CSR Topics | Initiatives on Climate Change

Climate change represents one of the major challenges of the twenty-first century. We are clearly entering an age without precedent. Global temperatures have risen by 0.2°C, and CO2 concentrations have also risen significantly since the early 1990s. The impact on the environment and on economies, particularly those of developing countries, could be profound.

Lord Marshall of Knightsbridge^*Nomura Holdings, Inc. has asked Lord Marshall, who is currently non-executive Chairman of Nomura International plc, to investigate the latest views on climate change published in the United Kingdom and to consider what he judges should be Nomura Group's response to it.
Lord Marshall of Knightsbridge was President of the UK's Confederation of British Industry (CBI) at the time when the UK pledged to reduce its greenhouse gas emissions as part of the 1997 Kyoto Protocol agreed at the global warming conference. His report for the UK Government titled "The Role of Economic Instruments and the Business Use of Energy" was published in November 1998. He is a former Chairman of British Airways plc.

^*Lord Marshall of Knightsbridge: non-Executive Chairman of Nomura International plc, former Chairman of British Airways plc, was President of the UK's Confederation of British Industry (CBI) at the time when the UK committed to reducing its greenhouse gas emissions as part of the 1997 Kyoto Protocol agreed at the global warming conference.

UK Approach

Here in the United Kingdom, the British Government has taken a number of steps to put itself on track to reduce greenhouse gas emissions as part of its commitment to the Kyoto Protocol, firstly through measures taken as part of the 2000 Climate Change Programme, and latterly through the 2006 Climate Change initiative launched in March last year. Both these consultation documents declare the aim for a balanced and cost-effective program, involving all sectors of the economy. This was important for the business community. Action across all sectors is essential because industry alone cannot be burdened with the cost of climate change.
Through Climate Change Agreements, UK businesses can receive discounts of up to 80% on the levy in return for meeting tough energy efficiency targets. Thanks to this twopronged approach, between 2002 and 2005 the UK was able to reduce CO2 emissions by almost 16 million tons.
However, the government, in launching the 2006 Climate Change Programme, acknowledged that the challenging targets that it set itself for carbon dioxide emissions reduction have been made more difficult to achieve due to higher than anticipated levels of economic growth combined with rises in global energy prices. Winning the hearts of minds of the UK public will be critical if the UK is to continue to meet its targets. From a business and industry perspective it is apparent that no future development can take place without due consideration of its environmental effect. At the same time, wider public understanding is creating higher levels of consumer attraction for products and services which demonstrate care of the environment.

Nomura Group Initiatives in Europe

Here in Europe, Nomura Group entities are doing what they can to minimize their impact on the environment. The London operations being the largest, and having the advantage of being the only occupant of our headquarters in St Martin's-le-Grand, has meant that we have been able to take a number of measures to ensure that our carbon footprint is reduced. In particular we have installed passive detection sensors which turn lights on and off according to whether or not there is movement within an area; we are segmenting our waste; recycling computer equipment, mobile phones; and are currently working to gain ISO 14001 accreditation.
Nomura Group more generally has an obligation to ensure that the environmental impact of its operations are minimized. Welcome initiatives already include reducing energy consumption and implementing environmentally-friendly "green" purchasing policies. We have a responsibility also to ensure that our suppliers and partners are in their turn taking suitable steps in the matter of the environment.
Also, through our UK base, Nomura Group companies invest our own funds in environmental enterprises. We discover corporations that have technologies in wind and other alternative energies as well as energy saving technologies. We invest in the equities of alternative energy producing venture companies with growth potential from which we expect to enjoy capital gains over the mid to long term. It is essential for Nomura Group's sustainable development that we engage ourselves through our financial investments in the challenges of climate change.

London Initiatives

Following an increase in its staff numbers, the LondonOffice's energy consumption (23 million kWh) and CO2emissions both increased slightly in fiscal 2006, along with its consumption of gas and water. The cause of these increases was of course the increase in the number of its employees. The Office is managing its waste products by separating out toner cartridges, computer equipment and mobile telephones for recycling. In fiscal 2006 it reduced the amount of its waste products by 28% compared to the previous year.

Clean City Awards

Platinum Prize CertificateThe City of London's Clean City Awards scheme operates the collaboration of companies and businesses. The with Awards promote the elimination, re-use and recycling of the waste products and rubbish that make London streets less attractive and less safe.
Awards ranging from "Copper" to "Platinum" are given according to the level of a company's initiatives. Nomura International plc has taken up the challenge of the Clean City Awards, and has won a "Gold" prize four years in a row. It went in the running for a Platinum in 2006, and was successful in obtaining the top award. With some 1,300 firms in the City, Nomura was just one of 20 firms to achieve this honor.

Environment Promotion Projects

Mug & Pen made from recycled materialsUnder the slogan "Reduce, Reuse, Recycle - Nomura - For a Sustainable Future", activities are being developed inside Nomura London to promote environmental conservation.
In April 2007 around thirty employees formed a group of "Environment Representatives" to take the lead in promotion activities. Members of the group have taken it as their mission to educate their colleagues and friends about environmental initiatives both at work and at home. The members aim to listen to their colleagues' opinions and to get them on board willingly, rather than out of a sense of obligation. They also arrange for training in waste management by public bodies, and employees who complete the course can become accredited.
To promote the program pens and mugs have been made from recycled materials. They are printed with the program logo, and the mugs are used in place of paper cups.

Living up to our Stakeholders Expectations

Stakeholders' expectations of a financial services group such as Nomura Group include expecting us to take initiatives in energy efficiency; green electricity and offsetting. This we are doing, but there is always room for further initiatives, whilst at the same time ensuring that we continue to maximize shareholder value in all our endeavours.
It is obvious that climate change cannot be tackled on a unilateral basis, because it is a global problem and requires the kind of global response that Kyoto envisaged. Nomura Group must do what it can to encourage society to face the challenge of climate change.