NOMURA HOLDINGS, INC. Nomura Principles for Responsible Banking Report FY2022/23
Progress on the Implementation of the UN Principles for Responsible Banking
Nomura 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.
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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" / "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.
Nomura 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.
Nomura provides a wide range of products and services through its Wholesale Division (Global Markets and Investment Banking), Retail Division and Investment Management Division.
Our product offerings across our different divisions include:
- Retail[2]
- Global equities and bonds
- Mutual funds/ investment trusts
- Insurance products
- Discretionary investments
- Advisory Services for Mergers and Acquisitions
- Real Estate Referrals
- Inheritance and Business Succession Services
- Wholesale (Global Markets/Investment Banking)[3]
- Underwriting of Equities and Debts
- Advisory Services for Mergers and Acquisitions
- Risk Solutions, trading and structuring
- Sales in Trading in Equities Rates, Credit, Foreign Exchange and Derivatives.
- Nomura Holdings Website,
"About Nomura Group" - Nomura Holdings Website,
" Retail" - Nomura Holdings Website,
"Wholesale"
1
- Investment Management:[4]
- Publicly offered investment trusts
- Private placement investment trusts
- ETFs
- Discretionary Investments
The Financial Review Section of the Nomura Report 2022 provides the business outline, review of the last fiscal year and business performance details for each of our three business divisions.[5]
Detailed information on Nomura's Management Vision up to FY2024/25 including strategic themes, KPI and KGI Business Targets can be found in the Group CEO's Investor Day Presentation[6]. Investor Day Presentations of Nomura's Head of Retail[7], Head of Wholesale[8] and Head of Investment Management[9] contain Division specific strategic information.
The Key Financial Data section of the Nomura Report 2022 provides disclosures of our revenue segmentation by business.[10]
- Nomura Annual Report 2022,
"Investment
Management Division", p.086 - Nomura Annual Report 2022,
"Financial Review", p.083-088 - Investor Day Presentation,
"Group CEO" - Investor Day Presentation, "Head of Retail"
- Investor Day Presentation,
" Head of Wholesale" - Investor Day Presentation, "Head of Investment
Management" - Nomura Annual Report 2022, "Key Financial Data", p.
089-090
2
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's management vision for 2025 is to "Achieve sustainable growth by solving social issues", and we have integrated sustainability into our management strategy and are advancing various initiatives.
Our sustainability efforts are underpinned by two main pillars. The first pillar is to be "For Our Clients," which means to support the sustainability efforts of our clients and various stakeholders through our core business activities. The second pillar is to be "For Our Society," which involves advancing our own efforts in order to continue being a sustainable corporate group, and we are working to deepen and enhance our efforts by linking these two pillars as necessary.[2]
Nomura's Materiality assessment identifies the highest priority social issues that the firm seeks to address, in line with UN SDGs. We review the Materiality every year based on the environment and Nomura's business developments. We will use related items to monitor the progress of our efforts on each issue, and make steady progress on these initiatives. Our established material issues for our 2022 Materiality assessment are in line with the following nine. Sustainable Development Goals:[3]
- SDG 4 - Quality Education
- SDG 5 - Gender Equality
- SDG 7 - Affordable and Clean Energy
- SDG 8 - Decent Work and Economic Growth
- SDG 9 - Industry, Innovation and Infrastructure
- SDG 10 - Reduced Inequalities
- SDG 12 - Responsible Consumption and Production
- SDG 13 - Climate Action
- SDG 16 - Peace Justice and Strong Institutions.
Disclosures on the Materiality Selection Process, Priority Social Issues and Metrics can be found in the Nomura Report 2022.[3]
Nomura Asset Management (NAM), in line with its role as an institutional investor and operating company, also details its key material issues in its Responsible Investment Report 2021.[4]
Nomura's Group Sustainability Statement promotes the realization of a sustainable environment and society by informing stakeholders about our approach to sustainability- related activities and our envisaged response to environmental and social risks.[5]
The Group contributes to international goals by participating in the following major domestic and international initiatives and signing guidelines:[1][5][6]
- Net-ZeroBanking Alliance (NZBA)[7]
- Partnership for Carbon Accounting Financials (PCAF)[8]
- Nomura Holdings Website,
"Our Commitment to Sustainability" - Nomura Annual Report 2022,
"Sustainability", p.51 - Nomura Annual Report 2022,
"Materiality", p.047- 048 - NAM Responsible Investment Report 2021, "Materiality", p. 013
- Nomura Holdings Website,
"Nomura Group
Sustainability
Statement" - Nomura Holdings Website,
"Participation in
Initiatives for
Sustainability"
- Nomura Holdings Website,
"Nomura Commits to Net Zero Greenhouse Gas Emissions, Joins Net-Zero Banking
Alliance" - Nomura Holdings Website,
"Nomura Joins the
Partnership for Carbon Accounting
Financials"
3
- UN Global Compact (The United Nations Global Compact)
- UNEP Financial Initiative (The United Nations Environment Programme Finance Initiative)
- UN PRB (The United Nations Principles for Responsible Banking)
- TCFD (Task Force on Climate-related Financial Disclosures)
- CDP (formerly the Carbon Disclosure Project)
- The Principles for Financial Action towards a Sustainable Society
- ISO26000
- 30% Club Japan
- Charter of Corporate Behavior of Keidanren
- UN Guiding Principles on Business and Human Rights
- OECD Principles of Corporate Governance
- OECD Guidelines for Multinational Enterprises
- Net Zero Asset Managers Initiative (NZAM)*
- UN PRI (The United Nations Principles for Responsible Investment) *
- Initiatives which only Nomura Asset Management participates in.
In September 2021, we announced our target to align our commercial activities with the objectives agreed in the Paris Agreement, aiming to limit global temperature increases to well below 2°C, and striving for 1.5°C, above pre-industrial levels.[9]
Nomura is actively working towards integrating sustainability in its business strategy. We announced our Net Zero 2050 commitment [7] and $125 billion sustainable financing target [7].
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 (issued by Hungary), Woven Planet bonds issued by Toyota Motor Corporation among others.
Additionally, Nomura Asset Management's Responsible Investment report contains it's ESG Statement and Basic Policy for Responsible Investment demonstrating its commitment to Sustainability[4]
The Wholesale Division: ESG Sectoral Appetite Statement summarizes our approach to Wholesale business activities with specific sectors.[5] The Statement identifies areas where Nomura will not provide or restrict financing from an ESG perspective, and outlines the ESG screening and due diligence process to assess transactions. We review the Nomura Group Sustainability Statement and Wholesale ESG Sectoral Appetite Statement on a regular basis.
Nomura defines risk appetite as the types and level of risk that we are willing to assume in pursuit of its strategic objectives and
- Nomura TCFD Report 2022, "CEO Message, Views on
Climate Change", p. 001,002
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Nomura Holdings Inc. published this content on 24 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 February 2023 05:56:05 UTC.
