Supply Chain Management

Supply Chain Management and ESG Due Diligence including Human Rights

Daiwa Securities Group regularly checks documents disclosed by major business partners, including providers of IT equipment and services, as well as news reports about these companies and their reputation on the Internet in order to address issues in the Group's supply chain, including those related to the environment, society, human rights, information and cyber security. If any issues are found, we take steps such as urging the business partners to make improvements.
We also collect information provided by public institutions within and outside Japan and exchange information with external parties to be aware of human rights issues existing in the countries and regions where the Group conducts business operations. We then consider taking appropriate measures for important issues.
We carry out due diligence in deals underwritten, considering not only business performance and financial aspects, but also ESG issues. When we find issues regarding the business model of an issuer or its planned use of proceeds, we conduct more thorough due diligence through such means as field work and meetings, and sometimes make proposals for improvement to the issuer. If major concerns remain even after taking such measures, we report them to Chief Risk Officer (CRO).
Similarly, we also carry out due diligence in self-investment deals

Daiwa Securities Group's Response to Issues in its Supply Chain

Subject Specific initiatives Frequency
Major business partners including providers of IT equipment and services Check documents disclosed by partner companies and external information Regularly
Countries where the Group conducts business operations Collect information on human rights issues As needed
Deals underwritten Due diligence in consideration of ESG As needed
Self-investment deals Due diligence As needed