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Nomura Commits to Net Zero Greenhouse Gas Emissions, Joins Net-Zero Banking Alliance
September 28, 2021
Nomura Holdings, Inc.
Tokyo, September 28, 2021 - Nomura Holdings, Inc. today announced a commitment to align its commercial activities with the objectives agreed in the Paris Agreement, aiming to limit global temperature increases to well below 2℃, and striving for 1.5℃, above pre-industrial levels.
To support the transition towards a decarbonized economy, Nomura commits to achieve net zero greenhouse gas (GHG) emissions for its own operations by 2030, and to transition attributable GHG emissions from its lending and investment portfolios to align with pathways achieving net zero by 2050.
Nomura also announced that it has joined the Net-Zero Banking Alliance, convened by the United Nations Environment Program Finance Initiative.
Nomura supports its clients and their priorities through providing financing solutions to solve sustainability issues, with a target to deploy $125bn in sustainable financing by March 2026. These commitments are in line with its management vision established in May 2020 to achieve sustainable growth by resolving social issues.
1. Decarbonization Objectives
(1) Net Zero for Own Operations by 2030
Nomura commits to achieve net zero GHG emissions for its own operations by 2030. Nomura has been increasing procurement of renewable power at its offices and will switch the electricity at offices to 100% renewable energy by FY2030. Nomura previously announced medium and long-term CO2 reduction targets for the entire group, including domestic and overseas companies, compared with the base year FY2012:
- 32% gross CO2 reduction by FY2030
- 65% gross CO2 reduction by FY2050
Nomura has already achieved a 54.8% gross CO2 reduction by March 2021. Nomura is now extending its target to net zero GHG by FY2030.
(2) Net Zero Financed Emissions in Lending and Investment Portfolios
Nomura commits to transition operational and attributable GHG emissions associated with its lending and investment portfolios to align with pathways achieving net-zero by 2050. Nomura has joined the Net-Zero Banking Alliance, convened by the United Nations Environment Program Finance Initiative. Within 18 months, Nomura plans to release a first round of targets established for prioritized sectors by 2030 and 2050, to be followed by subsequent targets for other carbon-intensive sectors within a further 18 months (where significant and where data allows).
Nomura will meet the commitment by:
- Providing products and services for clients to transition to a decarbonized economy
- Supporting corporates, industries and public institutions in their transition journey, in line with science and giving consideration to associated social impacts; and
- Supporting innovation, deployment of technologies and climate solutions
2. Sustainable Financing
Clients are rapidly transitioning to low carbon or net zero emissions. Nomura supports its clients and their priorities through providing financing solutions to solve sustainability issues, with a target to deploy $125bn in sustainable financing by March 2026.
This target includes capital raised through Nomura's debt and equity capital markets businesses, private placements of mezzanine debt and equity securities, and debt financing through its Infrastructure and Power Financing Group. Nomura facilitated approximately $23bn of financing in FY2020, in line with the UN Principles for Responsible Banking (PRB) methodology (for debt capital markets, total bond amount over the full bond period is divided evenly by the number of Mandated Lead Arrangers).
3. Nomura Asset Management as Institutional Investor
Nomura Asset Management (NAM) is committed to helping realize a sustainable and prosperous society through its asset management business. NAM considers climate change as one of the most important ESG issues and strives to achieve net zero GHG emissions in its investment portfolio by 2050.
NAM is increasingly integrating the analysis and assessment of portfolio companies' climate related risks and opportunities into its investment management process. As part of this, NAM assesses and discloses the GHG emissions of its entire equities and corporate bond portfolio.
In addition, NAM implements scenario analysis and temperature scoring to measure progress toward its goal of net zero portfolio GHG emissions by 2050. NAM has also joined international initiatives including the Partnership for Carbon Accounting Financials (PCAF) to accelerate efforts to achieve net zero GHG emissions in its investment portfolio by 2050.
In keeping with its aim to Drive Sustainability, Nomura actively engages in ESG and SDG initiatives toward creating a sustainable society and resolving issues affecting society. Nomura is committed to delivering financial services that drive sustainability, as well as helping enrich society and contributing to economic development.
Nomura is a global financial services group with an integrated network spanning over 30 countries. By connecting markets East & West, Nomura services the needs of individuals, institutions, corporates and governments through its three business divisions: Retail, Wholesale (Global Markets and Investment Banking), and Investment Management. Founded in 1925, the firm is built on a tradition of disciplined entrepreneurship, serving clients with creative solutions and considered thought leadership. For further information about Nomura, visit www.nomura.com.