Participation in Initiatives

Daiwa Securities Group has participated in, signed, and supports the initiatives described below to contribute to developing a sustainable society.

Major Initiatives

The United Nations Global Compact (UNGC)

Daiwa Securities Group Inc. signed the UNGC in January 2010. We support the following 10 principles and work to contribute to sustainable development in the international community.

10 principles

  • Human rights
    • Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
    • Principle 2: make sure that they are not complicit in human rights abuses.
  • Labour
    • Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
    • Principle 4: the elimination of all forms of forced and compulsory labour;
    • Principle 5: the effective abolition of child labour; and
    • Principle 6: the elimination of discrimination in respect of employment and occupation.
  • The environment
    • Principle 7: Businesses should support a precautionary approach to environmental challenges;
    • Principle 8: undertake initiatives to promote greater environmental responsibility; and
    • Principle 9: encourage the development and diffusion of environmentally friendly technologies.
  • Anti-corruption
    • Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

The United Nations-supported Principles for Responsible Investment (PRI)

Daiwa Asset Management became a signatory in May 2006. PRI is a set of six principles launched by the United Nations Environment Programme - Finance Initiative and the UN Global Compact. This initiative asks institutional investors to incorporate ESG into their investment decision making practices. Daiwa Securities Group will continue promoting responsible investment.

Japan Sustainable Investment Forum (JSIF)

Japan Sustainable Investment Forum (JSIF)
Daiwa Securities Group Inc. has been a member of the JSIF since its establishment in 2003 as Sustainable Investment Forum-Japan (SIF-Japan). The Forum works to promote and advance ESG investment and other sustainable investment throughout Japan. We also support these activities in our capacity as a financial institution.

The OECD Guidelines for Multinational Enterprises

ISO26000

The Charter of Corporate Behavior of Keidanren (Japan Business Federation)

Japan's Stewardship Code ("Principles for Responsible Institutional Investors")

Environmental initiatives

United Nations Environment Programme - Finance Initiative (UNEP-FI)

Daiwa Securities Group Inc. became a signatory in May 2018. In collaboration with financial institutions, policymakers, and regulatory authorities, UNEP-FI works to advance a shift to a financial system that takes economic development and ESG into consideration. As a financial institution, Daiwa Securities Group will promote collaboration in the international community to address environmental issues.

Task Force on Climate-related Financial Disclosures (TCFD)

This is a task force established by the Financial Stability Board (FSB) in 2015. TCFD asks companies to grasp and disclose information on the impact of climate change on finances during the course of a shift to a low-carbon economy. Daiwa Securities Group Inc. (April 2018), Daiwa Asset Management (December 2020), and Daiwa Real Estate Asset Management (December 2021) announced their support for TCFD. They also participate in the TCFD Consortium, which was established in May 2019 in Japan.

Partnership for Carbon Accounting Financials (PCAF)

PCAF was launched mainly by European financial institutions in 2015 with the aspiration to standardize the measurement and disclosure of financed emissions.
In December 2021, Daiwa Securities Group Inc. joined PCAF. Also, the Group joined the newly established PCAF Japan coalition launched by the Japanese financial institutions participating in the global, industry-led PCAF initiative.

CDP

CDP is a project in which institutional investors interested in climate change collaborate and require global companies to disclose information on their attitudes and approaches to environmental issues.
Daiwa Securities Group Inc. announced its support for the project in 2004.

Principles for Financial Action for the 21st Century

Based on the recommendations of the Central Environment Council of the Ministry of the Environment, this is an action guideline for financial institutions that was established with the aim of expanding the circle of environmental finance efforts.
The Group has been actively involved since the drafting stage of this principle, Daiwa Securities Group Inc. and Daiwa Asset Management signed the principles in 2011, when they were established.

Registration System of Green Bond Issuance Supporters

The Financial Support Programme for Green Bond Issuance implemented by the Ministry of the Environment subsidizes the external costs incurred other than the cost for the ordinary bond issuance procedure. It grants a subsidy to those who provide issuance support to green bond issuers (issuance supporters) for their issuance support costs. The Ministry has established a system for announcing the issuance supporters on the “Platform for promoting Green Bond issuance.”
The Group has been a registered supporter since the initiation of the system in 2018.

Climate Bonds Partners Programme

This is a program operated by Climate Bonds Initiative.* The program is joined by Climate Bonds Partners, who support the development of green bonds that contribute to climate change responses and low-carbon investment.
The Group joined the program in March 2020.
  • *Climate Bonds Initiative (CBI):
    CBI is an international NGO that promotes large-scale investment in a low-carbon economy. Aiming to use the $100 trillion bond market to combat climate change, CBI has created the Climate Bond Standard (CBS) as a screening tool for investors and governments when they make low-carbon investments. It also provides periodic reports on the green bond market, policy models, and advice.

Keidanren Initiative for Biodiversity Conservation

In order to increase the depth of actions on biodiversity taken by the Japanese business community, Keidanren (Japan Business Federation) has declared its aim to "realize a sustainable society by building a society in harmony with nature" through its "Declaration of Biodiversity by Keidanren and Action Policy (Revised Edition)." Daiwa Securities Group Inc. supports this Declaration.

Statement on Fiduciary Duty and Climate Change Disclosure

This statement on the disclosure of fiduciary duty and climate change information was jointly formulated by the Climate Disclosure Standards Board (CDSB) and the UNEP FI (United Nations Environment Programme Financial Initiative).
Its aim is to prompt companies to disclose climate change information in a comprehensive and comparable form in their annual reports and other disclosure materials. Daiwa Asset Management became a signatory in August 2014.

Climate Action 100+

Climate Action 100+

This international engagement initiative was established by investors in 2017 with the aim of encouraging greenhouse gas emissions reductions through collaborative engagement with companies with high emissions levels.
In August 2021, Daiwa Asset Management became a signatory in support of this initiative as an approach for reaching the targets of the Paris Agreement.

Investor Agenda

This agenda was established in 2018 by a group of institutional investors. It has issued recommendations on how to accelerate climate change initiatives by institutional investors and national governments.
Daiwa Asset Management became a signatory in August 2021.

Diversity initiatives

30% Club Japan

30% Club Japan
In May 2019, the Chairman of the Board and President and CEO of Daiwa Securities Group Inc. started to participate in the 30% Club Japan as members in support of its activities.
In May 2020, Daiwa Asset Management became a member of the 30% Club Japan Investor Group, and is promoting gender diversity and gender equality in every level of its organization through stewardship activities such as constructive dialogue with the companies in which it invests.
The 30% Club, established in the U.K. in 2010, is a worldwide campaign aimed at increasing the ratio of women in executive positions to promote the sustainable development of companies. It has been rolled out in 14 countries and regions including Japan, greatly contributing to a rise in the ratio of female executives.

Human rights initiatives

Labor management initiatives

Governance initiatives

International Corporate Governance Network (ICGN)

International Corporate Governance Network (ICGN)
Daiwa Asset Management joined the ICGN in April 2021. Established in 1995, ICGN's mission is to establish effective corporate governance and foster investor stewardship with the aim of promoting an efficient global market and sustainable economic activity.

Corporate Governance Code