Sustainability Initiatives in Our BusinessJAPANESE

The SuMi TRUST Group is working actively to develop financial products and services based on the concept of Creating Shared Value (CSV), whereby companies create social value by addressing society’s needs and challenges while simultaneously creating their own economic value.
When pursuing these sustainability businesses, it is important to verify the appropriateness of the social value we are providing.
The SuMi TRUST Group uses the relationship with SDGs (sustainable development goals) as one means of verification.

Businesses that Contribute to the Environment and Society

Environmental and Social Challenges Examples of Products and Services Social Value Related SDGs
Climate change issues
  • ・Impact on ecosystems and food production due to global warming
  • ・Increasing wind and flood damage, etc., caused by abnormal weather
  • ・Increasing impact on economy and life caused by rising sea levels and drought
  • ・Renewable energy project finance
  • ・Renewable energy funds
  • ・Micro hydro generation, small- to medium-sized hydro generation
  • ・Renovation loans for smart houses
  • ・One-stop services for energy-saving investment
  • ・Promoting energy shift through spread of renewable energy
  • ・Reducing amount of fossil fuel combustion by promoting energysaving investment
  • ・Transition from a fossil fueldependent society to de-carbon society
AFFORDABLE AND CLEAN ENERGY CLIMATE ACTION

Renewable Energy Project Finance

SuMi TRUST Bank is promoting the adoption of renewable energy through project finance. Loans are increasing for large-scale offshore and onshore wind power generation overseas, and for mega-solar projects in Japan. The accumulated generation capacity of these projects is 4,154 MW, and annual power output has reached 7,637 GWh.

Micro-Power Generation in Water Supply Systems

In Japan’s water supply systems, an increasing amount of energy is released without being harnessed, such as untapped use of vertical drop in gravity-flow supply pipes and the release of surplus pressure in pumped supply pipes via pressure-reducing valves. Sumitomo Mitsui Trust Panasonic Finance supports the introduction of power generation systems that tap into such wasted energy through lease finance and the use of leasing agreements for water supply systems with local authorities.

Climate Change

Environmental and Social Challenges Examples of Products and Services Social Value Related SDGs
Natural capital (biodiversity issues)
  • ・Increasing resource procurement risks due to depletion and pollution of natural capital
  • ・Shortages or illegal trade in living resources used for food, pharmaceutical production, etc.
  • ・Damage to biodiversity due to increasing number of rare and endangered species
  • ・Environmental rating loans with evaluation of natural capital preservation
  • ・Social contribution donation trusts and charitable trusts to make donations to ecosystem conservation activities
  • ・Creating a socio-economic system with low natural capital risks
  • ・Biodiversity conservation and sustainable use of natural capital
ZERO HUNGER CLEAN WATER AND SANITATION AFFORDABLE AND CLEAN ENERGY CLIMATE ACTION LIFE BELLOW WATER LIFE ON LAND

Environmental Rating Loans with Evaluation of Natural Capital Preservation

Efforts to address issues related to natural capital across the global supply chain are an indispensable part of management strategy in order for a company to continue its business. SuMi TRUST Bank provides Environmental Rating Loans with Evaluation of Natural Capital Preservation, which embed the concept of evaluating impacts on natural capital and a company’s initiatives into the environmental-rating evaluation process that assesses its environmental measures. This is the world’s first attempt to incorporate natural capital evaluation into loan criteria, and our efforts have been cited in government environmental white papers and European Commission reports as an example of leading-edge practice.

Social Contribution Donation Trusts

Through social contribution donation trusts set up for the purpose of making donations to public-interest organizations carrying out social contributions activities, SuMi TRUST Bank supports the activities of the Association of National Trusts in Japan, an organization that aims to protect nature by purchasing land that forms the natural habitat of endangered species in Japan.

Natural Capital (biodiversity issues)

Environmental and Social Challenges Examples of Products and Services Social Value Related SDGs
Environme-
ntally friendly property
  • ・Advance of global warming due to energy consumption of buildings
  • ・Loss of biodiversity and other environmental destruction due to urban expansion
  • ・Environmentally friendly construction consulting
  • ・Consulting to support applications for CASBEE for Real Estate certification
  • ・Consulting to support “leading projects” program for sustainable buildings
  • ・Making the value of smart towns and cities visible, supporting development policies
  • ・Spread of high energy efficiency, high resource efficiency cities and buildings
  • ・Enhancing value of environmentally friendly property
  • ・Spread of buildings that contribute to improvement of production efficiency
AFFORDABLE AND CLEAN ENERGY INDUSTRY, INNOVATION AND INFRASTRUCTURE SUSTAINABLE CITIES AND COMMUNITIES RESPONSIBLE CONSUMPTION AND PRODUCTION CLIMATE ACTION LIFE ON LAND PARTNERSHIPS FOR THE GOALS

Environmentally Friendly Construction Consulting

To promote the introduction of environmentally friendly property, SuMi TRUST Bank provides environmentally friendly construction consulting services where we advise on the installation of energy-saving systems in buildings, ways to take into account landscapes and ecosystems, extension of building life spans, and adoption of recycling systems.

Consulting to Support Applications for “CASBEE for Real Estate” Certification

CASBEE* for Real Estate is a system developed in 2012 for the purpose of promoting widespread use of environmental building performance evaluations in the real estate market. SuMi TRUST Bank engages in consulting services to support applications for the CASBEE for Real Estate certification. CASBEE accredited professionals with proper qualification support the selection of real estate applying for certification while also evaluating the environmental performance of real estate and supporting the submission of applications for certification to certifying bodies.

* The comprehensive assessment system for built environment efficiency (CASBEE) certification is an environmental performance evaluation system for buildings being developed and promoted in Japan under the guidance of the Ministry of Land, Infrastructure, Transport and Tourism.

Environmentally Friendly Property

Environmental and Social Challenges Examples of Products and Services Social Value Related SDGs
Sustainable investment
  • ・Expanding impact of corporate activities on the environment and society
  • ・Increasing importance of addressing environmental and social issues in the supply chain
  • ・Responsible investment funds
  • ・Stewardship activities (engagement, ESG integration, exercise of voting rights)
  • ・Promoting investment in companies that consider ESG
  • ・Increasing corporate consideration of the environment and society through stewardship activities

Related to all 17 SDGs

ESG Integration

While financial information such as earnings reports are important in the short term in evaluating companies as investments, we think assessments relating to the sustainable growth prospects of investee companies are important over the mediumto long-term. With the aim of identifying ways to improve and support sustainable earnings at investee companies, Sumitomo Mitsui Trust Asset Management strives to effectively gather ESG information such as the amount of added value derived from a company’s products and services, the sustainability of that value, and the resilience of the governance system in supporting the provision of that added value, and uses this information in the assessment of companies.

Providing Responsible Investment Funds

The Group launched Japan’s first responsible investment (RI) Fund aimed at corporate pension in 2003. Using the same RI approach, the SRI Japan Open (Good Company) mutual fund offered by Sumitomo Mitsui Trust Asset Management is marketed to a wide variety of investors, including individuals, and is now regarded as one of Japan’s standard-setting RI funds.

Sustainable investment 

Stewardship Activities of Sumitomo Mitsui Trust Asset Management 

Environmental and Social Challenges Examples of Products and Services Social Value Related SDGs
Superaging society issues
  • ・Vulnerability of socio-economic system due to advent of superaging society
  • ・Delayed response of financial services to address elder clients with problems such as dementia
  • ・Security Trust
  • ・Anshin Support Trust
  • ・Reverse mortgages
  • ・Guardianship System Support Trust
  • ・Financing for healthcare REITs
  • ・Creating a regional society where the elderly can live in safety and security
  • ・Ensuring the safety of wealth management for the elderly
GOOD HEALTH AND WELL-BEING QUALITY EDUCATION DECENT WORK AND ECONOMIC GROWTH

Wealth Management Products for Those with Declining Capacity for Judgment

SuMi TRUST Bank has a range of wealth management services for clients with dementia and can develop solutions for individual needs. For example, the Guardianship System Support Trust protects from embezzlement the assets of those under the adult guardianship system; the Security Trust protects those with declining capacity for judgment against money transfer scams; and the Anshin Support Trust is designed so pre-specified arrangements to pay sums necessary to cover usage fees for a nursing home for the elderly can be made for those worried their capacity to manage their wealth will decline later in life.

Participation in Comprehensive Regional Care

Comprehensive regional care is a necessary support system to enable the elderly to continue to live in ways that suit them in a place they are most comfortable until they reach their final days. We think SuMi TRUST Bank can play an important role as a financial institution that shoulders a responsibility for managing elderly client assets, and our branches nationwide are actively participating in efforts to build comprehensive regional care systems through measures such as cooperation with comprehensive regional care support centers and participation in case study groups organized by healthcare professionals.

Super-aging society issues

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