Sustainability-Fueled Business Expansion

While maintaining the core securities business that has been valued since its foundation, Daiwa Securities Group has started solution businesses for social problems in various fields, such as FinTech, healthcare, energy infrastructure, and agriculture, leveraging the knowledge of various securities and financial businesses cultivated by the Group.

Fintertech Co., Ltd.

Creation of Next Generation Financial Services

Established in April 2018, Fintertech Co., Ltd. aims to create next-generation financial services through the use of state-of-the-art technologies and collaboration with external companies.
The company began offering digital asset-backed loans in March 2020, followed by a crowd-based tipping system in April 2020, real estate investment loans in April 2021, and loan-type crowdfunding in November 2021. Going forward, the company will continue to develop new financial services to satisfy the diverse needs of customers.

Daiwa Energy & Infrastructure Co., Ltd.

Promotion of Investment and Financing in Energy

Daiwa Energy & Infrastructure Co., Ltd. (DEI) was launched as the successor to the energy investment division of Daiwa PI Partners, and started operation on October 1, 2018. The company aims to provide new value as a member of an integrated securities group with a hybrid business model, and contribute to the SDGs through investment and financing in the renewable energy, infrastructure, and resource fields.

Renewable Energy Power Generation Projects

DEI has been actively working on development of and business investment in renewable energy generation projects, taking advantage of the Daiwa Securities Group's network. In the solar power generation field, the 9 owned solar photovoltaic power plants whose construction has been completed as of May 2023 are all operating stably. The Tochigi solar photovoltaic power plant (51 MW) under construction is scheduled for completion in 2024.
In the biomass power generation field, DEI has been steadily promoting the development of wood biomass power generation plants that use tree trimmings in Japan as their primary source of fuel. The development is underway with Green Thermal Co., Ltd., with which DEI has formed a capital and business alliance. The commercial operation of a plant in Yonezawa, Yamagata began in January 2018 as the first alliance project, and a plant in Kamitonda, Wakayama as the second project also began operation in June 2020. The plant in Kai, Yamanashi, which is under construction as the third project, is scheduled to be completed in 2023.

Stations developed/ invested in by DEI
Photovoltaic power stations Biomass power generation plant
Output
  • Stations in operation: Approx. 138 MW (total for 9 stations)
  • Stations under construction: Approx. 51 MW (total for 1 station)
  • Stations in operation: Approx. 13 MW (total for 2 stations)
  • Stations under construction: Approx. 7 MW (total for 1 station)
Total Approx. 189 MW Approx. 20 MW
Projected amount of electricity generated annually:
  • *Total generation from operating power plants
Equivalent to the amount for approximately 46,000 households Equivalent to the amount for approximately 25,000 households

Initiatives for the Woody Biomass Power Generation Field

DEI has formed a capital and business alliance with Green Thermal, a leader in the development and operation of woody biomass power generation plants, and Biomass Fuel Co., Ltd., a biomass fuel supplier. It has been actively promoting the construction of power plants and the expansion of its value chain in the biomass field.
In collaboration with Biomass Fuel, DEI has been working to expand the procurement of palm kernel shell (PKS) - fuel for biomass power generation - and develop wood pellet manufacturing plants mainly in Southeast Asia. Preparations are currently underway for the construction of a new pellet plant in Vietnam.
The woody biomass power generation business uses carbon-neutral power generation facilities that do not affect the amount of carbon dioxide. Moreover, since it adds new value as fuel to wood trimmings from forests and PKS that have been left and discarded, it is expected to generate new industries and employment and contribute to local economies in Japan as well as the development of industry in developing countries.

Private Core Solar Fund

DEI offers DSREF Core Amaterasu Fund, Investment Limited Partnership (hereinafter, "Amaterasu") as a vehicle to invest in brownfield solar power projects in Japan. The fund was originally established by Daiwa Real Estate Asset Management. DEI plans to provide stable-operating solar power plants to Amaterasu.

The Group will develop a capital recycling model in the renewable energy sector by combining DEI's investment and financing function with Daiwa Real Estate Asset Management's infrastructure asset management function. The Group will continue these initiatives to meet the needs of investors in alternative assets.

Daiwa Food & Agriculture Co., Ltd.

Promotion of Sustainable Agricultural Production Business

Japan's agricultural business faces various social issues, such as the aging of people engaged in farming, a decreasing number of new farmers, shortages of successors, and an increase in abandoned farmlands.
Daiwa Food & Agriculture Co., Ltd. (DFA), which was established in November 2018, will contribute to solving various issues faced by Japan's agriculture and food-related businesses, such as expansion of scale and increase in efficiency of the agricultural production business and new business initiatives, through the provision of risk capital.

Agricultural Production Initiatives Using Large-scale Horticultural Facilities

Following on from the large-scale cultivation of tomatoes in Kusu, Oita, DFA entered the paprika production and sales business in October 2021 as a new agricultural production business. By farming in state-of-the-art environmentally controlled greenhouses, DFA has become one of Japan's leading centers of paprika production.
By taking advantage of cultivation using large-scale horticultural facilities and its expertise in operating such facilities, DFA will continue to pursue expansion of scale and increase in efficiency of agricultural production, thereby engaging in business that contributes to the stable supply of food in Japan and overseas and to the revitalization of local economies.

Paprika production farm that boasts one of the largest cultivation areas in Japan
Paprika production farm that boasts one of the largest cultivation areas in Japan
Paprika at harvest time
Paprika at harvest time

Good Time Living Co., Ltd.

Securing nursing care services of high quality is an important social issue to be addressed in Japan's super-aging society. Good Time Living is developing an environment where the staff can demonstrate their expertise and improving the nursing care quality by utilizing network communications to improve work efficiency.

Provision of High-Quality Nursing Care Services

Good Time Living is working to improve service quality with an emphasis on communication and reduce the amount of labor spent on indirect operations by using network communications to share information and knowledge among caregivers. By switching from old paper records to mobile devices, records on the health and daily life of residents of care facilities are input in a timely manner. Coordinating information among multiple professions helps to provide services tailored to the individual, such as environmental improvements and reviews of types of nursing care provided. LINE WORKS, a business chat tool, has been introduced at all locations, aiming to further strengthen staff communication that will provide residents more safety and a peaceful mind.
In order to change the current state of nursing care services to address the progressive aging of the population, Good Time Living will further increase operational efficiency on the nursing care frontline and develop an environment that allows nursing care staff to demonstrate their expertise. The company will thereby contribute to the achievement of SDG Goal 3 "Good Health and Well-being" and Goal 8 "Decent Work and Economic Growth."

Specific Case of IT Use

Example of [Notes] screen of LINE WORKS business chat tool
Example of [Notes] screen of LINE WORKS business chat tool

Communication and information sharing about residents between staff members, traditionally done verbally or in writing, is digitized. The tool can convey information more quickly and reliably. It also facilitates active communication across job boundaries, including caregivers and nurses. Important points to consider when giving care to each resident and other various knowledge is also accumulated and shared between different professions, leading to more attentive services.

CareWiz Toruto, an AI service for analyzing physical functions
CareWiz Toruto, an AI service for analyzing physical functions

We utilize CareWiz Toruto, a physical function analysis AI service, to measure the effectiveness of rehabilitation programs.
When a person is video recorded walking a distance of about 5 meters, the video is analyzed in about 2 minutes. The walking condition is scored in four indicators: speed, rhythm, reeling, and left-right difference. Measurement results are output on a single sheet, enabling more specific and timely feedback to residents and their families.

Feedback from residents and staff

  • It is specific, easy to understand, and easy to compare with previous results. (Resident)
  • I was surprised to find that I could walk straighter than I thought I could. (Resident)
  • Toruto analysis with and without a cane showed that the resident could walk more stably with a cane, leading to more personalized care. (Caregiving staff member)
Example of Monitoring Assistance system display on PC screen
Example of Monitoring Assistance system display on PC screen

Body motion sensors are placed under the bed mattress to detect body movements (such as rolling over, heartbeat, breathing) of residents in bed. We have begun to create an environment where residents' conditions (measurement results) can be monitored using mobile devices and other devices.
The aim is to reduce staff workload and provide better services to residents by understanding and monitoring changes in the residents' physical conditions based on the measurement results.

Management of resident data with mobile devices carried by staff
Management of resident data with mobile devices carried by staff

Data on residents' health and lives, which used to be handwritten by care-giving staff members, is now entered into the care-giving record system. The system automatically creates progress graphs using vital data such as temperature and blood pressure. It has also made it easier to retrieve recorded data and reduced indirect work.

Feedback from staff

  • We didn't have enough opportunities to look at care given by other staff members, but we are now able to learn points for good care by looking at records.
  • CARE KARTE has reduced the time required for recording data, enabling us to increase time for conversation with residents.
Face recognition system with a thermography camera
Face recognition system with a thermography camera
When a person stands in front of the thermography camera, the system shows the person's temperature and registered name.
* The person can be identified even when wearing a mask

Good Time Living has set up a thermography camera equipped with face recognition AI in a windbreak chamber. When a person enters the building, the face recognition system conducts temperature measurement and identifies whether or not the person is registered. The automated door is then opened and closed. Thermography cameras with the same specifications are also placed inside the rooms to prevent residents from going out alone if it is inadvisable for them to go out on their own due to their physical conditions.

A screen of the smartphone portal site exclusively for residents and their families
A screen of the smartphone portal site exclusively for residents and their families

Good Time Living established this portal site to facilitate the provision of information and enhance the convenience of residents and their families. The site has enabled the company to provide, in a timely manner, information on invoices and payment receipts, various notices, and crisis management information that used to be given by posting notices in the building or individually giving or mailing letters. The portal site is expected to help reduce monthly administrative work by 400 hours per facility (in the case of a facility with 80 rooms).

A new [Photo Gallery] function was also added. Families of residents can freely view photos of the daily life and activities in care facilities at any time, which helps to foster their sense of security.

Feedback from residents' families (Photo Gallery function)

  • I was happy to see the residents enjoying their time with the staff members.

Daiwa Corporate Investment Co., Ltd.

Creation of Next Generation Industries and Services

Daiwa Corporate Investment Co., Ltd., a venture capital firm of Daiwa Securities Group, helps to solve social issues through investment in ventures, thereby contributing to the realization of a sustainable society.
Daiwa Corporate Investment manages multiple venture funds that invest in ventures. Some of these funds are strongly related to the SDGs, such as funds specializing in biotechnology and an environmental fund managed jointly with a Chinese environmental firm.
The firm incorporates an SDGs perspective into its investment activities for other funds as well, such as selection of investee companies and management support provided after investment. In recent years, Daiwa Corporate Investment has been especially strengthening efforts to relate its activities to the SDGs due in part to an increase in the number of entrepreneurs who have a strong awareness of solving social issues.

Investing in Ventures That Solve Social Issues (FY2022)

Daiwa Corporate Investment invests in many ventures. They include many companies related to the SDGs as shown below.

CECEP Environmental Fund

In October 2020, in collaboration with the China Energy Conservation and Environmental Protection (CECEP) Group, China's only state-owned company specializing in the environment, Daiwa Corporate Investment established a fund in Wuhan, Hubei Province, to invest in environment-related companies in China. The fund aims to contribute to the SDGs, and is engaged in investment business based on the principles of the Chinese government's policy to protect the Yangtze River. In 2022, the fund received an investment from the China National Green Development Fund, a joint fund established by the Chinese central government (Ministry of Finance, and Ministry of Ecology and Environment) and the Shanghai Municipal Government, bringing the current total investment fund to approximately 6.5 billion yen as of May 31, 2023. The fund mainly invests in unlisted Chinese blue chips in the fields of energy conservation, the environment, circular economy, new energy, new materials, and equipment manufacturing. It invested in the following companies in FY2022:

Through investment in these companies, among the 17 SDGs, Daiwa Corporate Investment aims to make concrete contributions to Goal 6 Clean Water and Sanitation,, Goal 7 Affordable and Clean Energy, and Goal 9 "Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation."

Investment in Drug Development Ventures and Other Businesses by DCI Partners

DCI Partners is a venture capital firm that has been investing in the biotech field for more than 20 years, including the period of NIF Ventures (now Daiwa Corporate Investment). The firm currently manages two of Japan's largest bio-venture funds, making investments in Japan and Taiwan. In addition to existing bio-venture investments, the firm may expand the scope of investment to the many promising drug candidates that exist in pharmaceutical companies and academia, establish companies under the direction of the fund, and promote the drug development business. Leveraging its human resources, expertise, and financial strength of the fund to provide managerial resources through the fund, DCI Partners is committed to advancing development beyond hands-on support, from strategy planning to implementation. The government's Five-Year Plan for Developing Startup Businesses, formulated in November 2022, includes a plan to strengthen support for drug-development ventures. Under this Plan, a project to support the development of practical applications of new drugs started in cooperation with approved venture capital firms. This field is expected to flourish greatly in the future. DCI Partners was selected as an accredited venture capital firm. The majority of new drugs developed in recent years have been developed by bio-ventures. DCI Partners will support these companies through its investment activities and strive to build a foundation for industry and technological innovation and contribute to the health of all people and society.

Taiwan-Japan Bio Venture Fund

DCI Partners is a venture capital firm that invests in biotech startups in Japan and Taiwan, with a focus on drug development. It manages one of Japan's largest bio-venture investment funds. Following Fund I, established in January 2015 with a total capital of ¥11.6 billion, Fund II was established in December 2020 with a capital commitment of ¥15.3billion.

DCI Partners' Major Investees

The Great East Japan Earthquake SME Reconstruction Support Fund

Daiwa Corporate Investment Co., Ltd. operates the Great East Japan Earthquake SME Reconstruction Support Fund, receiving investment from the Organization for Small & Medium Enterprises and Regional Innovation, JAPAN (SME Support, Japan), The Aomori Bank, Ltd., The Bank of Iwate, Ltd., The 77 Bank, Ltd., The Toho Bank, Ltd., and other institutions. Targeting unlisted private companies in the disaster-affected areas, the fund aims to expeditiously provide risk finance. The goal is to actively support companies in their efforts to secure renewed growth and development by supplying finance for a variety of purposes. These include restoration and reconstruction following the 2011 earthquake disaster, new business development, the shift to a new industry or line of business, business reorganization and succession, and business incubation. The fund thereby aims to contribute to the early restoration and sustainable development of the disaster-affected areas.

Daiwa ACA HealthCare Inc.

Daiwa ACA Business Succession