Recognizing that the impact of its operations of the Daiwa Securities Group on the global environment is not inconsequential, we continually strive to reduce our environmental impact, and raise employee awareness. See Material Issue 3: Contribution to Global Environment for our internal and external initiatives to help resolve environmental issues.

   At the Daiwa Securities Group, we believe that each employee should think and act in the following way regarding global environmental issues.
• Recognizing that environmental issues are our issues, each employee strives voluntarily and actively to conserve energy and improve administrative flows.
• Each employee strives to promote and raise awareness of socially responsible investment (SRI), and supports companies that tackle environmental issues through the securities market.
   Through these efforts, we are committed to contributing to economic growth and the global environment.

   We have been able to continuously collect data on the electricity usage of the Daiwa Securities headquarters building since fiscal 1990. As of fiscal 2006, electricity usage at this building decreased by 20.8% from fiscal 1990 levels. We believe that this reduction has been thanks mainly to the energy efficiency gained by replacing air-conditioning equipment and shorter working hours due to improved productivity.

Electricity usage of Daiwa Securities headquarters building

   Although the environmental impact of the Daiwa Securities Group decreased continually from fiscal 2002 to fiscal 2005, our impact increased in fiscal 2006 due to our increased electricity usage. This was caused by increased electricity usage to power additional servers and control the air conditioning in the computer rooms of Daiwa Institute of Research Ltd., due to increased contracts for data processing and other business. Although the electricity usage of the headquarters building and branches of Daiwa Securities Co. Ltd. decreased, the rate of reduction has slowed.
   Usage of natural gas, water, and light oil decreased through such actions as eliminating the employee cafeterias at our headquarters building and branches. We have also reduced our gasoline consumption by switching over our fleet of sales vehicles to light cars, but in fiscal 2006 the reduction was small.
   In July 2007, the Daiwa Securities Group implemented a "COOL BIZ" policy group-wide, and began controlling temperature setting to appropriate levels. All employees wore badges promoting the "COOL BIZ" style. Additionally, we put up posters in each of our departments and branches, and utilize the in-house satellite programs to promote COOL BIZ. Through these efforts, we have ensured that all employees group-wide know and understand our commitment to contribute to global environment.

Scope of environmental impact data

* 117 branch offices, excluding headquarters, Osaka and Nagoya Branch buildings.
(As of the end of March 2007)

   Since fiscal 2005, the Daiwa Securities Group has calculated the volume of copier paper purchased in bulk by the Group, and the volume of statement paper purchased by Daiwa Securities Co. Ltd. and Daiwa Securities SMBC (in kg), as a yardstick for the volume of paper used in our businesses.
   Although the Daiwa Securities Group recommends to sales branches and departments that they purchase copier paper in bulk via group-company Daiwa Sanko Co., Ltd., it is not mandatory to do so, and the selection of suppliers is left to the discretion of each sales branch and department. In fiscal 2006, a significant proportion (over 80%) of copier paper is estimated to be purchased in bulk.
   In fiscal 2006, the Group purchased 6.5% more copier paper in bulk than the previous fiscal year. We believe that this increase was due to the increased size of our workforce due to such factors as increased hiring of new graduates, and a higher proportion of paper being purchased in bulk, as a result of our continued efforts to encourage its use.
   The move to electronic statements by Daiwa Securities Co. Ltd. has greatly reduced our usage of statement papers (see "Electronic statements for internal use" for details ).

Copy and statement paper purchase amount for Daiwa Securities Group (purchased in bulk for all group companies) Total weight (kg)

Daiwa Securities Group's energy consumption   (Table 1)

* For the scope of data, see the "Scope of environmental impact data" table on the website.

Daiwa Securities Group's CO2 emissions (Table 2)   (Unit: kg-CO)

* The emissions conversion factors used in the CO2 output calculations are based on the ministerial ordinance related to the calculation of greenhouse gas emissions arising from the business activities of specified emitters (March 2006, Ministry of Economy, Trade and Industry and Ministry of the Environment, Ordinance No. 3), for all fiscal years.
* For the scope of data, see the "Scope of environmental impact data" table on the website.

Daiwa Securities Group's electricity usage (Graph 1)

* For the scope of data, see the "Scope of environmental impact data" table on the website.

Daiwa Securities Group's water usage (Graph 2)

* For the scope of data, see the "Scope of environmental impact data" table on the website.

Daiwa Securities Group's waste generation and recycling over time (Table 3)   (Unit: tons)

* For the scope of data, see the "Scope of environmental impact data" table on the website.

   In December 2007, we will move the Daiwa Securities Group Inc., the Daiwa Securities Co. Ltd. headquarters, and Daiwa Securities SMBC to Gran Tokyo North Tower (1-9-1, Marunouchi, Chiyoda, Tokyo). Gran Tokyo North Tower has leading-edge energy-conservation technologies, including an automated sun-censoring control system and highly insulating airflow windows*. We expect these technologies to greatly reduce our environmental impact.
   We will also introduce several environmental measures specific to the Daiwa Securities Group, including utilizing recyclable floor carpet on about 49,500 square meters spanning 14 floors, a paper recycling system capable of dissolving all waste paper, and a fire-extinguishing system that does not use halon gas.
   Our goal is to make a "zero waste" move: we will utilize reusable container boxes, and strive to reuse and recycle as much unneeded material as possible.

* Airflow window: The window consists of two panes of glass, between which room air is made to flow, reducing the impact of outside heat from the windows.