Materiality
A rich natural environment and healthy social environment are the foundations of economic and business advancement as well as people's lives. Without such foundations, it is impossible to fulfill Nomura Group's social mission of helping to enrich society. We have been expanding our products and services, and globally expanding our businesses and bolstering our corporate governance based on the recognition that initiatives such as protecting the global environment and promoting the active participation of a diverse range of people are essential for advancing both economic activity and society as a whole.
In May 2020, Nomura Group announced a new management vision to "Achieve sustainable growth by helping solve social issues" ahead of the year 2025, the centennial anniversary of Nomura's founding. In addition to business growth, our management vision incorporates the ESG elements of trust from society and employee satisfaction.
Through partnership with a wide range of stakeholders, we will achieve sustainable growth and help solve social issues.
Selection Process
Material Issues
Since Nomura Group first identified CSR Materiality in 2008, we have conducted regular reviews based on trends in the international community and the expectations of stakeholders. Last year, we reformulated the Nomura Group Materiality that we should focus on in advancing our management vision for 2025, "Achieve sustainable growth by helping resolve social issues." We have reviewed and adjusted the Materiality based on changes in the business environment over the past year and developments in our business activities. We will continue to make every effort toward our targets by using metrics to monitor our progress.
* Please scroll horizontally to look at table below.
| Understanding of the environment surrounding us and risks/opportunities | Issues and details to work on | ||
|---|---|---|---|
| Rapidly changing global dynamics |
Awareness | The global situation continues to change rapidly and is difficult to predict due to trends in monetary policies and markets in various countries and heightened geopolitical risks. | Provision of differentiated financial products and services to Society
We will be the most trusted partner for our clients by providing the right services for each and every client.
|
| Risk | If our risk management is inadequate or if we are unable to meet the needs of our clients, we may incur losses or lose revenue opportunities | ||
| Opportunity | Expansion of profit and business opportunities by offering products and alternative investment opportunities that correspond to the market environment, and by providing services to business companies that are rebuilding supply chains | ||
| Environmental issues |
Awareness | Climate change and decarbonization are global trends | Realizing a decarbonized society
We will contribute to quickly decarbonizing society by decarbonizing our own operations and our clients' operations.
|
| Risk | Credit risk of business partners, risk of market fluctuations, risk of physical damage due to disasters, etc., reputational risk, etc | ||
| Opportunity | Business opportunities (financial and capital markets, project finance, M&A, etc.) to supply the risk money needed for a decarbonized society | ||
| Digital shift | Awareness | Increased importance of digital transactions and online content | Strategic and innovative service development using new technologies
We will work to enhance client convenience and expand our service domain by strengthening our digital strategy.
|
| Risk | Risk of lost trading opportunities and reduced revenue resulting from lower transaction fee levels due to online transactions throughout industry | ||
| Opportunity | Improving operational efficiency, optimizing services including digitization of client contact points, and promoting digital asset-related businesses | ||
| Japan's declining birthrate and aging population |
Awareness | Provide solutions aligned with changes in clients' business activities and needs due to structural changes in society | Supporting asset-building for people of all ages
We will contribute to improve financial literacy by promoting financial education.
|
| Risk | Potential for a long-term contraction in demand for asset management from traditional retail investors | ||
| Opportunity | Create new profit opportunities by providing solutions that meet clients' business activities and needs | ||
| DEI & Human rights |
Awareness | Building a healthy work environment, promoting diversity, equity and inclusion, requesting consideration of human rights in business | Business activities that respect human rights
We will work to create a society where human rights are respected and diverse human resources can demonstrate their talent.
|
| Risk | Human resource attrition risk, reputation risk when human rights are not sufficiently considered in our business activities, etc. | ||
| Opportunity | Realization of competitiveness, innovation, and advanced risk management through diverse human resources | ||
| Enhancement of corporate governance |
Awareness | Needs for sophistication of corporate governance and enhancement of functions of the Board of Directors | Further demonstration of corporate governance functions
We will work to improve our governance to be trusted by society.
|
| Risk | Governance dysfunction, reputation risk, etc. due to failure to demonstrate governance functions | ||
| Opportunity | Improving corporate value by demonstrating advanced governance functions | ||
Contributing to Society
