Nomura Securities Co., Ltd. (Representative Director and President: Kentaro Okuda, hereinafter referred to as "Nomura Securities") and Nomura Farm Hokkaido Co., Ltd. (Representative Director: Minoru Horita, hereinafter referred to as "Nomura Farm Hokkaido") have started a verification (hereinafter referred to as "this verification") regarding decarbonization in the field of agriculture using the technology of TOWING Co., Ltd. (Representative Director: Kohei Nishida, hereinafter referred to as "TOWING") and Saguri Co., Ltd. (Representative Director and CEO: Shunsuke Tsuboi, hereinafter referred to as "Saguri") in Hokkaido.

Nomura Group established Nomura Farm Hokkaido in September 2011 and has been practicing regional social contribution and support for the food and agriculture industry through large-scale cultivation in approximately 20 hectares of outdoor and facility farming and agricultural management through sixth industry. Climate change has been exacerbated globally in recent years, and in the midst of increased demand for decarbonization in the agricultural sector, we have decided to work on this verification by focusing on the cutting-edge technology of impact startups with a view to solving social and environmental issues and achieving sustainable economic growth. In this verification, the environmental impact reduction effect of soil improvement generated by technology and the verification of the productivity improvement effect of yield and others will be conducted. The Ministry of Agriculture, Forestry and Fisheries' "Green Food System Strategy" promotes environmental burden reduction measures such as zero emissions of the agriculture, forestry and fisheries industry by 2050 and a 30% reduction in the usage of chemical fertilizers from imported raw materials and fossil fuels. We believe that this verification is also significant as a concrete measure in line with this policy. Through this verification, we aim to contribute to the transition to a decarbonized society and the sustainable development of agriculture both domestically and abroad, while also promoting the development of impact investments that consider solving social issues that are drawing attention as new markets.

Regarding the growth status and soil analysis by the dispersion of the sky coal, we will take a multifaceted approach to this verification by utilizing the solution of Saguri, an impact startup that aims to solve global agricultural issues with satellite data and AI technology, and TOWING, by cooperating with CCaS (Carbon Credit and Sustainability) system development in was scattered on a part of Nomura Farm Hokkaido's farm land, and the farming method that converts a large part of chemical fertilizers into organic fertilizers will be demonstrated. Because the application of such biochar to farmland results in carbon sequestration (carbon farming) effect on the soil, we will also work with TOWING to utilize carbon credit system.

The state of plowing Nomura Farm Hokkaido's farmland with sky coal scattered (sky coal is scattered in the red frame. Black parts are sky coal).

In this verification, TOWING, an impact startup, will scatter the next-generation soil improvement material "sky coal" (see below for details on TOWING) developed and sold by the company in a corner of Nomura Farm Hokkaido's farmland, and demonstrate the agricultural method that converts a large amount of chemical fertilizers into organic fertilizers. Cooperation with CCaS (Carbon Credit and Sustainability) system development will also be carried out, since carbon sequestration (carbon farming) effect on soil is achieved through the application of such biochar to farmland. Saguri, an impact startup that solves global agricultural issues with satellite data and AI technology, will be utilized for verification of the environmental burden reduction effect of soil improvement and the productivity improvement effect of yield and others.

Regarding the growth status and soil analysis by the dispersion of sky coal, we will take a multifaceted approach to this verification by utilizing the solution of Saguri, an impact startup that aims to solve global agricultural issues with satellite data and AI technology, and TOWING.
We aim to create social impacts by combining Nomura Group's knowledge in the food and agriculture industry with the technology of both companies.

Under the purpose of "Challenging together with the world by the power of the financial capital markets to achieve a prosperous society," Nomura Group will contribute to the realization of a sustainable society through supporting customers' efforts to solve social issues and creating innovation.

Overview of this verification.

About TOWING Co., Ltd.

Founded in February 2020 as an impact startup based on the mission of realizing a sustainable, super-circular agriculture on both the Earth and space, TOWING uses the technology of using soil-derived microbial communities owned by the company to efficiently screen and culture biomass from unused regions. They have developed and sold a high-functional biochar called "sky coal". When applied to farmland, it has the effect of improving the quality and yield of crops, reducing greenhouse gas emissions, and promoting resource circulation. They are a Ministry of Agriculture, Forestry and Fisheries certified business for establishing the foundation for the Green Food System Law, and have won many awards including the "STI for SDGs" award from the Minister of Education, Culture, Sports, Science and Technology in fiscal year 2022.

About Saguri Co., Ltd.

Founded in June 2018 in Hyogo Prefecture and certified as a startup from Gifu University. It is an impact startup that aims to achieve coexistence between humanity and the earth. The core technology is satellite data analysis using AI technology, and it aims to solve social and environmental issues. Overseas, it has local subsidiaries in Singapore and India, and is expanding its business in India, Vietnam, Thailand, Bangladesh, Kenya, Tanzania, Peru, and Brazil. It has won numerous awards, including the Prime Minister's Award at the 6th Space Development and Utilization Awards.