Daiwa Securities Group has outlined its goals in "Vision 2030," which is rooted in its Corporate Principles and the Daiwa Spirit; 2030 is also the year by which it seeks to realize the SDGs.
Vision 2030 takes as its core concept "From savings to SDGs" and, through this Vision, the Group intends to realize the SDGs by creating a sustainable capital cycle.

• Vision 2030-From savings to SDGs-Concept Video
• Corporate Principles
• The Daiwa Spirit

In "Vision 2030," Daiwa Securities Group identified priority areas and priority issues it should focus on as "Materiality."

The Medium-term Management Plan "Passion for the Best" 2023 maps out strategies for the first three years of Vision 2030 and incorporates KPIs for managing progress as it seeks to achieve its vision.

KPIs and Key Areas Related to KPIs (Targets to achieve in FY2023)

Financial KPIs	Performance ROE 10% or higher Ordinary income ¥200 billion or more	Wealth Management Business Retail Division asset based revenue ratio 50% or higher*1	Hybrid Strategy Hybrid-related ordinary income ¥50 billion or more Hybrid-related ordinary income ratio Around 25%	Financial Base Consolidated total capital ratio Maintain at 18% or higher
Non-financial KPIs	Human Resources Number of Digital IT Master 200 personnel or more Number of CFP and CMA 3,000 personnel or more	Wealth Management Business Daiwa Securities assets under custody (AUC) ¥90 trillion or more	Sustainability SDGs bond league table In top 3 'Ouen(Supporting)' term deposits balance ¥200 billion or more Balance of investment in SDGs-related business ¥150 billion or more Ratio of women on the boards of directors 30% or higher*2 Ratio of women in management positions 25% or higher*3 Employee satisfaction Maintain at 80% or higher

1. *14Q, FY2023
2. *2By 2030
3. *3FY2025

Daiwa Securities Group identified important environmental and social issues in the formation of its medium- to long-term Vision. The Group also identified "Materiality (priority areas and priority issues)" based on the requests of society it understood through communication with shareholders as well as the Group's impact on society.
The Group seeks to achieve "Vision 2030" by managing progress based on KPIs initiatives in order to improve the Group's value and realize a sustainable society.

Identification Process

Previously	Incorporating sustainability perspective as the basis of our business strategy In 2018, Daiwa Securities Group established the Sustainability Promotion Committee (formerly SDGs Promotion Committee), chaired by President and CEO Seiji Nakata. It subsequently formulated the "Passion for SDGs -Daiwa Securities Group Action Plan-," which detailed the Group's commitment to actively contributing to SDGs through its businesses.
STEP1	Understanding and assessing environmental and social issues Based on its Corporate Principles, and taking into consideration various international frameworks (GRI, ISO 26000, SASB, TCFD, etc.), international initiatives such as the UN Global Compact, indices established by ESG evaluation organizations, and issues raised by governments and economic organizations, Daiwa Securities Group identified important environmental and social issues that might either provide opportunities or pose risks. It then drew up a long-list of 65 issues which it could engage with in order to strengthen its management foundations.
STEP2	Dialogue with internal and external stakeholders Through communications with both internal and external stakeholders, the Group evaluated the impact and the importance to society of the environmental and social issues it identified in Step 1. To this end, it consulted with outside members of the Sustainability Promotion Committee (formerly SDGs Promotion Committee) and internal experts on which priority issues and directions it should focus on in the medium and long term. The Group also engaged in dialogue with Sustainability Promotion Managers at various headquarters and Group companies, and with young employees who will comprise the heart of the Group's workforce in 2030, on the topic of what goals it should set for 2030.
STEP3	Formulation of the Materiality (draft) Based on the results of the evaluations outlined in Step 2, Daiwa Securities Group identified 10 issues it should engage with through its businesses, and 4 issues it should engage with in order to strengthen its management foundations. The Group then discussed what opportunities and risks the formulated Materiality (draft) would present and pose.
STEP4	Discussions and decisions made by the management The Materiality (draft) was discussed by outside directors, outside members of the Sustainability Promotion Committee (formerly SDGs Promotion Committee), and the management at Board of Directors, Executive Committee of the Group, and Sustainability Promotion Committee (formerly SDGs Promotion Committee) meetings. Vision 2030, including Materiality, was resolved at the Board of Directors meeting. At the same time, a set of KPIs was drawn up to manage the progress of Materiality initiatives. Going forward, the Materiality will be continually revised, according to international trends in environmental and social issues, changes in business environments, and feedback from both internal and external stakeholders.
Going forward	Taking on Materiality and realizing Vision 2030 Representatives of various headquarters and Group companies will carry out progress management, seek to understand issues, and implement related measures. The state of progress will be regularly monitored by the management at committees, including the Sustainability Promotion Committee (formerly SDGs Promotion Committee) and Board of Directors.

Click to see the dialogue.

The SDGs (Sustainable Development Goals) are the 17 common goals of humankind that were created by UN member countries, various organizations and people, and adopted by the United Nations in 2015. It has been promised that each country will actively work to achieve these goals. Daiwa Securities Group considers the SDGs to be important goals that give direction to the world, and will approach social issues as an important common language when conducting business in Japan and overseas.

• Statements

In 2018, we established the Sustainability Promotion Committee (formerly SDGs Promotion Committee) chaired by Seiji Nakata, President and CEO. External committee members always participate to bring in fresh ideas and cutting-edge information from outside the company, and we are making Group-wide efforts to contribute to sustainability.

• Structure of Sustainability Promotion

In our Medium-term Management Plan "Passion for the Best" 2020, the basic policy is to "provide high value-added solutions through our No. 1 quality consulting capabilities" and "provide new value as a hybrid comprehensive securities group." We aim to be a "pioneer in the financial and capital markets that creates the future," which creates a virtuous cycle of expanding customers' assets and growing the companies that drive the Japanese economy.

The Sustainability Promotion Committee (formerly SDGs Promotion Committee) has clearly stated that we will actively promote initiatives that contribute to the SDGs through our Group business in the "Daiwa Securities Group SDGs Declaration (Passion for SDGs 2018)."

• Daiwa Securities Group SDGs Declaration (Passion for SDGs 2018)

In order to promote sustainability in the entire Group, we believe that not only top-down promotion but also bottom-up efforts by employees are important, and we solicited a wide range of sustainability-related initiatives and ideas from employees. When soliciting ideas, we incorporated two perspectives: Forecasting that considers what we can do now, and Backcasting that considers what we can do based on the "ideal image" of the Group in 2030, the deadline for achieving the SDGs. As a result, for Forecasting we gathered more than 4,200 ideas not only from the headquarters departments, but also from branch offices in Japan, Group companies, and overseas bases. In the Backcasting approach, about 120 volunteers gathered through internal recruitment and made a proposal for the realization of the Group's "Vision 2030".
We identified issues from this bottom-up initiative, and summarized them by collating them with the demands from society, which we uncovered through communication with stakeholders and the knowledge of outside experts. Then, after discussions at the Sustainability Promotion Committee (formerly SDGs Promotion Committee), we finalized the "Daiwa Securities Group's Priority Issues (SDGs Materiality)."
Furthermore, from this bottom-up initiative, we identified the matters that should be focused on to solve the priority issues, and compiled the "Passion for SDGs 2019 -Daiwa Securities Group Action Plan-."

We have only 10 years left before 2030, the deadline for achieving the SDGs. Aiming to build a "Daiwa version of an SDG value chain" that generates a sustainable flow of funds, in order to accelerate the initiatives of our SDGs promotion action plan, we have set SDGs promotion KPIs for each action theme for this fiscal year, and have started trial operation. Based on these KPIs, we monitored the status of progress and made revisions if necessary, aiming for full-scale operation in the following fiscal year and beyond.

Moving forward to 2030, we formulated and announced the management vision "Vision 2030" in May 2021 for all executives and employees to share what Daiwa Securities Group wants to be and what the Group should be, and to work as one on the creation of shared values. "Vision 2030" takes as its core concept "From savings to SDGs" and, through this Vision, the Group intends to realize the SDGs by creating a sustainable capital cycle.
The Medium-term Management Plan "Passion for the Best" 2023 maps out strategies for the first three years toward the realization of "Vision 2030".
Daiwa Securities Group will continue to contribute to the creation of a sustainable and prosperous society.

• Daiwa Securities Group's management vision "Vision 2030" and Materiality

FY2018-FY2020
Previous Medium-Term
Management Plan

FY2021-FY2023

FY2021-FY2023 New Medium-Term Management Plan
"Passion for the Best" 2023

The best partner for co-creating the future
~ Be with you ~

Basic Policies

Achieving "Customer First" &
"Quality No.1"

Creation of a new capital
recycling system through a
hybrid strategy

Pursuing the best mix of digital and real

Initiatives in sustainability

Corporate strategy
Financial & capital/Risk management/
Compliance/HR/Overseas

Maximize value
and benefits to all
stakeholders

Basic Policies

Providing high value added
solutions through the use of
our "Quality No. 1"
consulting capabilities

Providing new value as an
integrated securities group
with a hybrid business model

Digital transformation

In the Medium-term Management Plan "Passion for the Best" 2023, we have incorporated an SDGs perspective as the basis of our business strategy, and have continued to adopt and will further strengthen the basic policies of "achieving Customer First & Quality No.1" and "creating a new capital recycling system through a hybrid strategy." In light of the increased importance of promotion of digital transformation (DX), we have also set "pursuing the best mix of digital and real" as the third pillar.
In addition to these three basic policies, we have established the slogan of staying close to customers and becoming "The best partner for co-creating the future -Be with you-."
We will further step up our sustainability initiatives, including SDGs and ESG initiatives, and corporate strategies at head office divisions as the foundations that support individual strategies.

SDGs(Sustainable Development Goals)

International goals up to 2030 adopted by the United Nations Summit in September 2015. 17 goals and 169 targets were set to realize a sustainable world. The SDGs question the ideal state of not only developing countries but also advanced countries including Japan, and pledge that "No one will be left behind" in the process of the initiatives.