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 ʼOuen(Supporting)ʼ 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.