Nomura : UN PRB Report 2021 (PDF 596KB)

Nomura Principles for Responsible Banking Report 2021

Progress on the Implementation of the UN Principles for Responsible Banking

Nomura Group became a signatory to the UN Principles for Responsible Banking framework in May 2020 and is committed to contributing to the UN Sustainable Development Goals and the Paris Climate Agreement of 2015.

Our responses have not been within the scope of assurance for 2021.

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		Reference(s)/
Reporting and Self-		Link(s) to bank's
Assessment	High-level summary of bank's response	full response/
Requirements		relevant
		information

1. Alignment

We will align our business strategy to be consistent with and contribute to individuals' needs and society's goals, as expressed in the Sustainable Development Goals, the Paris Climate Agreement and relevant national and regional frameworks.

1.1 Describe (high- level) your bank's business model, including the main customer segments served, types of products and services provided, the main sectors and types of activities, and where relevant the technologies financed across the main geographies in which your bank has operations or provides products and services.

As a global financial services group with an integrated network that spans over 30 countries in Europe, Americas and Asia, Nomura Holdings Inc. ("Nomura" / "Nomura Group") bridges the gap between investors and issuers by playing an active role in the global capital markets.[1] We provide liquidity by facilitating the flow of capital, an essential component of ensuring a sound economy that contributes to business development and improving society.[2]

Nomura Group services the needs of a diverse set of customer segments, including institutional investors, financial institutions, governments, corporations, various organizations and individual investors, and serves as their most trusted partner.

The Group provides a wide range of products and services through its Wholesale Division (Global Markets and Investment Banking), Retail Division and Investment Management Division.[3][4][5]

• Underwriting of equities and debt
• Advisory services for mergers and acquisitions
• Sales and Trading
• Risk solutions, trading and structuring
• Investments in stocks and bonds, investment trusts, insurance products, investments in stocks and bonds
• Asset management services

1. Nomura Holdings Website, "About Nomura Group"
2. Nomura
   Annual Report 2021, "At a Glance", p.004
3. Nomura Holdings Website, "Wholesale"
4. Nomura Holdings Website, "Retail"
5. Nomura Holdings Website, "Investment Management"

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1.2 Describe how your bank has aligned and/or is planning to align its strategy to be consistent with and contribute to society's goals, as expressed in the Sustainable Development Goals (SDGs), the Paris Climate Agreement, and relevant national and regional frameworks.

Nomura's Founder's Principles, Corporate Philosophy, Code of Conduct and the Management Policy outline the Group's endeavor to be a responsible corporate citizen.[1]

Nomura Group's management vision for 2025 is to "Achieve sustainable growth by solving social issues", and we have integrated sustainability into our management strategy.

Nomura seeks to address sustainability issues in two ways:

• Support the sustainability efforts of our clients and various stakeholders
• Promote risk management and environmental impact reduction in our own operations.[2]

Nomura's Group Materiality assessment identifies the highest priority issues that the firm seeks to address, in line with UN SDGs. We have reviewed and adjusted the Materiality assessment based on changes in the business environment over the past year and developments in our business activities. Our established material issues for our 2021 Materiality assessment are in line with nine Sustainable Development Goals and Nomura Group is working towards these.[3]

Nomura Asset Management, the core company of the Investment Management Division, has also identified its key material issues, in line with its role as an institutional investor and operating company. The key themes included in their Materiality assessment cover sixteen out of the seventeen SDGs.[4]

The Head of Sustainability Development guides our efforts to raise awareness across the group, step up our activities and increase communication to external stakeholders.[5]

The Nomura Group contributes to international goals by participating in the following major domestic and international initiatives and signing guidelines. [1][6][7]

• United Nations Global Compact
• United Nations Environment Programme Finance Initiative (UNEP FI)
• UN Principles for Responsible Banking
• UN Principles for Responsible Investing
• Net-ZeroBanking Alliance
• Net- Zero Asset Managers Initiative
• Japan's Stewardship Code
• Task Force on Climate-Related Financial Disclosures (TCFD)
• CDP
• Principles for Financial Action for the 21st Century

1. Nomura Holdings Website, "Our Commitment to Sustainability"
2. Nomura
   Annual Report 2021, "Sustainability", p.027-030
3. Nomura
   Annual Report 2021, "Materiality", p.021-022
4. Responsible Investment Report 2020, "Materiality", p.013-014
5. Nomura
   Annual Report 2021, "Prioritizing Sustainability", p.012,p.015
6. Nomura Holdings Website, "Participation in Initiatives for Sustainability"
7. Wholesale ESG Sectoral Appetite Statement, "Introduction", p.001
8. Nomura Group ESG Statement, "Our Approach", p.001
9. Nomura Group ESG Statement, "Stakeholder Engagement", p.004
10. Nomura Holdings Website, "Nomura to Partner with Stakeholders to

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• 30% Club Japan
• ISO26000
• Charter of Corporate Behavior of Keidanren
• UN Guiding Principles on Business and Human Rights
• OECD Principles of Corporate Governance
• OECD Guidelines for Multinational Enterprises

In line with the above initiatives, Nomura is actively working towards integrating sustainability in its business strategy. Notably, we acquired Greentech Capital Advisors [5] in March 2020, announced our Net Zero 2050 commitment and $125 billion sustainable financing target. We facilitated ground-breaking transactions such as EU SURE €17 billion social bond, EU €12 billion green bond, the first sovereign green bond in Samurai format, Woven Planet bonds issued by Toyota Motor Corporation among others.

Internally, we have established a Group ESG Statement, Wholesale ESG Sectoral Appetite Statement and a Risk Appetite Statement to govern our efforts.[7][8]

[11]

We recognize that regular engagement with our stakeholders is necessary to achieve the goals established in these statements. We believe that dialogue with various stakeholders will help identify priorities, minimize Sustainability -related risks and enable early identification of problem-solving opportunities. To this effect we organize events and participate in working groups on the theme of sustainability, in addition to regular Investor Relations activities and shareholders' meetings.[9]

"Drive Sustainability" was created as a call to action to enhance communication of the firm's ESG and SDG initiatives to a wide range of stakeholders. Leveraging the strong relationships it has built, Nomura also aims to combine the knowledge and expertise gained through its business with the strengths of various stakeholders to build a more sustainable world.[10]

Drive

Sustainability"

1. Nomura Holdings Website, "Governance, Risk Management"

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2. Impact and Target Setting

We will continuously increase our positive impacts while reducing the negative impacts on, and managing the risks to, people and environment resulting from our activities, products and services. To this end, we will set and publish targets where we can have the most significant impacts.

2.1 Impact Analysis:

Show that your bank has identified the areas in which it has its most significant (potential) positive and negative impact through an impact analysis that fulfills the following elements:

1. Scope:The bank's core business areas, products/services across the main geographies that the bank operates in have been as described under 1.1. have been considered in the scope of the analysis.
2. Scale of Exposure:In identifying its areas of most significant impact the bank has considered where its core business/its major activities lie in terms of industries, technologies and geographies.
3. Context & Relevance:Your bank has taken into account the most relevant challenges and priorities related to sustainable development in the

Impact Analysis Process

Nomura conducted its first Impact Analysis using the UNEP FI Portfolio Impact Analysis tool. Following the methodology, the tool was applicable only for the advisory, financing and origination businesses across Investment Banking and Global Markets within the Nomura Wholesale division.

The client revenue for the select business lines was considered from our global Wholesale operations; we prioritized top fifteen geographies for further research and analysis as per the tool requirements.

Key client sectors analyzed include Financial Institutions, Technology, Media and Telecom, Real Estate, Gaming and Leisure, Industrials, Consumer/ Retail, Healthcare, Energy and Infrastructure and Public Sector.

The sustainability challenges of the geographies and the for positive and negative impact associations of the client sectors have been analyzed to determine the impact areas with respect to the business lines in scope.

Analysis Result

The results from the impact identification process and internal discussions indicated potential impacts on (a) Climate, (b) Inclusive and Healthy Economies, (c)

Strong Institutions, Peace and Stability, (d) Resource Efficiency, (e) Waste, (f) Integrity and Security of Person.

Most Significant Impact Areas

Considering that the principal business of the Wholesale division (which is the subject of this impact analysis), does not have an extensive corporate lending business, and that the Group itself owns and uses only a limited number of facilities with high environmental and social impacts, we believe that the core of the Group's sustainability efforts is to support customers and stakeholders in addressing environmental and social issues.

Among environmental and social concerns, we recognize climate as a particularly important issue, based on recent trends, the Japanese government's

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