The financial system - the driving force of the economy - is essential in creating financial flows that help prevent environmental and social damage. We recognize that we play an important role as a leading global financial institution conducting securities and investment banking business. Through our core business, we will create a better future by addressing sustainability related issues, including combatting climate change.
These initiatives are in line with our "Founder's Principles" and our Purpose—We aspire to create a better world by harnessing the power of financial markets. They contribute to the sustainable development of society, our clients, and are important for maintaining and increasing our corporate value. Following the Nomura Group Materiality statement affirmed by our Sustainability Committee, we have and will continue to utilize our financial industry experience and knowledge in cooperation with our stakeholders to further promote relevant initiatives and realize a more sustainable and truly prosperous society.
Step 1
Organize the issues
Organize environmental and social issues based on non-financial information disclosure guidelines both in Japan and overseas, including the GRI Guidelines, SDGs, and stakeholder opinions, etc.
Step 2
Organize and integrate environmental awareness
Based on the external environment and issues identified in Step 1, we listed themes and specific content that should be addressed in the sustainable growth and development of Nomura itself and that of our stakeholders, including clients, shareholders and investors, society and the environment, employees, and business partners.
Step 3
Discussion among executive officer
Based on the results of Step 2, a draft of materiality was formulated based on the discussion among executive officers.
Step 4
Final decision
Based on the results of Step 3, the final decision was made after discussion and validity verification by the Sustainability Committee chaired by the Group CEO, referencing the opinions of outside directors.
Since Nomura first identified CSR Materiality in 2008, we have regularly reviewed our materiality based on trends in the international community and the expectations of stakeholders. As establishing business models that take environmental and social issues into consideration becomes increasingly important, Nomura has been conscious of the relationship between sustainability and business strategy. Starting from FY2019/20, we renamed this "Nomura Group's Materiality" and have identified key issues to focus on by considering the external environment. We have identified materiality based on the following understanding of the external environment.
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Materiality |
Reasons for being identified as Materiality |
Awareness of risks/opportunities |
Issues to work on |
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Establishment of a sustainable global business model |
To allow Nomura to create differentiated values by supplying liquidity to tangible and intangible assets including funds and capital, a global franchise is important and managing the franchise in a sustainable manner is indispensable. |
Risks |
There is a risk of financial loss and loss of profit opportunities due to drastic changes in global dynamics caused by heightened geopolitical risk. |
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Opportunities |
Expansion of profit and business opportunities and reduction of volatility by appropriately capturing the shift of global financial policies and changes in the needs of investors |
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Promotion of initiatives for environmental and social issues |
Initiatives related to environmental and social issues are crucial for the realization of a sustainable society and enhancement of Nomura’s corporate value. These initiatives include support for clients in their initiatives for sustainability (business structure and structural transformation initiatives, etc.), our own environmental activities, financial education, contribution to society, and support for innovation creation. |
Risks |
Physical damage primarily due to disasters, deterioration in the creditworthiness of business partners resulting mainly from climate change, and loss from market fluctuations |
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Opportunities |
Increase of revenue and expansion of business opportunities by providing solutions necessary for mitigating and adapting to crisis involving natural capital, including decarbonization |
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Response to the evolution of technology |
Diversification of service formats and workstyles due to the evolution of digital technology, advancement into new business domains, and response to digital crime are indispensable for enhancing corporate value through business expansion, increased profitability, and risk management. |
Risks |
There are risks of a decrease in trust resulting from insufficient cybersecurity measures, as well as reduced revenue due to the decrease in transaction fee levels from online trades, loss of growth opportunities caused by delays in digital technology use. |
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Opportunities |
Expansion of business opportunities related to digital assets through the utilization of digital technology and AI for streamlining operations, optimizing services, and improving efficiency |
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Developing talent and ensuring diversity |
Realizing an organization that is sound, respects human rights and enables diverse talent to fully utilize their abilities leads to increased competitiveness, differentiation from other companies, promotion of innovation, and realization of advanced risk management. |
Risks |
Incurring administrative penalties or paying compensation for damages due to overwork, reputational risk, decline in employee morale, stagnation in strategic execution due to talent outflow and inability to secure talent, and lack of adaptability to changes in the environment due to a lack of diversity |
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Opportunities |
Enhancing competitiveness and increasing differentiation from other companies through diverse talent, promoting innovation, and realizing advanced risk management |
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Trust from clients and markets |
For Nomura Group, which is based on the financial market, trust from society is crucial and is the foundation of every single business activity of Nomura. |
Risks |
Loss of clients caused by loss of trust and financial loss due to deterioration of reputation |
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Opportunities |
Increase of corporate value by the acquisition of trust |
Purpose
