This fiscal year we settled on the following purpose for the SuMi TRUST Group: to create new value with the power of trusts and sow the seeds of a prosperous future for our clients and society. We position the creation of new value, in terms of climate change, on (1) efforts to tackle social issues and (2) the development of new technology-driven services and solutions.

As a signatory to the Principles for Responsible Banking (PRB), we are committed to addressing climate change issues with the common goal of achieving a carbon-free society, and as a financial group specialized in trust banking, we will contribute to the realization of a sustainable society by demonstrating our significant expertise in finance, trusts, and technology*.

*Forming a group of experts with discerning engineering capabilities to deploy technology in social settings for the purpose of realizing a society with net-zero carbon emissions.

Long-term target for sustainable finance Cumulative balance of loans executed in
FY2021–2030: ¥5.0 trillion (incl. ¥3.0 trillion in environmental fields)

Examples of Sustainable Finance

  • Positive impact finance
  • Renewable energy finance
  • Financing for green buildings

We also intend to focus on transition finance to support the shift towards a carbon-free society.

SuMi TRUST Bank has set a new long-term target for sustainable finance in the banking sector (loans to corporate clients): ¥5.0 trillion in cumulative loans over the 10-year period from fiscal 2021 through 2030, including ¥3.0 trillion in environment-related fields. The Bank will aim to solve climate change and other environmental and social issues and help realize a sustainable society together with clients by actively supplying funds to environmental and social fields.

Sustainable finance refers to financing extended to businesses and clients that contribute to solving environmental and social issues based on such international standards as the Green Bond Principles and the Social Bond Principles. For instance, loans, syndicated loans, fixed income investment services, fund investments, financial advisory services, and trustee services.

In the area of asset management, the combined balance of ESG investing carried out by Sumitomo Mitsui Trust Asset Management and Nikko Asset Management totals some ¥32 trillion. Both asset managers have identified climate change as an important ESG topic and endeavor to minimize climate change risks through engagement with investee companies. They also play a leading role in Asia by participating in global initiatives on climate change.

Going forward, we will continue to examine how we can make contributions in other businesses and consider the establishment of sustainable finance targets for the Group as a whole.

Category Type Examples of sustainable finance
Sustainable finance Environmental(green) fields Green finance
  • Businesses that adapt to, or mitigate, climate change. For example, renewable energy, energy efficiency improvement, and green buildings.
Social finance
  • Employment creation, poverty reduction, nurturing of startup firms, regional revitalization, basic infrastructure like public transport and water supply, and essential services such as hospitals and schools.
Finance based on assessments of ESG/SDGs
  • Positive impact finance
  • Sustainability-linked loans
Transition finance
  • Businesses that help society transition to net-zero carbon emissions.
  • Businesses that help society adapt to a rapidly aging population.
Other
  • Other businesses that help solve environmental problems and social issues.
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