Materiality

As a leader in Japan’s finance industry, since its foundation in 1925, Nomura Group has contributed to economic growth and social value creation by supporting the development of capital markets and promoting the circulation of money. At the core of these efforts is our social mission to help enrich society through our expertise in capital markets, based on “Our Founder's Principles,” a set of guiding principles laid out by our founder, Tokushichi Nomura, and clearly stated in the Nomura Group Corporate Philosophy.

Environmental and social issues such as climate change and widening social disparities are becoming more serious. As a result, it is essential for economic growth to incorporate environmental and social considerations. A rich natural environment and a healthy social environment form the necessary foundation for economic and business development as well as people’s lives. Without such a foundation, it would not be possible to fulfill Nomura Group’s social mission of helping to enrich society.

In the current situation surrounding the global and social environment, in order to contribute to the sustainable development of our clients and society as well as to maintain and improve corporate value, the ESG Committee took the lead in comprehensively reviewing management issues and key traditional ESG issues, identifying the issues as “Nomura Group Materiality.” We will continue to review the Materiality regularly, based on communication with our stakeholders.

Nomura Group Materiality (PDF 92KB)

Identification of Material ESG Issues in Nomura Group

With "Placing Clients at the Heart of Everything We Do" as our key theme, we have seven categories (Nurturing human resources with respect for diversity, Dialogue with stakeholders, Risk management, Compliance, Corporate governance, Contributing to sound and sustainable capital markets) in which we place our key issues in place for each. We consider the impact on our stakeholders (Customers, shareholders, investors, employees, communities, Government organizations, NGO and NPOs, economic and business group) while referring to key non-financial indicators, such as GRI and SASB, have dialogue with socially responsible investing (SRI) organizations, and trends among financial institutions. Nomura Group's basic principles are rooted in our Founder's spirit, Code of Ethics, and Basic management policy. Based on this, we aim to contribute to economic growth and social development, draw on the capabilities of personnel and respect for diversity, maintain the spirit of putting the customer first.

In 2014, Nomura Group reassessed its material ESG issues using the method outlined below. In analyzing and assessing issues, we took account of the opinions of third parties, conducted hearings across internal departments, and, based on confirmations by the former CSR Committee, specified the Group's material issues.

We sorted out the Group's issues based on analyses for external elements, including the GRI Guidelines (Version 4), criteria for information disclosure on sustainability such as those of the Sustainability Accounting Standard Board (SASB), Japan's Stewardship Code, and also based on analysis for internal elements such as the Code of Ethics of Nomura Group, and our fundamental approach to CSR. Then, we assessed materiality of the selected issues with two criteria: "stakeholders' materiality" and "the Group's materiality." We comparatively scored each issue based on evaluation of SRI (socially responsible investing) institutions in Japan and overseas to figure out stakeholders' materiality. To figure out the Group's materiality, we prioritized issues based on the Group's Basic Management Policy and the Code of Ethics of Nomura Group as well as based on hearings conducted across internal departments. We formed a "materiality matrix" regarding issues figured out and identified issues that were of high importance to both stakeholders and the Group as the material ESG issues.

Initiatives on ESG issues also contribute to achieving SDGs. For Nomura Group, SDGs encourage us to continue and further enhance our unceasing activities since our foundation to “help to enrich society through our expertise in capital markets.” While we have a role to play in all 17 SDGs, the most relevant goals have been identified as follows.

Material ESG Issues for the Nomura Group

Material ESG Issues

Categories Issues
Corporate governance Strengthening corporate governance
CSR management
Compliance Legal compliance and reporting of violations
Fair financial business practices
Preventing bribery
Preventing money laundering
Risk management Enhancing and strengthening risk management systems
Ensuring financial soundness and transparency
Business resilience
Social and environmental risk management
Contributing to sound and sustainable capital markets Offering high-quality financial services
Products and services responding to environmental and social issues
Customer protection and information security
Improving financial literacy
Nurturing human resources with a respect for diversity Nurturing human resources
Diversity and inclusion
Employee-friendly work environment
Respecting human rights
Contributing to sustainable communities Global CSR initiatives
Communication with stakeholders

Targets and Progress (Excerpt)

Targets (medium- to long-term goals) Progress

Corporate governance

To enhancing corporate value, strengthen and enhance corporate governance structure as one of the most important issues

  • Promotion of diversity within the Board of Directors
ESG Data: Members of the board (Ratio of Outside Directors / Non-Japanese Directors / Female Directors)

Compliance and Business Ethics

Build trust with society and protect and enhance corporate value with thorough compliance and raising employee awareness of the Code of Conduct

  • Compliance with the Code of Ethics of Nomura Group

Compliance [Fundamental Approach] [Legal compliance measures]

GRI Standards(3. Ethics and integrity)

Contributing to sound and sustainable capital markets

Through our core business, create a better future by addressing stakeholders’ needs and providing value added solutions

  • Conduct customer satisfaction survey every year and improve our services based on clients' wishes in a bid to achieve highly satisfactory consultation
  • Increase the number of financial products and services that help resolve social issues and promote approach to the SDGs
  • Provide financial and economics education programs to people of all ages and help them with the steady accumulation of assets

ESG Data: Results of customer satisfaction surveys at branch offices

ESG Data: Sustainable Finance

ESG Data: Participants and materials in financial and economics education

Human resources

Diverse and talented employees are our greatest asset amid the changes in the environment, such as innovation and digitalization. Make sure every employee can be active and successful in utilizing her/his capabilities and strengths, and provide high value-added services

  • Have 550 female managers by 2020 (Nomura Securities)
  • Periodically conduct surveys of all Group employees, monitor the status and make improvements

ESG Data: Composition of managers

Result of Nomura Group employee survey

Contributing to sustainable society

Contribute to finding solutions to social and environmental issues through continuous cooperation with stakeholders

  • Reduce greenhouse gas emissions
    - FY 2030:Reduce CO2 emissions by 32% or more from FY2012/13
    - FY 2050:Reduce CO2 emissions by 65% or more from FY2012/13
  • Expand the use of green energy

Medium/Long-term CO2 Emission Reduction Target

Green power purchasing volume

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