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SDGs Finance

In recent years, SDGs finance markets in Japan and overseas have expanded, and we believe this trend will continue in the future.

Daiwa Securities started to work on SDGs finance ahead of others. In 2008, the company sold Vaccine Bonds for individual investors, Japan’s first impact investment bonds.

We have also worked to develop standards for SDGs finance in Japan and overseas. In 2017 and 2020, we served as a member of the Green Bond Review Committee set up by the Ministry of the Environment to develop the Green Bond Guidelines. In 2020, we became Asia’s only underwriter selected as a member of the Advisory Council of the International Capital Market Association (ICMA).

In 2020, Daiwa Securities Group established a team specialized in SDGs finance within Daiwa Securities to further enhance the company’s underwriting system. We strive to contribute to spreading and expanding SDGs finance while offering products, services, and proposals that meet the needs for SDGs finance from issuers and investors, who are our customers.

Promotion of SDGs Finance

Kazushi Shimizu Managing Director Sustainability Solutions Dept.
Kazushi Shimizu
Managing Director
Sustainability Solutions Dept.

I supervise and lead initiatives to promote SDGs finance at Daiwa Securities Group.
I have been involved in work associated with bond issuance and other finance since 1998, and I have never experienced as much increase in awareness of ESG and the SDGs as seen in recent years among investors and issuers.

What is driving Daiwa Securities Group to promote SDGs finance?

Daiwa Securities sold Japan’s first Vaccine Bonds in 2008. These bonds enabled the procurement of funds for addressing the social issue of providing vaccination needed by children in developing countries.
We are a pioneer for ESG-related finance, and since the sale of these bonds, we have continued to be a top runner for cultivating and expanding the market.
The SDGs are guidelines for conduct formulated in 2015 toward 2030.
They are characterized by the concepts of “diversity” and “leaving no one behind.”

To achieve greenhouse gas reduction targets toward the realization of the Paris Agreement, a huge amount of funds is being required for capital investment and research and development.
Moreover, the importance of disaster preparedness and infrastructure has increased from the perspective of a country that has experienced disasters, and the importance of medical, education, and food systems has increased to cope with COVID-19. These things also require a huge amount of funds.

Environmental and social issues for 2030 are not issues for the distant future. They are close to us, occurring at present.
Under the concept of “diversity” and “leaving no one behind,” Daiwa Securities Group will actively promote SDGs finance, which can lead to solutions to environmental and social issues, as a top runner toward 2030.

Major Results

＜Japan＞

FY2021

FY2020

FY2019

FY2018

＜Overseas＞

FY2020

Activity

Report on Media Appearance

Economic Education Program “Sustainable Every Day—What Economy Can Do for the Future”

Economic Education Program “Sustainable Every Day—What Economy Can Do for the Future”

Yukino Yamada, Chief ESG Strategist at Daiwa Securities, appeared in “Sustainable Every Day—What Economy Can Do for the Future,” a TV program (broadcast on BS TV TOKYO) communicating ESG in an easy-to-understand manner.
The program was supervised entirely by the Public Institutions Banking Dept. and the Debt Capital Market Deprt. (Ⅰ) to (Ⅲ) of Daiwa Securities. It was planned for those engaged in business and college students who have a great interest in social contribution. Showing specific cases, the program introduced corporate activities aimed at achieving the SDGs and fund procurement methods.

⟨ Issuers Introduced in the Program *in order of appearance ⟩

  • Poppins Holdings Co., Ltd.
  • Gakken Holdings Co., Ltd.
  • Nidec Corporation
  • Japan Railway Construction, Transport and Technology Agency
  • KDDI CORPORATION

Selected as Member of ICMA’s Advisory Council of the Green Bond and Social Bond Principles

Daiwa Securities Co. Ltd. was selected as a member of the Advisory Council of the Green Bond and Social Bond Principles (“Green Bond Principles, etc.”) of the International Capital Market Association (ICMA), becoming Asia’s only underwriter selected for the Council.

We believe that this selection was due to the high evaluation of our efforts and achievements related to SDGs. Daiwa Securities Group will strive to establish and develop new frameworks, such as sustainability linked bonds and transition bonds, in addition to existing green bonds, social bonds, and sustainability bonds, and will continue to contribute to creating a sustainable society.

Selected as Top Performer in IFC’s ESG Scoring Survey (July 2020)

In an ESG survey for underwriters conducted for the first time by International Finance Corporation (IFC), Daiwa Securities was selected as a top performer, becoming one of only six companies receiving the highest rank title among 44 companies.

Major check points

  • ESG policy
  • Handling of ESG-related products
  • Collaboration with stakeholders
  • Initiatives to reduce environmental impact
  • Reporting on nonfinancial information, etc.

Daiwa Securities Group Inc.’s MSCI ESG Rating Upgraded to A for the First Time (December 2019)

MSCI Inc. is the world’s largest ESG index provider.
The ESG index assesses companies comparatively by industry on a global scale and assigns ratings on a seven-point scale from AAA to CCC. The initiatives we implemented in our core businesses to achieve the SDGs were highly evaluated by the external organization.

Holding of Seminars

Daiwa Securities Group holds various SDGs-themed seminars while receiving support from issuers, investors, and rating agencies. We aim to spread and expand SDGs finance by communicating the latest topics and approaches to customers.

9th Seminar: SDGs Bond Market and Valuation Methodology from the Perspective of European Companies (June 22, 2022)
Lecture Speaker
Opening
  • Toyobumi Naruge, Executive Officer, Daiwa Securities Co., Ltd.
Bloomberg lecture I
"SDGs Bond Analysis Function at Bloomberg"
  • Hideki Sato, ESG & Regulatory Concerns, Bloomberg L.P.
Bloomberg lecture II
"Overview of Bloomberg ESG Data Scores"
  • Kimihiko Takamatsu, ESG Specialist, Bloomberg L.P.
Solo speech
"ESG Market in Europe and Unique Valuation Methodology"
  • Orith Azoulay, Global Head of Green & Sustainable Finance, Natixis/BPCE
Panel discussion
"ESG/SDGs Bond Market and Trends in Europe"
  • Orith Azoulay, Global Head of Green & Sustainable Finance, Natixis/BPCE
  • Jesus Santolaya Lazaro, Head of Institutional IR & Analyst, Caixabank SA
  • Hector Iturralde Lacaci, Head of ESG & Shareholders, Investor Relations, Banco Santander SA
  • Simon Bond, Executive Director, Responsible Investment Portfolio Management, Columbia Threadneedle
Closing
  • Norman L. Tweeboom, Japan Regional Head, Bloomberg L.P.

8th Seminar: Passion for ZERO Carbon (June 7, 2022)

Lecture Speaker
Opening remarks
  • Keiko Tashiro, Deputy President, Member of the Board, Daiwa Securities Co. Ltd.
Keynote lecture
"Now we must accelerate decarbonization"
  • Shinjiro Koizumi, Member of the House of Representatives, former Minister of the Environment
Part 1
"Contributing to a Decarbonized Society through the Development of Transport Networks"
  • Takashi Kawachi, President, Japan Railway Construction, Transport and Technology Agency (JRTT)
Part 2
"What Finance Can Do for Achieving the SDGs"
  • Norichika Kanie, Graduate School of Media and Governance, Keio University
Part 3
"ESG Investments Facilitating Realization of a Decarbonized Society, Driven by $130 Trillion"
  • Hiroyuki Chida, Senior Managing Director, Daiwa Asset Management Co. Ltd.

7th Seminar: New Trends in the SDGs Bond Market (February 24, 2022)

Lecture Speaker
Keynote lecture
"Global Environment for Decarbonization and ESG Investment"
  • Yukino Yamada, Chief ESG Strategist, Equity Research Department, Daiwa Securities Co. Ltd.
Issuer and investor perspectives
"Sustainability Linked Bonds: Future Questions about Bond Issuance"
  • Takashi Sakamoto, General Manager, Group Finance Department, Tokyu Fudosan Holdings Corporation and Finance Department, Tokyu Land Corporation
  • Nobusuke Yamaoka, Head of Investment Department, Financial Services Division, Mitsui Sumitomo Insurance Co., Ltd.
  • Moderator: Kazushi Shimizu, Managing Director, Sustainability Solutions Dept., Daiwa Securities Co. Ltd.
Rating agency's perspective
"Transition Bonds: Future Themes and Outlook from a Rating Agency's Perspective"
  • Masato Kanedome, Principal, Sustainability Services Dept., DNV Business Assurance Japan K.K.
  • Moderator: Shun Otani, Strategist, Fixed Income, Currency and Commodities Dept., Daiwa Securities Co. Ltd.

6th Seminar: SDGs Bond Market Leading to Realization of Decarbonization and Poverty Reduction (November 25, 2021)

Lecture Speaker
Opening
  • Keiko Tashiro, Corporate Executive Officer, Deputy President, Daiwa Securities Group Inc.
Keynote lecture I
"SDGs Financing in Japan"
  • Tamami Ota, Head of Office of SDGs Research & Consulting, Financial & Capital Market Research Department, Daiwa Institute of Research Ltd.
Keynote lecture II
"EU Transition Bonds"
  • Adeline Diab, Analyst, Bloomberg Intelligence
Bloomberg lecture
"Introduction to SDGs Analysis Function Using Bloomberg"
  • Hideki Sato, Fixed Income Specialist, Bloomberg L.P.
Interview
"Efforts by TEPCO Group for Carbon Neutrality"
  • Yuki Tomita, ESG Research Group Manager, ESG Office, Corporate Management & Planning Unit, Tokyo Electric Power Company Holdings, Inc.
Panel discussion
"Financing to End Poverty: Case Studies on the Forefront of Aid to Developing Countries"
  • Hajime Taniguchi, Manager, Budget for Finance and Investment Account, and Capital Markets Division, Treasury, Finance and Accounting Department, Japan International Cooperation Agency (JICA)
  • Kenji Kanamoto, Senior Financial Officer, International Finance Corporation
  • Shinpei Hirose, Manager in Charge of Foreign Bonds Investment, Investment Operation Department, Japan Post Insurance Co., Ltd.
  • Moderator: Kazushi Shimizu, Managing Director, Sustainability Solutions Dept., Daiwa Securities Co. Ltd.

5th Seminar: ESG Investment in Post COVID-19 Era with a View to Zero Emissions in 2050 (August 5, 2021)

Lecture Speaker
Opening “Expanding Green Finance in Japan”
  • Kazushi Shimizu, Head of SDGs Finance, Debt Capital Market Department 3, Daiwa Securities Co., Ltd.
Japan’s environmental finance policy “Japan’s Roadmap to Zero Emissions”
  • Ryosuke Imai, Deputy Director for Environmental Finance, Environment and Economy Division, Minister’s Secretariat, Ministry of the Environment
Green finance cases in Japan “Cases of CBI Certified Bond Issuances”
  • Hiroshi Nishikawa, Executive Director, Japan Railway Construction, Transport and Technology Agency
  • Moderator: Tamami Ota, Head of Office of SDGs Research & Consulting, Financial & Capital Market Research Department, Daiwa Institute of Research Ltd.
International trends “Development of Taxonomies Worldwide and their Impact on Japan”
  • Sean Kidney, CEO, Climate Bonds Initiative
  • Shunsuke Oshida, Head of Credit Research, Manulife Investment Management (Japan) Limited
  • Atsuko Kajiwara, Executive Officer, Head of Sustainable Finance Evaluation Group, Japan Credit Rating Agency, Ltd.

4th Seminar: Disaster and Climate Change Measures and SDGs Bonds (May 28, 2021)

Lecture Speaker
Opening “Daiwa Securities Group’s SDGs Initiatives”
  • Keiko Tashiro, Corporate Executive Officer, Deputy President, Daiwa Securities Group Inc.
Securities company’s perspective “Current Developments of SDGs Bonds, Disaster and Climate Change Measures”
  • Tamami Ota, Head of Office of SDGs Research & Consulting, Daiwa Institute of Research Ltd.
Keynote lecture “UR’s Disaster Responses and Contribution to SDGs
  • ”Michinobu Matsuda, Head of Finance Section, Accounting & Finance Department, Urban Renaissance Agency
Bond market’s perspective “Initiatives by Issuers for Responses to Climate Change and Support from Investors”
  • Masaru Mikami, Head of Funds Unit Section, Finance Department, East Japan Railway Company
  • Yuriko Fujita, Line Manager of Domestic Corporate Bond Section, Fixed Income Department, The Dai-ichi Life Insurance Company, Limited
  • Moderator: Takao Matsuzaka, Fixed Income, Currency and Commodities Department and Equity Research Department, Daiwa Securities Co., Ltd.

3rd Seminar: Japan’s Roadmap to Becoming a Major Power in SDGs Bonds (February 4, 2021)

Lecture Speaker
Opening “Transition to Capitalism Centered on the SDGs”
  • Mitsumaru Kumagai, Senior Executive Managing Director, Head of Research Division, Chief Economist, Daiwa Institute of Research Ltd.
Keynote lecture “Initiatives for High-Quality SDGs Bond Issuances”
  • Hiroshi Nishikawa, Executive Director, Japan Railway Construction, Transport and Technology Agency
Debt capital market’s perspective “New Trends of SDGs Bonds”
  • Ichiro Sakata, Deputy Director, University of Tokyo
  • Shoichiro Seki, Head of General Affairs Department, Nagano Prefecture
  • Hiroyuki Nomura, Head of Investment Operation Department, JAPAN POST INSURANCE Co., Ltd.
  • Moderator: Kazushi Shimizu, Head of SDGs Finance, Debt Capital Market Department, Daiwa Securities Co., Ltd.
Corporate value perspective “SDGs Bonds and Creation of Social Value by Companies”
  • Hiroyuki Suematsu, Financial Group Manager, AEON MALL Co., Ltd.
  • Tamami Ota, Head of Office of SDGs Research & Consulting, Daiwa Institute of Research Ltd.
Rating agency’s perspective “Ideal Rating of Bonds Designed to Contribute to the SDGs”
  • Masato Takebayashi, Asia-Pacific Research Associate Director, Sustainalytics
  • Takao Matsuzaka, Fixed Income, Currency and Commodities Department and Equity Research Department, Daiwa Securities Co., Ltd.

2nd Seminar: Basics of SDGs Investment for Beginners (November 10, 2020)

Lecture Speaker
“Basics of SDGs Investment”
  • Kazushi Shimizu, Head of SDGs Finance, Debt Capital Market Department, Daiwa Securities Co., Ltd.
“Connections with SDGs Bond Investors through Sustainability Bonds”
  • Tetsuya Isono, Head of Accounting & Finance Department, Japan Railway Construction, Transport and Technology Agency
“Thoughts of Issuers, Investors, and Rating Agencies behind SDGs Bond Investment”
  • Katsuhito Ozawa, Director, Senior Managing Executive Officer, Tokyo Tatemono Co., Ltd.
  • Hideo Kurosawa, Chief Financial Officer, Japan Automobile Recycling Promotion Center
  • Atsuko Kajiwara, Head of Sustainable Finance Evaluation Group, Japan Credit Rating Agency, Ltd. (JCR)

1st Seminar: ESG Investment Strategy in the COVID-19 Era (August 4, 2020)

We held an ESG webinar using ZOOM live distribution and teleconference systems, explaining about ESG investment from the perspectives of securities companies, research, investors, issuers, and external rating agencies. A total of more than 400 issuers and investors participated in the seminar.

Lecture Speaker
Securities company’s perspective “Opening Speech”
  • Keiko Tashiro, Corporate Executive Officer, Deputy President, Head of SDGs, Daiwa Securities Group Inc.
Research’s perspective “ESG Grabbing Attention in COVID-19 Era”
  • Tamami Ota, Head of Office of SDGs Research & Consulting, Financial & Capital Market Research Department, Daiwa Institute of Research Ltd.
Investor’s perspective “Discussion on ESG Investment & Loan Policy and Corporate Bond Investment”
  • Shinichiro Kon, Deputy General Manager, Finance and Investment Planning Department, Nippon Life Insurance Company
  • Takashi Uni, Deputy General Manager, Credit Investment Department, Nippon Life Insurance Company
  • Moderator: Takao Matsuzaka, Fixed Income, Currency and Commodities Department and Equity Research Department, Daiwa Securities Co., Ltd.
Issuer’s perspective “Contribution to ESG through Bond Issuance”
  • Atsushi Kitadai, Finance Planning Team Leader, Finance Division, Mitsui O.S.K. Lines, Ltd.
  • Yoshihiro Ikeda, Deputy Executive Director, Finance Department, Japan Student Services Organization
  • Moderator: Kazushi Shimizu, Head of SDGs Finance, Debt Capital Market Department, Daiwa Securities Co., Ltd.
External credit agency’s perspective “New Trends of ESG Investment and Transition Bonds”
  • Masato Kanedome and Koichiro Tanabe, DNV GL Business Assurance Japan K.K.
Holding of Engagement Meetings

Daiwa Securities Group arranges engagement meetings with issuers and investors with the aim of further enhancing SDGs finance.

In these meetings, we communicate investors’ frank opinions to SDGs bond issuers, thereby contributing to the positive development of SDGs bond markets for both issuers and investors.

For details, see below.

- JRTT×Kiraboshi Bank, Ltd. (April 2021)

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- Japan Student Services Organization×Japanese Red Cross Toyota College of Nursing (January 2021)

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Holding of Community-Based Seminars －SDGs×Regional Revitalization－

Since 2021, our sales branches across Japan have been holding seminars (webinars) that introduce initiatives taken by various organizations toward achievement of the SDGs.

For details,click here. ⟨ Japanese only ⟩

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