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 be an agile provider of next-generation financial services developed through the use of state-of-the-art technologies and collaboration with external companies.
In Japan, the company became the first to offer cryptocurrency loans backed by digital assets. It also operates a crypto lending service called "Digital Asset Stake," a loan-type crowdfunding service called "Funvest" and the "KASSAI" cloud-based system for the creation of tipping websites as well as providing real estate investment loans.

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 eight owned solar photovoltaic power plants whose construction has been completed as of May 2024 are all operating stably.
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, was completed in 2023.

Stations developed/ invested in by DEI
Photovoltaic power stations Biomass power generation plant
Output Stations in operation: Approx. 115 MW (total for 8 stations) Stations in operation: Approx. 20 MW (total for 3 stations)
Total Approx. 115 MW Approx. 20 MW
Projected amount of electricity generated annually:
  • *Total generation from operating power plants
Equivalent to the amount for approximately 28,000 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 biomass-related businesses, including the fuel supply business.
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.
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

DFA has been producing and selling tomatoes and paprikas at its large-scale horticultural facilities. In March 2024, it started to a new operation to produce paprikas in Hokkaido for the establishment of an independent year-round paprika supply system, which is rare in Japan.
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. The company is also working on enhancing its capacity to meet the increasingly diversified needs of the elderly.

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, with the aim of providing residents with even more attentive support.
It is predicted that the number of elderly people who need both nursing and medical care will rapidly increase. In response, the company opened its first visiting nurse station as an annex to its care facilities for the elderly in FY2023. It is now operating a total of five such stations in the Tokyo metropolitan region and Kansai region, including the GTL Nursing Service Shinyurigaoka (in Kawasaki City, Kanagawa Prefecture), the GTL Nursing Service Senri Hinatagaoka (in Suita City, Osaka) and the GTL Nursing Service Takarazuka Sakasegawa (Takarazuka City, Hyogo Prefecture), which opened in May 2024. These stations operate around the clock, with nurses available to respond to calls from users and make home visits as necessary, to provide peace of mind to those who need 24/7 medical support.
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 also enhance its capacity to meet the needs of residents of its nursing facilities and the communities they serve.

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 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.
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 convenient provision of information to residents and their families. The site has enabled the timely sharing of information regarding invoices and payment receipts, various notices, and crisis management information. Such materials and information used to be provided via notices posted in the building or individually addressed letters. The portal site is expected to help reduce monthly administrative tasks by 400 hours per facility (in the case of a facility with 80 rooms).

Photo Gallery service screenshot
Photo Gallery service screenshot

A new Photo Gallery service was also added. The families (and only the families) of residents can freely view photos not only of special events but also of the daily life and activities of their loved one taken by on-site staff. The service thus helps to foster a sense of security among residents' families.

  • *The Photo Gallery service will also be started at care facilities where it is currently unavailable.

Feedback from residents' families (Photo Gallery service)

  • I can seldom visit the facilities, so viewing the photos provides me with a sense of relief.
  • 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 (FY2023)

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 7.2 billion yen as of May 31, 2024. The fund mainly invests in 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 FY2023:

At the same time, it has been continuing to provide post-investment support to investee companies operating in the fields of solar cells, battery materials and drainpipe inspection. 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. Industry-government-academia cooperation (including venture capital) has recently been promoted for the establishment of a drug discovery ecosystem. Funding of as much as roughly 350 billion yen has also been allocated by the government to a project to support companies in developing practical applications of new drugs in cooperation with approved venture capital firms, in which we were also approved to participate. Moreover, governmental agencies are making growth investments to speed up measures to enhance drug discovery and reduce lead times. This field is expected to flourish greatly in the future.. 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

Measures to support market development in Asia

The Daiwa Institute of Research has been proactively participating in the capital market development support and survey projects implemented by ASEAN and the Japan International Cooperation Agency (JICA) since around 2010, thereby contributing to the sustainable economic growth of Vietnam, the Philippines, Indonesia, Myanmar, Mongolia and others as well as to the enhancement of global partnership.

In particular, the Project for Capacity Building on Improving Fairness and Transparency of Vietnamese Equity Market, which was started by JICA in 2019 based on a bilateral agreement between Japan and Vietnam, has been widely covered by the media as a project that marked and celebrated the 50th anniversary of the establishment of diplomatic relations between the two countries. This project is highly rated by the Vietnamese and Japanese governments as well as market participants. In April 2024, a three-year follow-up project was also launched for the further development of the market, with its implementation being commissioned to the Daiwa Institute of Research.