Support for Creating Our Future Society

Daiwa Securities Group begins the social problem solving businesses in various fields, such as FinTech, healthcare, energy infrastructure, and agriculture, utilizing the knowledge of various securities and financial businesses cultivated by the Group.

Business development starting from the SDGs

SDGs × "Technology"

Creation of Next Generation Financial Services

Fintertech Co. Ltd., which was established in April 2018, works to create next generation financial services mainly for the digital native generation, using blockchain and other state-of-the-art technologies.
Since March 2020, it has been providing digital asset-backed loans. It also launched stock investment-type crowd-funding services through Ecrowd Inc., an investee company, in July 2020 while starting to provide real estate investment loans and crowd-tipping systems in April 2021. Going forward, the company will continue to develop new financial services to satisfy the diverse needs of customers.

Promotion of Investment and Financing for 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 SDGs through investment and financing for 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 11 solar photovoltaic power plants which are owned and on which construction was completed as of May 2021 have all been operating stably. Also, the solar photovoltaic power plants under construction in Naka City, Ibaraki Prefecture (35 MW) and Ena City, Gifu Prefecture (13MW) will both be completed by the end of 2021.
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 City, Yamagata Prefecture began in January 2018 as the first alliance project, and a plant in Kamitonda, Wakayama Prefecture as the second project also began in June 2020.

Stations developed/ invested in by DEI

Photovoltaic power stations

  • Output: Approximately 237 MW in total
    A breakdown is shown below.
    Stations in operation: Approximately 189 MW (total for eleven stations)
    Stations under construction: Approximately 48 MW (two stations)
  • Projected amount of electricity generated annually: Equivalent to the amount for approximately 60,000 households

Biomass power generation plant

  • Output: Approximately 13 MW in total
    A breakdown is shown below.
    Stations in operation: Approximately 13 MW (two station)
  • Projected amount of electricity generated annually: 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 leading company for the development and operation of woody biomass power generation plants, and Biomass Fuel Co., Ltd., a biomass fuel supplier. It has been actively promoting not only the construction of power plants but also 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. Construction of a pellet plant is currently underway in Vietnam.
Furthermore, in December 2018, DEI invested in Bioendev AB, a Sweden-based torrefaction* technology company, aiming for technological evolution and global expansion of the biomass fuel-related business.
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 promotion of industry in developing countries.

SDGs× Local Community

Expansion of Solutions Provided in the Business Succession Field (Establishment of Daiwa ACA Business Succession Fund)

About half of the small and medium-sized companies in which the owner is reaching the retirement age are said to not have enough successors. Business succession is thus an urgent social issue Japan needs to address even from the perspective of employment and GDP.
Daiwa ACA Business Succession Fund presents one solution to the business succession issue by becoming a new sponsor for companies on behalf of their owners.
As a new corporate partner, Daiwa ACA Business Succession Fund helps small- and medium-sized companies to pass on their excellent technologies and services to the next generations, while encouraging the innovation of technology and services with continuity by supporting business succession. Through these activities, Daiwa ACA Business Succession Fund will contribute to Japan's sustainable economic development.

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 money.

Agricultural Production Initiatives Using Large-scale Horticultural Facilities

In 2020, DFA took a stake in agricultural corporations in Kawanishi Town, Yamagata Prefecture and Kusu Town, Oita Prefecture, which both sell tomatoes cultivated in large-scale greenhouses. It thus handles an agricultural production business on its own. (total cultivation areas: approximately 3.2 ha)
Taking advantage of cultivation using large-scale horticultural facilities and expertise in operating such facilities, DFA pursues expansion of scale and increase in efficiency of agricultural production to contribute to the invigoration of agriculture, a social issue Japan should look to resolve. The company will thereby put into practice SDG Goal 2 “Zero Hunger” and Goal 9 “Industry, Innovation and Infrastructure.”

Production facility that boasts the largest cultivation area in Yamagata Prefecture
Production facility that boasts the largest cultivation area in Yamagata Prefecture
Tomato greenhouse in harvest time
Tomato greenhouse in harvest time

SDGs×Life

Full-Scale Entry into the Healthcare Field

Social challenges are piling up in the healthcare field, including the rapid expansion of demand for medical and nursing care and the necessity of reducing medical costs. Through Daiwa ACA HealthCare Inc., which has investment and lending expertise in the medical and nursing care business, Daiwa Securities Group aims to solve social issues in the field by the provision of funds for hospital and nursing care businesses and support for succession and management of medical institutions, in Japan and overseas.

Provision of High-Quality Nursing Care Services

The aging population is an important social issue to be addressed in Japan, which has become a super aging society. To date, Good Time Living Co. Ltd. has worked on nursing care that helps residents to live independently and improve their condition, rather than simply providing assistance for their disabilities. At the same time, the company has also promoted the use of ICT to increase efficiency in operation. In FY2020, the company actively introduced a face recognition system with a thermography camera to provide more security to residents and their families amid the COVID-19 pandemic, while creating a portal site exclusively for residents and their families that enables smooth information sharing. 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 in nursing care frontlines 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

A nursing care recording system Care-wing (institutional version)
A nursing care recording system Care-wing (institutional version)

Care-wing (institutional version) was developed jointly with the manufacturer. In addition to having the conventional function of recording home-visit nursing care, it digitalizes the staff operations list it helps to save time required for creating and revising lists compared to paper-based management, leading to enhancement of operational efficiency.

Feedback from staff

  • Care-wing helps to reduce time for creating staff operations lists and creating and making changes to schedules.
  • Care-wing enables each staff member to check the staff operations list using a tablet. This allows us to know who is working where, so the system has facilitated our operations.
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 nursing care staff, is now entered into the nursing care record system CARE KARTE. 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, contributing to eliminating paper and saving labor in nursing care frontlines.

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.
A next-generation predictive monitoring system Neos+care®
A next-generation predictive monitoring system Neos+care®

Daiwa Securities Group provided its accumulated expertise to the manufacturer and jointly developed a biometric monitor equipped with a highly precise monitoring function. The monitor helps to prevent and promptly detect accidents that have occurred in rooms, and also allows for visualization of living environments, while protecting privacy, due to its adoption of an infrared sensor. It thus helps to provide services, including environmental improvement and care, which are suited to each and every resident.

Feedback from staff

  • Neos+care® helps to identify causes for accidents, enabling us to come up with more effective measures.
  • As the system allows us to understand residents’ behavior patterns, we can change our responses and environments.
A drop-down in-wall nursing care lift for in-room transfers Swing Lift CoCoRo
A drop-down in-wall nursing care lift for in-room transfers Swing Lift CoCoRo

The instrument supporting in-room transfers helps reduce lower back pain and protect the safety and health of care staff. At the same time, the instrument has enabled staff to assist in-room transfers in a comfortable position while communicating with the resident, and this has contributed to reducing both the physical and mental burden on the resident.

Feedback from residents and staff

  • I no longer need to have the staff member lift my body, and this has made me feel much easier. (resident)
  • I feel that being able to see the staff member’s face has given the resident a sense of security. (nursing care staff)
Artificial intelligence (AI)-based robot Aeolus Robot
Artificial intelligence (AI)-based robot Aeolus Robot

Investigation is underway on the possible use in nursing care practice. We will advance the development of an environment that allows care staff to focus on providing nursing care services with higher added value by having the robot assume simple work.

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
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 identify 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 go out alone if it is difficult 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 users. 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). It is also expected to help increase efficiency in nursing care frontlines, enabling staff to maintain high-quality nursing care services and further improve their services.

Contribution to Local Communities through Investment Activities of REITs

Daiwa Real Estate Asset Management contributes to local communities by addressing social issues through investment corporations and funds that entrust it with asset management.

Initiatives against COVID-19

Daiwa Real Estate Asset Management uses hotels close to Haneda Airport and located in Kasai and other places owned by Daiwa Hotel Private Investment Corporation, which it manages, as temporary quarantine facilities for people who have returned from overseas.

Earthquake Preparation Initiatives

Daiwa Real Estate Asset Management has implemented earthquake countermeasures for building users and local residents. For example, the company has placed emergency cabinets in the elevators of office properties owned by Daiwa Office Investment Corporation and installed disaster-responsive vending machines in rental residences owned by Daiwa Securities Living Investment Corporation (DLI) and Daiwa Residential Private Investment Corporation.

Efforts to Address Aging

Employees working at the investment division of Daiwa Real Estate Asset Management visit healthcare facilities owned by DLI nationwide several times each year. They participate in hands-on events, such as family get-together meetings and meetings to show respect to the elderly, while assisting with daily work, including cleaning the periphery of the facilities, pruning plants in the courtyards, and pulling out weeds. They also participate in hands-on training to experience work as facility employees in an effort to deepen their understanding of frontline work. Daiwa Real Estate Asset Management started these initiatives in order to deepen its understanding of the daily work of facility operators and the services provided to residents. The initiatives are now positioned as local community contribution activities through the core business, and we will continue to work actively on these initiatives.
(* The above initiatives have been suspended due to the spread of COVID-19 to prevent infections.)

SDGs×New Technologies and Ideas

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. For 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

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

  • *1A venture fund that invests in startups creating new industries and contributing to generating a virtuous cycle of economic invigoration (being incorporated into investment)
  • *2A venture fund aimed at helping the transformation of Japan’s industrial structure that involves open innovations and the creation and invigoration of innovations at manufacturing industries (incorporation into investment completed)

CECEP Environmental Fund

In October 2020, Daiwa Corporate Investment established a fund investing in environment-related companies in China together with China Energy Conservation and Environmental Protection (CECEP) Group, which is the only state-owned environment-related company in China.

Investment in Drug Development Ventures and Other Businesses by DCI Partners

We at DCI Partners have been investing in the biotech field for more than 20 years, including the period of NIF Ventures (now Daiwa Corporate Investment). We currently manage one of Japan’s largest funds focusing on drug development, making biotech venture capital investment in Japan and Taiwan. Through the fund, DCI Partners strives to help advance development by providing managerial resources and hands-on support from strategy planning to implementation. With COVID-19 spreading rapidly, biotech startups began working on countermeasures against it. The investee companies of the fund are also advancing development work against COVID-19 from multiple aspects, such as prevention, diagnosis, and treatment. Since countermeasures against a pandemic require speed and innovative technological capability, biotech startups are expected to attract more attention and play a larger social role than ever before. DCI Partners will support these companies through its investment activities, work to provide treatment options to patients, and strive to contribute to the health of all people and society.

Taiwan-Japan Bio Venture Fund

DCI Partners manages funds that have specialized in investing in bio startups in Japan and Taiwan since their establishment. Following Fund I established with 11.6 billion yen in January 2015, the company established Taiwan-Japan Bio Venture Fund II with a capital commitment of 14 billion yen in December 2020 (the first closing).

DCI Partners’ Investees

Support for Reconstruction Following the Great East Japan Earthquake

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.

Support for the "New Tohoku" Restoration Business Contest 2020

Since FY2016, Daiwa Securities Group has been supporting the Restoration Business Contest, which recognizes and supports business plans that lead to the restoration of the areas affected by the Great East Japan Earthquake. In addition to the grand and excellence awards, the “Daiwa Securities Group Phoenix Award” has been established as a corporate award, and it was granted in FY2020 to AZ Create Co., Ltd. (Kitakami City, Iwate Prefecture). The company operates a platform that provides event and other local information, which boasts the largest number of views in Iwate Prefecture. Since the occurrence of the Great East Japan Earthquake, the importance of local communities has been reevaluated.
The company’s platform and the enhancement of its convenience is expected to help invigorate Iwate and other communities in the Tohoku region, leading to the revitalization of local economies. For this reason, Daiwa Securities Group intends to support this initiative.
We will continue to actively carry out these activities so as to be able to contribute to the reconstruction of the Tohoku region.

Commemorative photo of the Reconstruction Agency, sponsor companies, and award recipients (“New Tohoku” Restoration Business Contest 2020)
Commemorative photo of the Reconstruction
Agency, sponsor companies, and award recipients
(“New Tohoku” Restoration Business Contest 2020)
Head of SDGs Promotion Office, the presenter(left), and an award recipient (“New Tohoku” Restoration Business Contest 2020)
Head of SDGs Promotion Office, the presenter(left), and an award recipient
(“New Tohoku” Restoration Business Contest 2020)

Toward Global Realization of Financial Inclusion

Initiation of Services by New Securities Company “CONNECT”

Smartphones and other technical innovations are changing the common perception that securities companies are used only by affluent customers and that securities transactions require an advanced level of financial knowledge. We recognize that generating securities services available to all people in consideration of financial inclusion is an issue facing not only Daiwa Securities Group but also the securities industry as a whole.
CONNECT Co. Ltd., which began providing services in July 2020, is a new type of securities company created by Daiwa Securities Group. It chiefly handles transactions in units of one share and provides services mainly targeted at people in the digital native generation. The company provides and completes all services—from the opening of an account to securities trading—on smartphones, enabling anyone to use securities services, starting with a small amount of investment, as long as they have a smartphone.
CONNECT also provides an investment game app and a point investment service in collaboration with external companies, thereby offering opportunities to acquire financial knowledge easily even without funds and diversifying methods of access to financial services.
Under the concept “Create your future, starting with your first share,” CONNECT will continue to develop and provide its services so that all people will be able to access better financial services.

CONNECT Co. Ltd.
CONNECT Co. Ltd.

Support for Developing Human Resources Responsible for the Next Generation

Participation in the METI Programs "Sido Next Innovator 2018" and "Sido Next Innovator 2019" and Support for Developing Human Resources Responsible for Next Generation Innovation Based on These Programs.

Daiwa Institute of Research (DIR) recognizes the importance of supporting the development of human resources responsible for next generation innovation. Under this recognition, the company has been involved in the “Shido Next Innovator” program advanced by Japan’s Ministry of Economy, Trade and Industry, starting with “Sido Next Innovator 2018. The program has solicited and selected a wide range of people, including those taking up the challenge of generating innovation and those working on challenging new business at major companies, under the theme ”Thinker to Doer.” It has developed global human resources who will play a major role in next-generation innovation by providing selected applicants with lectures, seminars, workshops, mentoring and interaction with investors and entrepreneurs in Silicon Valley.
In addition to supporting the domestic program, DIR has participated in two-week Silicon Valley program together with the 20 participants selected based on the overall results of screening by application forms and pitch. It has supported the Silicon Valley program as well by visiting entrepreneurs playing major roles at local startups, personnel in charge of new business development at large companies, and venture capitalists. DIR consultants have also served as mentors, providing mentoring to the program participants and support for the development of human resources for next generation innovation through participation in pitch contests.

Moreover, capitalizing on these experiences, DIR planned and served as the secretariat for “Daiwa Innovator Programme 2020” in FY2020. The program, which is sponsored by Daiwa Securities Group Inc., is designed to find innovators within Daiwa Securities Group and look for opportunities for new businesses.
The number of submitted applications exceeded 200, from which less than 30 were selected based on screening by application forms and allowed to go on to the training program and mentoring. Under the training program, DIR invited external lecturers playing major roles in the frontline of the innovation field. As a way to operate the program, in light of the spread of COVID-19, DIR adopted online videos and online mentoring and strived to carry out flexible operations. The plans selected at the final pitch contest all reflect today’s needs, such as DX in the nursing care business, camping business that focuses on regional revitalization, and the pet care business. After the completion of the program, DIR has been providing support to the selected plans, aiming to commercialize them.
DIR will continue to participate in programs such as this which will lead to innovation.