategy Committee is strengthening
Group IT governance by primarily bolstering the management
and control function in connection with managing systems
construction projects within the Group.

In order to fulfill its social responsibility as an active participant
in the financial and capital markets, as well as gain the trustof customers, the Group has adopted a full spectrum of
information security policies at companies throughout theGroup to ensure that important personal information received
from customers and all other information resources aremanaged in a secure and appropriate manner. Among theorganizational measures that we have adopted is theInformation Security Group Minimum Standard, which
dictates the basic rules that all companies in the Group must
adopt for handling information. In addition to introducing
these information security rules at each company, we haveappointed a “Chief Information Security Officer” at eachGroup company to oversee information management
activities. A variety of technical and structural measures havealso been introduced to enhance security and ensure thatGroup information resources are managed appropriately,such as office automation through the use of thin clientsand high-security access controls at the data center.
The online trading systems of Daiwa Securities Co. Ltd.
employ highly advanced encryption technology for datatransmission and for user ID verification, thereby ensuringthat clients are able to use the system safely and securely.

Disclosure System
The Daiwa Securities Group has formulated the Disclosure
Policy, which outlines the Group’s basic approach to
information disclosure and strives to provide informationthat is fair, prompt, and appropriate.
Daiwa Securities Group Disclosure Policy◦The Daiwa Securities Group will disclose important financial,social and environmental information about the Group(“Management-related Information”) in a prompt, fair andappropriate manner, so that our stakeholders, (including
shareholders, investors and the communities we operate in)may understand and maintain realistic expectations of the
Daiwa Securities Group.
◦The Group will comply with the Financial Instruments andExchange Act and other laws and ordinances related tosecurities transactions and the various rules of the financial
instruments exchanges on which our stock is listed.
◦The Group will strive to disclose information fairly, in termsof both content and timing.
◦The Group will utilize various communication channels
including presentations, telephone conferences, the Internet
and printed materials to disclose information in a mannerthat is easy for investors to comprehend.
◦The Group will keep in mind its responsibility to set an example
for other listed corporations, in terms of disclosure, and will
strive to promote healthy markets.
◦To ensure that these policies are implemented properly, theGroup has established “Disclosure Regulations” which include
guidelines for disclosing management-related information andstandards for establishing a“Disclosure Committee.”

Daiwa Securities Group

Efforts to Enhance the Levelof Information Security
The Group has put in place a self-assessment scheme for
employees in order to maintain and build upon the current
level of information security across the Group as a whole.
Each Group company has formulated further initiatives
tailored to meet the information security needs of the products
and services they offer. Additionally, in recognition of theimportance of human factors in effective information security
systems, the Group has introduced training programs to
educate all executives and employees in the basics ofinformation security. The programs are offered periodicallyas group training sessions, as well as through e-learning.

19

CSR Report 2012

CSR Report 2012

Social Report

Relationship with Customers
Approach and Basic Stance
We understand that customer trust is the foundation of our business, and we always work to identify approaches thatwill truly satisfy our customers. At the Daiwa Securities Group, we have built the concept of hospitality into ourunderstanding of service to give new life to customer relations. Our goal is nothing less than having the most satisfied
customers in the financial services industry.
● Follow-up services for Impact Investment products
Daiwa Securities provides customers who buy Vaccine
Bonds with the activity reports released by IFFIm, the issuerof these bonds. The company believes that it is also importantto provide information on how the money invested in
Impact Investment products, which enable customers togive back to society through their investments, is used tosolve social problems.

Building Even Deeper Trust in Relationships
with Customers
Accountability to customers
We strive to understand the customer’s needs quickly,
propose the best solution for each customer, and provide
more-than-satisfactory services. We also work to provide
customers with complete, appropriate explanations.
Japan’s Financial Instruments and Exchange Law, which
went into effect in September 2007, prohibits “solicitationthat is improper in light of the customers’ knowledge,
experience, financial situation and objective.” This law
forms the basis of Daiwa Securities’ approach, but thecompany also provides explanations that go beyond thelegal requirements to demonstrate true hospitality in its
product descriptions.
When selling Impact Investment products that help resolve
social issues, such as Vaccine Bonds and Water Bonds,
Daiwa Securities explains how customers will be contributing
to a society by investing in these products, in order to deepen
their understanding of these.

Services accessible to diverse customers
When Daiwa Securities renovates sales branches nationwide
or plans new branches, it takes steps to ensure that its
branches can be used by a wide range of customers, suchas eliminating steps up and down on the floor and installing
wide counters. In addition, the company explains services
using written communication and introduces its Internet
banking services to deaf customers.
● Daiwa’s Point Program
Daiwa’s Point Program awards customers with points basedon their transactions, which can be exchanged for products
and cash vouchers or used to make donations to NPOs.
Daiwa Securities launched a donation program for theGreat East Japan Earthquake using points awarded throughthe Daiwa Point Program on March 18, 2011. Their
donations were provided in full to those who suffered fromthe earthquake through the NGO Japan Platform.

Active post-sales follow up
A securities company’s true relationship with the customer
begins after a product has been sold. Follow-up is essential
in maintaining and strengthening the trusting relationships
formed with the customer. In particular, customers are
dissatisfied and apprehensive when the value of a productthat they have purchased goes down. Daiwa Securities
constantly works to reinforce its relationship of trust withthe customer by giving attentive explanations and relevant
proposals that succeed in alleviating this dissatisfaction
and concern.

Improving customer service quality at sales branches
Many different types of customers visit Daiwa Securities’sales branches. This means that employees interacting withcustomers at its sales branches must have high-caliber
service skills with an emphasis on attentiveness to thecustomer, in addition to specialized knowledge of themarket and products.
At Daiwa Securities, our goal is to provide a level of customer
service that surpasses ordinary hospitality standards. In
addition to group training, the company gives regularverification tests on an ongoing basis using its e-learning
system. Daiwa Securities’ head office staff also conduct
on-site checks every six months and provide guidance topromote even higher quality.

● Providing information in seminars and on our website
In addition to the investor seminars that Daiwa Securities
holds on the 5th of every month, and the information on
overseas and Japanese markets it provides on an ongoingbasis, Daiwa Securities holds impromptu follow-up seminars
when the market fluctuates sharply, as when the yen
appreciated significantly. Over 940 follow-up seminars on
investment trusts and foreign currency markets were held
between October 2011 and March 2012 across all branches
and were attended by over 18,000 people. The “noticebox” for users of the online trading section of the Daiwa
website presents trends and forecasts for trust funds andexchange rates in a graphic format. In January 2012, Daiwa
Securities held its New Spring Investment Forum 2012, with
about 6,330 customers attending.

Daiwa Securities Group20CSR Report 2012

Initiatives Make Use of Customer Views

Calls received at the Customer Support Contact Center
Daiwa Securities’ Customer Support Contact Center also
directly handles customer feedback. The Center shares thecustomer feedback it receives with Daiwa Securities’ sales
branches and head office and responds promptly andappropriately.
During fiscal 2011, the Center received 5,119 calls, which
represents a higher volume than usual. We have attributed
this increase to the additional calls received in relation tothe opening of Daiwa Next Bank in May 2011. A total of
552 calls were received concerning Daiwa Next Bank infiscal 2011, 92% of which were queries and 8%,complaints. The Center takes customer feedback seriously
and will continue to work to improve customer service.

Call Center initiative
Daiwa Securities’ Call Center is staffed by 480 telephoneservice representatives (TSRs)* who take orders, describe
products, and handle queries about clerical procedures orrequests for sales literature. The Call Center is one of themain channels supporting the company’s business model,
which is driven mostly by the Daiwa Consulting and Daiwa
Direct transaction channels.
At the Call Center, employees have direct contact withcustomers, and so the Center plays a critical role in areas
such as transaction channels, customer support andmarketing that can lead to improved operations throughcustomer feedback. The company implements training andregular level checks for TSRs* in order to maintain andimprove call center operations to meet the demand forhigh-quality service.
The Center uses the customer inquiries and opinions that it
receives to analyze data and identify each cause when there
are problems. By providing feedback and information to
Daiwa Securities’ head office and sales branches, thecompany seeks to improve services and customer interaction
and raise customer satisfaction.

Calls Received at the Customer Support Contact Center■ Inquiries■ Complaints

FY* TSR (Telephone Service Representative) is the name typically used inEurope and the US to refer to telephone operators with specialized
knowledge.

2007

78％

22％

2008

76％

24％

2009

77％

23％

4,144

2010

80％

20％

4,224

2011

82％
0

1,000

2,000

4,392
4,616

18％
3,000

4,000

5,119

5,000

6,000
calls

Strengthening BCP at our Call Center
Up until August 2011, all of our call center functions werebased at a single site (Koto Ward, Tokyo). We have now
transferred some of the functions to our Osaka branchbuilding. This means that we now have 480 telephoneservice points, with 450 in Tokyo and 30 in Osaka.
We are now able to accept emergency orders at sales
branches as well as at the new Osaka call center. Having
our call center functions split across multiple sites in thisway means that we have been able to manage operationalrisk. We also anticipate that the Osaka call center will serve
as a backup during electricity shortages in the Tokyo area.
Daiwa Securities’ System for Utilizing Customer Feedback
Customers

Questionnaire postcards
available at branches

Opinions, comments, and requests

Telephone

Customer Support Contact Center

Improvement

Sales branches

Improvement

Management

Improvement

Departments in charge

Business Process Planning &Administration Department
Gathering customer feedback ateach branch, to be shared by all
branches (weekly)
Improvement

All sales branches

Daiwa Securities Group21

CSR Report 2012

CSR Report 2012

Social Report

Relationship with Shareholders and Other Investors
Approach and Basic Stance
The Daiwa Securities Group works hard to stay in good communication with shareholders and other investors. Undera sluggish trend of the “from saving to investment” policy in Japan, we believe that increasing the number of retailinvestors is part of the Daiwa Securities Group’s social responsibility. Accordingly, we work to provide all investors
with helpful information that is easy to understand.

Breakdown of Shareholder

Communication with Shareholders

As of March 31, 2012, 39.6% of the shareholders of Daiwa
Securities Group Inc. were foreign investors, down 0.9
points from the end of the previous fiscal year. The shareof Japanese investors increased 1.1 points to 24.6%.
This increase was likely due to the augmentation of theshareholder reward program carried out at the end of
September 2010.

The general meeting of shareholders is an opportunity fordirect communication with shareholders. We encourage as
many of our shareholders to attend as possible. A total of
1,838 shareholders attended the 75th regular general
meeting of shareholders held on June 27, 2012. We havealso been trying to increase communication opportunities
through measures such as telephone conferences on thesame day that we announce the quarterly earnings, spring
and fall management strategy briefing sessions, one-on-one
meetings with analysts and institutional investors, andpaying visits to overseas institutional investors. In addition
to this, we have also been enhancing information disclosure
on our IR pages and releasing the highlights of our annual
and business reports in booklet form for shareholders.
Daiwa Securities Group Inc. will continue to strive to makeits communications even more accessible and more
precisive for shareholders.

Breakdown by investor type (as of March 31, 2012)
Other
60,200thousand shares
3.4%

Individuals
in Japan
430,460
thousand shares
24.6%

Foreign investors
692,935
thousand shares
39.6%
Other corporationsin Japan
83,561
thousand shares
4.8%
Web

Financial
institutionsin Japan482,520
thousand shares
27.6%

Questionnaire for Shareholders
The Daiwa Securities Group regularly gives a questionnaire
to shareholders at the end of September with a view toreflecting their opinions in management and IR activities.
We utilize the results to good advantage in businessactivities, leading to improvements such as higher
satisfaction with the shareholder reward program.

Stock information

Dividend Policy〈Results of a questionnaire to shareholders in
September 2011〉

Daiwa Securities Group Inc. aims to continue improving
value for shareholders, which includes distribution of profit.
In principle, dividends are paid semiannually at a pay-out
ratio of approximately 30% based on consolidated financial
performance. Daiwa Securities Group Inc. also looks forways to increase returns to its shareholders in various ways,
including share buybacks when it has sufficientaccumulated capital to pursue further growth.

Q W hen did you become a shareholder
for the first time?
April 2010 toMarch 2011
6.4%

April 2011
or after
3.2%

April 2009 to
March 2010
14.8%
April 2008 to
March 2009
11.4%
April 2006 to
March 2008
11.4%

Daiwa Securities Group22

CSR Report 2012

March 2006
or before
52.8%

Shareholder Reward Program

Q Why did you acquire shares in Daiwa Securities
Group Inc.? (Multiple answers allowed)

Beginning at the end of September 2010, we enhanced ourshareholder reward program while continuing our reward
program catalogue. Shareholders qualifying for rewards atthe end of March and September are now able to choose to
make a charitable donation, as well as opt for our quarterly
journal or the Daiwa points program—as well as the
traditional local and regional specialties. At the end of March,
we will offer shareholders a complementary calendar.

Others9.1%

Inheritance
2.9%
Recommendationfrom Acquaintance
4.9%
Business Activities
5.6%
Corporate Image
8.7%
Dividend
16.4%

Expectation ofhigher share price35.3%

Shareholder reward
program
17.1%

Q How would you like to see information disclosureand communication augmented in the future?
(Multiple answers allowed)
Others15.1%
Enhancements togeneral meetingof shareholders
10.2%
Augmented
website 1
15.2%
Expanded materials
for earnings releaseand corporate briefings
18.9%

Expanded business
report20.6%

Expanded IR
seminars/meetings
20.0%

Hometown and regional
specialties(Graphics are images)

Q Which items would you like to see in the next
shareholder Reward Program?
(Multiple answers allowed)
Donations
0.8%
Investment
information booklet
4.7%
Frozen processed
foods, such as
ice cream
5.3%
Beverages suchas juice, tea
7.8%
Alcoholic beverages
9.7%
Web

Others
7.3%
Sweets,confectionery
29.1%
Processed foods,
meat, fish
22.0%
Rice, noodles,
13.3%

Investor Relations

Daiwa Securities Group23

CSR Report 2012

CSR Report 2012

Social Report

Relationship with Executives and Employees
Approach and Basic Stance
The Daiwa Securities Group believes that maximizing the motivation of every executive and employee will improvecustomer satisfaction and consequently enhance shareholder value. We take a range of measures to ensure that all of
our executives and employees feel a sense of job satisfaction and that their families and friends share in their pride tobe part of the Group.
The Group issues “Daiwa Spirit,” a booklet about what it means to be a Daiwa professional. This was developed basedon our corporate principles and expresses the basic philosophy and mindset valued by the corporate culture since thefoundation of the Group. We hope that Daiwa Spirit will enhance employees’ sense of unity and togetherness and thus
the Group’s overall cohesiveness.

Companies covered by data
Consolidated: Entire Group
Group of 11 companies: Daiwa Securities Group Inc., Daiwa Securities Co., Ltd., Daiwa Securities Capital Markets, Daiwa AssetManagement Co., Ltd., Daiwa Institute of Research Holdings Ltd., Daiwa Institute of Research Ltd., Daiwa Instituteof Research Business Innovation Ltd., Daiwa SB Investments Ltd., Daiwa Securities Business Center Co., Ltd., Daiwa
Property Co., Ltd., and Daiwa Corporate Investment Co., Ltd.
Group of three companies: Daiwa Securities Group Inc., Daiwa Securities Co., Ltd., and Daiwa Securities Capital Markets.

Employees at the Daiwa Securities Group (Consolidated)
As of March 31, 2010
Employees

FA*1(persons)

As of March 31, 2011

Temporaryemployees*2

Employees

FA*1

As of March 31, 2012

Temporaryemployees*1

Employees

Temporaryemployees*2

FA*1

Male

8,212

124

−

7,940

98

−

7,662

81

−

(Career track*3)

7,535

−

−

7,337

−

−

7,076

−

−

(Managers)

3,872

−

−

3,760

−

−

3,754

−

−

4,838

303

−

4,608

222

−

4,348

166

−

2,412

−

−

2,541

−

−

2,374

−

−

(Managers)

159

−

−

162

−

−

170

−

−

Japan total

13,050427

765

12,548320

634

12,010247

471

Overseas

1,973

−

127

2,442

−

192

2,175

−

157

Total

15,023427

892

14,990320

826

14,185

247

628

Japan

Female3(Career track* )*1 Financial advisors*2 T emporary employees are part-time hires; the figure shown here is the average number of such employees over the year. Most temporary employees are women, but
this figure includes some men as well.
*3 Includes regional career-track employees and specialist positions.

Hiring Initiatives

provide an environment in which diverse individuals canperform to their full potential. In line with the Group’s
strategy to strengthen our business in Asia, we endeavor
to secure personnel who will be able to perform on the
global stage.

Hiring approaches and trends
The Daiwa Securities Group would like all of its employees
to be highly motivated and to stay with the Group fromhiring to retirement. All new college graduates recruited by
the Group, including those with disabilities, are brought on
as full, regular employees. This helps to encourage newhires to feel a sense of trust and pride in the company anda sense of solidarity with their colleagues. In April 2012,
the Group hired 354 new employees.
Our approach to retaining talented people is simply to

Daiwa Securities Group24

CSR Report 2012

Number of New Graduates Recruited by the Daiwa Securities Group

Career-track employees/regional career-track
employees
Operations personnel (or staff)(people)April 2008

April 2009

April 2010

April 2011

April 2012

Male

551

388

159

245

186

Female

471

328

173

200

166

Male

1

7

4

0

0

Female

241

110

1

1

2

1,264

833

337

446

354

Total

* This data pertains to nine group companies: Daiwa Securities Group Inc., Daiwa Securities Co., Ltd., Daiwa Securities Capital Markets, Daiwa AssetManagement Co., Ltd., Daiwa Institute of Research Ltd., Daiwa Institute of Research Business Innovation Ltd., Daiwa SB Investments Ltd., Daiwa Securities
Business Center Co., Ltd., and Daiwa Corporate Investment Co., Ltd.

Workforce Statistics
As of March 31,
2008

As of March 31,
2009

As of March 31,
2010

As of March 31,
2011

As of March 31,
2012

10.32 million

7.06 million

7.47 million

8.50 million

8.11 million

Average age

37.7

37.1

36.4

37.1

39.9

Average number of years of service

11.2

10.7

11.0

12.2

13.7

Average annual salary ※* This data pertains to Daiwa Securities Group Inc. only.
※ Average annual salary includes bonuses and other remuneration.

Recruitment of previous years’ graduates
In fiscal 2011, we began hiring university graduates who
had graduated up to three years earlier. We hope to secure
diverse personnel by recruiting year-round so that such
graduates can be employed soon after receiving tentative
job offers, regardless of whether they have prior work
experience. These recruits receive the same level of training
as new graduates. In fiscal 2011, the number of all newcollege graduates recruited by the Group was 17.

Support for the success of veteran employees
The Daiwa Securities Group offers the Daiwa Master
Program to actively support the success of highly motivatedand skilled employees, regardless of their age. This systemenables veteran employees nearing the mandatory
retirement age of 60 who meet certain criteria to continue
their employment until they are 65 years of age. We revised
the system in 2009 to refine the criteria even further.

Re-employment under the Daiwa Master System(persons)
FY2007

No. of employees hired under the Daiwa Master System

FY200814FY200936

FY201053

FY2011
58

63* This data pertains to three Group companies.

Recruitment of people with disabilities
The Daiwa Securities Group has around 185 employeeswith disabilities working in a wide range of roles at its
headquarters, in sales branches, and in call centers. The
group started recruiting new graduates with disabilities asregular employees (general office staff) in fiscal 2008 and in
fiscal 2011, broadened recruitment into the career-track
employee, regional career track employee, and customer
service employment streams. We actively increased
recruitment opportunities, holding briefings about thecompany for new graduates, participating in career expos,
and implementing job placement support programs fordisabled university students. Once people with disabilities
are hired, we provide support for career advancement, forexample creating opportunities for them to enter the

career-track and regional career-track employment streams.
The Daiwa Securities Group began hiring new graduateswith disabilities as regular employees beginning in fiscal
2008. We hired 7 new graduates with disabilities in April
2008, 15 in April 2009 and 5 in April 2010. We seek to hire
talented people, regardless of whether they have disabilities
or not. Beginning with our 2011 new hires, we will hire
persons with disabilities for career-track positions, regional
career-track positions and customer service positions. The
goal is to hire high-caliber employees, not just to meet
Japan’s legally mandated employment rate for persons withdisabilities, thus providing a bigger stage on which persons
with disabilities can advance their careers, take advantage
of opportunities and stay highly motivated to succeed.

Employment Rate for Persons with Disabilities (as of Each Fiscal Year-end)
FY2007
Employment Rate for Persons with Disabilities

1.87

FY2008
1.87* This data pertains to 11 Group companies.

Daiwa Securities Group25

CSR Report 2012(%)
FY20092.01

FY20102.07

FY2011
2.09

Human Resources Development and Skill
Development

and also provides joint training for mid-level employees toacquire business skills with programs designed to enhancetheir skills in the areas of presentation, coaching, negotiation,communication, logical thinking and facilitation.
Daiwa Securities launched the Daiwa Mentoring Program in
July 2009, a two-year intensive basic educational programfor new hires. The company has introduced a tutor system
in which each new hire is assigned to another employee whowill be in charge of their education for the first year of theiremployment. The new hires are given focused educationand training so that they can become independent in theirfirst two years.

Employee training approach and trends
The Daiwa Securities Group focuses on human resource
development with the aim of creating a professional cadrethat can ensure the Group remains Japan’s most impressive
securities firm. In particular, we believe that the first two
years after joining the Group–when new graduates are justgetting their start as full members of society and Group
employees–is a critical period for a solid basic education.
We offer extensive training programs during this period.
Our varied training options ensure not only that employees
acquire the fundamental skills needed for their jobs, butalso that they learn about the Group’s corporate philosophy
and commitment to CSR.
Of course, we also believe that our employees must have afirm understanding of corporate ethics and compliance inorder to ensure the development of sound financial andcapital markets–a key issue for the Daiwa Securities Group.
Accordingly, we offer regular training on information
management and compliance.

Supporting employees trying to earn credentials
In light of continuing globalization and corporate strategies
emphasizing Asia, the Daiwa Securities Group strives toimprove employees’ communication skills. We help employees
raise their TOEIC scores and offer a test support system,
such as e-learning, that is accessible to all employees.
In addition, we offer more practical conversation classes
and recommend e-learning opportunities and English
conversation and language schools to intermediate-level
learners. Staff members across the Group are offered thechance to take the TOEIC exam every month. In fiscal 2011,
1,418 Group employees decided to take the test.
In addition, Daiwa Securities sees financial planner credentials(AFP and CFP) and securities analyst qualifications as corequalifications for the securities sector. The Group aims tohave all employees acquire at least one of these certifications
and is particularly keen to have the highest number of
employees in the industry with the Certified Financial Planner(CFP) certification, the level above Affiliated Financial Planner(AFP). The company provides generous support by, forexample, subsidizing certification costs so that employees
can enhance their specialized skills and become professionals.

Education and training system
The Daiwa Securities Group educates employees by providing
training tailored to each position, based on the Group’s
shared policies. Each company provides its own training inlight of the different skills required depending on thecompany’s focus. However, the Group also strives to foster
crosscutting ties and a feeling of solidarity by increasing thenumber of joint training sessions for the Group andopportunities for employees from Group companies to gather
together while also raising the effectiveness of the training.
For example, the Group offers management training for
selected managers through programs such as the Daiwa
Management Academy and Daiwa Leadership Program,

Achievements of Selected Participants in Management Training
Eligibility for Daiwa Management Academy: Department managers

FY2007

Number finishing program (cumulative)

190

Eligibility for Daiwa Leadership Program: Deputy general managers

FY2007

Number finishing program (cumulative)

473(persons)
FY2008210
FY2008507

FY2009228
FY2009537

FY2010248
FY2010568

FY2011269
FY2011599* This data pertains to 11 Group companies.

Achievements of Participants in Business Skill Training(persons)

FY2007
Number finishing program (cumulative)

440

FY20081,013

FY20091,348

FY20101,916

FY2011
2,469* This data pertains to 3 Group companies.
* The number of people completing presentation training, coaching training, negotiation skills training, communication training, logical thinking training, andfacilitation training.

Daiwa Securities Group26

CSR Report 2012

Persons Earning Credentials(persons)
As of the end of
FY2007
No. of persons
obtaining

As of the end of
FY2008
No. of persons
obtaining

As of the end of
FY2009No. of persons
obtaining

As of the end of
FY2010No. of persons
obtaining

As of the end of
FY2011
No. of persons
obtaining

Associated Financial Planner (AFP)

2,725

2,997

3,739

4,981

5,255

Certified Financial Planner (CFP)

263

279

309

360

452

1,347

1,372

1,345

1,414

1,440

Chartered Financial Analyst (USA credential)

42

47

45

43

41

Licensed Tax Accountant

17

20

19

22

22

IT Passport

−

−

202

381

590

Project Manager

−

−

142

159

173

168

176

169

165

158

Period tabulated
Credentials

Security Analyst

Overseas MBA program graduate, etc.
* This data pertains to 11 Group companies.

Internal (intra-group) job postings and new career path examinations
The Daiwa Securities Group also has an internal recruiting
non-career-track jobs who wish to move into career track or
system to open up new career opportunities to skilled
regional career-track jobs. Since fiscal 2009, 659 non-careeremployees interested in self-development. There have been
track employees from three Group companies have moved
904 applicants since 2000 and 146 successful transfers.
to career-track and regional career-track positions.
We have now put in place a transfer system for those in
Successful Applicants in Internal Recruiting System(persons)

Held

Positions offered

Cumulative fromFY 2000

M&A, SMA consultants, Analysts, internal wholesalers, Compliance, dealers, derivatives, traders,fund managers, principal finance specialists, venture capitalists, money managers, research,underwriting, sale, product development, proposals and planning, investment advisors, investment
information, pension consultants, etc.

No. of applicants

No. of successful
applicants

904

146

* This data pertains to 11 Group companies.

Initiative to create a pleasant working
environment

Evaluation system
At the Daiwa Securities Group, we believe that a fair andwell-accepted evaluation system is crucial in keeping all
employees highly motivated in their jobs. As part of this,we implement a multifaceted evaluation system for
managers. This involves subordinates and related
departments assessing their manager’s job performance inthe course of daily operations and the results being fed
back to the manager. It is intended to improve managerial
skills and improve the Group’s overall productivity.
This comprehensive system also takes compliance-related
performances into account.
In fiscal 2009, we revised the Group’s human resources
system. Our objective is to provide an incentive programthat motivates employees at all stages of their careers, fromentry and mid-level to veteran employees, to reach the nextstage and attain positions with greater responsibilities.
We will continue working to ensure that our personnel
evaluation system is equitable by clarifying the expected
responsibilities for every position. In fiscal 2011, we began
to introduce a new system to better enable job performanceand responsibilities to be reflected in evaluations.

Daiwa Securities Group

Encouraging Work-Life Balance
One of the Daiwa Securities Group’s CSR targets is topromote an advanced level of work-life balance. The Groupis committed to pursuing working styles that enable
employees to achieve a balance between their private
and professional lives, and makes efforts to create anenvironment in which both men and women can work ina variety of ways.
Not only do we seek to establish systems that enable
diverse work styles, but we also work to change employee
awareness by ensuring employees leave work before 7 p.m.,by encouraging them to take all their paid holidays and by
welcoming family visits to the workplace. In February 2012,
we revamped the content of the Daiwa WLB Station on theintranet, which attracted a great increase in visitors. We willcontinue promoting initiatives designed to attract the kindof high-caliber employees who build an enterprise that
achieves great performance.

27

CSR Report 2012

Encouraging women to succeed
We are trying to appeal more to women’s individualinterests, by introducing thriving female employees as rolemodels in internal publications and providing opportunities
for cross-company communication, in order to increase thenumber of women in management positions. These efforts
have resulted in five female directors joining the board andwomen heading up about 10% of branches since fiscal
2009. The number of women transferring to the career-track
employee and regional career-track employee streams has

also increased significantly.
In recent years, there has been a sharp increase in female
employees aspiring to advance their careers by switching tocareer-track and regional career-track positions. From FY2009 to FY2011, 659 female employees converted tocareer-track positions.
We will continue to expand the ranks of female managers,
aiming to develop female leaders who will drive the futureof Japan’s financial industry.

Working Hours and Paid Vacation Usage Rate
FY2007
Annual regular working hours (hours)

FY2008FY2009FY2010FY2011

1837.51837.51830.01837.51822.5

25.2

21.3

22.1

24.0

25.1

Paid vacation usage rate (%)

37

57

56

54

49

Paid vacation usage rate (%) (including special summer vacation)*2

47

64

60

58

54

Average monthly overtime hours (hours)*1* This data pertains to three Group companies.
*1 Figures indicate employees at the three companies who are members of the Daiwa Securities Group Employees’ Union.
*2 In addition to annual paid vacation, the Daiwa Securities Group offers three days of special summer vacation. These figures show 54% usage rate forannual paid vacation when special summer vacation is included in FY2011.

Employee Welfare System Usage(persons)
FY2007

Number of employees taking childcare leave※
Number of employees taking nursing care leave

FY2008FY2009FY2010FY2011

Female

209

245

304

326

396

Male

4

14

16

26

12

Female

6

2

5

5

8

Male

3

1

0

1

0

* This data pertains to all consolidated Group companies.
※ Employees eligible for childcare leave include non-regular employees (contract workers, part-timers, etc.).

Main Initiatives for Work-Life Balance and Female Employee Support Plan
Program name

Program description

Professional Return Plan (rehiring of sales staff)

Offers opportunities for re-employment to former full-time employees who left their jobs after
marriage or childbirth.

Job Location Change System*

Offers a position in a new location when an employee must relocate after marriage or spouse’s
job transfer.

Childcare leave

Employees can take childcare leave until their child’s third birthday.

Exemption from or restricted overtime work

Employees can apply for an exemption from overtime work until their child completes the third
grade of elementary school. Employees can also apply for restricted overtime work until theirchild completes elementary school.

Daycare subsidy

The company offers subsidies for daycare expenses until the employee’s child begins
elementary school.

Expanded leave system

The company encourages employees to take paid vacation and has introduced leave formarriage preparations or “family day” leave to give employees a chance to spend quality timewith their families.

Follow-up on program use

The Personnel Department keeps track of individual employees’ childcare-related schedules
and notifies them of programs available at the appropriate time.

Support after returning to work

Enables employees to return to work after a period of childcare leave. The return to work
guidelines were revised in fiscal 2011. Daiwa WLB Station, a work-life balance promotion
website that focuses on various support systems related to childrearing and nursing care,provides information for employees on childcare leave and helps facilitate their smooth returnto the workplace.

* Number of employees using the program at Daiwa Securities Group Inc.: 82 (cumulative)

Female Employees and Managers at the Daiwa Securities Group(%)

As of the end of
FY2007

As of the end of
FY2008

As of the end of
FY2009As of the end of
FY2010

As of the end of
FY2011

Percent of employees who are female

36.0

36.8

37.1

36.7

36.2

Percent of managers who are female

3.1

3.4

3.9

4.1

4.3

* This data pertains to all consolidated Group companies.

Daiwa Securities Group28

CSR Report 2012

Initiatives to improve employee health
The Daiwa Securities Group believes that employee healthis an indispensable asset for both the company and society.
Accordingly, the Personnel Departments, General Health
Development Centers and health insurance associations work
closely together to improve employee health. The Group
has set up a system that enables employees to confirm theresults and analysis of their regular health checkups and fullmedical checkups online. The Group also uses in-housemagazines and the intranet to provide employees with healthinformation. Moreover, it also offers a walking program,a program encouraging employees to undergo cancer
exams, and a smoking cessation program, and encourages
female employees to have breast cancer and uterine,
ovarian, and cervical cancer exams, and to get the cervicalcancer vaccination. Beginning in fiscal 2009, employees
whose health checks found problems receive a follow-up
confirmation form (known as a "yellow paper") enclosed withthe results of the regular health checkup. Those employees
are required to visit a medical facility within two weeks andsubmit this form to a General Health Development Centerwith the doctor’s comments. As a result, the majority ofsuch employees now visit medical facilities.
The Daiwa Securities Group has set up General Health
Development Centers at the main Group offices. At thecenters, in-house doctors provide medical services, while
industrial physicians and health nurses provide consultations
on general health. Psychiatrists and clinical psychotherapists
offer consultations on mental health issues.
As a result of these efforts, employees’ health awareness ishigh, and 99% of employees receive regular health checkups.
We gave presentations on these results at symposiums heldby the Ministry of the Economy, Trade and Industry and theTokyo Metropolitan Government. Other companies wereinterested in our approach.

and revising programs in the future.
Communication between employees
In October 2007, we introduced a "club activity support
program." This program was intended to help employees
enjoy their time off, deepen their friendships with colleagues
and give them more opportunities to share a sense ofsolidarity, as well as to provide work-life balance support andfacilitate a full social life for employees. In fiscal 2009, we
augmented this program. Groups that meet certain conditions
are recognized as Daiwa Clubs and Daiwa Circles andreceive subsidies covering some of their activity costs. As of
March 2012, 17 clubs and 5 circles are active in the Group.
Relationships with employees union
The questionnaires conducted by the employees union amongits members have given the Group greater opportunities tolearn about the opinions of its employees and also improve
communications. Employees union membership in 2011
was 6,907.
Number of Employees’ Union Members(as of the End of Each Fiscal Year)As of the As of the As of the As of the As of theend ofend ofend ofend ofend of
FY2007 FY2008 FY2009 FY2010 FY2011
Employees’ union
membership

6,969

7,666

7,915

7,590

6,907

* Of the 9 Group companies (this does not include Daiwa AssetManagement Co. Ltd., which has its own employees’ union, and Daiwa
Property Co. Ltd., which has no employee union).

Initiatives for families
We take a range of measures to ensure that families also
share in our executives’ and employees’ pride to be part of
the Group.
Since fiscal 2008, we have been welcoming family visits tothe workplace so that family members can get a better
understanding of the company and the employee’s job.
In fiscal 2011, 3,868 family members participated in thisprogram.
We have also created systems such as “family day” leaveand have ensured that employees’ families are also eligible
for mental health support.

Mental Health
In August 2006, Daiwa Securities Group Inc. established the
Health Support Promotion Department to help employees
maintain their mental and physical health. The Health Support
Promotion Department is staffed with two certified clinicalpsychologists who are available to provide consultations to
support Group executives and employees, and their families.
Moreover, we maintain arrangements with outside specialists
so that Group personnel and their families can receive prompt
attention anywhere in Japan.
We also support employees’ mental health by arranging talks
in all branches and departments to broaden awareness ofmental health issues.

Communication
Communication with executives and employees
At the Daiwa Securities Group, we believe that communication
with executives and employees is vital in maintaining ahealthy workplace environment. Communication takes
place through interviews with the Personnel Department
and a semi-annual self-assessment questionnaire. In
addition to the union member questionnaire given by the
Employees’ Union, we conducted a questionnaire on
work-life balance periodically. We provide opportunities for
employees to share their views, and then reflect thesefindings when reviewing the adequacy of current programs

Daiwa Securities Group(persons)

29

CSR Report 2012

CSR Report 2012

Social Report

Human Rights Initiative
Approach and Basic StanceIn light of our Corporate Principles and the United Nations Global Compact, we aspire to further improve our corporate
culture, which emphasizes respect for human rights in our basic principles, and improve human rights awarenessactivities. We will continue to implement initiatives relating to recruitment, human resources, and the workforce toensure that our systems are fair and free from discrimination or prejudice.

Human Rights Awareness

Basic Policy for Initiative addressing Human
Rights and Social integration Issues

In 1984, Daiwa Securities Group Inc. set up a Human Rights
Awareness Promotion Committee with the objective ofensuring accurate understanding of human rights issues
and deepening awareness. In 2011, this committee (eight
members, chaired by head office director in charge of HR,
with head of HR as deputy chair) was instrumental in revising
the Group’s basic strategy on human rights initiatives.
The Group carries out internal human rights initiatives andtraining based on the committee’s annual plan. New hires’and management training also incorporate human rights
awareness so as to ensure that employees have an accurate
understanding of this issue.
Toward the goal of further increasing awareness, we
solicited human rights slogans from all Group employees
and their families. Group employees are also given theopportunity to consider human rights from a wide rangeof perspectives by watching a video on this subject andthen splitting off into their divisions to discuss what they
had seen. In fiscal 2011, 12,300 employees were able towatch this video, with 10,482 going on to participate in thefollow-up discussions. The video was about human rights
and diversity at the workplace and focused on appreciating
individual experiences and feelings. The discussions that
followed confirmed the importance of communication increating an open and pleasant working environment andalso demonstrated that promoting diversity can revitalize
an organization and help to achieve results that exceed
expectations.

(1) T he Daiwa Securities Group supports and complies withthe protection of human rights as advocatedinternationally and does not infringe on human rights
within the limits of its influence.
(2) T he Daiwa Securities Group educates and instructs
Group employees with accurate information on humanrights and social integration issues.
(3) A t the same time, the Group views human rights andsocial integration issues as our own problem, notsomebody else’s problem, and fosters a sensitivity thatenables empathy with the pain of others.
(4) W e provide an equitable working environment free of
discrimination that values people.
(5) E ach employee is a member of society unburdened by
prejudice.
Revised in May 2011

Daiwa Securities Group30CSR Report 2012

CSR Report 2012

Social Report

Relationship with Society
Approach and Basic StanceAt the Daiwa Securities Group, good corporate citizenship means working together with the local community andengaging in consistent collaboration with NPOs and NGOs to foster sustainable development. We carry out diverse
corporate citizenship initiatives under the following four key categories.
1. Education and research activities in the fields of economics and finance
2. Providing ESG/CSR topics and Encouraging Volunteerism among executives and employees
3. Support for Culture and the Arts
4. Assistance to communities on both the local and the international level through foundations and NPOs

Corporate Citizenship Initiatives and Expenditures
Type of Activity

Expenditure (Unit: ¥1,000)

FY2007

FY2008FY2009FY2010FY2011

225,524

214,283

163,767

49,84940,835

6,471

6,475

4,962

7,464

31,053560,000

530,000

313,500

410,132

269,869

1. Education and research activities in the fields of economics and financeInitiatives for elementary, junior and senior high school students
Academia-business cooperation and initiatives for universities,
graduate schools and the public

2. Providing ESG/CSR topics and Encouraging volunteerism among executives and employees
Information dissemination
Volunteer promotion
3. Support for culture and the arts
Support for culture and the arts

4. Assistance to communities on both the local and the international level through foundations and NPOs*
Foundations

Assistance
Programs

Daiwa Securities Foundation
Daiwa Securities Health Foundation
The Daiwa Securities Group Tsunami Reconstruction Fund

357,655

324,424

84,569184,807

133,457

1,149,650

1,075,182

566,798

652,252475,214

SRI funds donation program

Disaster relief, sponsorship fees, etc.
Total

* By subtracting the Daiwa Anglo-Japanese Foundation grant, the previous years data were adjusted in prior years.

Daiwa Securities Group31

CSR Report 2012

1. Education and Research Activities
in the Fields of Economics and Finance
The Daiwa Securities Group makes the most of theknowledge and expertise in economics and finance which
it has accumulated in the course of its business. We areengaged in business-academia collaboration, and also

support economic education programs in junior and seniorhigh school students as well as teachers. Our vision is that
economic and financial education would help young people
gain the capacity to shape the future.

Economic and Financial Education

Sustainable Development of the Japanese Economy in the 21st Century
Educational institutions

Research institutions

Understanding of socialand economic principles

Improve economic andfinancial knowledge

Develop financial
specialists

Disclose research results
Create practical applications

Commercial and businessapplication of research results

Elementary/junior/highschool students

Undergraduate students

Graduate students

ResearchersIntellectual property (IP)/patents

Support teachers
Participate in classes

Provide or endow classes
Dispatch instructors

Provide or endow classes
Dispatch instructors

Joint research
Research support

University-launched venturesand IP headquarters

Group Employee Cooperation● Joint programs with Junior Achievement Japan(1) Finance Park
Junior Achievement Japan established Finance Park in
Shinagawa, Tokyo, in June 2005 with the goal of providing
a space where junior and senior high school students could
develop life-planning skills. Daiwa provides funds for it to
set up simulated shops and offices, and it also provides
personnel support.
In January 2007, Junior Achievement Japan opened an officein Kyoto. As of March 31, 2011, 31,464 students had taken
part in action programs that teach students how to makesolid decisions in personal finance or life planning. During
fiscal 2011, 2,208 students
took part in programs at
the Tokyo offices, and5,587 students participatedin programs held at the
Kyoto branch.

from 2003 to 2007 and has cooperated continuously in
related events.
By fiscal 2010, 3,182 teachers had participated in the forum.
This program was not held in fiscal 2011 due to the Great
East Japan Earthquake.
(3) Council for Economic Education Japan (CEE-Japan)
CEE-Japan was established in January 2009 with the goal ofproviding economic education training programs forschoolteachers. The Daiwa Securities Group is CEE-Japan’s
main sponsor, providing not only the inaugural funds but
also ongoing support, together with seven other influential
companies. In February 2012, the Group supported an
event organized by CEE-Japan, where Northern Michigan
University’s Professor Ferrarini delivered a workshop on
economic education for schoolteachers. This workshop
used our economics and finance textbook, Life is a Series of
Choices, and encouraged teachers to consider how they
could best teach pupils to understand and think about
economy. The venue was provided by Daiwa’s Tamatraining center and was attended by 45 teachers. By theend of March 2012, 1,220 teachers had participated inworkshops and forums,
including those that thetrial took place in 2009.

Finance Park(2) Global Leadership Forum for elementary and juniorand senior high school teachers
This annual training program organized by Junior
Achievement Japan for elementary and junior and seniorhigh school teachers started in 2001. At this forum,
teachers discuss the state of the global economy andbrainstorm about how education should develop in the 21st
century, stimulated by lectures given by guests holding awide range of perspectives and panel discussions and casestudies. The Daiwa Securities Group sponsored the forum

Daiwa Securities Group

Economic education workshop
delivered by Professor Ferrarini

32

C S R 報 告 書 2 0 1 2

Results in Economic and Financial Education
ProgramDescription

Duration

Participants

Support for Finance Park

Personal finance planning workshop to teachstudents about society and economics by managing
household finances

June 2005–March 2012

31,464

Support for Japan Council for Economic Education(CEE-Japan)

Producing hands-on economics education textbook–
Life is a Series of Choices for teachers–andorganizing workshops

January 2009–March 2012

1,220

Sponsorship of JA’s mainstay Global Leadership
Forum for elementary and junior and senior highschool teachers

Case studies on recent developments in the global
economyJuly 2001–March 2011

3,182

Support for the Student Company Program (SCP)

A program that gives senior high school students
hands-on experiences with corporate managementby simulating real-world business conditions

September 2003–March 2011

2. P
 roviding ESG/CSR topics andEncouraging Volunteerism among
Executives and Employees●Describing how money relates to daily life, and thephilosophy of finance
Finance is closely intertwined with our daily lives. We comeinto contact with it every day, for example, through banks,
securities companies, insurance companies, and statepensions. Despite this, there are likely few people concerned
about the ways money entrusted to financial institutions(deposits, insurance, pension reserves, and so on) is used.
We undertake various educational activities to make investors
and depositors aware of how they can use their money tomove society and companies to action. We use lectures athigh schools and universities, as well as various organizations’spaces for communicating with the public, to develop
financial literacy and the philosophy of finance, broadening
understanding of SRI.
On November 17, 2011, we organized a seminar together
with Japan International Cooperation Agency (JICA) and the
Nikkei Shimbun’s Cross-Media Sales Bureau on the current
state of the global economy, looking at what kind of
global-scale social contribution is required. This seminar washeld prior to JICA’s first issuance of Fiscal Investment and
Loan program (FILP) agency bonds to individual investors
for the first time. Such bonds are issued in order to procure
funds necessary for JICA to provide loan assistance todeveloping countries.

At the Daiwa Securities Group, executives and employees
participate in volunteer programs and other community
action, and these experiences broaden their perspectives
and values. This, in turn, has a good influence on both theirwork and their lives.
Volunteer activities include both activities that the Daiwa
Securities Group plans and runs on its own initiative andjoint activities undertaken in cooperation with the community
and NPOs. We strive to create an environment that makes it
easy for executives and employees to volunteer by setting
up a recognition program for volunteers, among otherincentives. Aiming to encourage as many Daiwa people aspossible to participate in corporate citizenship initiatives, wewill continue to collaborate with external NPOs, strengtheninternal communications about volunteering, and create
more opportunities for executives and employees to get
involved.
● CSR Dialogues
Since 2004, we have been engaging in dialogues on CSR
with specialists from a range of fields, with a focus on
economics, finance, and ESG. We have organized morethan 40 dialogues since 2004, the details of which can befound on our website. (Only selected dialogues have beentranslated into English). During fiscal 2011, we held five
CSR Dialogues on a series of hot issues.

Financial Education Activities in Fiscal 2011
Participants

ThemesMeiji Gakuin University

Given the corporate social responsibility(CSR)

Doshisha University

Contribution to a society throughinvestments

Tohoku University

Socially Responsible Investment (SRI)

Ritsumeikan Asia Pacific
University

Challenge to world issues throughfinancial powers

Keio Business School

Strategic Management with Social Impacts

174

Dialogues in Fiscal 2011
ThemesNumber 37

Effortless energy-saving measures for the home or office

Number 38

Tsunami relief support

Number 39

Eco-communication

Number 40

Appropriate technology and support for developing countries

Number 41

CSR and consumers I: Rights and responsibilities of consumers

Web

CSR Dialogue● Volunteer awards
At Daiwa Securities, outstanding achievements by executives
and employees are recognized through the President’sAward. The company introduced the Volunteer Award in
fiscal 2007, which is given twice a year to employees andDaiwa Securities Group33

CSR Report 2012

description so that they could also be enjoyed by people
with visual impairments, thus also working toward a morebarrier-free society. The three film showings and talk show
were held in the theater of the Edo-Tokyo museum. A totalof 817 people attended.

groups involved in voluntary activities providing ongoingsupport in their community.
In the first half of fiscal 2011, the President’s Award wasgiven to an employee who—since the first days after theGreat East Japan Earthquake struck—had been devoting
weekends and public holidays to providing voluntary
assistance in the affected areas. The award for the second
half of the year was given to an employee who had provided
ongoing assistance at a local nursing home and parent-childgroup through involvement in awareness-raising activities(i.e., Aso-ball) to promote interaction between parents andchildren.

Connecting with people affected by the earthquake:
A message card project
During one of the Group’s family visits in August 2011, we
carried out a message card project so as to connect withpeople living in the areas affected by the earthquake andtsunami. This project was carried out in association with thenonprofit organization Sweet Treat 311, which was set up
to send sweets and cakes to children in the Tohoku disasterareas. We wrote messages on cards to send along with thetreats as a way of offering support to the children.
Employees and their families across the whole Group wrote
1,195 cards. A selected representative later took the cards
to Ayukawa elementary school in Ishinomaki, Miyagi
Prefecture, and made sure that each pupil received one.

●Executives and employees involved in corporate

citizenship activities, donation and recycling
initiatives
Group executives and employees participate in a wide rangeof corporate citizenship activities such as local, internationalexchange, and charity events. They are also involved in
donation and recycling initiatives. A total of 192 employees
voluntarily participated in corporate citizenship activities on
weekends or after work in fiscal 2011.
Recycling activities in fiscal 2011
(books, used and unused stamps, prepaid cards,
partially used postcards)
Collected items
Books
Used and unused stamps,
prepaid cards, partiallyused postcards

Recipient organization

DonationsJEN BOOK MAGIC

31,913 yen

Japan Committee Vaccines
for the World's Children

177,355 yen

Live with Friends on theEarth186,334 yen

Visit to Ayukawa elementary school

Neighborhood clean-up events by Daiwa Securities
Business Center
Under its good corporate citizenship program, the Daiwa
Securities Business Center has, since 2008, carried out
clean-up activities covering the area from near theheadquarters building to Toyocho Station on the third
Friday of every month. Participants believe that keeping
streets clean is a way of giving back to the community. This
campaign is held from 8:00 am until 8:20 am before officehours start, and it has become a regular event 50-60
employees have participated each time. Moreover, thecompany participated in the first community clean-up
organized by the Koto Ward Town Hall. In April 2010, thepresident and many other executives and employees cleaned
the streets from the town hall to the Toyocho Center
Building. The company will continue to participate as muchas possible in community clean-up activities, and will workwith the communities administering these programs to help
keep the streets clean.

● Main activities in fiscal 2011
Sign language classes
Since 2000, the Daiwa Securities Group has held sign
language classes for beginners in the Tokyo, Osaka, andNagoya regions. These classes are intended to improveunderstanding of people with hearing impairments andpopularize sign language. They are open to the generalpublic as well as the Group’s executives and employees.
Classes were held twice a month throughout fiscal 2011
across three locations and were attended by 2,291 people.
In July 2011, we organized a lecture event to commemorate
10 years of sign language classes. Sign language
interpretation was provided, and speakers talked about
technology for visualizing
things we cannot see andwhat kind of financial
literacy is needed by
Japanese people. The
lectures were attended by
75 hearing-impaired anddeaf people.
Lecture event to commemorate 10th

3. S
 upport for Culture and the ArtsThe Daiwa Securities Group provides ongoing support for awide range of cultural and artistic activities. The Group was
the special sponsor of the Mainichi Shimbun Central Contest
for Book Review Painting for the eighteenth year, a tradition
that began with the sixth contest. This contest aims to
improve children’s reading skills and encourage them toread more. Elementary, and junior and senior high school
students are awarded prizes by age group for drawings that
express their impressions of a book they have read. Exhibitsof the winning drawings for fiscal 2011 were held across 12
Daiwa Securities branches.
We also support traditional Japanese cultural forms such asanniversary of sign language classes

City Lights Film Festival
We supported the 4th City Lights film festival that was heldin June 2011. The festival was organized by City Lights, anorganization that promotes barrier-free movies. The
objective of this event was to provide films with audio

Daiwa Securities Group

Some of the cards which gathered

34

CSR Report 2012

In fiscal 2011, the foundation primarily focused onorganizations and groups involved in volunteer work
responding to the Great East Japan Earthquake. It distributed¥29.98 million in Disaster Volunteer Activities Grants
among 64 organizations.

shogi and go. In addition to sponsoring the top title matchesin shogi and go, the Meijin Title Match (shogi) and the
Honinbo Tournament (go), since 2005, the Group is also
the special sponsor of the Daiwa Securities Cup shogi andgo Internet tournament. In shogi, we support the Saikyo
Tournament and the Women's Saikyo Tournament. In go,
we support the Open and the Amateur Championship.
These matches take place on the Internet year-round,
where viewers can also watch the matches in real time.

Web* On April 1, 2011, the Daiwa Securities Health Foundation and the Daiwa
Securities Foundation both transformed into Public Interest Incorporated
Foundations from General Incorporated Foundations.

“Playing for Change” television commercials“Playing for Change” is a musical project that aims to create
motivation, build connections, and bring peace in the world
through music. Mark Johnson, a producer working primarilyon the West Coast of the United States, launched thisproject in the desire to connect the world through music.
Over 100 musicians from around the world who werevirtually unknown at the time collaborated in this project.
Part of the project’s revenue goes to the NPO The Playing
For Change Foundation (PFCF), which uses the proceeds toprovide necessities to refugees in India and Nepal and toestablish music schools and art schools in South Africa,
among other projects. The Daiwa Securities Group,
recognizing that the concept of “building connections
around the world” is consistent with its goal of providing
financial services that link its customers to the world, isusing footage from the project in its television commercials.
Web● Daiwa Anglo-Japanese Foundation
The Daiwa Anglo-Japanese Foundation is a UK charity thatwas established in 1988 with a generous benefaction from
Daiwa Securities for the purpose of supporting a closer
relationship between Britain and Japan. Principle activities
include the following:(1) M aking grants available to individuals, institutions, andorganizations working to promote ties between the UK
and Japan(2) E nabling British and Japanese students and academics tofurther their education by providing opportunities forjoint research and supporting exchanges and otherbilateral initiatives(3) A warding of Daiwa Scholarships for British graduates tostudy and undertake work assignments in Japan(4) O rganizing a year-round program of events to increase
the understanding of Japan in the UK
Daiwa Foundation Japan House, the London-based
headquarters, acts as a center for Anglo-Japanese relationsin Britain by offering a wide range of seminars, exhibitions
and book launches, as well as meeting rooms for Japanrelated activities and facilities for visiting academicians.
The Foundation is represented in Japan by its Tokyo Office,which provides local assistance to Daiwa Scholars (foreign
students), administers grant applications from Japan, andcollaborates with other institutions that promote AngloJapanese relations. Since its inception, 141 students havebeen accepted from the United Kingdom. In addition,
the Foundation has so far provided grants for a total of
2,565 projects, with overall funding—including grants-inaid such as awards and Japan House seminars—now
totaling around ¥3,378 million (as of March 2012).

Daiwa Securities Group commercial (available
only in Japanese)

4. L ocal and international financial
assistance through foundations and NPOs
● Daiwa Securities Health Foundation*
The Daiwa Securities Health Foundation was established in1972, in commemoration of the Group's 30th anniversary,to support medical research. Since 1973, the Daiwa Securities
Health Foundation has supported 30 outstanding research
projects focusing on improving the health, medical care, andwelfare of middle-aged and older people. It has disbursed¥30 million in grants of ¥1 million each year. Fiscal 2011
marked the 38th year of this program, with a cumulative totalof 1,042 recipients having received ¥1.027 billion in total. In
fiscal 2011, the foundation disbursed a total of ¥10 million in
grant funding among 10 individuals with the goal of supporting
medical activities in areas affected by the earthquake andtsunami as well as research into disaster medical care.
Web

Web

The Daiwa Anglo-Japanese Foundation in the UK● Daiwa Securities Group Tsunami Reconstruction FundWe established the Daiwa Securities Group Tsunami
Reconstruction Fund on March 9, 2005 to provide recovery
assistance to regions damaged in the Sumatra Earthquake
and Indian Ocean Tsunami which occurred on December
26, 2004. Beginning in fiscal 2005, this fund provides
long-term support for recovery over a ten-year period,
disbursing ¥10 million annually for a total of ¥100 million.
Established within the Asian Community Trust (ACT),the Daiwa Securities Group Tsunami Reconstruction Fund
provides grants to local NGOs that offer assistance in thefour fields (Mental health care for children, Utilization of
microfinance,Provision of education opportunities forchildren, Sharing and dissemination of tsunami disasterprevention knowledge and exchange and cooperation
activities among those who suffered. in Indonesia, Sri Lanka
and India, the three countries hardest hit by this disaster.

Daiwa Securities Health Foundation (available
only in Japanese)● Daiwa Securities Foundation*
The Daiwa Securities Foundation was established in 1994 incommemoration of the Group’s 50th anniversary, with themission of building a better world. The Foundation provides
yearly grants for volunteer activities in the fields of welfare
and medicine and carries out educational activities toencourage volunteering. These activities are intended to
improve public welfare by fostering an environment
conducive to volunteer activities. By fiscal 2011, theFoundation had given a cumulative total of ¥572 million in
Volunteer Activities Grants to 2,474 organizations.

Daiwa Securities Group

Daiwa Securities Foundation (available only in Japanese)35

CSR Report 2012

supported directly, which means that we can support thecommunity efficiently and accurately.

Leveraging expertise in their respective areas, Asian
Community Center 21 (ACC21), which functions as theexecutive office for ACT, undertakes program selection andactivity monitoring, while the Sumitomo Trust & Banking
Co., Ltd., acts as the custodian of this fund. There are three
key characteristics to this fund. First, it provides long-term
recovery assistance measures rather than offering
temporary donations. Second, it utilizes financial systems toprovide assistance through charitable trusts, microfinanceand other avenues. And finally, the monitoring done by
ACC21 makes it possible to assess every detail of theactivities being conducted.
Web

Web

● Social Business College
Social businesses—set up to address specific social issues
and generate sustainable profits—have been attracting
attention in certain spheres. Nevertheless, there is still very
little awareness among the general public; it remains abusiness model that only very few know about. The Group
believes that providing a space to discuss the nature of thissustainable business model and how its finances work is
extremely worthwhile. This is why the Group set up theSocial Business College. Since October 2010, lectures havebeen held in alternate months in association with Music
Securities Inc. At the 9th lecture session, joint founder and
CEO of Kopernik, Toshihiro Nakamura, was invited to speak.
He gave a presentation on
innovative solutions foraddressing poverty indeveloping countries.

Daiwa Securities Group Tsunami Reconstruction Fund(available only in Japanese)● Daiwa Securities Phoenix Japan Program
In May 2012, the Group established a Great East Japan
Earthquake relief assistance program. It involves donating a
portion of management fees from the Daiwa Nippon
Support Fund Vol. 3–Phoenix Japan–to the Japan NPO
Center’s Great East Japan Earthquake Support Fund forNPOs on the ground (designated aid). The proceeds areused to support NPOs working in the affected areas andto help people reconstruct their lives.
Web

Social Business College

Daiwa Securities Phoenix Japan Program(available only in Japanese)Web● Daiwa SRI Fund Grant Program
The Daiwa SRI Fund Grant Program gives grants to JapaneseNPOs that provide support in fields involving human life(the human security field). Rather than supporting generalprojects and events, the program supports the humanresource development of the NPOs that administer suchactivities by subsidizing personnel and training program
costs. It is operated in collaboration with the NPO Civil Society
Initiative Fund with donations from the management feesof the Daiwa SRI Fund.
Grants awarded: twenty-six projects (sixteen new grants andten ongoing); total of thirty-five staff across sixteen groups;
cumulative total of 45.8 million yen (as of March 31, 2012).
Web

Kopernik Program (available only in Japanese)

Social Business College● Support for ISEPThe Institute for Sustainable Energy Policies (ISEP) is anindependent nonprofit research organization establishedwith the goal of realizing a sustainable energy society.
The organization is involved in carrying out research andmaking recommendations about national and local
government energy policy. Following on from last year,
donations from trust fees of the Daiwa Eco Fund were used
to pay for the cost of preparing the Renewables Japan
Status Report 2012, published by the organization in March
2012. This report earned high praise from related
government agencies, researchers, universities, and NPOs,
and we are confident that supporting its ongoing publication
is a very worthwhile endeavor, especially in light of theattention energy policy has received since the Great East
Japan Earthquake.

Daiwa SRI Fund Financial Assistance Program(available only in Japanese)● Kopernik Program
Kopernik is a US-based NPO established in 2009 with thegoal of improving quality of life and reducing poverty indeveloping countries; it went into full operation in Japan in
2010. Kopernik has developed a program that enables
contributors in developed countries to go online and donate
to an NPO in a developing country/area of their choice byselecting a product that they need (simple water purifiers,
solar lamps, and so on). Transparency is ensured because
Kopernik discloses details of the recipient NPO’s activities
that have been supported by the donation on its website.
Some of the donations made by the Daiwa Eco Fund andRussell Global Environmental Technology Fund are used tocover Kopernik’s administrative costs. Products and recipientsare selected to receive donations in light of their consistency
with the principles of these funds. The way the donation
will be used is clear, and NPOs active on the ground can be

Daiwa Securities Group36

CSR Report 2012

Reconstruction Assistance to the Great East
Japan Earthquake●Policy Proposals and the like

(Daiwa Institute of Research)
March 2011: Proposed the establishment of a reconstruction
fund and a reconstruction solidarity tax tofinance rehabilitation after the disastrous
earthquake and tsunami.
May 2011: Presentation for Iwate prefecture on igniting thelight of hope
May–September 2011: Dispatched specialist planning staff
to planning section of Iwate
prefecture’s reconstruction bureau
February 2012: Sponsored the Iwate reconstruction forum
on Great East Japan Earthquake andTsunamiWe extend our deepest condolences to the victims of theearthquake and tsunami that took place on March 11,
2011, and hope that the affected areas are able to recoveras soon as possible. The Daiwa Securities Group provided
support in the form of donations during March 2011.
● Donations (Daiwa Securities Group)¥100 million
Recipients: ¥30 million each to Iwate, Miyagi, andFukushima prefectures¥10 million to Ibaraki Prefecture● Support through financial products• Donations from government reconstruction bonds forindividual investors (December 2011) (Daiwa Securities)• Great East Japan Earthquake SME reconstruction support
fund (Daiwa Corporate Investment Co., Ltd)The following is a report on our other support provided
during fiscal 2011.
●Grants for volunteer activities(Daiwa Securities Foundation)¥33.98 million• ¥4 million (¥1 million each) to disaster volunteer centersin Iwate prefecture, Sendai City, Iwaki City, and Ibaraki
prefecture• ¥29.98 million in grants to disaster volunteer actiongroups (maximum ¥500,000 per grant)
Recipients: Students and specialist groups and organizations
engaging in activities needing specialized skills● Other
Donated approximately 49,000 calendars to 11 groups andorganizations, including those involved in disaster relief(Daiwa Securities Group)

Other disaster relief● Thailand flood damage (Daiwa Securities Group)¥10 million
Recipient: Thai Red Cross Society●Grants for research into disaster medical care

(Daiwa Securities Health Foundation)¥10 million
Recipients: universities, research centers, hospitals, and otherindividuals and groups engaged in research into disastermedicine or medical care in the disaster-stricken areas of the
Tohoku region and Ibaraki, Miyagi, and Chiba prefectures(maximum ¥1 million per grant).

Overseas initiatives● Charity run (American team)
On June 16, 2011, 40 members of Daiwa Securities America
Inc. took part in a 3.5-mile charity run to raise funds topreserve Central Park. This race took place in New York’sCentral Park, and all profits were donated to help maintainthe park.

●Tohoku Scholarships (Daiwa Anglo-JapaneseFoundation)£250,000 (¥33.75 million*)
A scholarship fund for students from the Tohoku region
whose educational or other circumstances were affected by
the earthquake. Following on from last year, we continued
to accept applications during fiscal 2012.
*based on a rate of ¥135 = £1

●Daiwa Point Program: Donations through point

Charity run participants

exchange (Daiwa Securities)
Amount raised: ¥16,735,163
Participants: 23,126 (as of March 30, 2012)
Recipient: NPO Japan Platform●Donations via shareholder program catalogue(Daiwa Securities Group )Amount raised: ¥1,777,000
Participants: 659 (as of March 30, 2012)
Recipient: Japan Red Cross Society● Charity collection (Daiwa Securities Group)¥40,998,807 million raised from executives and employees
in Japan and abroad (as of December 1, 2011)
Recipients: NPO Japan Platform and Japan Red Cross Society

Daiwa Securities Group37

CSR Report 2012

CSR Report 2012

Environmental Report

Environmental Initiatives
Approach and Basic Stance
The natural environment is the very foundation of human life, so protecting it is essential to sustainable societies. We
strive to help resolve environmental issues through our business by investing in the development of products that can
reduce society's environmental impact, and also by making investments that help to make environmental technologies
and infrastructure more widely available. We are working to establish a system that efficiently collects data on
Daiwa's environmental impact. We are also focused on raising employees' environmental awareness to empower themto reduce environmental impact in daily business operations.

Environmental Management

Environmental Vision
The Group is dedicated to protecting the precious global
environment and preserving it for future generations byleveraging financial capabilities.

Each company in the Group adopts and implements anenvironmental management policy. For example, Daiwa
Institute of Research Business Innovation Ltd.’s EMS complies
with ISO 14001. Every other month, a representative fromeach Group company attends meetings of the Environmental
Management Council to share data, ideas and views onenvironmental issues. This Council, and the Group as a whole,is constantly seeking ways to improve and implement
environmental management systems. The Group compiles
and reports quantitative data on its environmental impact
each year, including details such as energy and water
consumption, CO2 emissions, paper usage, waste disposal
and recycling volume. Beginning in March 2012, a system
was introduced in which paper documents used by Group
companies are recycled into toilet paper used at Group
office facilities.

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 orderto create a sustainable society for the 21st century. The Grouppledges to contribute to solving environmental issues throughits business as a financial service company and to constantly seek
new ways to reduce its environmental impact as a responsible
corporate citizen.

Basic Environmental Policies
1. Make positive environmental contributions through ourcore business activities
We shall seek to develop and provide financial products andservices that promote a low-carbon, recycling-oriented andsymbiotic society.

Carbon dioxide emissions

2. Implement an environmental management system
We shall implement an environmental management systemand 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.

Energy consumption at the Daiwa Securities Group’s
domestic offices (on a carbon dioxide emissions basis) fellby 14% in fiscal 2011 compared with the previous year as aresult of initiatives to conserve energy.
Because we were able to collect data for a further ten offices,
electricity consumption at overseas offices shows an increase.
However, electricity consumption per office decreased by
7% from the previous fiscal year.

3. Take steps to save natural resources, reduce energy
consumption, and promote biodiversity
We shall continue to progress in our efforts to reduce the useof natural resources and energy, and seek ways to improvematerials- and energyefficiency (including efforts to improvebusiness efficiency). We shall also take steps to reduce water
use and reduce, reuse and recycle other materials to contributeto a more environmentally friendly society. Furthermore,considering the importance of biodiversity, we shall seek asymbiotic relationship with the environment and use safe,
clean methods of materials procurement.
4. Promote environmental communication
Working in concert with business partners, the local community,
NGOs and NPOs, we shall actively disseminate information
about environmental issues, and communicate our concern
for the environment to customers and society at large.
5. Strictly observe environmental regulations
We shall always endeavor in environmental assurance,
observing environmental laws and regulations in addition to
the Group’s environment policies.
(May 22, 2012)

Takashi Hibino
Daiwa Securities Group Inc.
President and CEO

Daiwa Securities Group38

CSR Report 2012

Energy Consumption
FY2007

FY2008FY2009FY2010FY2011

105,516*1

109,157*1

93,402696*2582

Domestic offices
Electricity (1,000 kWh)

92,659Natural gas (1,000 m3)

644

Gasoline (kiloliters)

99,599*1
517

423

1,029

1,064*1

4.3

1.9*1

8.6*2

7.9

0.0

0.1

0.1*1

0.2

0.1

7,718

11,640

1,032

Heavy oil (kiloliters)

23.7

Diesel fuel (kiloliters)

1,137

1,117

Overseas offices
Electricity (1,000kWh)

11,13013,137

15,841*3*1. Data for fiscal 2008 onwards has been adjusted to include offices where energy consumption is less than 1% of overall usage*2. Energy consumption for fiscal 2010 increased significantly owing to Japan’s revised Act on the Rational Use of Energy, which now requires that data
include tenant energy consumption for air conditioning for the three office buildings and other facilities in Japan that are subject to the Act.
*3. Electricity consumption at overseas offices increased significantly owing to the collected data for a further ten offices.
* This data pertains to all consolidated Group companies.
* At overseas offices, only electricity consumption was calculated.

CO2 Emissions from Energy Consumption(Unit: 1,000 kg CO2)
FY2007

FY2008FY2009FY2010FY2011

Domestic offices
Electricity

51,426Natural gas

1,339

58,562*1

60,582*1

51,8381,075

880

1,448*2

1,210

2,470*1

55,278*1

Gasoline

2,396

2,389

2,639

2,593

Heavy oil

70.6

12.8*15.6*125.7*2

23.7

Diesel fuel

0.0

0.3

0.2

0.6

0.2

55,23158,755*1

61,917*1

64,696*1

55,665

4,283

6,460

6,177

7,291

8,792

59,51564,173*1

67,662*1

71,694*1

64,457

Total for domestic offices
Overseas offices
Electricity
Total for domestic and overseas offices*1. Data for fiscal 2008 onwards has been adjusted to include offices where energy consumption is less than 1% of overall usage*2. Energy consumption for fiscal 2010 increased significantly owing to Japan’s revised Act on the Rational Use of Energy, which now requires that data
include tenant energy consumption for air conditioning for the three office buildings and other facilities in Japan that are subject to the Act.

CO2 Emissions per Employee (Domestic)(Unit: 1,000 kg CO2)
FY2007Per employee
Electricity

FY2008FY2009FY2010FY2011

4.3

4.3

4.6

5.0

4.5

12,943

13,652

13,477

12,86812,257* CO2 emissions per employee in Japan was reduced 0.5 thousand kg compared to the previous year. Domestic CO2 emissions divided by the number of
employees in the Group's domestic business sites.

Other Environmental Impacts
Changes in Clean Water Consumption(Unit: 1,000 kl)
FY2007

Consumption volume

268

FY2008252

FY2009199* Data for fiscal 2008 onwards has been adjusted to include offices where energy consumption is less than 1% of overall usage

Daiwa Securities Group39

CSR Report 2012

FY2010188

FY2011162

Volume of Copy Paper/Forms used
We facilitated the transition to a paperless office byappointing an employee to be in charge of the paperlesstransition at Daiwa Securities Group Inc. and holding
paperless meetings in fiscal 2011. As a result of theseendeavors, the volume of copy paper used fell about 14.1%
form the previous fiscal year. Moreover, about 42% (basedon monetary value) of the copy paper used consisted ofGreen Procurement Network (GPN) compatible products.

Volume of Copy Paper/Forms Used

(Unit: 1,000 kg)
FY2007

FY2008FY2009FY2010FY2011

Daiwa Securities Group Inc.

18

11

13

11

24

Daiwa Securities

532

395

400

325

303

Daiwa Securities Capital Markets

96

150

140

132

95

Daiwa Institute of Research Group

194

116

122

77

84

Daiwa Asset Management

47

49

45

50

35

Daiwa Business Center

49

39

39

35

31

Daiwa SB Investments

38

30

27

28

28

Daiwa Property

4

4

3

3

3

Daiwa Sanko

5

2

4

3

3

Daiwa Corporate Investment

13

11

9

6

6

Other

38

30

15

22

16

1,034

837

818

691

629

Copy paper total* This data pertains to consolidated Group companies.

Changes in Waste Generated and Recycling Volume
Changes in Waste Generated and Recycling Volume
FY2007
Paper waste

Non-paper waste

Amount generated (1,000 kg)

FY2008FY2009FY2010FY2011

1,343.4

883.6

766.5

751.0

601.0

85

88

93

96

88

456.4

354.4

356.1

335.9

390.4

23

15

33

33

37

Recycling rate (%)
Amount generated (1,000 kg)
Recycling rate (%)* Calculated based on the Reuse Plan for Large-Scale Buildings Used for Business, as specified by each local government.

Initiatives to Reduce Environmental Impact

among individual employees and to motivate them to create
and implement ingenious solutions. In fiscal 2011, paper use
was cut by 6.3% over the previous fiscal year. Paper use has
been cut by a cumulative 34.5% since this program started,which represents a reduction of around one-third.
Information on the volume of paper ordered, electricity
consumption, and hours of electricity consumption, as well
as status updates on internal initiatives, is published every
month on the intranet as part of the company’s efforts toraise employees’ awareness.

Upgrades to building equipment to conserve energy
When Daiwa Securities upgrades equipment such as air
conditioners, power supply units, power conversion
equipment, and water supply and drainage units in its
branches, the company requires that products that meet thehighest (“top runner”) standards are adopted to ensure that
equipment with low environmental impact is installed. “Toprunner” standards were recommended in Japan’s Act on the
Rational Use of Energy, which requires that manufacturers
clear benchmarks ensuring that energy-saving products are
manufactured. The “top runner” concept calls for
manufacturers to strive to improve their technologies andcreate products and equipment that surpass the energy
efficiency of products and equipment currently on the market.

Electricity-saving measures
In fiscal 2011, the Group implemented electricity-saving
measures across all companies. Our global initiatives
included reducing the intensity of office lighting toappropriate levels, switching off the lights on signs andstock-price boards, and setting office equipment to energysaving mode. The Daiwa Securities Business Center set atarget of reducing energy use during July throughSeptember—the time of year when electricity demand is at
its highest. It was able to achieve a reduction of 25.7%
compared to the previous year for the same period.

Eco activities expanded (Daiwa Securities Business Center)
The Daiwa Securities Business Center started the Eco
Promotion Committee in 2008 and began to work on eco
initiatives. Each year, the Business Center sets its own targets
for reducing electricity and paper use to raise awareness

Daiwa Securities Group40

CSR Report 2012

Information dissemination
Dissemination of ESG research findings by Daiwa
Institute of Research
The Daiwa Institute of Research carries out research in areas
such as renewable energy, emissions trading, SRI, andcorporate governance. It publishes the findings via its quarterly
research review and on its website. June 2011 saw the launchof the ESG News section of the website specifically devoted tothis hot research topic. As of the end of March 2012, theDaiwa Institute of Research had published 54 articles on
issues relating to ESG.
Web

The sustainable society and economy madepossible by ESG (available only in Japanese)

Daiwa Asset Management’s Eco2 reports
In this section of the website, Daiwa Asset Management
fund managers introduce companies aiming to combine
two “ecos”—ecology and economy—and present
information relating to environmental issues. As of March
2012, 55 articles had been published under this rubric.
Web

Eco2 reports (available only in Japanese)

Environmental Products and Services
Our Impact Investment products are part of our contribution
to solving global environmental issues. These products offer
customers a way to help solve social and environmental
issues through bond investments and investment trusts.
Impact Investment bonds issued during fiscal 2011 included
Ecology Bonds and Water Bonds. We offered a total of 30.7
billion yen worth of these bonds, primarily to retail investors.
We also issue Impact Investment bonds aimed at institutional
investors. Our investment trust products focusing on theenvironment include the Daiwa SRI Fund and the Daiwa
Eco Fund.

Daiwa Securities Group41

CSR Report 2012

CSR Report 2012

Economic Report

Delivering Economic Value to Stakeholders

Revenues in the Economic Report

Revenue Breakdown in the Economic Report in fiscal 2011
Non-operating income¥12,805 million
2.7%

For the purpose of this Economic Report, revenues
represent the total of all revenues received by the Daiwa
Securities Group (consolidated) in fiscal 2011—operating
revenues, non-operating income and extraordinary gains.
In fiscal 2011, operating revenues accounted for 89%
of revenues.

Extraordinary gains¥39,660 million
8.3%

Operating revenues¥422,374 million
89.0%●Segment Information(Unit: ¥ million)

Net Operating Revenues
FY2010Ordinary Income

FY2011FY2010FY2011Retail

178,970

172,033

41,866

38,839Asset Management

36,32437,424

15,948

14,615Global Markets

61,49552,014(52,173)(54,433)

Global Investment Banking

30,63526,473(14,733)(14,284)

Investment(15,277)

1,090(21,476)(1,976)

Others26,416

46,980(2,034)

5,039

Consolidated total

318,564

336,016(32,602)(12,200)

Distribution of Economic Valueto Stakeholders

Shareholders
In fiscal 2011, the Group paid an interim dividend of ¥3
per share and a year-end dividend of ¥3 yen per share,
for a total annual dividend of ¥6 yen per share.

Economic value for the purpose of this Economic Report iscalculated as revenues minus interest expenses (less interestpaid), the cost of sales, selling, general and administrative
expenses (less personnel costs, taxes, and expenditure forcorporate citizenship activities), non-operating expenses(less interest paid), and extraordinary losses.

Creditors
The Group pays interest to creditors.
Government
According to the Daiwa Securities Group’s financial
accounting, the tax amount paid is the sum of current
income taxes, deferred income taxes, and other taxes
and duties including consumption tax.

Executives and Employees
The distribution of economic value to executives andemployees is the figure for personnel expenses (including
reserves for salaries and bonuses, as well as welfare program
costs and social insurance contributions). Daiwa has built
a fair compensation system that is highly acceptable to all,in order to improve employee motivation and maximize
the value provided to all stakeholders.

Minority Shareholders
This is the profit and loss returned to the minority
shareholders of the Daiwa Securities Group companies.

Society
Regardless of the ups and downs of the business cycle,
we aim to provide stable funding for our corporate
citizenship activities. See “Corporate Citizenship Initiatives
and Expenditures” in the “Relationship with Society”
section for a breakdown of these expenditures.

Daiwa Securities Group42

CSR Report 2012

Changes in Distribution of Economic Value to Stakeholders
Stakeholders

FY2007

FY2008FY2009(Unit: ¥ million)

FY2010FY2011

Tabulation method

156,661

141,600

169,950

160,234

158,297

Personnel costs within selling and generaladministrative expenses

962

924

618

560

475

Expenditure for corporate citizenshipactivities (details) *1

Dividends toshareholders

29,91910,77022,73010,386

10,281

Interim and year-end dividends for the
fiscal year

Creditors

53,63044,92329,03035,64239,082

Interest expense and interest paid on
non-operating expenses

Government

48,102(11,620)

57,587

16,75530,980

Income taxes, resident and business taxes,
deferred income taxes, other taxes and duties

Minorityshareholders(5,233)(60,580)

4,089(6,907)(1,838)

Minority shareholder profit/loss

Internal reserves

16,492(95,809)

20,699(47,717)(49,715)

Balance after deducting dividends for theterm from net income for the fiscal year

Total economic value

300,533

30,208

304,703

168,953

187,562

Total of the above

Executives andemployees
Society*1 Excludes expenditure for Daiwa Anglo-Japanese Foundation

Comparison of Economic Report and Consolidated Financial Statements

Economic Report
Consolidated
financial statements(Unit: ¥ million)

FY2007

FY2008FY2009FY2010FY2011

Economic Report revenues

838,703428,318

548,941

427,755474,839

Economic value

300,533

30,208

304,703

168,953

187,562

Operating revenues

825,422413,936

537,915

403,402422,374

Net income/loss

46,411(85,039)

43,429(37,331)(39,434)* This data pertains to consolidated Group companies

Distribution of Economic Value to Stakeholders in FY2011
Economic value¥187,562 million
Interest expenses¥20,672 million

Dividends to shareholders
5.5%
Government
16.5%

Cost of sales¥26,668 million

Revenues in the
Economic Report¥474,839 million

Costs related to sellingand general administrative
expenses¥194,377 million
Revenues

Expenditure

Other expenses¥45,561 million

Daiwa Securities Group

Society
0.3%

Executives
and employees
84.4%

Creditors
20.8%

Minority shareholders ‒1.0％ Internal reserves ‒26.5％

43

CSR Report 2012

CSR Report 2012

Third-party Opinion

hence contribute to society.
As we move forward, I would like to see the Group leadJapan’s financial sector in setting up processes and proceduresfor evaluating non-financial performance and assessing thesocial and environmental impact of investments, which should
extend beyond symbolic efforts, such as Impact Investments,and encompass mainstream investments. With regard tocontributing to society, I look forward to the development of
new financial initiatives that will close the gap between Impact
Investments and the provision of donations and grants while,at the same time, promoting the involvement of ever more
stakeholders.
Second, let us move on to the development of soundfinancial and capital markets for the next generation. Here,I would first like to see a strengthening of compliance systems.
I understand that the Group has been formulating concrete
strategies to improve information management systems basedon external recommendations. I look forward to the steady
implementation of these measures. Viable compliancestrategies rely on each and every employee and executive
upholding high ethical standards and a professional mindset.
Thus, it is necessary to proactively incorporate CSR training andvolunteer programs into employee training and embed social
leadership criteria into personnel evaluation systems.
Third, a due diligence-based approach to social
responsibility is a core principle of the ISO 26000 standard.
I would therefore like to recommend that the Group incorporate
this approach into its CSR management processes. The Grouphas endeavored to become Asia’s leading financial services
group and has developed a mid-term management plan
accordingly. In order to embed CSR into management systems,
I believe that it is necessary to assess—based on dialogues withstakeholders—the social and environmental impact of theGroup’s management plans and business operations as anintegrated financial services provider and, from this, identify
new key CSR issues. For example, what is the potential social
impact of the business strategy of the retail services driven by
Daiwa Next Bank from the perspective of consumer relations?
Or, from a CSR viewpoint, what potential risks might be posedby the wholesale security services supporting Japanesecompanies to move into Asia? I would like to see the creationof due diligence mechanisms that consider CSR perspectives
such as these.

Sachiko Kishimoto

Executive Director,
Center for Public
Resources Development,
Nonprofit Organization

While considering a shift to an integrated report format in
the future, Daiwa Securities Group currently reports on its
environmental, social, and governance practices in two
separate documents: its CSR report and its Annual Report.
I would like to give my opinion here on the matters presented
in the CSR Report 2012.
Amid ongoing financial unease throughout the world, 2012
saw the Group strengthen its operating base as a provider ofintegrated financial services. This was accomplished byconsolidating for the first time in 13 years its retail banking
and wholesale securities subsidiaries through the integrationof Daiwa Securities and Daiwa Capital Markets. That eachindividual employee and executive enjoys a sense of confidence
and pride in the knowledge that he or she is contributing to
the development of society, as well as to building customers’
wealth, is a powerful force that will continue to drive further
growth and achievements. For this reason, the Group is
focusing on creating a rewarding working environment for its
employees/executives to achieve its two key CSR goals:
leveraging financial capabilities to contribute to a sustainable
society and developing sound financial and capital markets forthe next generation.
I would like to outline the initiatives that I consider
particularly praiseworthy and describe the developments I hope
to see in the period ahead.
First, let us consider initiatives regarding the leveraging offinancial capabilities to contribute to a sustainable society.
Here, I think pioneering initiatives, such as SRI funds, Impact
Investments for individual investors, and research relating to
ESG information, deserve a particular mention. I also think thatthe charitable trusts and use of microfinance as part of the
Daiwa Securities Group Tsunami Reconstruction Fund, as wellas donating a portion of trust fees from the Phoenix Japan
Fund, are valuable ways to leverage the financial system andResponse toThird-party Opinion

our daily operations. The three areas for improvement
outlined by Ms. Kishimoto all contain extremely valuableideas for further strengthening initiatives to increase ourcorporate value. We will take into account these ideas in
our efforts to realize our vision of becoming Asia’s leading
financial services group possessing and leveraging a solid
business platform in Japan.
Regarding the compilation of an integrated report, we
will refer to the discussions underway by the International
Integrated Reporting Council (IIRC) and continue to do ourbest to communicate more to all stakeholders our progressin building a sustainable society through both our businessand our corporate citizenship activities.

Koichi Matsushita

Executive Managing Director

We are very grateful for the valuable third-party opinion
on the Daiwa Securities Group’s CSR Report 2012. Such
recognition of our initiatives to contribute to a sustainable
society by leveraging financial capabilities—via our SRI and
Impact Investments, for example—is a great encouragement
as we aspire to contribute to society even further throughDaiwa Securities Group44

CSR Report 2012

CSR Report 2012

Third-party Evaluations
Dow Jones Sustainability World Indexes
Member 2011/12

Certified Family-friendly Employer
Shown at right is the certification symbol for family-friendly
employers provided by Japan’s Ministry of Health, Labourand Welfare’s based on the Act on Advancement of
Measures to Support Raising the Next Generation ofChildren. In addition to Daiwa Securities Group Inc.
obtaining certification as a family-friendly employer on June
9, 2008. Daiwa Securities, Daiwa Securities Capital Markets,
Daiwa Institute of Research Holdings,
Daiwa Institute of Research, Daiwa
Institute of Research Business
Innovation and Daiwa Securities
Business Center also received thiscertification.

The Dow Jones Sustainability World Index (DJSI World) is astock index of companies with sustainable practices selectedby Dow Jones & Company, Inc. of the United States andSustainable Asset Management (SAM) of Switzerland.
Daiwa Securities Group Inc. has been included in DJSIWorld for 13 consecutive years.

FTSE4Good Index
FTSE is a subsidiary of the UK’s Financial Times and theLondon Stock Exchange. It develops global indexes andprovides data for investment. Daiwa Securities Group Inc.
has been included in the
FTSE4Good, an index of socially
responsible companies compiled
by FTSE, for six consecutive
periods since September 2006.

Work-Life Balance
The Daiwa Securities Group has earned high praise froma range of external organizations for its initiatives to provide
employees with a more supportive work environment thatis conducive to worklife balance. In fiscal 2009, the Groupwon the Ministry of Health, Labor and Welfare Awardin the category of corporate promotion of equality andwork-life opportunity, as well as the excellence award in theorganizational activity category for the Third Work-Life
Balance Grand Award, the 2009 Nikkei Childcare Support
Award, and the Third Diversity Management Prize in the
WLB category. We were ranked 3rd at a category and 7th
at overall in The Nikkei WOMAN "BEST 100 company inwhich women play an active role" in Fiscal year 2011.

G3.1 GRI/ISO26000 Content Index
GRI Application Levels
In compiling the Daiwa Securities Group Sustainability
Report 2012, reference was made to Global Reporting
Initiative (GRI) Guidelines (3.1 Edition) and the Financial
Services Sector Supplement (2008).
The guidelines set out a series of standard levels (GRI
application levels) based on regulations outlined thereinthat companies compiling reports may apply to ensure that
their reports are compliant with GRI guidelines. We believethat the Daiwa Securities Group Sustainability Report 2012
meets the reporting standards for GRI Report Application
Level B.

G3.1 GRI/ISO26000 Content Index
Item

Indicator

Link

ISO26000
Core Social Responsibility Subjects & Themes Clauses

1 Strategy and Analysis

1.1

1.2

Statement from the most senior decisionmaker of the organization (e.g., CEO,chair, or equivalent senior position) about the relevance of sustainability to theorganization and its strategy.

Message from the President and CEO/
Message From the Chairman

Description of key impacts, risks, and opportunities.

Message from the President and CEO/
Message From the Chairman
Social Responsibilities of the Financial Industry
CSR Issues: Performance and Targets

Daiwa Securities Group45

CSR Report 2012

Organizational governance

6.2

2 Organizational Profile
2.1

Name of the organization.

Daiwa Securities Group Profile

2.2

Primary brands, products, and/or services.

Daiwa Securities Group Profile  Social
Responsibilities of the Financial Industry

2.3

Operational structure of the organization, including main divisions, operatingcompanies, subsidiaries, and joint ventures.

Daiwa Securities Group Profile

2.4

Location of organization’s headquarters.

Daiwa Securities Group Profile

2.5

Number of countries where the organization operates, and names of countries with either major
operations or that are specifically relevant to the sustainability issues covered in the report.

Daiwa Securities Group Profile

2.6

Nature of ownership and legal form.

Daiwa Securities Group Profile

2.7

Markets served (including geographic breakdown, sectors served, and types ofcustomers/beneficiaries).

Daiwa Securities Group Profile

2.8

Scale of the reporting organization, including:・Number of employees;
・Number of operations;・Net sales (for private sector organizations) or net revenues (for public sector organizations); Daiwa Securities Group Profile
・Total capitalization broken down in terms of debt and equity (for private sector
organizations); and・Quantity of products or services provid.

2.9

Significant changes during the reporting period regarding size, structure, orownership including:・The location of, or changes in operations, including facility openings, closings,
and expansions; and・Changes in the share capital structure and other capital formation,
maintenance, and alteration operations (for private sector organizations).

Daiwa Securities Group Profile

2.10

Awards received in the reporting period.

Third-party Evaluations

Organizational governance

6.2

Verification

7.5.3

Organizational governance

6.2

3 Report Parameters
Report Profile
3.1

Reporting period (e.g., fiscal/calendar year) for information provided.

Contents/Editorial Policy

3.2

Date of most recent previous report (if any).

Contents/Editorial Policy

3.3

Reporting cycle (annual, biennial, etc.)

Contents/Editorial Policy

3.4

Contact point for questions regarding the report or its contents.

Contents/Editorial Policy

Report Scope and Boundary
3.5

Process for defining report content, including:・Determining materiality;
・Prioritizing topics within the report; and・Identifying stakeholders the organization expects to use the report.

Daiwa Securities Group Corporate Principles
and Key Issues

3.6

Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities,
joint ventures, suppliers).

Contents/Editorial Policy

3.7

State any specific limitations on the scope or boundary of the report.

Contents/Editorial Policy

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced
operations, and other entities that can significantly affect comparability fromperiod to period and/or between organizations.

Relationship with Executives and Employees
Environmental Initiatives

3.9

Data measurement techniques and the bases of calculations, including assumptions
Relationship with Executives and Employees
and techniques underlying estimations applied to the compilation of the Indicators
Environmental Initiatives
and other information in the report.

3.10

Explanation of the effect of any restatements of information provided in earlier
reports, and the reasons for such re-statement (e.g., mergers/ acquisitions,change of base years/periods, nature of business, measurement methods).

Not applicable

3.11

Significant changes from previous reporting periods in the scope, boundary, or
measurement methods applied in the report.

Not applicable, because there have been no
significant changes since the previous report

GRI content index
3.12

Table identifying the location of the Standard Disclosures in the report.

This table references GRI content

Policy and current practice with regard to seeking external assurance for the report.
If not included in the assurance report accompanying the sustainability report, explain
the scope and basis of any external assurance provided. Also explain the relationshipbetween the reporting organization and the assurance provider (s).

Third-party Opinion

Assurance
3.13

4 Governance, Commitments, and Engagement
Governance
4.1

Governance structure of the organization, including committees under the highest governancebody responsible for specific tasks, such as setting strategy or organizational oversight.

Corporate Governance

4.2

Indicate whether the Chair of the highest governance body is also an executive officer (and, if
so, their function within the organization’s management and the reasons for this arrangement).

Corporate Governance

4.3

For organizations that have a unitary board structure, state the number and gender of membersof the highest governance body that are independent and/or non-executive members.

Corporate Governance

4.4

Mechanisms for shareholders and employees to provide recommendations ordirection to the highest governance body.

Relationship with Shareholders and Other Investors
Relationship with Executives and Employees(Communication)

4.5

Linkage between compensation for members of the highest governance body,senior managers, and executives (including departure arrangements), and theorganization’s performance (including social and environmental performance).

Corporate Governance

Daiwa Securities Group46

CSR Report 2012

4.6

Processes in place for the highest governance body to ensure conflicts of interest are avoided. Corporate Governance

4.7

Process for determining the composition, qualifications, and expertise of themembers of the highest governance body and its committees, including any
consideration of gender and other indicators of diversity.

Corporate Governance

4.8

Internally developed statements of mission or values, codes of conduct, andprinciples relevant to economic, environmental, and social performance and thestatus of their implementation.

Daiwa Securities Group Corporate Principles
and Key Issues

4.9

Procedures of the highest governance body for overseeing the organization’s
identification and management of economic, environmental, and social
performance, including relevant risks and opportunities, and adherence orcompliance with internationally agreed standards, codes of conduct, and principles.

CSR Management (CSR Promotion System)

4.10

Processes for evaluating the highest governance body’s own performance,
particularly with respect to economic, environmental, and social performance.

Corporate Governance

Organizational governance

6.2

Message from the President and CEO/
Message From the Chairman
Delivering Economic Value to Stakeholders

Organizational governanceCommunity involvement and development

6.2
6.8

Commitments to External Initiatives
4.11

Explanation of whether and how the precautionary approach or principle isaddressed by the organization.

Risk Management
IT Governance, Disclosure, and Information Security
Compliance

4.12

Externally developed economic, environmental, and social charters, principles, orother initiatives to which the organization subscribes or endorses.

Social Responsibilities of the Financial Industry

Memberships in associations (such as industry associations) and/or national/
international advocacy organizations in which the organization:
・Has positions in governance bodies;・Participates in projects or committees;
・Provides substantive funding beyond routine membership dues; or・Views membership as strategic.

Principal Member Qualifications- Nippon Keidanren- Japan Securities Dealers Association- Work-Life Balance Promotion Model
Project by the Ministry of Health, Labour andWelfare- The Multi-stakeholder Forum on Social
Responsibility for a Sustainable Future- UNEP-FI
- PRI
- CDP
- Global Compact Japan Network

4.13

Stakeholder Engagement

4.14

List of stakeholder groups engaged by the organization.
・Civil society;・Customers;
・Employees, other workers, and their trade unions;・Local communities;
・Shareholders and providers of capital; and・Suppliers.

Daiwa Securities Group Corporate Principles
and Key Issues

4.15

Basis for identification and selection of stakeholders with whom to engage.

Daiwa Securities Group Corporate Principles
and Key Issues

4.16

Approaches to stakeholder engagement, including frequency of engagement by
type and by stakeholder group.

Daiwa Securities Group Corporate Principles
and Key Issues
Relationship with Customers
Relationship with Shareholders and Other Investors
Relationship with Executives and Employees
Relationship with Society

4.17

Key topics and concerns that have been raised through stakeholder engagement,
and how the organization has responded to those key topics and concerns,
including through its reporting.

Relationship with Customers
Relationship with Shareholders and Other Investors
Relationship with Executives and Employees
Relationship with Society

5 Management Approach and Performance Indicators
Economic
Disclosure on Management Approach
Performance Indicators
Economic Performance
EC1.

CORE

Direct economic value generated and distributed, including revenues, operating
costs, employee compensation, donations and other community investments,
retained earnings, and payments to capital providers and governments.

Relationship with Society (Corporate Citizenship
Initiatives and Expenditures)
Delivering Economic Value to Stakeholders

Community involvement and development
Community involvement
Wealth and income creation
Social investment

6.8
6.8.3
6.8.7
6.8.9

EC2.

CORE

Financial implications and other risks and opportunities for the organization’s
activities due to climate change.

Social Responsibilities of the Financial Industry

Climate change mitigation and action

6.5.5

EC3.

CORE

Coverage of the organization’s defined benefit plan obligations.

Annual Report 2012

EC4.

CORE

Significant financial assistance received from government.

Impact is insignificant

Market Presence
ADD

Range of ratios of standard entry level wage by gender compared to local
minimum wage at significant locations of operation.

Impact is insignificant, due to the nature of ourbusiness

Discrimination and vulnerable groups
Conditions of work and social protection
Community involvement and development

6.3.7
6.4.4
6.8

EC6.

CORE

Policy, practices, and proportion of spending on locally-based suppliers at
significant locations of operation.

Impact is insignificant, due to the nature of ourbusiness

Promoting social responsibility in the value
chain
Community involvement and development
Employment creation and skills development
Wealth and income creation

6.6.6
6.8
6.8.5
6.8.7

EC7.

CORE

Procedures for local hiring and proportion of senior management hired from thelocal community at locations of significant operation.

Not reported

Community involvement and development
Employment creation and skills development
Wealth and income creation

6.8
6.8.5
6.8.7

EC5.

Daiwa Securities Group47

CSR Report 2012

Indirect Economic Impacts

EC8.

EC9.

CORE

ADD

Development and impact of infrastructure investments and services provided
primarily for public benefit through commercial, inkind, or pro bono engagement.

Social Responsibilities of the Financial Industry
Relationship with Society (2.Encouraging ESG
issues and Volunteerism among Executives andEmployees)

Understanding and describing significant indirect economic impacts, including the
Not applicable
extent of impacts.

Economic, social and cultural rights
Community involvement and development
Community involvement
Education and culture
Employment creation and skills development
Technology development and access
Wealth and income creation
Social investment

6.3.9
6.8
6.8.3
6.8.4
6.8.5
6.8.6
6.8.7
6.8.9

Economic, social and cultural rights
Promoting social responsibility in the value
chain
Respect for property rights
Access to essential services
Community involvement and development
Employment creation and skills development
Technology development and access
Wealth and income creation
Social investment

6.3.9
6.6.6
6.6.7
6.7.8
6.8
6.8.5
6.8.6
6.8.7
6.8.9

Organizational governance
The Environment

6.2
6.5

The Environment
Sustainable resource use

6.5
6.5.4

The Environment
Protection of the environment & biodiversity,and restoration of natural habitats

6.5
6.5.6

Environmental
Environmental Initiatives(Approach and Basic Stance)
Environmental Initiatives(Environmental Management)

Disclosure on Management Approach
Performance Indicators
Materials
EN1.

CORE

Materials used by weight or volume.

Not applicable

EN2.

CORE

Percentage of materials used that are recycled input materials.

Not applicable

EnergyEN3.

CORE

Direct energy consumption by primary energy source.

Environmental Initiatives (CO2 Emissions)

EN4.

CORE

Indirect energy consumption by primary source.

Environmental Initiatives (CO2 Emissions)

EN5.

ADD

Energy saved due to conservation and efficiency improvements.

Environmental Initiatives (CO2 Emissions)

EN6.

ADD

Initiatives to provide energy-efficient or renewable energy based products andservices, and reductions in energy requirements as a result of these initiatives.

Environmental Initiatives (Initiatives to Reduce
Environmental Impact)

EN7.

ADD

Initiatives to reduce indirect energy consumption and reductions achieved.

Environmental Initiatives (Initiatives to Reduce
Environmental Impact)

EN8.

CORE

Total water withdrawal by source.

Environmental Initiatives (Other Environmental
Impacts)

EN9.

ADD

Water sources significantly affected by withdrawal of water.

Impact is insignificant

EN10.

ADD

Percentage and total volume of water recycled and reused.

Not reported

CORE

Location and size of land owned, leased, managed in, or adjacent to, protectedareas and areas of high biodiversity value outside protected areas.

Not applicable

EN12.

CORE

Description of significant impacts of activities, products, and services on
biodiversity in protected areas and areas of high biodiversity value outside
protected areas.

Not applicable

EN13.

ADD

Habitats protected or restored.

Not applicable

EN14.

ADD

Strategies, current actions, and future plans for managing impacts on biodiversity.

Not reported

The Environment
Protection of the environment & biodiversity,and restoration of natural habitats
Community involvement

6.5
6.5.6
6.8.3

EN15.

ADD

Number of IUCN Red List species and national conservation list species with
habitats in areas affected by operations, by level of extinction risk.

Not applicable

The Environment
Protection of the environment & biodiversity,and restoration of natural habitats

6.5
6.5.6

The Environment
Climate change mitigation and action

6.5
6.5.5

The Environment
Prevention of pollution

6.5
6.5.3

The Environment
Prevention of pollution
Sustainable resource use
Protection of the environment & biodiversity,and restoration of natural habitats

6.5
6.5.3
6.5.4
6.5.6

Water

Biodiversity
EN11.

Emissions, Effluents, and Waste
EN16.

CORE

Total direct and indirect greenhouse gas emissions by weight.

Environmental Initiatives (CO2 Emissions)

EN17.

CORE

Other relevant indirect greenhouse gas emissions by weight.

Environmental Initiatives (CO2 Emissions)

EN18.

ADD

Initiatives to reduce greenhouse gas emissions and reductions achieved.

Environmental Initiatives (CO2 Emissions)

EN19.

CORE

Emissions of ozone-depleting substances by weight.

Impact is insignificant

EN20.

CORE

NOx, SOx, and other significant air emissions by type and weight.

Impact is insignificant

EN21.

CORE

Total water discharge by quality and destination.

Impact is insignificant

EN22.

CORE

Total weight of waste by type and disposal method.

Environmental Initiatives (Changes in Waste
Generated and Recycling Volume)

EN23.

CORE

Total number and volume of significant spills.

Not applicable

ADD

Weight of transported, imported, exported, or treated waste deemed hazardous
under the terms of the Basel Convention Annex I, II, III, and VIII, and percentageof transported waste shipped internationally.

Not applicable

ADD

Identity, size, protected status, and biodiversity value of water bodies and related
habitats significantly affected by the reporting organization’s discharges of waterand runoff.

EN24.

EN25.

Daiwa Securities GroupNot applicable

48

CSR Report 2012

Products and Services
EN26.

CORE

Initiatives to mitigate environmental impacts of products and services, and extent
of impact mitigation.

Environmental Initiatives (Initiatives to Reduce
Environmental Impact)

The Environment
Sustainable resource use
Promoting social responsibility in the value chain
Sustainable consumption

6.5
6.5.4
6.6.6
6.7.5

EN27.

CORE

Percentage of products sold and their packaging materials that are reclaimed bycategory.

Not applicable

The Environment
Prevention of pollution
Sustainable resource use
Sustainable consumption

6.5
6.5.3
6.5.4
6.7.5

Monetary value of significant fines and total number of non-monetary sanctions
for noncompliance with environmental laws and regulations.

Not applicable

The Environment

6.5

Significant environmental impacts of transporting products and other goods andmaterials used for the organization’s operations, and transporting members of
the workforce.

Not reported

The Environment
Sustainable resource use
Promoting social responsibility in the value chain

6.5
6.5.4
6.6.6

Total environmental protection expenditures and investments by type.

Not reported

The Environment

6.5

Relationship with Executives and Employees

Organizational governance
6.2
Labour Practices
6.4
Fundamental principles and rights at work
6.3.10Relationship with Customers (Approach and Basic Stance)

Compliance
EN28.

ADD

Transport
EN29.

ADD

Overall
EN30.

ADD

Society
Labor Practices and Decent Work

Disclosure on Management Approach

Performance Indicators
Employment
LA1.

CORE

Total workforce by employment type, employment contract, and region, broken
down by gender.

Daiwa Securities Group Profile
Relationship with Executives and Employees

LA2.

CORE

Total number and rate of new employee hires and employee turnover by age
group, gender, and region.

Relationship with Executives and Employees(Employees at the Daiwa Securities Group(Consolidated)) (Hiring Initiatives)

LA3.

ADD

Benefits provided to full-time employees that are not provided to temporary orparttime employees, by significant locations of operation.

LA15.

CORE

Return to work and retention rates after parental leave, by gender.

Labour Practices
Employment and employment relationships

6.4
6.4.3

Relationship with Executives and Employees(Creating a Workplace Supportive of Work-life
Balance)Labour Practices
Employment and employment relationships
Conditions of work and social protection

6.4
6.4.3
6.4.4

Relationship with Executives and Employees(Creating a Workplace Supportive of Work-life
Balance)Labour Practices
Conditions of work and social protection

6.4
6.4.4

Labour Practices
Employment and employment relationships
Conditions of work and social protection
Social dialogue
Fundamental principles and rights at work

6.4
6.4.3
6.4.4
6.4.5
6.3.10Labour Practices
Employment and employment relationships
Conditions of work and social protection
Social dialogue

6.4
6.4.3
6.4.4
6.4.5

Labour Practices
Health and safety at work

6.4
6.4.6

Labor/Management Relations

LA4.

CORE

Percentage of employees covered by collective bargaining agreements.

Relationship with Executives and Employees(Communication with Employees’ Union)

LA5.

CORE

Minimum notice period(s) regarding operational changes, including whether it isspecified in collective agreements.

Not reported

Occupational Health and Safety
ADD

Percentage of total workforce represented in formal joint management–worker
health and safety committees that help monitor and advise on occupational
health and safety programs.

CORE

Rates of injury, occupational diseases, lost days, and absenteeism, and number of
Not reported
workrelated fatalities, by region and by gender.

LA8.

CORE

Education, training, counseling, prevention, and risk-control programs in place toassist workforce members, their families, or community members regarding
serious diseases.

Relationship with Executives and Employees(Creating a Workplace Supportive of Work-life
Balance)Labour Practices
Health and safety at work
Community involvement and development
Community involvement
Education and culture
Health

6.4
6.4.6
6.8
6.8.3
6.8.4
6.8.8

LA9.

ADD

Health and safety topics covered in formal agreements with trade unions.

Not reported

Labour Practices
Health and safety at work

6.4
6.4.6

LA6.
LA7.

Not reported

Training and Education
LA10.

CORE

Average hours of training per year per employee by gender, and by employee
category.

Not reported

Labour Practices
6.4
Human development and training in the workplace 6.4.7

LA11.

ADD

Programs for skills management and lifelong learning that support the continued
employability of employees and assist them in managing career endings.

Relationship with Executives and Employees(Human Resources Development and Skill
Development)

Labour Practices
Human development and training in the workplace
Employment creation and skills development

LA12.

ADD

Percentage of employees receiving regular performance and career development
reviews, by gender.

Relationship with Executives and Employees(Human Resources Development and Skill
Development)

Labour Practices
6.4
Human development and training in the workplace 6.4.7

Relationship with Executives and Employees(Hiring Initiatives)

Discrimination and vulnerable groups
Fundamental principles and rights at work
Labour Practices
Employment and employment relationships

6.4
6.4.7
6.8.5

Diversity and Equal Opportunity		
LA13.

CORE

Composition of governance bodies and breakdown of employees per employee
category according to gender, age group, minority group membership, and otherindicators of diversity.

Daiwa Securities Group49

CSR Report 2012

6.3.7
6.3.106.4
6.4.3

Equal Remuneration for Women and Men

LA14.

CORE

Ratio of basic salary and remuneration of women to men by employee category,by significant locations of operation.

Not reported

Discrimination and vulnerable groups
Fundamental principles and rights at work
Labour Practices
Employment and employment relationships
Conditions of work and social protection

6.3.7
6.3.10
6.4
6.4.3
6.4.4

Relationship with Executives andEmployees (Human Rights Awareness)

Organizational governance
Human Rights
Due Diligence
Human rights risk situations
Resolving grievances
Promoting social responsibility in the value chain

6.2
6.3
6.3.3
6.3.4
6.3.6
6.6.6

Human Rights

Disclosure on Management Approach

Performance Indicators
Investment and Procurement Practices
CORE

Percentage and total number of significant investment agreements and contracts
that include clauses incorporating human rights concerns, or that haveundergone human rights screening.

We have no operations in areas where there
are special concerns about protection ofhuman rights

Human Rights
Due diligence
Avoidance of complicity
Promoting social responsibility in the value chain

6.3
6.3.3
6.3.5
6.6.6

HR2.

CORE

Percentage of significant suppliers, contractors, and other business partners thathave undergone human rights screening, and actions taken.

We have no operations in areas where there
are special concerns about protection ofhuman rights

Human Rights
Due diligence
Avoidance of complicity
Employment and employment relationships
Promoting social responsibility in the value chain

6.3
6.3.3
6.3.5
6.4.3
6.6.6

HR3.

CORE

Total hours of employee training on policies and procedures concerning aspectsof human rights that are relevant to operations, including the percentage of
employees trained.

Relationship with Executives and Employees(Human Rights Awareness)

Human Rights
Avoidance of complicity

6.3
6.3.5

Not applicable

Human Rights
Resolving grievances
Discrimination and vulnerable groups
Fundamental principles and rights at work
Employment and employment relationships

6.3
6.3.6
6.3.7
6.3.10
6.4.3

Operations and significant suppliers identified in which the right to exercise
freedom of association and collective bargaining may be violated or at significant
risk, and actions taken to support these rights.

Human Rights
Due diligence
Human rights risk situations
Avoidance of complicity
Not applicable, due to the nature of our business
Civil and political rights
Fundamental principles and rights at work
Employment and employment relationships
Social dialogue

6.3
6.3.3
6.3.4
6.3.5
6.3.8
6.3.10
6.4.3
6.4.5

Operations and significant suppliers identified as having significant risk forincidents of child labor, and measures taken to contribute to the effective
abolition of child labor.

Our business entails no risk of using child labor

HR1.

Non-Discrimination

HR4.

CORE

Total number of incidents of discrimination and corrective actions taken.

Freedom of Association and Collective Bargaining

HR5.

CORE

Child Labor
HR6.

CORE

Human Rights
Due diligence
Human rights risk situations
Avoidance of complicity
Discrimination and vulnerable groups
Fundamental principles and rights at work
Promoting social responsibility in the value chain

6.3
6.3.3
6.3.4
6.3.5
6.3.7
6.3.106.6.6

Impact is insignificant, due to the nature of ourbusiness

Human Rights
Avoidance of complicity
Employment and employment relationships
Promoting social responsibility in the value chain

6.3
6.3.5
6.4.3
6.6.6

Total number of incidents of violations involving rights of indigenous people andactions taken.

Not applicable

Human Rights
Resolving grievances
Discrimination and vulnerable groups
Civil and political rights
Respect for property rights

6.3
6.3.6
6.3.7
6.3.8
6.6.7

Percentage and total number of operations that have been subject to humanrights reviews and/or impact assessments.

Not reported

Human Rights
Due Diligence
Human rights risk situations
Avoidance of complicity

6.3
6.3.3
6.3.4
6.3.5

Number of grievances related to human rights filed, addressed and resolved
through formal grievance mechanisms.

Not reported

Human Rights
Resolving grievances

6.3
6.3.6

Forced and Compulsory Labor
HR7.

CORE

Operations and significant suppliers identified as having significant risk forincidents of forced or compulsory labor, and measures to contribute to theelimination of all forms of forced or compulsory labor.

Our business entails no risk of using forced labor

Security Practices
HR8.

ADD

Percentage of security personnel trained in the organization’s policies orprocedures concerning aspects of human rights that are relevant to operations.

Indigenous Rights

HR9.

ADD

Assessment
HR10. CORE
Remediation
HR11. CORE

Daiwa Securities Group50CSR Report 2012Society
Disclosure on Management Approach

Relationship with Society (Approach and Basic
Stance)Compliance

Organizational governanceFair Operating Practices
Community involvement and development

6.2
6.6
6.8

Economic, social and cultural rights
Community involvement and development
Community involvement
Social Investment

6.3.9
6.8
6.8.3
6.8.9

Economic, social and cultural rights
Prevention of pollution
Protection of the environment, biodiversity andrestoration of natural habitats
Community Involvement and development

6.3.9
6.5.3
6.5.6
6.8

Fair Operating Practices
Anti-corruption

6.6
6.6.3

Fair Operating Practices
Responsible political involvement
Community involvement

6.6
6.6.4
6.8.3

Performance Indicators
Local Communities
SO1.

CORE

Percentage of operations with implemented local community engagement,
impact assessments, and development programs.

Impact is insignificant, due to the nature of ourbusiness

SO9.

CORE

Operations with significant potential or actual negative impacts on local
communities.

Not applicable

SO10.

CORE

Prevention and mitigation measures implemented in operations with significant
potential or actual negative impacts on local communities.

Not applicable

Corruption
SO2.

CORE

Percentage and total number of business units analyzed for risks related tocorruption.

IT Governance, Disclosure, and Information Security
Risk Management

SO3.

CORE

Percentage of employees trained in organization’s anti-corruption policies andprocedures.

Compliance

SO4.

CORE

Actions taken in response to incidents of corruption.

Not applicable

CORE

Public policy positions and participation in public policy development andlobbying.

Not reported

ADD

Total value of financial and in-kind contributions to political parties, politicians,
and related institutions by country.

Not reported

Public Policy
SO5.
SO6.

Anti-Competitive Behavior
SO7.

ADD

Total number of legal actions for anticompetitive behavior, anti-trust, andmonopoly practices and their outcomes.

Not applicable

Fair Operating Practices
Fair competition
Respect for property rights

6.6
6.6.5
6.6.7

Monetary value of significant fines and total number of non-monetary sanctions
for noncompliance with laws and regulations.

Not applicable

Fair Operating Practices
Anti-Corruption
Respect for property rights
Wealth and income creation

6.6
6.6.3
6.6.7
6.8.7

IT Governance, Disclosure, and Information Security Organizational governance
Relationship with Customers (Approach and Basic Fair Operating Practices
Stance)Consumer Issues

6.2
6.6
6.7

Compliance
SO8.

CORE

Product Responsibility
Disclosure on Management Approach
Performance Indicators
Customer Health and Safety
PR1.

CORE

PR2.

ADD

Life cycle stages in which health and safety impacts of products and services areassessed for improvement, and percentage of significant products and services
categories subject to such procedures.

Not applicable, due to the nature of our business Economic, social and cultural rights
Promoting social responsibility in the value chain
Consumer Issues
Total number of incidents of noncompliance with regulations and voluntary codes
Protecting consumers’ health & safetyconcerning health and safety impacts of products and services during their life
Not applicable, due to the nature of our business Sustainable consumption
cycle, by type of outcomes.

6.3.9
6.6.6
6.7
6.7.4
6.7.5

Product and Service Labeling
PR3.

CORE

Type of product and service information required by procedures, and percentage
of significant products and services subject to such information requirements.

Relationship with Customers (Accountability tocustomers)

PR4.

ADD

Total number of incidents of non-compliance with regulations and voluntary
codes concerning product and service information and labeling, by type ofoutcomes.

Not applicable

PR5.

ADD

Practices related to customer satisfaction, including results of surveys measuring
customer satisfaction.

Relationship with Customers (Initiatives Make
Use of Customer Views)

Consumer Issues
Fair marketing, factual and unbiased
information and fair contractual practices
Protecting consumers’ health & safety
Sustainable consumption
Consumer service, support and complaint anddispute resolution
Education and awareness

6.7
6.7.3
6.7.4
6.7.5
6.7.6
6.7.9

Consumer Issues
Protecting consumers’ health & safety
Sustainable consumption
Consumer service, support and complaint anddispute resolution
Access to essential services
Education and awareness

6.7
6.7.4
6.7.5
6.7.6
6.7.8
6.7.9

Consumer Issues
Fair marketing, factual and unbiased
information and fair contractual practices
Consumer service, support and complaint anddispute resolution
Education and awareness

6.7
6.7.3
6.7.6
6.7.9

Marketing Communications
PR6.

PR7.

CORE

Programs for adherence to laws, standards, and voluntary codes related tomarketing communications, including advertising, promotion, and sponsorship.

Relationship with Customers (Building Even
Deeper Trust in Relationships with Customers)

ADD

Total number of incidents of non-compliance with regulations and voluntary
codes concerning marketing communications, including advertising, promotion,and sponsorship by type of outcomes.

Not applicable

Daiwa Securities Group51

CSR Report 2012

Customer Privacy
PR8.

ADD

Total number of substantiated complaints regarding breaches of customer privacy
Not applicableand losses of customer data.

Consumer Issues
Consumer data protection and privacy

6.7
6.7.7

Monetary value of significant fines for noncompliance with laws and regulations
concerning the provision and use of products and services.

Consumer Issues
Consumer service, support and complaint anddispute resolution

6.7
6.7.6

Compliance
PR9.

CORE

Not applicable

Sustainability Reporting Guidelines & Financial Services Sector Supplement
Item

Indicator

Link

Product and Service Impact (Financial Services Sector Specific Disclosure on Management Approach)
FS1.

CORE

Policies with specific environmental and social components applied to business lines.

FS2.

CORE

Procedures for assessing and screening environmental and social risks in business lines. Not reported

CSR Management (CSR Promotion System)

FS3.

CORE

Processes for monitoring clients’ implementation of and compliance withenvironmental and social requirements included in agreements or transactions.

Compliance

FS4.

CORE

Process(es) for improving staff competency to implement the environmental andsocial policies and procedures as applied to business lines.

CSR Management (CSR Promotion System)
Relationship with Executives and Employees(Human Resources Development and Skill
Development)

FS5.

CORE

Interactions with clients/investees/ business partners regarding environmental
and social risks and opportunities.

Relationship with Customers (Building Even Deeper
Trust in Relationships with Customers)
Relationship with Shareholders and Other Investors

Product and Service Impact (Performance Indicators)
Product Portfolio
FS6.

CORE

Percentage of the portfolio for business lines by specific region, size (e.g. micro/
SME/large) and by sector.

Daiwa Securities Group Profile
Social Responsibilities of the Financial Industry

FS7.

CORE

Monetary value of products and services designed to deliver a specific social
benefit for each business line broken down by purpose.

Social Responsibilities of the Financial Industry

FS8.

CORE

Monetary value of products and services designed to deliver a specificenvironmental benefit for each business line broken down by purpose.

Social Responsibilities of the Financial Industry

CORE

Coverage and frequency of audits to assess implementation of environmental andCorporate Governnancesocial policies and risk assessment procedures.

Audit
FS9.

Active Ownership
FS10.

CORE

Percentage and number of companies held in the institution’s portfolio withwhich the reporting organization has interacted on environmental or social
issues.

Not reported

FS11.

CORE

Percentage of assets subject to positive and negative environmental or social
screening.

Social Responsibilities of the Financial Industry

FS12.

CORE

Voting polic(ies) applied to environmental or social issues for shares over which
the reporting organization holds the right to vote shares or advises on voting.

Social Responsibilities of the Financial Industry

Society (Performance Indicators)
Community
FS13.

FS14.

CORE

CORE

Access points in low-populated or economically disadvantaged areas by type.

Not applicable

Initiatives to improve access to financial services for disadvantaged people.

Relationship with Customers (Building Even
Deeper Trust in Relationships with Customers)
Relationship with Society (4. Assistance tocommunities on both the local and theinternational level through foundations and NPOs)

Product Responsibility (Performance Indicators)
FS15.

CORE

Policies for the fair design and sale of financial products and services.

Relationship with Customers (Building Even
Deeper Trust in Relationships with Customers)

Product Responsibility (Performance Indicators)
Product and Service Labeling

FS16.

CORE

Initiatives to enhance financial literacy by type of beneficiary.

Daiwa Securities GroupCSR Management (CSR Issues: Performanceand Targets)
Relationship with Society (1. Education andresearch activities in the fields of economics andfinance)52

CSR Report 2012