Nomura Holdings

RATING

SECTOR

Banking

WEBSITE

CONTACT

2-2-2, Otemachi
Chiyoda-ku
Tokyo 100-8130
Japan

Tel (Europe Office): (44 20) 7102 1000
Fax (Europe Office): (44 20) 7626 0851

STOCK EXCHANGE

LISTING

EMPLOYEES

15,748

CHIEF SUSTAINABILITY OFFICER

No CSO or equivalent mentioned or found.

AWARDS

CONTENT SOURCE

FURTHER READING

Report created by Sonria Willis

Nomura Holdings

SECTIONS :  Sustainability Targets    Evaluation   •  Key Points  •  Overview

 

Company Activity

Nomura Holdings, Inc. is a Japanese financial holding company and a principal member of the Nomura Group. It provides investment, financing and related services to individual, institutional, and government customers on a global basis with an emphasis on securities businesses.

The bank’s network spanns over 30 countries. Its three major business divisions are: Retail, Wholesale (Global Markets and Investment Banking) and Investment Management.

Company Sustainability Activity

In May 2020, Nomura Group announced a new management vision to “Achieve sustainable growth by helping solve social issues”. The bank emphasizes their consideration of specific business operations that will contribute to the Sustainable Development Goals.

Nomura states they have established a team dedicated to working on ESG bonds globally and have built up a track record of underwriting SDG bonds. In Japan, they have underwritten Sustainability Bonds issued by Obayashi Corporation and Japan Railway Construction, Transport and Technology Agency.

Nomura Asset Management insists it regards engagement as an important activity for the improvement of the enterprise’s sustainability activity. Hence, the bank states it regularly engages in dialogue aimed at resolving ESG issues with key companies that need to be further examined. In 2019, it engaged with an ESG-related dialogue with a total of 400 companies.

The Environmental Activities Working Group, a Group-wide organization, is the secretariat for the environmental management system. In order to reduce CO2 emissions, they state they are purchasing green power certificates in Japan, and ensure that most of the electricity used in their offices in Europe is supplied by renewable energy such as hydroelectric power.

In April 2020, Nomura Group completed the acquisition of Greentech Capital Advisors, a leading boutique investment banking firm focused on supporting clients across sustainable technology and infrastructure. Under the rebranded Nomura Greentech, they aim to connect companies working to create sustainable technologies with investors and clients across different geographies to help them incorporate innovation into energy, transportation, food, water and waste infrastructure systems.

Nomura Securities was allotted the world’s first Sustainable FITs (stock acquisition rights) in the belief that the use and significance of the funds will contribute to the reduction of environmental impact through energy conservation and the resolution of social problems such as infectious disease countermeasures.

In December 2019, Nomura Institute of Capital Markets Research (NICMR), an independent research institute in Nomura Group, established the Nomura Research Center of Sustainability. The new research center focuses on objective and practical research. The center strategically identifies and conducts research into areas of sustainability closely related to the financial and capital markets and provides value-added information and proposals to clients. Specifically, NICMR created an open channel to connect people within Nomura Group with people outside, including through collaboration between external advisors and employees at the firm. NICMR will also collaborate with relevant international organizations in order to broaden the themes and scope of its research.

Nomura endorses and participates in the following environmental and social initiatives:

Furthermore, “Nomura Group Code of Conduct” endorses the following human rights standards:

Highlights

  • Acquisition of Greentech Capital Advisors
  • Nomura Research Center of Sustainability
  • Working with ESG bonds globally

Targets

Corporate Governance

  • Promotion of diversity within the Board of Directors.

Compliance and Business Ethics:

Contributing to Sustainable Capital Markets

  • 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.

Human Resources

  • Have 20% of female representatives in managers by 2025.
  • Periodically conduct surveys of all Group employees.

Contributing to Sustainable Environment

  • Reduce CO2 emissions by 32% by 2030.
  • Reduce CO2 emissions by 65% by 2050.

Contributing to form a Sustainable Society

  • Work with all stakeholders to contribute to the creation of sustainable local communities.
  • Actively engage in social contribution activities and promote and improve Group-wide social contribution activities by regularly checking and evaluating the status of each activity.
  • Based on the common theme of “For Future Generations,” it will contribute to the achievement of SDGs by engaging in activities, centered on developing future leaders through partnerships.
 

Progress

Based on ESG data tables for reporting period FY2019/20 (April 1, 2019 – March 31, 2020):

Community Contribution and Expenditures

  • Education: 308m yen
  • Arts, Sports and Culture: 932m yen
  • Science and Academic Achievement: 241m yen
  • Welfare and Health: 48m yen
  • Environment: 62m yen
  • Human Rights and Labor: 41m yen
  • Disaster Relief: 12m yen
  • Number of Employees Involved in Community Contribution Programs: 6,474
  • Hours of Employee Volunteerism in Work Time: 8,311 hours
  • Value of In-Kind Contributions: 20m yen
  • Number of Partner Beneficiary Organizations: 252

Finance and Economics Education

  • Finance Courses for Universities Since 2001: 261,324 participants
  • Financial Courses for the General Public
    Since 2003: 414,276 participants
  • Number of Educational Materials Supplied: 922,213 copies

Employee Diversity

  • Percentage of Female Employees: 40%
  • Percentage of Female Managers: 18%

Resource and Energy Efficiency

  • Percentage of Renewable Power: 24.7% (decrease from previous year)
  • Paper Consumption: 990 tons (decrease from previous year)
  • Waste Generated: 2,206 tons (decrease from previous year)
 

Certificates

UN Sustainable Development Goals

UN SDGs Compliance*

*As stated on the sustainability page of their website

SDG 1: No Poverty

  • Nomura is actively engaged in initiatives to promote principles for issuing SDG bonds. Their team of professionals collaborates across divisions and geographic borders to gather knowledge, monitor market and regulatory trends and expand our lineup of sustainable financial products and services.

SDG 2: Zero Hunger

  • NAPA advises corporate clients on food and agriculture, including the latest technologies, and helps them implement a wide range of agricultural projects.
  • In February 2020, NAPA hosted the Nomura Global Food and Agri Forum 2020 with the support of 18 major corporations, financial institutions and universities. The two-day program was attended by over 400 people who benefited from presentations by people at the forefront of the food and agribusiness worldwide and panel discussions.

SDG 4: Quality Education

  • In a time like now when people are expected to live to a hundred, it is especially important to think about building future assets. Nomura believes that having the correct knowledge and understanding of finance and the economy is a critical part of this.
  • Nomura is committed to providing opportunities for a wide range of people to improve their financial literacy.
  • Since the 1990s, they have taught financial literacy to over 880,000 people across Japan, including financial education programs for students from the elementary to university level, seminars for teachers, and as part of lifelong learning lessons for people in the wider community.
  • In 2001, they started offering a financial course taught by Nomura Securities employees to help university students gain practical knowledge about the economy. Over 260,000 students from about 2,100 universities across Japan have taken the course.
  • From 2020, they began offering our financial and economic education programs online, allowing them to reach people living in remote areas of Japan. Nomura will continue to promote financial literacy through our education programs.

SDG 11: Sustainable Cities and Communities

  • Nomura was selected to join the Advisory Council to the Green Bond Principles and Social Bond Principles Executive Committee (GBP SBP Executive Committee) of the International Capital Market Association (ICMA) in October 2019. Nomura is the only firm in Japan that has served on the 40 member Council (as of September 2020).

SDG 13: Climate Action

  • Through underwriting SDG bonds, Nomura also serves as a bridge between investors who want to contribute to society and projects with capital needs that aim to resolve social issues such as climate change.
  • As a member of the 2019-2020 Council, Nomura provided key insights as a global investment bank and worked with other stakeholders to create a framework for global SDG bond standards, as well as growing the SDG market.

SDG 15: Life on Land

  • Nomura promotes sustainability through various initiatives at its offices worldwide.
  • Their European headquarters in London is located in the City financial district overlooking the Thames. The 11 story building houses a rooftop garden where, for more than ten years, they have been growing a variety of flowers and plants as well as organic vegetables.
  • Employees can also participate in honey harvesting workshops, help with the harvesting, filtering and bottling of honey, and take part in our ‘Adopt a Bee’ program.
  • In 2019, they began a series of biodiversity enhancements. Through this initiative, they encourage solitary bees and other invertebrates to breed on the Nomura rooftop by installing a variety of invertebrate nesting habitats including bee banks, mounds, nest boxes and log piles.
  • Nomura Agri Planning and Advisory (NAPA) was established in September 2010. NAPA offers consulting in the field of agriculture and helps clients implement agricultural projects with the aim to contribute to regional revitalization and the sustainable growth of the Japanese economy.

Secondary SDGs: 8, 9, 10, 16 

 

Evaluation

Nomura Holding has made one notable listing: The CDP A List. The bank has also received a couple of notable awards for its green bond schemes and ESG practices. However, it does not hold any relevant certificate. Moreover, the bank does not have a sustainability officer or equivalent.

The bank mentions the introduction of several products and schemes that will help improve sustainability in its clients’ practices such as its ESG bond.

In terms of internal sustainability practices, the bank has disclosed targets, however these are not numerical and therefore not measurable. Nevertheless, the bank does have an exhaustive table of ESG data.

Although the bank states that it is committed to the UN SDGs and aligns some of its targets and measures with them, the bank does not go in depth. Moreover, the targets stated are fairly vague as well as not measurable and sometimes do not even correspond to the SDG mentioned. For instance, under SD1 (Zero Poverty) the bank states it is “measuring the value of sustainable finance” and “monitoring the sustainable investment ratio”.

This report gives Nomura Holdings a grade of C.

Analyst Outlook: Positive

In light of Nomura’s effort through its launch of the program “Drive Sustainability” in recent months and its numerous schemes to promote green and social bonds since its annual report in 2020, it might have received a higher grade if its report included more relevant data and news.

Key Points

  • Has created the concept of “Drive Sustainability” to express its commitment to actively promote ESG and SDGs.
  • Joint lead managers on the EU’s record-breaking inaugural dual tranche SURE social bond issuance.
  • One of five underwriters elected to the International Capital Markets Association (ICMA) Green and Social Bond Principles inaugural Advisory Council.
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