Sustainability Management

Daiwa Securities Group's Management Vision "Vision 2030"

"Vision 2030" -From savings to SDGs-

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.

Materiality Daiwa Securities Group is a financial professional; as such, it will provide solutions that cater to diversifying customer needs, with the goal of realizing a society in which everyone can live a prosperous 100 years of life. Daiwa Securities Group will promote innovation that enriches society through financial functions and, at the same time, it will provide new added value to its customers.In addition, the Group will seek to instigate Self-transformation by accelerating and refining its hybrid strategies. Daiwa Securities Group will focus on providing financial products and services that contribute to the resolution of societal issues, with the twin goals of promoting a shift to a carbon-free society and of realizing a resilient society. The Group will also actively engage in advisory services and business investments in the field of renewable energies. The Group will contribute to the realization of societies which acknowledge diverse forms of individuality, and in which everyone can flourish. In addition, the Group will continue to focus on molding an organization in which each of its employees can fulfill their individuality and experience work satisfaction. Daiwa Securities Group will strengthen the foundations of its sustainable corporate management, and improve its medium and long-term corporate value, as it seeks to realize its goals in its priority areas of "100 years of life,"  "innovation," "green & social," and "diversity & inclusion."

Materiality

"Vision 2030" and materiality

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

priority areas priority issues
100 years of life
Realization of a society where everyone can spend 100 years of life affluently
  1. 1.Support for household asset formation and conservation toward the realization of a prosperous 100-year life
  2. 2.Realization of local revitalization with private funds
  3. 3.Financial support for economic growth in Asia
Innovation
Innovation that enriches society Promote and realize your own transformation
  1. 4.Support for accelerating corporate metabolism toward the realization of innovation that enriches society
  2. 5.Reform of business portfolio to create new added value
  3. 6.Leading social transformation as a one-of-a-kind financial platformer
Green & Social
Promoting the transition to a carbon-free society and realizing a resilient society
  1. 7.Promotion of green finance to support the realization of a carbon-free society
  2. 8.Development and provision of new financial products and services that contribute to the realization of a sustainable society
Foundation of sustainable management
Diversity & Inclusion
Realization of a society where everyone can play an active role by acknowledging diverse personalities
-Strengthening the foundation that supports sustainable corporate management-
  1. 9.Fostering human resources who can provide added value
  2. 10.Building an organization where everyone can play an active role by acknowledging diverse personalities
  1. 11.Strengthening a sound and highly transparent management base
  2. 12.Leading the maintenance and development of financial and capital markets
  3. 13.Creating a beautiful global environment that will lead to the next generation
  4. 14.Realization of a better future community / society

Daiwa Securities Group Key Performance Indicators (KPIs)

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

Materiality Identification Process

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.

Sustainability Promotion Structure

Chaired by the president and CEO, the Sustainability Promotion Committee (formerly the SDGs Promotion Committee) was established by Daiwa Securities Group in 2018 as the decision-making organization for its sustainability promotion policies.

This Committee regularly reports the details of its discussions regarding sustainability promotion to the Board of Directors and the Executive Management Committee, which deliberate on these where appropriate. The Board of Directors also makes decisions on important policies regarding sustainability. The Group will continue to enhance the Board of Directors' supervisory functions covering the status of the Group's response to sustainability-related issues.

The Group invites external experts to the Committee on a regular basis, which enables it to utilize the experience and insights of those experts in its discussions.
Based on decisions made by the Committee, the Corporate Planning Department's Sustainability Promotion Office works to deploy sustainability promotion initiatives throughout the Group, and endeavors to strengthen collaboration and raise awareness of sustainability within the Group.

Board of Directors

Executive Management Committee

Sustainability Promotion Committee

Chair: President and CEO Seiji Nakata

Head of Sustainability: Deputy President Keiko Tashiro

Internal committee members: 16 Outside committee members: 3

Sustainability Managers

Internal Expert WG

Headquarters and
Group companies

Head offices

Sustainability Advisory Group
Chair: Head of Sustainability

Sustainability-related WGs

Sustainable Business WG
(Headquarters,
Group companies and
major overseas offices)

ESG Response WG
(Head offices)

Theme-based Groups

Secretariat: Sustainability Promotion Office, Corporate Planning Department

Some directors (including non-executive directors) participate as committee members

Sustainability
Disclosure WG

Scope 3
Emissions
Monitoring Team

Sustainability Promotion Structure Sustainability Promotion Structure

(as of April 1, 2023)

Head of Sustainability Promotes businesses that contribute to sustainability throughout the Group, and oversees initiatives to enhance the foundation for sustainable management
Sustainability Managers Promote SDGs/ESG-related businesses and conduct KPI progress management for each organization (Headquarters and Group companies) within the Group
Sustainable Business WG Monitor the KPIs, ascertain the progress status of SDGs/ESG-related businesses, identify issues, and plan and implement measures for these issues under the direction of sustainability managers
ESG Response WG Enhance and strengthen ESG response in reference to external evaluations (investors and evaluation organizations) regarding ESG
Sustainability Advisory Group Composed of internal experts with extensive knowledge in sustainability who exchange opinions regarding challenges for the Group and future action
Sustainability Disclosure WG Cross-departmental organizations that aim to expand the disclosure of sustainability information from the perspective of integrated reporting
Scope 3 Emissions Monitoring Team Monitors emissions relating to the investment and loan portfolios, and sets targets

Sustainability Promotion Committee members list

Chairman

Seiji Nakata
President and CEO

Committee Members

Toshihiro Matsui
Deputy President
COO and Head of Wholesale

Keiko Tashiro
Deputy President
Executive Head of Overseas
Operations, Head of Sustainability
and Think Tank

Akihiko Ogino
Deputy President
Executive Head of Corporate Planning,
Human Resources and
Financial & Public Institutions Banking

Shinsuke Niizuma
Deputy President
Head of Retail

Eiji Sato
Senior Executive Managing Director
CFO and Head of Corporate Planning

Kana Shirakawa
Senior Executive Managing Director
Head of Human Resources and CHO

Tsutomu Kobayashi
Executive Managing Director
CRO

Sachiko Hanaoka
Director

Mikita Komatsu
President
Daiwa Asset Management Co. Ltd.

Atsushi Mochizuki
President
Daiwa Institute of Research Ltd.

Tomoo Fujioka
Senior Executive Managing Director
Daiwa Securities Co. Ltd.
Head of Global Markets Division
and Global Markets Strategic Planning

Isao Tsujioka
Senior Executive Managing Director
Daiwa Securities Co. Ltd.
Head of Corporate Institution

Junichi Serizawa
Senior Executive Managing Director
Daiwa Securities Co. Ltd.
Head of Retail Marketing Division

Toru Yamamoto
Senior Executive Managing Director
Daiwa Securities Co. Ltd.
Head of Global Investment Banking Division

Toyo Abe
Senior Managing Director
Deputy Head of Corporate Planning
Head of Legal and Financial Education

Outside Members

  • *The names are arranged in alphabetical order in Japanese

Toshihide Arimura
Professor, School of Political Science and Economics, Waseda University
Faculty Fellow, The Research Institute of Economy, Trade and Industry

Arisa Kishigami
Independent consultant,
En-CycleS (Engagement Cycle for Sustainability)
Trustee, Japan Sustainable Investment Forum (JSIF)

Daisuke Takahashi
Partner Attorney at Shinwa Law

History of Sustainability Promotion

September 2015
Adopted SDGs (Sustainable Development Goals)

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.

February 2018
Established "Sustainability Promotion Committee (formerly SDGs Promotion Committee)"

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.

April 2018
Formulation of "Medium-Term Management Plan (FY2018-FY2020) 'Passion for the Best' 2020"

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.

May 2018
Announcement of "Daiwa Securities Group SDGs Declaration (Passion for SDGs 2018)"

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)."

May 2019
Announcement of SDGs Materiality and SDGs Promotion Action Plan

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-."

May 2020
Announcement of SDGs Promotion KPIs for FY2020

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.

April 2021
Announcement of the management vision "Vision 2030" and the Medium-term Management Plan (FY2021-FY2023) "Passion for the Best" 2023

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.

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

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

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)

SDGslogo

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.