Leveraging financial capabilities to contribute to a sustainable society

Role and Social Responsibilities of the Financial Services

At the Daiwa Securities Group, we believe that our role is not only to maintain and develop a fair and dynamic financial market, but also to incorporate a social perspective in finance in order to contribute to building a sustainable society. For example, the securities business—our core operations—plays a key role in society by building a bridge between the needs of investors to manage assets and those of the private and public sectors to raise funds.
With corporate share investment, the Daiwa Securities Group promotes methods of investing that take into account corporate social responsibility (CSR), such as its environmental and social initiatives, in addition to financial information.

Role of the securities business

Promotion of Impact Investment

Impact Investment bonds

Compared to typical forms of SRI, Impact Investment focuses more on investments that have direct impacts on society, addressing environmental destruction on a global scale, poverty in developing countries issues like. It is a method that not only pursues economic benefits, but is also a way to allocate assets solely to activities targeted at resolving social issues, such as poverty and climate change.
As a financial institution, we have supported the alleviation of problems in society by underwriting various types of Impact Investment bonds.

Market share of Impact Investment bonds for retail investors


Socially Responsible Investment (SRI) Funds

SRI funds are managed by evaluating and selecting stocks and bonds for their issuers' social and environmental efforts, business ethics, and other nonfinancial performance aspects, as well as their level of sales and profit. These include eco-funds, for which nonfinancial criteria used in evaluation are limited to environmental performance or 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 and CSR activities via the financial market.

Market share of SRI funds


Promotion of education on ESG (environment, society, and governance) investment

In response to growing awareness of ESG among issuers and investors, Daiwa Securities has held ESG IR events and since FY 2013 has sponsored ESG seminars as well. ESG information has also been provided through the website and other means of Daiwa Institute of Research Ltd.
Daiwa Institute of Research Ltd.>>

As a Responsible Institutional Investor

Adoption of “Japan's Stewardship Code”

In February 2014, Japan's Financial Services Agency (FSA) announced the “Principles for Responsible Institutional Investors, also known as “Japan's Stewardship Code.” The code was drawn up to promote sustainable growth of businesses, in response to “The Japan Revitalization Strategy,” which was approved by Cabinet on June 14, 2013, through constructive dialogue between businesses and various types of institutional investors whilst the latter duly fulfill their fiduciary duties. The stewardship for institutional investors signifies careful management of assets for the maximum benefit of clients and beneficiaries and taking action to promote sustainable growth of companies invested in.
The Chief Investment Officer (CIO) of Daiwa Asset Management participated in the process of drawing up the Code as a member of the “Council of Experts Concerning the Japanese Version of the Stewardship Code” established by the FSA, and the company announced its adoption of the Code in May 2014.

Adoption of the “Principles for Responsible Institutional Investors” (the Japanese Version of the Stewardship Code)

Other initiatives

Principles for Financial Action toward a Sustainable Society (Principles for Financial Action for the 21st Century)
PRI (the Principles for Responsible Investment)

Daiwa Asset Management and Cluster Munitions

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Support for the creation of our future society

The Daiwa Securities Group has taken the following initiatives, harnessing our collective strengths:

  • Examples)
  • Daiwa Securities Group
  • Daiwa Institute of Research Ltd. Support for Cultivating a Capital Market in Myanmar
  • Daiwa Real Estate Asset Management Co. Ltd. Nippon Healthcare Investment Corporation
  • Daiwa PI Partners Photovoltaic Power Generation Projects
  • Daiwa Institute of Research Business Innovation Ltd. Participation in Saitama Eco-Town project
  • Daiwa Institute of Research Business Innovation Ltd. Data Health Plan
  • Daiwa Corporate Investment Co., Ltd. Great East Japan Earthquake Small and Mid-Sized Enterprise Reconstruction Support Fund
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