As part of our efforts to reduce environmental loads, Daiwa Securities Group prepares and discloses environmental accounting. It is expected to help us to track the costs and effects of environmental preservation more accurately and reduce environmental loads more effectively.

• Refer to "Sustainability Related Data (formerly SDGs Related Data)" for details

When installing new equipment at head and branch offices, Daiwa Securities requires that the equipment be certified under Japan’s Top Runner Program standards. Since FY2019, we have reviewed the status of office equipment at the head office by introducing tablet devices and encouraged the elimination of paper. In FY2022, in addition to shifting to equipment that satisfy the Top Runner Program standards, we plan to curtail environmental impact by reducing excess equipment such as decreasing multifunction copiers by 10%.
We have also been successively replacing our company cars since FY2014 with eco-cars and hybrid vehicles that have significantly improved fuel efficiency. With the completion of the planned replacement, CO₂ emissions will be reduced by an amount equivalent to the CO₂ absorption of more than 40,000 Japanese cedar trees annually (an estimate by Daiwa Securities using fuel efficiency data disclosed by automakers).
The introduction of LED lighting into the head office of Daiwa Institute of Research was completed in the summer of 2017. In addition, Daiwa Securities Group promotes green purchasing and strives to choose environmentally friendly products in its central purchasing.

• Continue to introduce eco-cars
  Company cars in Japan (Daiwa Securities) 1,023 vehicles (including eco-cars and hybrid cars; the breakdown is provided below)

  	Introduction results for FY2021	Introduction plan for FY2022	As of March 31, 2021 (cumulative)
  Eco-cars	69	187	820
  Hybrid cars	61	63	152

• Investment in energy-saving air conditioning systems for FY2021 ¥43 million (including installation costs)
• Instances of soil and groundwater contamination at office sites in FY2021: Zero

Daiwa Securities Group is striving to raise the environmental awareness of each employee through various initiatives. For example, our in-house magazine, "Fuji," has a column entitled "Eco-Initiatives in the Office." The column mainly shares the status of the Group's environmental initiatives and introduces environmental measures that can be implemented by employees, depending on their individual awareness.
When printing documents, we recommend using aggregate printing and double-sided printing. We also encourage the reduction of paper usage in conjunction with the introduction of tablet devices, as well as displaying operational guidance and the paper usage reduction costs in areas of offices where multifunction copiers are installed. Moreover, as a result of encouraging telecommuting to prevent the spread of COVID-19, we reduced paper consumption by about 16% year on year in FY2021, a substantial decrease.

Daiwa Securities provides environmentally-conscious services and undertakes initiatives to reduce environmental loads as shown below, utilizing mobile work terminals and online trading.

Offering environmentally friendly services

1. 1.Paperless receipt of documents

• We introduced mechanisms to enable customers to open accounts, enter into Fund Wrap contracts, and perform main administrative procedures (such as change of address and notification of deposit accounts) without the use of paper or a personal seal. As a result, in FY2021 a total of 200,000 pages of documents were digitalized (equivalent to about 20 trees planted for paper).

1. 2.Paperless delivery of documents and introduction of sales promotion materials contributing to reduce environmental loads

• We provide e-Member online services that enable customers to check reports provided to customers (transactions balance reports, transaction reports, etc.) and prospectuses online rather than receiving hardcopies on paper.
• Reports and prospectuses received in electronic format can, in principle, be accessed and checked online as and when required, saved to personal computers and other devices, and printed for five years after initial receipt.
• As of March 31, 2022, about half of Daiwa Securities’ customers use this “e-Member” online service. We will continue recommending the service to increase the number of customers using it.
• Daiwa Securities also uses LIMEX* in part of its promotional items such as ballpoint pens and seminar bags. We are considering expanding its use going forward.

• * LIMEX is a composite material made from limestone that is expected to reduce environmental impacts. It is a registered trademark of TBM Co., Ltd.

1. 3.Contributing to paperless operations by companies that use our services

• In April 2021, we adopted System Product WEB Services, which provides new technologies to companies that have introduced welfare benefit systems using stocks and so on (such as shareholding associations, workplace installment-type NISA, and defined contribution corporate pensions) or stock-based compensation systems (such as specified transfer-restricted stock (RS) and stock options). We are also contributing to paperless operations for related procedures by companies that have introduced welfare benefit systems.

1. 4.Proposals encouraging paperless operations throughout the industry

• There are some procedures that must be performed on paper due to system-related reasons, but a securities industry working group submits requests to encourage paperless operations and makes recommendations for reducing the environmental impact of the industry as a whole.

Working to reduce environmental loads through business

1. 1.Paperless internal applications

• In the past, a document and seal were required for internal application procedures, but in February 2021, we introduced a mechanism that enables on-screen application and approval, further promoting the transition to paperless operations.

1. 2.Discontinuation of internal delivery

• The distribution of documents within the company has been reduced as a result of these efforts, and accordingly, internal document delivery was discontinued in May 2021. In the future, we will continue to work to reduce delivery vehicles.

In comparison with the previous fiscal year, GHG emissions in FY2021 fell by approximately 20% for Daiwa Securities Group's domestic offices, as a result of a positive initiative to conserve energy.

• Refer to "SDGs Data Edition 2022" for details

We have set up the goal of reducing GHG emissions, while complying with the Act on the Rational Use of Energy and Tokyo's environmental protection ordinances in a continuous and systematic way. In July 2021, we switched to energy originating from renewable energy plants owned by Daiwa Energy & Infrastructure, a Group company, for electricity used in the head office building, and have been introducing renewable energy into other Group properties as well. We have also continued energy saving initiatives, including implementing the "Cool Biz" program, and have continued efforts to save electricity even during periods when there is some margin in the supply and demand of electricity. We will continue these efforts to conserve electricity in the future.

In December 2021, Daiwa Real Estate Asset Management established its Climate Change and Resilience Policy, in order to promote clarification of the policy and system for addressing climate-related issues and expansion of disclosure of the initiatives, and announced its support for the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. In January 2022, the company joined TCFD consortium, a group of Japanese companies that support the TCFD recommendations.
Daiwa Real Estate Asset Management recognizes that climate change is an important issue that has a significant impact on its asset management. The company will steadily promote information disclosure related to climate change, while identifying and analyzing risks and opportunities of climate change based on the TCFD recommendations and continuously working to reduce the environmental impact of its business activities.

Daiwa Office Investment Corporation (DOI) aims to enhance the reliability and objectivity of the results of its efforts to reduce environmental loads in the office buildings it owns, and to increase the medium- to long-term asset value of its properties. To achieve these aims, the company actively promotes initiatives for acquiring external environmental certifications, such as CASBEE for Real Estate certification^*1, DBJ Green Building Certification^*2, and BELS Certification^*3. As of the end of May 2022, 31 of the properties owned by DOI have acquired environmental certifications, with the environmental certification acquisition ratio reaching 61.3% (based on the total floor area of owned properties), as shown below.

• Click here for the details of acquisition of green building certification by DOI

• *1 CASBEE for Real Estate Certification: An environmental performance evaluation system for buildings that was developed primarily by the Ministry of Land, Infrastructure, Transport and Tourism. It is a system that evaluates the overall environmental performance of a building based both on an evaluation of the environmental quality and performance of the building itself and an evaluation of the environmental load imposed outside the building.
• *2 DBJ Green Building Certification: A certification system created by the Development Bank of Japan (DBJ) to support environmentally and socially responsible real estate.
• *3 BELS Certification: A third-party certification system that rates housing and other buildings based on their commitment to disclosing energy-saving performance under the Act on the Improvement of Energy Consumption Performance of Buildings.

Daiwa Securities Living Investment Corporation has been advancing initiatives for environmental conservation. For example, it is introducing LED lighting, energy-saving air conditioners, water-saving showers and toilets, and eco-friendly wallpaper into the rental residences it owns. It also posts notices in the residences, encouraging residents to save electricity, water, and other resources.
The company is also promoting the installation of delivery boxes. As of the end of March 2022, the delivery box installation ratio in its rental residences reached 85.7% (based on the number of buildings). As the installation of delivery boxes will not only improve the convenience of tenants but also lead to reductions in CO₂ emissions associated with redelivery, the company aims to maintain and raise the installation ratio going forward.