Daiwa Securities Group publishes information with the goal of achieving a sustainable society. We believe that expanding our collaboration with society and supporting reform, including sustainability education, economic and financial literacy, support for international initiatives, and policy suggestions, are one of our most important missions.

   Daiwa Securities Group actively supports international activities with the goal of achieving a sustainable society. In May 2006, Daiwa Asset Management Co. Ltd. became a signatory to the Principles for Responsible Investment (PRI)*1, and announced a policy for putting these principles into practice. Additionally, in May 2007, Daiwa Securities Group Inc. became a signatory to UNEP FI*2's Declaration on Climate Change by the Financial Services Sector*3. Daiwa Securities Group Inc. also became a signatory to the Carbon Disclosure Project (CDP)*4 in March 2004, and joined the United Nations Environment Programme Finance Initiative (UNEP FI) in November 2004.

*1 Principles for Responsible Investment (PRI)

Principles for Responsible Investment (PRI) are guidelines to promote the incorporation of environmental, social, and corporate governance (ESG) considerations into the decision-making processes of institutional investors, unveiled by UNEP FI and UN Global Compact, in April 2006. The PRI are outlined below.

*2 The United Nations Environment Programme Finance Initiative (UNEP FI)

The United Nations Environment Programme Finance Initiative (UNEP FI), which involves a partnership between the UN Environment Program (UNEP) and various financial institutions worldwide, is striving to implement activities that best take the environment and the concept of sustainability into account, based on the recognition of the major worldwide impact of the money handled by the finance industry. The initiative, whose goal is to raise awareness of efforts towards achieving sustainability, has been in operation since 1992. Financial institutions from around the world have joined this initiative.

*3 Declaration on Climate Change by the Financial Services Sector

This is a declaration on climate change by leaders of financial institutions from around the world, presented by the UNEP Finance Initiative at the G8 summit of industrialized nations held in Heiligendamm, Germany in June 2007. 23 financial institutions signed the declaration, which recognizes the importance of climate change, and expresses their determination to work toward a solution and encourage others to act.

*4 Carbon Disclosure Project (CDP)

With the support of institutional investors concerned about climate change, the Carbon Disclosure Project asks global companies to disclose information relating to their initiatives and approaches to environmental problems. As of end-2006, 225 institutional investors managing a total of $US 31 trillion in assets have joined the project.

   Daiwa Securities Group teaches courses in CSR and SRI at the request of universities. Since April 2007, the staff of the Daiwa Securities Group CSR Promotion Department has been teaching a new Social Finance course at the Keio University Graduate School of Media and Governance. The half-year course is designed as an initiative to develop the abilities of young people who will be responsible for sustainability in the future. The course covers the workings of finance considering society and environment, including trends in UNEP FI, SRI funds, micro-finance, and support for social entrepreneurs, combined with real-world information.

   From fiscal 2004 to fiscal 2006, Yoshinari Hara, Chairman of the Board of Daiwa Securities Group Inc., chaired the Committee for the Promotion of CSR Management of the Japan Association of Corporate Executives (Keizai Doyukai), where he worked to promote and raise awareness of CSR in business. On May 30, a report titled "CSR Innovation: Creating New Value through CSR in Business Activities," which could be called a roundup of Hara's efforts over these three years.
   CSR includes actions as a corporate citizen, such as charitable donations, as well as compliance in order to prevent scandals. Rather than these elements of CSR, however, this report focused on business activities themselves. The report focused particularly on case studies of good practices by 92 Japanese companies in the areas of customers, employees, local communities, and the environment, from the perspectives of whether the products and services offered by the company are socially and environmentally friendly, and whether they took these four groups and all other stakeholders sufficiently into account.
   The report is available at the following URL (In Japanese only):
   http://www.doyukai.or.jp/policyproposals/articles/2007/070530a.html

   Through its economic and financial literacy program, the Daiwa Securities Group aims to teach young people to make their own decisions and live independently. In order to achieve this goal, it is important to teach young people—not just college students but junior and senior high-school students as well—about the economy and society, and what it means to get along with other people, and live and work in society. We believe that the sound development of young people is achieved through a thorough understanding of the principles and rules of living in society, rather than mere superficial knowledge of economic issues.

Education in economics and finance

Main academic partnerships with universities in fiscal 2006

   The Student Company Program (SCP) is a hands-on economic literacy offered by Junior Achievement Japan, an NPO dedicated to economic and financial literacy for young people. Through the program, high-school students learn about the economy and how corporations work by actually managing a company. The Daiwa Securities Group began collaborating in the SCP at Ritsumeikan High School in Kyoto in fiscal 2003. Two group employees participate in the program each week, advising the students as "external directors."
   Students participating in the SCP learn first-hand about the difficulties of managing an organization in the real world, sharing their knowledge and striving to overcome issues. The huge growth achieved by the students as people has also been covered by the media. More and more schools are introducing the SCP, providing a fresh stimulus to high-school education.

   Junior Achievement is a NPO, founded in 1919 in the United States. It promotes education in the areas of corporate management, economics, and finance, together with practical experience. Currently, the organization receives both financial support as well as human support in the form of instructors who are, in fact, corporate executives and employees from some 40,000 firms. Every year, 4.5 million youths participate in Junior Achievement programs worldwide. Junior Achievement Japan was established in 1995.

   For me, the greatest attraction of this course was the ability to meet other people who are passionate about this topic. When I first started the course, I had a vague notion that I wanted to change society, but I had no idea where to get started. But by meeting action-oriented people through this course, I have been able to take the first step toward changing society. Specifically, I planned a youth summit with the topic of sustainability. Through this experience, this course has given me the invaluable opportunity to have a glimpse of my present and future selves. Lately, I have begun to hold voluntary study sessions, where my friends and I debate various topics, then attend lectures after deepening our understanding.
   Although this course is centered on a lecture format, I hope to make use of what I have learned here in my future activities.