Daiwa Securities Group Inc. / CSR Issues: Performance and Targets

This section reports the fiscal 2007 results and fiscal 2008 targets for the wide range of initiatives conducted by the Daiwa Securities Group for the creation of a sustainable society.

		Issues and Targets for Fiscal 2007	Rating of Initiatives	Issues and Targets for fiscal 2008
Material Issue 1 Adding a Social Perspective to Investment		Promote the widespread practice of SRI (continued).	G	Continue to develop and spread financial products with a social perspective and SRI.
Material Issue 1 Adding a Social Perspective to Investment		Provide more information on socially responsible investment.	G	Provide more information on investment from a social perspective (continued).
Material Issue 2 Commitment to the Development of a Sound Securities Market		See "Compliance."		See "Compliance."
Material Issue 3 Contribution to Global Environment		Consider the development of financial products that enable investors to help resolve environmental issues.	G	Raise awareness of environmental issues among executives and employees.
		Expand environmental management systems to major overseas offices.	F	Reduce the environmental burden by setting temperatures appropriately, reducing use of paper and other means.
		Reduce environmental impact by such means as appropriately adjusting air conditioning and using electronic statements.	VG	Promote reuse and recycling of fixtures when moving to headquarters building.
		Achieve zero waste in relocation from former headquarters building.	-*
Material Issue 4 Communicating Information for a Sustainable Society		Enhance activities to raise awareness of sustainability.	G	Communicate more information about sustainability on our CSR website.
		Promote economic and financial education initiatives for junior and senior high-school students.	G	Expand and promote economic and financial education initiatives.
Corporate Governance		Perform documentation and verification in anticipation of fiscal 2008 (first year that internal control system goes into effect).	G	Establish a system for evaluating internal control.
		Create systems for new businesses.	G	Organize and expand the Group's management system, including systems for new businesses.
		Further promote BCP (Business Continuity Plan).	VG	Promote BCP.
CSR Management		See "Material Issues."		Promote dialogue with stakeholders.
				Raise awareness of CSR among executives and employees.
				Improve coordination among related internal departments.
Compliance	Entire Group	Raise awareness of corporate ethics and compliance at Group companies (continued).	VG	Carry out thorough compliance training at all companies.
	Entire Group	Strengthen measures against criminal elements (continued).	G	Strengthen system to eliminate criminal elements.
	Daiwa Securities	Enhance systems compliant with such revised laws as the Financial Instruments and Exchange Law and the Financial Products Sales Law.	VG	Strengthen the internal control system.
		Revise internal rules, including simplification and streamlining.	VG	Create an enhanced internal control structure for systems and IT.
		Enhance customer and sales-force management systems.	G	Enhance the monitoring system for unfair transactions.
	Daiwa Securities SMBC	Enhance systems compliant with such revised laws as the Financial Instruments and Exchange Law and the Financial Products Sales Law.	VG	Improve the system for handling the Guidelines for Supervision of the Financial Instruments Business.
		Manage information more stringently, and in particular establish systems to prevent leaks of personal information.	VG	Implement new risk management for the Financial Instruments and Exchange Law.
		Enhance compliance regimes relating to laws and regulations concerning foreign exchange.	VG	Enhance the information management system.
		Support greater sophistication in risk-management systems.	G
Information Disclosure		Enhance disclosure of non-financial information.	G	Expand and make good use of IR channels.
		Enhance disclosure of non-financial information.	G	Implement effective IR directed to individual investors.
		Further expand and enhance investor relations (IR) targeting individual investors.	VG	Enhance disclosure of non-financial information (continued).
Customer Satisfaction		Actively pursue post-sales follow up (continued).	G	Actively pursue post-sales follow up (continued).
		Improve skills of junior salespeople.	G	Improve employees' skills (continued).
		Improve customer-interface skills of branch employees who interact with customers.	G	Improve customer-interface skills of branch employees interacting with customers (continued).
Respect for People and Human Resource Utilization		Further promote company invigoration measures.	VG	Reassess all employees' working hours/time management (encourage employees to take yearly paid leave, etc.).
		Enhance education and training programs to increase number of certified analysts and CFPs (continued).	VG	Change employee attitudes through child-rearing (encourage male employees to take child care leave, etc.).
		Develop workplace environments where women can fully use their abilities (continued).	VG	Continue hiring persons with disabilities as regular employees.
Corporate Citizenship		Contribute to social welfare through grant programs and the like.	G	Promote an environment encouraging executives and employees to participate in volunteer work.
Corporate Citizenship		Promote volunteer programs to enable more executives and employees to participate (continued).	G	Communicate information about volunteering and volunteer activities in-house.
Environmental Impact of the Daiwa Securities Group		See Material Issue 3 " Contribution to Global Environment."		See Material Issue 3 " Contribution to Global Environment."

* Since compilation of figures has not been completed at this time, details will be provided in the next Sustainability Report.

Rating of initiatives

VG: Very good results toward achieving the target
G: Good results toward achieving the target
F: Fair; further implementation and results needed
NI: Not implemented

The results of initiatives in fiscal 2007, and issues and targets for fiscal 2008, are listed as the issues and targets of each division. The Daiwa Securities Group's own rating for accomplishment of each initiative is shown.

Fiscal 2008 targets for the Daiwa Securities Group are based on performance and evaluation of fiscal 2007 targets. Coordination among Group companies and divisions with the aim of implementing and achieving these targets leads to maximizing value for all stakeholder groups.