The Board of Directors oversees a response to sustainability-related issues, including climate change. The Board of Directors receives reports as needed in accordance with the rules of the Board of Directors on issues and responses to sustainability-related issues discussed at the Sustainability Promotion Committee or deliberated on by the Executive Management Committee. Additionally, the Board of Directors makes resolutions on items that are core management matters and items deemed important by the Board of Directors established as resolution items in the rules of the Board of Directors.

Thus far, in addition to deciding on the formulation or revisions of the Environmental and Social Policy Framework, and the Daiwa Securities Group Net Zero Carbon Declaration, the Board of Directors decided to add climate change as one of the top risks in our risk appetite statement. In addition, the Board of Directors discusses reports that are received such as on climate-related disclosures and confirms the status of progress of sustainability KPIs when reviewing the financial results and the Medium-Term Management Plan.

In FY2023, the Board of Directors decided on the new Medium-Term Management Plan "Passion for the Best" 2026 (including revisions of the Vision 2030). Within this, sustainability, including climate change, were also raised as topics. In total, climate has been placed on the agenda of the Board seven times.

Regular discussions are held at the Sustainability Promotion Committee, chaired by the President and CEO on strategies and policies related to sustainability, including climate change.

For example, the Committee has discussed the formulation or revisions of the Environmental and Social Policy Framework and the Daiwa Securities Group Net Zero Carbon Declaration.

The Committee is composed of the Head of Sustainability, who is responsible for promoting sustainability based on the rules for Corporate Executive Officers approved by the Board of Directors, several Internal Directors, and three external experts with specialized knowledge in sustainability. The details of discussion at the Committee are reported to, deliberated on and determined at the Executive Management Committee, as appropriate.

Policies and measures relating to risk management, including climate change, are discussed at the Group Risk Management Committee, a subcommittee of the Executive Management Committee, and attended by the Chief Risk Officer (CRO), who is responsible for risk management. After climate-related scenario-based quantitative analysis results are reported to the Group Risk Management Committee each year, they are reported to the Executive Management Committee based on discussion at the Sustainability Promotion Committee.

As a Group-wide system to promote sustainability, we have appointed Sustainability Managers at each division and major Group company. Under these managers, a working group (WG) monitors sustainability KPIs and promotes sustainability-related businesses. The contents of the discussions of this WG are reported to the Sustainability Promotion Committee as appropriate.