Sustainable Finance
In recent years, Sustainable finance markets in Japan and overseas have expanded, and we believe this trend will continue in the future.
Daiwa Securities started to work on Sustainable 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 Sustainable 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 Sustainable finance within Daiwa Securities to further enhance the company’s underwriting system. We strive to contribute to spreading and expanding Sustainable finance while offering products, services, and proposals that meet the needs for Sustainable finance from issuers and investors, who are our customers.
Promotion of Sustainable Finance
Managing Director
Sustainability Solutions Dept.
Daiwa Securities Co. Ltd.
The Sustainability Solutions Department is committed to supporting sustainable finance, which seeks economic outcomes while considering the aspects of Environment, Social, and Governance (ESG). While traditional finance has focused on profitability and risk, addressing social issues as climate change is imperative in sustainable finance.
Solving climate change and other social issues requires substantial funding and collaboration between the public and private sectors. By promoting the vitality of sustainable finance, we can enhance the functioning of the private financial market and support businesses in their ESG initiatives.
Moreover, by linking a company's significant corporate actions, such as fundraising, to its materiality regarding social issues, we envision the integration of ESG into the core of corporate management, bringing us closer to realizing a sustainable society.
As stated in the Daiwa Securities Group's 2030 Vision "From Savings to SDGs – Realize the SDGs by creating a sustainable capital cycle -", we will continue to make concerted efforts to contribute to a sustainable future as a bridge connecting market participants such as issuers and investors.
Major Results
Japan
- December 8, 2023
Alfresa Holdings Corporation ⟨ Japanese only ⟩
- Green
- December 7, 2023
Mitsubishi Electric Corporation ⟨ Japanese only ⟩
- Green
- November 30, 2023
DAIBIRU CORPORATION ⟨ Japanese only ⟩
- Green
- November 29, 2023
Asahi Kasei Corp. ⟨ Japanese only ⟩
- Transition
- November 8, 2023
Japan ⟨ Japanese only ⟩
- Sustainability
- October 19, 2023
Miyagi Prefecture ⟨ Japanese only ⟩
- Green
- October 13, 2023
Toyo Seikan Group Holdings, Ltd. ⟨ Japanese only ⟩
- Green
- October 13, 2023
Tokyo Metropolitan ⟨ Japanese only ⟩
- Sustainability
- October 11, 2023
NEC Capital Solutions Limited ⟨ Japanese only ⟩
- September 8, 2023
Tokyo Metropolitan Housing Supply Corporation ⟨ Japanese only ⟩
- Sustainability
- September 8, 2023
JICA ⟨ Japanese only ⟩
- Sustainability
- July 7, 2023
Nagoya Railroad Co., Ltd. ⟨ Japanese only ⟩
- Sustainability Linked
- July 5, 2023
NEC Corporation ⟨ Japanese only ⟩
- Sustainability Rights Offering
- June 22, 2023
TESS Holdings Co., Ltd. ⟨ Japanese only ⟩
- Sustainability Linked
- June 9, 2023
Kao Corporation ⟨ Japanese only ⟩
FY2022
- Sustainability Linked
- March 16, 2023
KAJIMA CORPORATION ⟨ Japanese only ⟩
- Sustainability
- March 3, 2023
Nankai Electric Railway Co., Ltd. ⟨ Japanese only ⟩
- Green
- February 22, 2023
Tokyu Fudosan Holdings Corporation ⟨ Japanese only ⟩
- Green
- January 18, 2023
TOKYU REIT, Inc. ⟨ Japanese only ⟩
- Sustainability
- December 9, 2022
National University Corporation Tokyo Institute of Technology ⟨ Japanese only ⟩
- Green
- December 9, 2022
Samty Residential Investment Corporation ⟨ Japanese only ⟩
- Green
- December 9, 2022
Kyoto City ⟨ Japanese only ⟩
- Sustainability Linked
- December 2, 2022
Shiseido Company, Limited ⟨ Japanese only ⟩
- SustainabilitySustainability Linked
- November 30, 2022
TOKYU RAILWAYS Co., Ltd. ⟨ Japanese only ⟩
- Transition
- November 17, 2022
TOHO GAS Co., Ltd. ⟨ Japanese only ⟩
- Sustainability
- October 21, 2022
KDDI CORPORATION ⟨ Japanese only ⟩
- Green
- October 14, 2022
Tokyo Metropolitan Government ⟨ Japanese only ⟩
- Green
- October 7, 2022
Sumitomo Metal Mining Co., Ltd. ⟨ Japanese only ⟩
- Sustainability
- September 16, 2022
The Gunma Bank, Ltd. ⟨ Japanese only ⟩
- Green
- September 8, 2022
INFRONEER Holdings Inc. ⟨ Japanese only ⟩
- August 5, 2022
New Kansai International Airport Company, Ltd. ⟨ Japanese only ⟩
- Sustainability Linked
- July 6, 2022
NEC Corporation ⟨ Japanese only ⟩
- Green
- June 10, 2022
Sanken Electric Co., Ltd. ⟨ Japanese only ⟩
- Green
- June 9, 2022
Sotetsu Holdings, Inc. ⟨ Japanese only ⟩
- Sustainability
- June 3, 2022
Air Water Inc. ⟨ Japanese only ⟩
- Green
- May 18, 2022
Sumitomo Corporation ⟨ Japanese only ⟩
- April 14, 2022
FUJIFILM Holdings Corporation ⟨ Japanese only ⟩
- SDGs-IPO
- April 13, 2022
Fuluhashi EPO Corporation ⟨ Japanese only ⟩
FY2021
- [Transition] Japan Airlines Co., Ltd. (February 22, 2022) ⟨ Japanese only ⟩
- [Sustainability] NEC Capital Solutions, Ltd. (February 22, 2022) ⟨ Japanese only ⟩
- [Green] Asahi Printing Co., Ltd. (January 28, 2022) ⟨ Japanese only ⟩
- [Sustainability] Nagoya Railroad Co., Ltd. (December 10, 2021) ⟨ Japanese only ⟩
- [Social] The University of Tokyo (December 10, 2021) ⟨ Japanese only ⟩
- [Sustainability] Hankyu Hanshin Holdings, Inc. (December 3, 2021) ⟨ Japanese only ⟩
- [Sustainability Linked] Tokyu Fudosan Holdings Corporation (October 5, 2021) ⟨ Japanese only ⟩
- [Sustainability] Yokohama Reito Co., Ltd. (September 17, 2021) ⟨ Japanese only ⟩
- [Green] SCSK Corporation (June 1, 2021) ⟨ Japanese only ⟩
FY2020
- [SDGs-IPO] TESS Holdings Co., Ltd. (March 24, 2021) ⟨ Japanese only ⟩
- [Sustainability Linked Green] Takamatsu Construction Group Co.,Ltd. (March 12, 2021) ⟨ Japanese only ⟩
- [Sustainability] Shinsei Bank Ltd. (March 5, 2021) ⟨ Japanese only ⟩
- [Social-PO] Gakken Holdings Co., Ltd. (February 26, 2021) ⟨ Japanese only ⟩
- [Sustainability] Mitsui Fudosan Logistics Park Inc. (February 5, 2021)
- [SDGs-IPO] Poppins Holdings Inc. (December 21, 2020) ⟨ Japanese only ⟩
- [Green] Central Nippon Expressway Co., Ltd. (November 25, 2020) ⟨ Japanese only ⟩
- [Green] The Sumitomo Warehouse Co., Ltd. (October 2020)
- [Green] SENKO Group Holdings Co., Ltd. (September 11, 2020) ⟨ Japanese only ⟩
- [Green] Daiwa Office Investment Corporation (September 4, 2020)
FY2019
- [Social] Gakken Holdings Co., Ltd. (March 6, 2020)
- [Green] DAIKEN CORPORATION First issuance of green bonds in Japan’s building materials industry (September 13, 2019) ⟨ Japanese only ⟩
- [Green] The Sumitomo Warehouse Co., Ltd. First issuance of green bonds by a warehousing company (September 13, 2019) ⟨ Japanese only ⟩
- [Sustainability] Mitsui O.S.K. Lines, Ltd. First issuance of sustainability bonds for individual investors in Japan (July 12, 2019) ⟨ Japanese only ⟩
- [Green] ORIX JREIT Inc. (July 11, 2019)
FY2018
- [Green] Tokyo Tatemono Co., Ltd. (March 8, 2019) ⟨ Japanese only ⟩
- [Green] Daiwa Securities Group Inc. (November 22, 2018) ⟨ Japanese only ⟩
- [Green] Sumitomo Forestry Co., Ltd. Issuance of green convertible bonds (September 11, 2018) ⟨ Japanese only ⟩
- [Green] Mitsui O.S.K. Lines, Ltd. First issuance of green bonds for individual investors in Japan (August 24, 2018) ⟨ Japanese only ⟩
Overseas
- Sustainable development
- November 27, 2023
IBRD ⟨ Japanese only ⟩
- October 12, 2023
Council of Europe Development Bank ⟨ Japanese only ⟩
- Green
- August 24, 2023
Natixis ⟨ Japanese only ⟩
- Sustainable development
- July 31, 2023
Inter-American Development Bank ⟨ Japanese only ⟩
- Blue
- July 28, 2023
Central American Bank for Economic Integration ⟨ Japanese only ⟩
- SDG Housing
- June 29, 2023
Nederlandse Waterschapsbank ⟨ Japanese only ⟩
FY2022
- Blue
- December 29, 2022
Central American Bank for Economic Integration ⟨ Japanese only ⟩
- Green
- September 13, 2022
African Development Bank ⟨ Japanese only ⟩
- Sustainable development
- September 9, 2022
Inter-American Development Bank ⟨ Japanese only ⟩
- April 26, 2022
African Development Bank ⟨ Japanese only ⟩
FY2021
- [Green] Hungary (February 2022) ⟨ Japanese only ⟩
- [EYE] Inter-American Development Bank (February 2022) ⟨ Japanese only ⟩
- [Sustainable development] Inter-American Development Bank (February 2022) ⟨ Japanese only ⟩
- [Gender] Asian Development Bank (February 2022)
- [Water] Asian Development Bank (October 2021)
- [Decarbonization] Inter-American Investment Corporation (October 2021) ⟨ Japanese only ⟩
- [Climate resilience] European Bank for Reconstruction and Development (EBRD) (July 2021) ⟨ Japanese only ⟩
- [Nutrition] Corporación Andina de Fomento (July 2021)
FY2020
- [Sustainable development] Inter-American Development Bank (IDB) (March 2021) ⟨ Japanese only ⟩
- [Green transition] European Bank for Reconstruction and Development (EBRD) (January 2021) ⟨ Japanese only ⟩
- [Social] International Finance Corporation (IFC) (November 2020) ⟨ Japanese only ⟩
- [COVID-19 Vaccine] Central American Bank for Economic Integration (CABEI) (November 2020) ⟨ Japanese only ⟩
- [Green] Hungary (September 2020)
- [Sustainable development] Inter-American Development Bank (IDB) (June 2020)
- [Social] International Finance Corporation (IFC) (April 2020)
Activity
Japan has formulated the world's first Climate Transition Bond Framework.
The Japanese government plans to implement more than 150 trillion yen in public and private GX (Green Transformation) investments over the next 10 years. As part of this, the Japanese government plans to issue "Climate Transition Bonds" on the scale of about 20 trillion yen, with the aim of supporting preliminary investments.
Climate Transition Bonds will not only be issued as the same financial products as the current government bonds (construction bonds, special deficit-financing bonds, reconstruction bonds, etc.), but also issued based on a framework describing the use of proceeds, reporting methods, etc. In addition, they have obtained verification (second party opinion) from external reviewers regarding the alignment with international standards.
Daiwa Securities served as an advisor to provide advice and support in relation to trend research, framework formulation, and the acquisition of second party opinion for the issuance of these Climate Transition Bonds.
| Main Category (Green category) |
Sub-category Eligibility criteria |
Typical use of proceeds (eligible projects) |
|
|---|---|---|---|
| 1 | Energy efficiency | Promotion of thorough energy efficiency improvement |
|
| Houses and buildings |
|
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| Digital investment aimed at decarbonization |
|
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| Battery industry |
|
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| 2 | Renewable energy | Making renewable energy a major power source |
|
| Infrastructure |
|
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| 3 | Low-carbon and decarbonized energy | Utilization of nuclear power |
|
| Establishing electricity and gas markets to achieve carbon neutrality |
|
||
| 4 | Clean transportaition | GX in transport sector |
|
| Infrastructure (repost) |
|
||
| 5 | Circular economy adapted products, production technologies and processes | Restructuring the manufacturing industry (fuel and feedstocks transition) |
|
| Facilitating introduction of hydrogen and ammonia |
|
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| Carbon Recycling and CCS |
|
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| 6 | Environmentally sustainable management of living natural resources and land use, Circular economy | Food, agriculture, forestry, and fisheries industry |
|
| Resource circulation |
|
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Report on Media Appearance : Economic education program "Manabiya-17"
Report on Media Appearance
Economic education program "Manabiya-17"
Yukino Yamada, the Equity Research Department of Daiwa Securities, appeared on BS-TBS' economic educational program "Manabiya-17 (Seventeen)," which conveys ESG investment in an easy-to-understand manner.
This program was supervised by the Public Institutions Dept., the Debt Capital Market Dept. (II), and Sustainability Solutions Dept. of Daiwa Securities. It was planned for SDGs beginners, and introduced companies' efforts to achieve SDGs.
⟨ Issuers Introduced in the Program *in order of appearance ⟩
- Fuji Film Co., Ltd.
- Japan Railway Construction, Transport and Technology Agency
Report on Media Appearance : Economic Education Program "Sustainable Every Day-What Economy Can Do for the Future"
Report on Media Appearance
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 sustainability-themed seminars while receiving support from issuers, investors, and rating agencies. We aim to spread and expand Sustainable finance by communicating the latest topics and approaches to customers.
September 25, 2023
14th Seminar:
Impact Investing to Change the World
June 7, 2023
13th Seminar:
Possibilities of transition bonds - now and in the future -
February 3, 2023
12th Seminar:
Roadmap for achieving carbon neutrality
Holding of Engagement Meetings
Daiwa Securities Group arranges engagement meetings with issuers and investors with the aim of further enhancing Sustainable 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.
- Japan Automobile Recycling Promotion Center× Kitakyushu City (November 30, 2022)
On November 30, 2022, an engagement meeting was held between the Japan Automobile Recycling Promotion Center and Kitakyushu City, the issuer of sustainability bonds.
Realization of a green society through regional revitalization and development of transportation infrastructure
- JRTT×Kiraboshi Bank, Ltd. (April 2021)
Support for students being required now
- Japan Student Services Organization×Japanese Red Cross Toyota College of Nursing (January 2021)
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 ⟩