Daiwa Securities Group Annual Report 2012 Corporate Summary Executive Messages Business Strategy Management Systems & CSR Financial Section Other Information 48 Daiwa Securities Group Inc. President and CEO Takashi Hibino (May 22, 2012) We shall implement an environmental management system and constantly seek new ways to improve environmental activities.  In addition, we shall support environmental education and publicity efforts, while promoting environmental protection efforts by  employees. We shall seek to develop and provide financial products and services that promote a low-carbon, recycling-oriented and  symbiotic society. The Group recognizes the importance of environmental principles such as the effort to combat global warming, recycling and reuse  of raw materials, and preserving biodiversity, in order to create a sustainable society for the 21st century. The Group pledges to  contribute to solving environmental issues through its business as a financial service company and to constantly seek new ways to  reduce its environmental impact as a responsible corporate citizen. The Group is dedicated to protecting the precious global environment and preserving it for future generations by leveraging  financial capabilities. Environmental Vision Environmental Principles Basic Environmental Policies 2. Implement an environmental management system 1. Make positive environmental contributions through our core business activities <Environmental Management> <Measures to Reduce Environmental Burden> Environmental Initiatives introduced in which paper documents used by Group companies  are recycled into toilet paper used at Group office facilities. Protecting the planet Earth is an essential responsibility for any  company that seeks a sustainable future. The Daiwa Securities  Group does its best to address environmental issues through its  core business activities, by helping to provide funds to companies  developing products that reduce society’s impact on the environ- ment, or which produce and popularize environmental infrastructure  products. But this is just the first step in our environmental effort.  The Group also collects data on the environmental impact of our  own business activities, and then uses it to reduce the overall envi- ronmental impact of our operations and to raise the environmental  awareness of every employee. In an effort to further stimulate in- house environmental efforts, in May 2012 the Group upgraded its  basic policies on the issue, renaming the former “Stance and basic  policy on the environment” to “Environmental vision, principles and  basic policies” (see chart below). Whenever new equipment, such as air conditioners, power supply  units, power conversion equipment, and water supply and sewerage  units, is introduced in Daiwa Securities branch offices, policy dictates  that the company use products that meet the highest (“top runner”)  standards for environmental impact. The “top runner” standard is  based on Japan’s “Act on the Rational Use of Energy,” which  requires that manufacturers clear certain benchmarks for energy  conservation in the new products they develop and produce. In 2008, Daiwa Securities Business Center Co. Ltd. established  an “Eco Promotion Committee” to promote environmental initiatives.  The company sets targets for the use of electricity and paper,  among other items, to raise awareness among employees and  motivate them to suggest other environmental measures. For exam- ple, data on paper usage, electric power consumption, hours of  power use, etc., is collected and calculated on a monthly, quarterly,  semiannual and annual basis, and then published on the company  website to inform employees of their progress in meeting targets. Each company in the Group adopts and implements an environ- mental management policy. For example, Daiwa Institute of  Research Business Innovation Ltd.’s EMS complies with ISO 14001.  Every other month, a representative from each Group company  attends meetings of the Environmental Management Council to  share data, ideas and views on environmental issues. This Council,  and the Group as a whole, is constantly seeking ways to improve  and implement environmental management systems. The Group compiles and reports quantitative data on its envi- ronmental impact each year, including details such as energy and  water consumption, CO 2  emissions, paper usage, waste disposal  and recycling volume. Beginning in March 2012, a system was  In fiscal 2011, Daiwa Securities Business Center achieved a  6.3% reduction in paper use over the previous fiscal year. Paper  use has been cut by a cumulative 34.5% since the program  started. During fiscal 2011 the entire Daiwa Securities Group  redoubled its efforts to conserve electric power. Lighting in offices  was lowered, signs and displays such as the stock price “big  board” were turned off, and office equipment at companies  throughout the Group was set to power-conserve mode.