This document has been prepared by Daiwa Securities Group (Daiwa) based on information, the sources of which are believed by Daiwa to be reliable, but Daiwa makes no representation nor warranty as to the accuracy or completeness of such information. Recipients of this document must make their own decisions on whether or not to adopt the recommendations discussed in this document, based upon their specific situations and objectives. Any use, disclosure, distribution, dissemination, copying, or reproduction of this document without prior written consent from Daiwa is prohibited.
（MDGs logos were created by 「 Don’t let it be – world poverty」）
Goal 1: Eradicate extreme poverty & hunger Goal 2: Achieve universal primary educationGoal 3: Promote gender equity and empower women
Goal 4: Reduce child mortality ratesGoal 5: Improve maternal health
Goal 6: Combat HIV/AIDS, malaria and other diseasesGoal 7: Ensure environmental sustainabilityGoal 8: Develop a global partnership for development
MDGs (Millennium Development Goals)
Source: The World Bank, “The costs of attaining the millennium development goals.” Summary of World Bank Policy Research Working Paper, “Development Goals: History, Prospects and Costs,” by Shantayanan Devarajan, Margaret J. Miller, and Eric V.Swanson.
In addition to $57 billion of ODA in 1999, another $40-60 billions p.a. are needed to achieve the MDGs .
■Additional fund necessary to; i ncl ude doubl e count（ ） Bil. USD（ ）
＜ Background ＞ Fiscal condition of each country grows increasingly severe (policy makers’ side)
Reflect on the financial crisis (investors’ side)
world’s financial assets = $178 trillion in 2008 (world’s GDP is $58 trillion)world’s financial assets = $178 trillion in 2008 (world’s GDP is $58 trillion)
Not only Donations/ODA, but also Investments are required to solve social issues Not only Donations/ODA, but also Investments are required to solve social issues
＜ Background ＞ Fiscal condition of each country grows increasingly severe (policy makers’ side)
Reflect on the financial crisis (investors’ side)
world’s financial assets = $178 trillion in 2008 (world’s GDP is $58 trillion)world’s financial assets = $178 trillion in 2008 (world’s GDP is $58 trillion)
Not only Donations/ODA, but also Investments are required to solve social issues Not only Donations/ODA, but also Investments are required to solve social issues
■ GIIN (Global Impact Investing Network) GIIN is a not-for-profit organization created to “increase the scale and effectiveness of impact investing.” It was inaugurated at Clinton Global Initiative in Sep. 2009, to measure growth and increase of the social investment, ‘Impact Investment’, in which is more direct and has an immediate result compare to conventional SRI.
Representative examples of investment products: vaccine bonds of IFFIm, Generation Investment Management of Al Gore, former US Vice President.
Main investment target: poverty & hunger; global warming; water, food and energy; medical care, health, welfare; community development, education
Primary sources: Japan: Bank of Japan, Flow of Funds Accounts , June 17, 2010 United Kingdom: Office for National Statistics, Financial Statistics No 580, August 2010 Germany: Deutsche Bundesbank, Financial Accounts for Germany 1991 to 2009. France: Banque de France, Financial Accounts and Financial Balance Sheets, June1, 2010. United States: Federal Reserve Statistical Release, Flow of Funds Accounts, June10, 2010.
* converted into US dollars based on the year-end exchange rates of GBPUSD=1.62, EURUSD=1.43, USDJPY=92.90
Household Financial Assets
Japan United Kingdom
Germany
France United States
Currency and deposits Life insurance and pension fund reserves Shares and other equity Mutual funds and securitis other than shares Others
This document has been prepared by Daiwa Securities Group (Daiwa) based on information, the sources of which are believed by Daiwa to be reliable, but Daiwa makes no representation nor warranty as to the accuracy or completeness of such information. Recipients of this document must make their own decisions on whether or not to adopt the recommendations discussed in this document, based upon their specific situations and objectives. Any use, disclosure, distribution, dissemination, copying, or reproduction of this document without prior written consent from Daiwa is prohibited.
ACTION POLICY 3Efforts for policies and systems toward establishing a reliable society based on fairness and solidarity
• 30. RENGO will strengthen the influence of trade unions on the
operation of workers’ capital (reserves contributed by workers), such as pension funds, and will avoid investment in anti-social and anti-labor funds. To this end, RENGO will formulate a “Guideline for the Operation of Social Pension Reserves” (provisional title) based on the Principles for Responsible Investment of the United Nations.
May 15 (Sat) – June 13 May 15 (Sat) – June 13 (Sun), 2010 (Sun), 2010
＠＠ Tokyo Mid-Town Tokyo Mid-Town Design HubDesign Hub Host: Host: Committee for Committee for ‘Imagine another Life ‘Imagine another Life through the Products’, through the Products’, CANPAN CenterCANPAN Center
Special Sponsor: Special Sponsor: Daiwa Daiwa SecuritiesSecurities
October 31 (Sun) – November October 31 (Sun) – November 7 (Sun)7 (Sun)
＠＠ Osaka International Osaka International Convention CenterConvention Center
Host: Junior Chamber Host: Junior Chamber International (JCI)International (JCI)Sponsor: Daiwa SecuritiesSponsor: Daiwa Securities・ ・ Running a booth at ‘Future Running a booth at ‘Future Expo’, Expo’,
・ ・ Panelists for sectional anelists for sectional meetingmeeting
Guidance on Social Responsibility, provides harmonized, globally relevant guidance for private and public sector organizations of all types based on international consensus among expert representatives of the main stakeholder groups,.
What will ISO 26000 achieve? It will integrate international expertise on social responsibility –will be a powerful SR tool to assist organizations to move from good intentions to good actions.
Source: ISO Web site . Japan Business Federation Political Sociology Division 2010.6.10 「 Summary of Result of Copenhagen Conference ISO260000 」
ISO 26000 （ Publish in Nov. 2010 ）
1. Accountability 2. Transparency 3. Ethical behavior 4. Respect the interest of stakeholders 5. Respect the rule of law6. Respect the international code of conduct7. Respect the human rights
7 Code of Conducts
1. Administration of the organization2. Human rights3. Labor practice4. Environment 5. Fair business practice6. Consumer issues7. Community participation and development
Saurce: OCCASIONAL PAPER No. 15 , February 2009 The New Moneylenders: Are the Poor Being Exploited by High Microcredit Interest Rates?Note: Total Interest and Fee Income/Average Total GLP: average of 175 sustainable MIX MFIs, weighted by loan portfolio.
1 Poor people do not repay a loan.Customer continue to repay as long as they value theservice. The greatest incentive for the poor to repay theloan is to access to repeat loans.
2Poor people can not pay the interest ratesnecessary to cover the costs to delivering theservice. Poor can not pay the price.
The poor willing to pay the cost for quality services.For the poor, access to the financial service is moreimportant than the price.
3Credit for consumption purposes should neverbe provided.
Economic shock is frequent and diverse for the poor.They should prevent selling income generating assets tocoop with these risks by microfinance
4 Microfinance creates economic opportunity.The borrower or user of MF create opportunity. Onlypeople with economic opportunity can benefit from credit.
5 Poor can not save the money.Poor people do saving. Saving is more important thanborrowing for the very poor to manage their future.
6MFI can reach to the very poorest of the poorthrough credit.
Debt financing is not a good development tool for thedestitute.
7 MFI is donor dependent institutions.There are over 600 Financially self sufficient (FSS) MFIs.FSS is necessary for an MFI to reach large numbers ofpeople
Purpose: Raise funds in the capital markets to accelerate funding available for health and immunization
programmes in 70 of the developing countries around the world.
Issue date and amount:Mar. 19, 2008 $211 million equivalentFeb. 20, 2009 $437 million equivalentMar. 24, 2010 $338 million equivalent
Highlights of “Impact Investment Bonds”
Vaccine Bonds
Issuer: IFC
Purpose: Support microfinance businesses with the purposeof fostering economic independence by providing small scale financial services to the poor segment
s.
Issue date and amount:Nov. 20, 2009 $275 million equivalentSep. 22, 2010 $342 million equivalent
Microfinance Bonds
Issuer: IBRD
Purpose: Support projects in the World Bank’s member countries that meet specific criteria for low-carbon project.
Issue date: February 3, 2010
Issue amount: $106 million equivalent
Green Bonds
Issuer: ADB
Purpose: Support water project by developing countries in Asia and the Pacific.
Issue date: April 16, 2010
Issue amount: $628 million equivalent
Water Bonds
InvestorsInvestment
in capital market
Financial management
Funding
Support for vaccine securing program
DonatorDonation for up to
20 years
Daiwa Securities joined the panel with GAVI on the 8th plenary session of the Leading Group on Innovative Financing for Development (16-17 Dec 2010, Tokyo)
Purpose: Support future lending projects in renewable energy and energy efficiency, both of which are identified by EIB as key areas for mitigating the effects of climate change.
Issue date and amount:
May. 21, 2010 $393 million equivalent
Nov. 12, 2010 $118 million equivalent
Climate Awareness Bonds
Microfinance Bonds Education Bonds
Issuer: EBRD
Purpose: Support micro and small enterprises, which are not catered for by the formal financial sector,
with sustainable access to financial services, via a range of financial institutions.
Issue date: June 15, 2010
Issue amount: $96 million equivalent
Issuer: AfDB
Purpose: Finance projects in the field of education and hence foster economic and social growth in
African countries.
Issue date: August 30, 2010
Issue amount: $137 million equivalent
Poverty Reduction Bonds
Issuer: IADB
Purpose: Support innovative poverty alleviation programs in Latin America and the Caribbean, including several conditional cash transfer programs, such as Oportunidades in Mexico.
■Participating in the international initiatives GC (UN Global Compact ）PRI （ Principle for Responsible Investment ） UNEP FI （ UNEP Finance Initiative ）CDP （ Carbon Disclosure Project ）
■Cooperation with the international organization/NGOGRI （ Global Reporting Initiative Japanese Edition ）FTSE4Good （ Policy Committee Member of the SRI Index ）SIF-J （ Board Member of Social Investment Forum Japan ）
■Real business as a result of partnership with ＮＰＯ・ＮＧＯ
2 ） Daiwa SRI Fund Grant Program （ Civil Society Initiative Fund ）In order to strengthen the basis of domestic NGOs operating in the field of human security,
we support them for personnel expenditure (instead of program cost) aiming at nurturing leaders for the core of the organization. The operation is taken from the outstanding balanceof donation of Daiwa SRI Fund & Daiwa Eco Fund. Since 2006, there have been 24 cases in total with more than 42 million yen of support.
1 ） Social Business College （ Kopernik ）
This is a lecture by social entrepreneur for social business practice, held bimonthly since Oct. 2010 (12 lectures in 2 years), for the university students and working persons. The operation is funded by the outstanding balance of donation of Daiwa Eco Fund and contents can be found in the web.
3 ） Daiwa Securities Group – Tsunami Reconstruction Fund （ Asia Community Center 21 ）From 2005 (after receiving appeal from the UN), for the next 10 years, we provide support
of 10 million yen every year for reconstruction assistance NGOs in devastated areas (India, Sri Lanka, Indonesia) and is used as a source for microfinance and many more.
